Colombians Look to Miami Real Estate to Protect Wealth After Election – Business Insider
  • Colombians are searching for Miami properties this year more than any other country’s residents.
  • COVID-19 caused a shift in preference from commercial to residential real estate as an investment.
  • Foreign buyers are undeterred by Miami’s hot housing prices and consider it a stable investment.

The Cipriani Residences building is no more than a hole in the ground in Miami’s Brickell neighborhood, but that hasn’t stopped buyers from dropping millions of dollars on the condos-to-be.

One buyer plopped down over $10 million on six condos — one for each of his three children and three to rent, Fernando Naranjo, the buyer’s representative and the broker-owner of The Orange Group, said.

Naranjo’s client, who he declined to name for privacy reasons, “bought this for asset preservation,” he said. The buyer is Colombian, and the deal comes at a time when the country’s economics face an uncertain future following the election of the leftist president Gustavo Petro in June.

Colombians have signed more than 20% of the purchase agreements in the 397-unit building, according to the building’s sales director, Ana Gomez.

Miami has established itself as a center of investment in residential real estate for citizens of South American countries seeking to preserve their capital as their countries weather changes in political power — and that’s especially true of people in Colombia and Argentina.

Miami’s housing prices are red hot, but that hasn’t stopped some wealthy buyers in these countries from parking their money in an asset they see as more stable than the stock market or more reliable than their local economies.

Brickell has become the go-to neighborhood in Miami for tech and international companies. Luxury residences have popped up to accommodate the new workforce.

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Miami has long drawn Colombian buyers interested the multicultural community the South Florida city offers, but the National Association of Realtors Miami has seen an uptick in searches for properties on its website from the country, with slightly over 12% of all international searches — the most of any foreign nation — coming from the South American country this year. Argentina follows, with slightly over half as much search volume.

They see Miami real estate as a safe investment

Why the turn to US real estate now?

Mohit Karnani, a Ph.D. candidate of economics and statistics at the Massachusetts Institute of Technology who researches economic development, said even just the expectation of inflation in South American economies — such as through increased government spending on social services — was enough to cause a currency devaluation.

“The Colombian peso has depreciated by …….