What are international buyers looking for in the Florida market?
A detailed overview of where international clients are coming from and what they are buying in the "Sunshine State". Plus: a profile of the typical international buyer in Florida.
ORLANDO, Florida - November 1, 2024 - Florida Realtors® has released its latest report on foreign purchase and sale transactions in the state: the 2024 Profile of International Residential Real Estate Activity.
Purchases of residential property in Florida by international buyers between August 2023 and July 2024 fell by 44% compared to the previous 12-month period, in terms of number of sales. High prices and high interest rates continue to put pressure on the market. In addition, international buyers face strong competition from domestic buyers from other US states, against a backdrop of high prices and interest rates.
Although selling prices are higher, the sharp drop in transactions has reduced the financial volume handled by international buyers to the lowest level in several years: US$ 7.1 billion. This figure is 54% lower than the recent record of US$ 15.3 billion recorded in 2022. Among the countries that invested the most in 2024, Canada led the way with a total of US$ 1.3 billion. There was a drop in purchases by the British and Colombians, while the Argentinians bucked the trend and increased their investments to US$ 608 million.
High prices and rising condominium fees have driven away buyers of all profiles over the last year. Some 67% of respondents said that at least one of their international clients had given up buying in Florida, compared to 62% in 2022. The cost of the property was the main reason given (47%). Even so, Florida continues to be considered a good opportunity compared to other US destinations, although strong competition keeps discounts infrequent.
Florida's reputation remains strong on the international stage, but most buyers still prefer to visit before closing the deal. In 2023, 93% of respondents visited the state at least once before buying, compared to 92% in 2022 and 89% in 2021, when travel restrictions due to the pandemic limited access.
Main highlights of the 2024 report:
- US$ 7.1 billion - Total value of international residential purchases (non-commercial) between Aug/2023 and Jul/2024, 54% below the record of US$ 15.3 billion (Aug/2021 to Jul/2022).
- 10,900 - Number of used properties bought by foreigners in Florida (3% of total sales, down 44% on the previous year).
- 69% - International buyers who have their main residence outside the USA(Type A).
Top 5 buying countries by number of sales:
- Canada - 17%
- Argentina - 10%
- Colombia - 7%
- Brazil - 6%
- United Kingdom - 5%
Top 5 countries by financial volume:
- Canada - US$ 1.3 billion
- Brazil - US$ 695 million
- Argentina - US$ 608 million
- United Kingdom - US$ 317 million
- Colombia - US$ 307 million
Main destinations chosen by international buyers:
- Miami-Ft. Lauderdale-West Palm Beach - 49%
- Orlando-Kissimmee-Sanford - 11%
- Tampa-St. Petersburg-Clearwater - 7%
- Cape Coral-Ft. Myers - 6%
- Naples-Immokalee-Marco Island - 5%
- North Port-Sarasota-Bradenton - 4%
Other relevant data:
- US$ 469,000 - Median price paid by international buyers (against US$ 395,000 for the general average of used properties in Florida).
- 67% - International buyers who paid cash (compared to 50% on average in the USA).
- 74% - Buyers who intended to use the property as a vacation home, rental property or both.
- 54% - Boughtsingle-family homes.
- 93% - Visited Florida at least once before buying.
- 67% - Buyers came through referrals from personal contacts, business contacts or former clients.
- 23% - Brokers reported having clients (US citizens or not) looking for real estate abroad.
- 41% - Brokers who speak a language other than English.
- 66% - Brokers who said they had "had no problems" dealing with international buyers.
Source: Floridarealtors.org