What is the impact of the strengthening of the dollar on Miami real estate in the first quarter of 2015?Concerning sales in Midtown and Key Biscayne, nothing very significant in terms of stats. Brazilians are buying less in Miami Beach, more in Downtown and Brickell. Not much to fear, they are simply buying less extravagant properties (like the ones of Miami Beach). For example, the exchange rate to the dollar of Brazil’s currency has plummeted by 30%. But anyways, the market has always benefited from political and economic troubles overseas. Overall, the top buyers are still first Americans, then Europeans (mostly Italians and French), Canadians and South Americans. The category “other” is consequent – it properly comprises Northern Europeans, Swiss and United Arab Emirates people (see article about top 10 buyers). In the end, there is nothing very representative of the impact of the Euro in early 2015: the percentage of French buyers have slightly decreased in Miami Beach, but increased in Downtown and Brickell / whereas Italians have been more represented among the pool of international buyers in all 3 locations as compared to 2014.
Maison & Objet
There are plenty of cool events this month! To mention only one, I would recommend you to go to the Maison & Objet tradeshow. Miami Beach will host the infamous salon at the Convention Center from May 12th to May 15th. It is a very exciting news as you will be able to furnish your newly-bought unit with the best of worldwide design! It is the ideal fair to pick your home décor and design, with an impressive range of furniture, materials and accessories. I have done it in Paris before, and it is a truly inspiring experience to decorate your home. It is a great trade show. This time, Miami has been chosen to host the event as the heart of the Americas for both North and South Americans along with a selection of 300 brands.
If you are very much into interior design, you can also attend the numerous daily conferences they have set up, including some about cultural taste in design. So, every one of you should find his or her right fit! I recommend that you go have a look at the exhibits as you might want to buy a condo after only looking at magnificent interiors! There is such an upscale spirit reigning there, you should love it!
The new hotspot that recently opened in Brickell is Coya. Halfway between a restaurant and a nightclub, the venue has arrived to Miami after getting great reviews in London and Dubai. It has found home in a brand new space at 999 Brickell Ave. It has a ceviche bar, a pisco bar specializing in "bespoke pisco infusions," and a menu of classic Peruvian fare. Apparently, the difference between that Coya and the ones in Dubai and London is that, here, there is a bigger focus on Latin flavors and no Japanese influences.
I loved the spicy quinoa salad and the ceviche. The lava cake is a must so I recommend that you order accordingly: bearing in mind that it is worth not skipping the dessert! I felt completely transported to the heart of Latin America with contemporary Peruvian cuisine, and art, music and culture coming straight from all over Latin America! I have also heard that they organize exciting pop ups, performances and readings.
Who's buying now?
In the 10 following countries, the interest in purchasing in the US, hence in Miami, has almost doubled!
Here is the list along with some explanations:
Ranked 10th are Germans, with an expected growth in prospective homebuyers of 95.2%! Indeed, Germany has a high number of high-net-worth people that comes 2nd after the USA. That makes them very much able to afford international property. Despite the slowdown of the Eurozone, Germany has grown faster than the rest of the countries.
9th come Swedish people whose purchasing interest has simply doubled. As their economy tends to be stagnant and home prices in Sweden incredibly high, US houses are appealing!
Canadians prospective homebuyers have increased by 107.7% over the past year because the US market does not seem to be as much overvalued as the Canadian one. What’s more, their currently strong economy provides investment opportunities.
Australians arrive in 7th position with a 121.9% growth in interest. The reasons are the same as for the latter, not to forget that the Australian dollar has been gained value as compared to the US dollar.
Following the controversial “Help to Buy” government program in the UK, prospective buyers have experienced a 153.8% growth because US homes look not only safer but also more profitable.
Ranked 5th are wealthy Italians that have the purchasing power to invest abroad rather than in their tumbling economy.
The growth in prospective homebuyers has attained 190% in France as rich residents are running away from tough regulations and high taxes to where the grass is greener.
Hong-Kong and China arrive in the top 3 with a 254.2% growth in interest. Although their economies have one of the fastest growth in the world, there is a fear that it would slowdown along with shadow banking activity. To that extent, wealth could be better protected by investing abroad.
The Swiss and their considerably appreciated currency against the US dollar keep on investing in the US, with a growth of interest by 269.7%.
The ultimate buyers now are from the United Arab Emirates (352.2%!), knowing that there are 1,000 ultra-net-worth residents there mostly linked to the oil and gas industry.
Not in the US’ top 10, South Americans represent the actual most important buyers in Miami. So if we consider all of them, Miami has quite an interesting pool of buyers!