Buyers from Argentina spent US$2billion on US property in the year to March 2013, with much of it in Miami, but their country’s recent default could hit sales in Florida, a top agent fears
Argentina’s economic problems could hit Florida property sales, a leading international agency fears.
In the year to March 2013, more than one in 10 of United States international real estate buyers came from Argentina and spent an estimated US$2billion on property mainly in Miami, according to data from National Association of Realtors (NAR).
Sotheby’s International Realty’s Sunny Isles branch in, Miami, says Argentinians figure highly among overseas condo buyers.
“Many foreigners are investing quite heavily in the South Florida region, especially in Miami condos and that’s great news for developers and agents looking to move property.
“Many of the buyers are from Argentina, and they’ve been a steady source of sales through much of this latest real estate boom. However, recent financial issues in Argentina have been causing many in the real estate market to wonder just how it might affect them.”
In July 2014, Argentina defaulted after last-minute talks in New York with a group of bond-holders ended in failure after the investors demanded a full pay-out of US$1.3billion and agreement has still to be reached.
In 2001, Argentina also defaulted due to heavy borrowing, causing a huge economic collapse in the country, leading many wealthy citizens to come to Miami, Florida, and buy property.
The current situation could impact on the economy and, in turn, affect Miami real estate sales, says the Sunny Isles agency.
“While the Miami area might see some emigration from people coming from Argentina, one also has to consider the number of sales that have been coming from residents of the country over the past few years.
“The residents of Argentina, thanks to their interest in real estate in the South Florida area, were a huge factor in helping in the recovery from the real estate crash of seven years ago.
“If the economy begins struggling in Argentina, what will these buyers do? They will not necessarily be able to continue investing in Florida, as they will have other interests at home that concern them. They might simply not have the money to spend on real estate, and that is a cause for concern amongst many developers and realtors.”
Mayi de la Vega, Founder and Chief Executive Officer of ONE Sotheby’s International Realty, in Florida, says, “Miami is flourishing. It is the eighth most visited city in the world. Infrastructure development is taking off in the city, as are businesses related to culture,” the Worldcrunch website reports.
Florida projects marketed in the summer in Buenos Aires include the Brickelle City Center, a mixed development in the financial and business district, and the ‘six-star’ One Thousand Museum luxury condos and a museum designed by Iraqi architect Zaha Hadid, to be built in downtown Miami.
“Despite the recession, Argentina remains an important market for us,” Mayi de la Vega adds.
By Adrian Bishop, Editor, OPP Connect