A week has passed since the Brits voted to leave the European Union. Everybody is still astounded with that result. The pounds went down, the stock market was even shaken. So what now for real estate? Well experts say, Brexit can actually be good for the Miami real estate.
“London was amongst the world’s most lucrative real estate markets, however, last week’s U.K. vote is already causing property prices to plunge, which means that Florida real estate will likely move up the list of busiest global investment destinations,” Daniel Kodsi, CEO of Paramount Miami Worldcenter, said.
Miami Worldcenter is Florida’s largest construction project, to be completed by the end of 2018. The building project has already potential investors from 35 different countries.
“People who previously invested in London, U.K. real estate, which was once one of the most stable and profitable in the world, are now concerned about its instability and they are looking for a better real estate investment,” Kodsi said. “They are buying downtown Miami real estate because it is a safe and valuable investment.”
“Florida real estate is one of the most valuable properties in the world, yet is less expensive per square foot than Paris, New York and other global cities, but its valuations are consistently greater,” Kodsi said. “Brexit adds a new dimension to the global real estate investment landscape, which will take time to fully understand but may, with near immediacy, trigger a surge in additional foreign investment in Florida.”
The Chairman of the board of the MIAMI Association of Realtors, Christopher Zoller agrees with Kodsi, adding that “Miami is a growing world-class city that attracts both domestic and foreign buyers.”
“Regardless of what happens in the world, international and domestic buyers are always interested in Miami for its multicultural affinity, strategic location, excellent weather, exciting lifestyle and friendly global business environment,” Zoller said. “Additionally, Miami is a great bargain compared to other world-class cities, including New York, Paris, Hong Kong and London.”
So, what’s next for South Florida?
There is a big possibility of inflow of Europeans checking at South Florida for stable markets, long term investments and exemplary location, Kodsi thinks immigration might increase, ushering wealthy, educated investors.
Kodsi expect those investors not only to buy real estate in Miami, but also to open businesses, creating jobs and enhancing tourism. He believes a population growth of about 20,000 people to downtown Miami over the next few years.