MIAMI has been and will continue to be a most preferred destination for national, local and foreign investors and in itself makes the Miami market much more stable even in the momentary critical times.
Argentine developer Jose Luis Melo watched as Miami's real estate market reeled from the U.S. housing crash and thousands of the city's condominiums sat unsold -- and decided it was time to build.
It was late 2010 and Melo, who runs the Melo Group real estatecompany with his two sons, bought a $1.4 million parcel of land near downtown Miami.
Months later, the Melos lifted the first construction crane in the city's post-housing bubble era, betting they could find buyers for condos in a new 17-story tower.
"People told us 'You guys are crazy. The market is awash in units and you are going to build?'" he said, adding that he preferred to sell his own new building. The building's 98 condominiums sold out in just five months.
The condos were snapped up by cash-rich Latin Americans who have flocked to Miami real estate, helping to spur an unexpected rebound in a market that only three years ago stood as a poster child of America's housing bust. The buying highlights the role investors have played in some major U.S. cities showing strong signs of a revival after the crash.
Wealthy Latin Americans have long invested in south Florida property, but this time the resurgence in Miami is getting an extra lift from South American developers like Melo.
Increasingly developers from Argentina, Brazil, Mexico and Venezuela are getting into the act to meet demand from Latin Americans looking for a stable place to park their money and to make extra income through rentals.
"I've never seen them with the kind of clout they are carrying right now in construction and development," said Peter Zalewski, principal of real estate consultancy Condo Vultures. "It really is a coming of age period."
Buoyed by rising property prices and increasing sales, the real estate industry in South Florida is abuzz over more than 80 announced plans for new residential projects, and Latin American developers are involved in nearly one-third of them, according to Zalewski.
The developers are capitalizing on Latin Americans' long held view of Miami real estate as a safe haven against political and economic volatility at home. The Latin-flavored city, where Spanish is widely spoken, is a popular shopping destination and vacation playground.
Recent currency devaluations in Argentina, Brazil and Venezuela and fears that currencies in those countries may continue to weaken are driving the property buying, brokers say. *Source: Reuters, Kevin Grey.
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