Since the inventory in Miami Beach and Downtown is decreasing these buyers are very aggressive. Indeed, they make offers as soon as properties become available on the market.
Numbers speak for themselves; 3 condos in the $2 million range at Canyon Ranch, were under contract after only one day on the market!
The very good news is that 87% of the European buyers are cash buyers and are only interested in luxury condos. Generally, they are willing to spend up to $2,000/sqft for personal use and a little less if the property is an investment.
My question is why are they assaulting Miami’s market now? It is curious since 2 years ago prices were lower and the euro was stronger than the dollar.
It seems that the instability in the eurozone coupled with attractive prices in Miami has brought many Europeans to think about investing abroad. Moreover this place is the perfect destination to invest in because it’s a multinational city with a European flavor. Finally, they can get so much more for so much less money. Even if prices are strengthening, Miami properties are still from 50% to 60% per square feet less expensive than major European cities.
For the skeptical readers, check this out: recently a penthouse in the Continuum building has been sold to an Italian buyer for $25 million. It is one of the highest prices ever paid for a condo in Miami-Dade County!