Nukondo: Capturing the International Buyers Market in Miami

South Florida has and continues to be a hotbed for international buyers, according to the 2017 Survey conducted by the Miami Association of REALTORS. Foreign buyers purchased 15,400 residential units (between August 2016 - July 2017), totaling over $7.2 billion in sales in the Miami-Dade, Broward, Palm Beach, and Martin counties.

A new real estate tech company called Nukondo is attempting to capitalize on this market segment. Their app provides a platform for real estate developers and new construction brokers to stay informed on the latest luxury projects. It standardizes and distributes this information globally, so that buyers and their agents can decide which condominium is most suited for their needs.

After three months of beta-testing, Nukondo has successfully on-boarded 72 of the most prominent projects in Miami such as One Thousand Museum, Missoni Baia, and Turnberry Ocean Club, with over 10,000+ units in inventory. “Our app helps developers expose their projects globally 24/7, allowing them to speed up sales and cut marketing costs,” says founder Jorge Brugo. “Be informed when you’re searching for that special new condominium and make sound buying decisions.”

Nukondo exposes international buyers to the Miami and Florida markets and directs them to a condominium sales team. In Miami, these international buyers are primarily coming from:

1. Argentina: 15%

2. Venezuela: 11%

3. Canada: 11%

4. Colombia: 9%

5. Brazil: 8%

The company will move into its full release once user feedback and content curation have been finalized. The company plans to scale beyond its pilot market of Miami, into other major U.S. and international metropolitan cities.

Article by: Katya Demina & Stephanie Warren

Colombia Tops Foreign Investment List as Miami Sees Surge of New Interest Amongst Brazilian Buyers

2017 has seen a surge of new interest amongst Brazilian buyers after they pulled back in 2015 and 2016, while also seen continued strength from Colombian buyers. Miami has long been a common home for South American flight capital, as wealthy South Americans seek to move their assets out of their countries due to crime and political instability. Colombia has seen an increase in flight capital and Miami has seen a spike in interest from their wealthy buyers over the past several years as their government formally ratified a peace deal with FARC, a guerrilla activist group,  after it was rejected by voters (On June 27, 2017, FARC officially demilitarized and handed over their weaponry to the UN). Brazilians have seen a volatile economy, crime and political turmoil effect their country. Unfortunately these same political factors, along with a strengthening Brazilian Real against the dollar put a slowdown on Brazilian buyers in Miami over the past 2 years (2015, '16). Now amid further uncertainty, many wealthy Brazilians have once again set their sites on moving their assets to the United States via Miami.

According to the MIAMI Association of REALTORS, Colombia leads all foreign countries in searches for Miami real estate, followed by Venezuela and Brazil. Colombia and Venezuela remained unchanged year over year as Brazil moved up from 5th, passing the United Kingdom and Argentina. According to Mansions Global, Turnberry Ocean Club is reporting that 21% of their international buyers have been Brazilian and One Thousand Museum is reporting that over 20% of their pre-construction buyers are Brazilian. Three Hundred Collins has seen 25% of their current pre-construction sales go under contract to Brazilian buyers and the building is over 80% sold.

“As Miami evolved from a tourist city to a global metropolis, we’ve seen more diversified foreign home buyers search and buy properties here. It’s no longer just South America. It is home buyers in India, China, Turkey, France and other countries who want to live the Miami lifestyle,” said Christopher Zoller, 2017 MIAMI Chairman of the Board. 

Top 10 Countries Visiting Miamire.com in March 2017:

1. Colombia
2. Venezuela
3. Brazil
4. Argentina
5. India
6. Canada
7. Philippines
8. Dominican Republic
9. France
10. Spain

Cash Sales in Miami Continue to Decline Through 2017

All cash sales in the Miami real estate market continue to decline through 2017, after reaching highs in 2014. The Miami Association of Realtors reported a 20% drop year-over-year for January 2017 cash home sales, with a mere 232 deals completed in cash. This is compared to the June 2014 peak with over 600 all cash deals completed during the period. The highest percentage of cash deals came following the last Miami real estate crash in Q1 2013, with cash sales hovering around 50% for all real estate transactions during the period. This all comes at a period where international investment has been slowing down, the U.S. dollar is strengthening against foreign currency and U.S. home prices continue to rise. This should give a leg up to cash investors looking to get a deal as sellers do not always like to take the risk on a buyer closing on their mortgage. It also points to the market beginning to hit a state of equilibrium as lenders become more comfortable issuing loans in the market and limited foreclosures and REO's available to investors. 

Miami Top Major U.S. City in 2016 For International Immigration

The Miami Metropolitan area was the top major U.S. city market in 2016 for international immigration. The year-over-year growth for the area was 1.1%. Miami is also reportedly the number one U.S. city for foreign born working professionals and those holding college degrees. This influx of immigration has helped bring equilibrium to a market that many thought may have been overdeveloped. This has led to rising housing prices, rising rents, low vacancy rates and rising record employment numbers. 

Russia Top Country Searching For Miami Real Estate Since Trump Election

According to reports, Russia is now the top country searching for Miami real estate since the election of Donald Trump. According to the Miami Association of Realtors®, data shows that Russians have been searching for real estate in Miami once again with Knight Frank reporting a 35% increase in Russian interest in buying luxury properties. The jump in demand stems from expectations of relations improving between the United States and Russia with the new Trump administration. Sunny Isles Beach has a large Russian population, which is reflected in the culture that encompasses the neighborhood. According to the same report, Canadians spent the most on South Florida real estate in 2016 amongst international buyers and 81% o their deals were all cash. 

Top-10 countries Searching Miami Real Estate

1. Russia
2. Colombia
3. Venezuela
4. Argentina
5. Canada
6. Brazil
7. India
8. Philippines
9. Spain
10. United Kingdom

2016 Foreign Investment Report: Venezuela Leads the Way

Foreign buyers are a major driving force behind the Miami real estate market. In all, foreign buyers spent $6.2 billion in real estate transactions last year in Miami, an increase year over year according to the 2016 Profile of International Homebuyers of Miami Association of Realtors Members. While many reports have warned that foreign purchasing in South Florida is shifting from residential to commercial, this study shows that residential sales amognst foreign home buyers is alive and growing.

South America still leads the list with Venezuela leading the way at 15% share of 2016 foreign residential sales, up 2% from last year. Venezuela is closely followed by Argentina, Brazil and Colombia. Although Argentina leads Brazil, Brazil in-fact spent more over the course of the time period, with Brazilians investing over $400 million in South Florida real estate over that time period. Venezuelans and Brazilians accounted for more in total sales volume in South Florida than all other international buyers combined during the timeframe. Brazilians were also the largest spenders, with the average buy spending $775,000. The average for a foreign buyer in Miami to spend is $570,000. Canadians were second at around $650,000 per investor. In general, Brazil investment has stalled in-terms of growth due to economic and political turmoil in the country while in Venezuela people are trying to escape a three-year plus recesseion. The study was performed in collaboration with MIAMI and the National Association of Realtors between August 2015 to July 2016.

Miami Developers & Agents Look to China to Spur Sales

Top Chinese real estate agents tour Miami's hottest new developments. Photo via MiamiHerald.com

As the Miami real estate market looks for a more diversified group of buyers, agents and developers are focusing on China as a new revenue stream where investment has historically been weak. Factors effecting this are Miami's new emergence on the world stage as a world class city to invest in, but also due to proximity and the fact that there are no direct flights between Miami and China. The Miami Herald reported in August that 20 of the top Chinese real estate brokers came to Miami to tour some of the top new projects. They are attracted by the affordability of the properties and value compared to other U.S. markets.

Only 2% of the home sales to international buyers in South Florida last year were to Chinese buyers. Despite this, during that same period Chinese investors spent $27.3 billion across other U.S. markets. Chinese investment has played a major roll in the continuously changing landscapes of New York and San Francisco real estate. China City Construction Co., a Chinese government owned developer, has purchased over $110 million of land in Brickell and Miami Beach. Additionally, Cathay Pacific Airways Ltd. is looking into a larger plane for long-haul flights between Hong Kong and Miami. Officials at Miami International Airport said that the flight could become a reality in the next 2 years.      

Brazilian Real Estate Investors Have Begun to Set Their Eyes On Miami Once Again

Scott F. Pryce, founder and CEO of TRX Investments; Luiz Augusto Faria do Amaral, co-founder and CEO of TRX Group; and Fernando Fiuza de Souza, managing director of TRX Investments and founder and managing partner of TRX Residential. Photo via MiamiHerald.com

The Real Deal is reporting that spurred by dropping rents back home, Brazilian real estate investors are beginning once again to focus their sights on Miami. Rents in Miami have stayed mostly stable despite the influx of new inventory that has begun to hit the market. In Brazil rents have dropped 5.2%. The investors are looking for an escape from the political and economic instability in Brazil. Brazil had fallen out of the top five countries with interest in Miami real estate in June after 17 consecutive months at the top, but has climbed back to third in July according to the Miami Association of Realtors. Bloomberg is reporting that TRX Residential, a Miammi-base real estate investment firm, wants Brazilian investors to commit close to $30 million dollars, helping them to double the funds size. Brazilians single handedly saved the Miami real estate market in 2012 when they came to purchase second homes and take advantage of a stronger currency compared to the dollar. Since then many economic and political factors have shifted the Brazilians demand for American real estate, where they focus on Miami due to proximity, stability and potential for growth. 

Colombia No. 1 Country with Interest in South Florida Real Estate June 2016

Colombia has once again been named the country showing the most interest in South Florida real estate according to the Miami Association of REALTORS. June marked the 7th consecutive month that Colombia led as interest has shifted from Brazil which had single handedly saved the Miami real estate market over the last 8 years. Colombia is closely followed by Venezuela, Brazil and Argentina, although unstable governments and currencies have somewhat stunted investment from those countries over the past few months. Brazil has though since recovered to the 3rd spot after dropping to 5th earlier this year. Brazil had previously been the country with the most interest for 17 months. Colombians accounted for 10% of all residential home sales in South Florida to foreign nationals in 2015 with an average price of $516,000, a number only eclipsed by Venezuela (13%) and Brazil (12%). There has also been a resurgence of Canadian buyers as developers have begun to market their preconstruciton projects to Canada. The data was gathered by analyzing foreign nationals internet searches for properties and ranked. 

Miami Association of REALTORS Top 10 Countries Interested in South Florida Real Estate June 2016

1. Colombia
2. Venezuela
3. Brazil
4. Argentina
5. Canada
6. Spain
7. India
8. France
9. United Kingdom
10. Philippines