Colombians find gold mine in the US with "low risk, high profitability business"
Buying houses in Miami (Florida) arouses great interest among many Colombians, who are looking for real estate to live or rent, among other options.
For seven consecutive months, Colombia has occupied the first place on the list of countries that are looking for the most real estate in South Florida, according to a report by the Association of Realtors (real estate agents) of Miami.
The report indicates that Colombians are the most looking for houses for sale in that area of the United States and interest has been growing year after year. By September 2022 it had 11,77% of global searches, up from 8,93% in September 2021.
At the end of 2021, according to a consolidated report for the year, Colombia finished second, acquiring 12% of all international purchases in South Florida. Argentina was first (13%) and Venezuela, third (10%).
Fernando Arencibia, president of said association, analyzed the phenomenon and pointed out that "the changing political landscape in countries like Brazil, Colombia and Chile is leading global buyers to diversify their money in safer investments", despite the fact that the real estate sector in Miami has raised its prices for 10 years in a row.
Even so, the real estate analysis indicates that “South Florida remains a bargain compared to other global cities and US metropolitan areas,” as the price per square foot of Miami-Fort Lauderdale-West Palm Beach is 3.170 dollars (15 million Colombian pesos).
The Miami Association of Realtors ensures that this value is well below at least 30 global cities and more than 13 metropolitan areas in the United States such as Hong Kong (USD 28.570), New York (USD 17.191), San Francisco-Oakland-Hayward (USD 8.250) and Madrid (USD 6.173).
Why do Colombians buy a house in Miami?
Jorge Pérez, president and executive director of The Related Group, told Valora Analitik that the covid-19 pandemic has been one of the factors that have had the greatest impact and increased this interest, since people want to live in more open places due to if another health emergency occurs; But it is not the only reason:
“Since the beginning of the pandemic, and up to the present, investment outside the country has become a profitable business for Colombians who want to have an additional income. These properties are bought to be rented by Airbnb or even managed by prestigious hotel chains such as Hilton and Waldorf Astoria. What ends up attracting the attention of Colombians is that it is a low-risk, high-profit business.”
As an additional factor, Pérez told the specialized media that he sees a promising future in Miami because he does not believe that a strong recession will occur and added that "a lot of money will continue to come to the United States from Latin America, where today the money is going." escaping” due to the political context of the region.