On account of Euro Zone instability and attractive valuation of local residential market, Europeans are grabbing every investment opportunity available in property market of Miami. The founder of International Sales Group (ISG), Philip Spiegelman said that tremendous property demand has been observed in regions such as Miami Beach and downtown. The property prices of Miami are constantly increasing; however those are still undervalued if compared with real estate prices in Paris or London.
The broker and district sales manager of The Keyes Co. Frank Jewett said that more than 70% of their sales are contributed by investors who are not permanent residence of US. He further added that during last two months inventory has decreased significantly and investors are ready to buy whatever properties available in the market. Spiegelman said that they were expecting such a tremendous property demand two years before when property prices were extremely low and euro was quite strong against dollar. He attributes this demand to the obvious instability and unrest in Euro Zone nations.
Spiegelman further states that real estate prices in Miami are extremely attractive as compared to other cities, precisely undervalued by 50% per square foot. Though exchange rates are quite low, real estate prices are still below the overall replacement costs. Supporting to the opinion of other property analysts, Frank Jewett said that European real estate investors are inclined towards luxury market. People are purchasing condos of value more than $1 million and around 85% transactions took place in the form of cash. Apart from English and French investors, Russians are among the leading property buyers. Some Spaniards, German and Swiss investors are also doing consistent investment in Miami real estate.
European investors are getting much more returns from whatever investment they are doing in Miami real estate. Considering the turmoil in European economies, Miami is one of the safe destinations to invest. The multinational flavor of Miami is tempting property investors from all across the globe. As buyers are looking for multi unit property investment opportunities like duplexes and fourplexes, demand for luxury buildings will increase abruptly in upcoming time in Miami.