What Brexit May Mean for Miami
With the Brexit decision still fresh in people’s minds, many are asking what potential impact the decision made by the U.K. to leave the European Union might have for markets and economies around the world. The real estate market is no different, with unsteady markets investors could be looking to make their investments elsewhere and the United States could see an uptick in real estate investment from foreign investors with one city in particular.
With its beautiful beaches, tropical year round weather, and nightlife Miami has long been considered a destination city and one that people have flocked to for decades. These previous advantages coupled with the Brexit decision could subsequently cause a big boom in the Miami real estate market. According to an article written by Sara Girard, Daniel Kodsi, CEO of Paramount Miami Worldcenter is quoted as saying, “London was amongst the world’s most lucrative real estate markets, however, last week’s U.K. vote is already causing property prices to plunge, which means that Florida real estate will likely move up the list of busiest global investment destinations.” Kodsi also said that, “Miami has the most stable real estate market in the country” (Girard).
This is good news for both foreign and domestic investors who are looking to capitalize on an already hot market. In the same article, Christopher Zoller, chairman of the board of the MIAMI Association of Realtors, said that compared to other major global cities such as New York, Paris, Hong Kong and London, Miami was a “great bargain” because it is a ”growing world-class city that attracts both domestic and foreign buyers” (Girard). Statistics from the Florida Realtors Association report that Florida real estate values will traditionally increase anywhere from four to ten percent on an annual basis, with Miami having values climb into the teens in recent years (Girard).
Gerard Yetming, executive vice president at Colliers International, remarked that another reason that Miami could be the city that foreign investors turn to was its quick recovery during the last economic downturn. Yetming was quoted as saying, “After the last downturn, Miami wasn’t expected to come back so quickly. It received international attention. It has become a real destination for investment internationally.” (Girard)
With Miami’s pre-existing real estate advantages and so many questions surrounding not only the United Kingdom’s economy but the economies of other European countries as a whole potential investors could take notice and begin to explore options outside of Europe with Miami being one of the top destinations.