Canadians make up 39 percent of the international pool of buyers that spent $12.7 billion on residential real estate in Florida in 2010, according to a new report.
Brazil’s growing influence in the market is tied to 8 percent of purchases, according to data from the National Association of Realtors and Florida Realtors. The U.K. and Venezuela tied at 7 percent each, with Germany, France, Argentina, Colombia, Australia, Mexico and Spain driving the balance of buyers.
More than 86 percent of the Florida transactions involving international buyers are being completed in cash.
The NAR report also highlights the fact that investors continue to drive a lot of sales activity. Only 12 percent of the foreign buyers plan to spend more than six months a year in their Florida properties, compared to 16 percent who plan to occupy their places for less than one month a year. A majority – some 56 percent – of the foreign buyers plan to use their properties between two months and six months a year.
For 23 percent of the foreign buyers, Florida real estate is perceived as a “profitable investment,” given the deeply discounted prices, rising rents in coastal markets such as in South Florida, and the weakness of the U.S. dollar, according to the NAR report.
Overall, foreign buyers account for 26 percent of Florida’s $48.8 billion in residential resales. Nationwide, foreign buyers account for only 3 percent of residential real estate transactions, according to the report.
For foreign buyers focused on Florida, the top destination is South Florida.
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