General

Foreign investors look to Florida for commercial real estate

Many individuals and companies invest in Florida’s real estate market every year. However, a new study found that more investors from Asia are buying commercial real estate in Florida, according to the National Association of Realtors.

Foreign investors from China purchasing real estate in Florida has increased. Adding to the foreign investor pot includes buyers from Venezuela, Argentina and Brazil. While foreign investors from these countries have increased, the study found that investors from the United Kingdom, France and Germany have decreased compared to previous years.

Real estate transactions by foreign investors decreased by almost 16 percent this year; however, the study found that foreign sales in Florida actually increased by almost four percent, meaning that prices have increased.

While Asian investors accounted for an average of eight percent of foreign real estate purchases in Florida, investors from Canada and Latin America continue to lead the pack. Canadian investors accounted for 30 percent of real estate purchases by foreign investors, and Venezuelans account for eight percent.

Realtors and professionals in the real estate market expect more Asian investors in the future. They said that investors in Asia are becoming more familiar with real estate ventures in Miami and other cities in Florida, and they expect more Asian investors in New York to eventually come down to Florida.

Purchasing commercial real estate in Florida can be a complex investment. Real estate investments can be difficult to understand in the first place so investors from a foreign country may face different obstacles compared to local investors. Individuals and companies interested in investing in commercial real estate should understand what options are available and how the process works by consulting a commercial law attorney to discuss specific issues.

Source: Miami Herald, “Florida real estate attracting more Asian buyers,” Martha Brannigan, Oct. 4, 2013

Fri Aug 24, 6:08pm