Brexit Could Signal Boom For Miami Real Estate
Brexit Adds a New Dimension to the Global Real Estate Landscape
With the UK voting to leave the European Union, what does Brexit mean for South Florida? According to real estate experts, it could mean a big boom in the Miami real estate market.
“London was amongst the world’s most lucrative real estate markets, however, June’s referendum vote is already causing property prices to plunge, which means that Florida real estate will likely move up the list of busiest global investment destinations”, Daniel Kodsi, CEO of Paramount Miami Worldcenter said.
Kodsi, a developer of 24 Florida communities, predicts Florida’s real estate market will likely experience an increase in foreign buyers seeking a stable and safe market to invest in.
“Miami has the most stable real estate market in the country”.
Miami Worldcenter is the city’s new retail, residential, entertainment and transportation complex. It’s also Florida’s largest building project, expected to be complete by the end of 2018. The project has attracted investor-buyers from 35 different countries.
“People who previously invested in London, UK real estate, which was once one of the most stable and profitable in the world, are now concerned about its instability and they are looking for a better real estate investment”, Kodsi said. “They are buying downtown Miami real estate because it is a safe and valuable investment”.
Christopher Zoller, who is the chairman of the board of the MIAMI Association of Realtors agrees with Kodsi, saying that Miami is a “growing world-class city that attracts both domestic and foreign buyers”.
“Regardless of what happens in the world, international and domestic buyers are always interested in Miami for its multicultural affinity, strategic location, excellent weather, exciting lifestyle and friendly global business environment”, Zoller said. “Additionally, Miami is a great bargain compared to other world-class cities, including New York, Paris, Hong Kong and London”.
The Florida Realtors Association reported that Florida real estate values traditionally increase from four to 10% annually, and in recent years, values have climbed in Miami although they have levelled off in 2016.
“Florida real estate is one of the most valuable properties in the world, yet is less expensive per square foot than Paris, New York and other global cities, but its valuations are consistently greater”, Kodsi said. “Brexit adds a new dimension to the global real estate investment landscape, which will take time to fully understand but may, with near immediacy, trigger a surge in additional foreign investment in Florida”.