Colombia has been leading real estate investments in Miami, United States, for the last 30 months. Colombians feature in the top five groups of foreigners who invest the most in the real estate sector in the U.S., primarily in South Florida, Illinois and California.
The US continues to be the main destination for direct foreign investments by Colombians, according to the 2024 Foreign Direct Investment (FDI) Confidence Index developed by the global consulting firm Kearney. This has been the case for 12 years.
Colombia’s growing presence in the U.S. real estate market reflects an important shift in the country’s investment patterns. With an economy seeking diversification and higher returns, U.S. real estate provides Colombian investors with an opportunity to protect and grow their dollar capital in a stable and profitable economic environment.
Colombia leads foreign real estate investments in Miami, US
Colombia is consolidating its position as the leading real estate investor in Miami and South Florida, and has been competing with Poland and the United Kingdom to be the country from which the largest number of real estate searches are made.
However, Colombians have been the main foreign investors in the real estate sector in the “gateway to the Americas” for more than two years, according to Gus Fonte, president of the Miami Association of Realtors.
Fonte says that foreign investors’ interest in Miami is so high because the city “continues to be the most welcoming and diverse city in the world.”
The U.S. real estate sector is the most robust globally and has attracted investments totalling approximately US$53.3 billion over the past year. The wide range of investment sectors within real estate, along with its stability, solidity, transparency and favorable regulatory framework, make it an attractive destination for international investors with high purchasing power.
According to information from MiamiRealtors.com, in September 2024 people from a total of 155 countries across the Americas, Europe and Asia searched for information on its three search portals selling private properties.
In 2023, Colombians led South Florida real estate purchases among foreign countries, according to Miami’s 2023 Profile of International Homebuyers. Colombian buyers accounted for 15 percent of all international purchases in South Florida, followed by Argentina (14 percent), Brazil (7 percent), Venezuela (6 percent) and Canada (6 percent).
Florida and Miami, the top destinations for foreigners
Florida is the leading destination for foreign buyers in the US, accounting for one out of every five transactions (23 percent of all sales). This trend has continued for the past 15 years. Within Florida, 47 percent of international home sales are in Miami, Fort Lauderdale and West Palm Beach.
According to Knight Frank’s 2023 Wealth Report, Miami remains a very attractive market for high-end properties (priced US$1 million and up) compared to other cities around the world. For US$1 million, homebuyers can purchase 64 square meters of high-end property in Miami, which is almost four times more than Monaco (17 square meters) and almost twice as much as New York (33 square meters) and London (34 square meters).
Timeshares, the fastest-growing Colombian investment
Real estate timeshares, also known as shared ownership or timeshare, are an investment model in which several owners share the rights to use a property during specific periods of the year. This modality is especially common in tourist destinations or high-value properties, such as apartments in coastal areas or country houses. Each owner acquires a fraction of the property, which gives him the right to use it for a specific period of time, usually one to two weeks per year, depending on the agreement.
This system allows investors to enjoy a property that might otherwise be unaffordable if purchased in its entirety. In addition, by dividing maintenance costs among several co-owners, timeshares represent a lower expense compared to owning a sole proprietorship.
Timeshares are important in the real estate sector because they open up the possibility of investing in real estate with a lower economic barrier. They also offer an opportunity to diversify investments and generate additional income through the rental of unused weeks. They are also in high demand for rentals due to population growth in most U.S. states.