It wasn’t too long ago that Miami became synonymous with foreclosures and short sales, a perfect example of real estate excess that made us the laughing stock of the nation.
But thanks to the foreign buyer, with cash in hand, Miami is “probably the most under levered city in the entire country” according to Alicia Cervera Lamadrid, Managing Partner at Cervera Real Estate. StreetEasy spoke with Alicia Cervera to discuss the long-term implications of the last real estate cycle on Miami’s market.
Miami has the following countries to thank for its recovery:
Venezuela & Hugo Chavez. The former president arguably did more for our recovery than any other person. Venezuelans are still scrambling to get money out of their country. I’ve heard several people say that Hugo Chavez was Miami’s #1 real estate agent.
Brazil- When times were good and the Brazilian Real was strong, Brazilians were buying Miami property like hot cakes. Now that the economy is souring, Brazilians continue to buy in order to diversify, hedge against the devaluation of the Brazilian Real and preserve their capital. Miami has benefited from both the boom and now slowing of Brazilian economy.
Spain, Italy and France-due to slow growth and austerity measures. Europeans are also scrambling to diversify and have found real estate to be considerably less expensive than in Europe.
Argentina and President Cristina Fernández de Kirchner