With the United Kingdom voting to leave the European Union, what does Brexit mean for the US real estate market and South Florida in particular? According to some experts in the financial and real estate fields, it could have a positive impact on South Florida real estate. Foreign buyers looking for a stable and safe haven for real estate investment are now more attracted to the U.S. rather than the U.K. According to Daniel Kodsi, CEO of Paramount Miami World Center, “ London was amongst the world’s most lucrative and stable real estate markets, however, with the vote to leave, property prices are starting to plunge, which means that South Florida real estate will likely move up the list of busiest global investment destinations.” Britain’s vote to leave the E.U. also caused our Federal Reserve, at their June meeting, to NOT raise interest rates which means continued low interest financing for the US real estate market.
The corridor between Fort Lauderdale and Miami has always been a favorite gateway destination for those coming from the U.K. and other countries, whether to vacation or to purchase second homes. This market is an attractive option for foreign investors because of its impressive recovery after the last housing crisis, and especially now that the double digit appreciation of the last couple of years has leveled off, providing buyers more value for their money.
Also, moving a few miles north from Miami-Dade to Broward County, buyers are finding high-end luxury developments built by many of the same Miami developers at more affordable prices. Fort Lauderdale, with its international airport, a vibrant downtown, a multi-cultural population, a stable tax base as well as a fine inventory of single family homes and condominiums has been and will continue to attract foreign investment.