The real estate market in Miami is awaiting the results of the upcoming presidential elections to be held in November, where a victory for the current favorite Donald Trump (Republican Party) could boost a new wave of investments in this sector.
"A Republican president is always seen as more pro-business and that creates good expectations. It would be more positive for the real estate market," said Peggy Olin, president and CEO of Miami-based real estate firm OneWorld Properties.
The first trigger will be the possible reduction of the Federal Reserve's reference rate, expected in September, as this will reduce the cost of mortgage interest rates. And then, the possible return of Donald Trump to the White House generates expectations that he will implement more measures to boost the American economy.
Meanwhile, this year the real estate market in Miami shows mixed results in terms of sales, awaiting the results of the elections. Thus, in Miami-Dade County, sales of single-family homes between January and May (4,616 units) registered a growth of 3.7% compared to the same period in 2023, according to the latest data from the Miami Association of Realtors. While in the same period, sales of townhouses and condominium apartments (5,383 units) accumulated a drop of 7%.
"In an election year, sales always slow down a bit because there is a bit of uncertainty and we are waiting to see who will win," says Peggy Olin.
However, he highlights the growth in demand for houses (single-family homes), as there is still a migratory movement towards Miami, driven during the pandemic. "Many families come with their children and look for houses to have greater comforts. Both internal migration and the arrival of foreigners continue," he highlights.
The upward trend in prices remains constant in both markets mentioned.
For single-family homes, prices through May rose by 12.1% (average price of US$649,900 per property), while prices for townhouses and condominium apartments rose by 4.9% (average price of US$425,000).
Commercial real estate market is growing. On the other hand, the arrival of more residents to Miami has also boosted the commercial real estate market, with the development of offices and stores for various sectors, says Tomás Sulichin, president of the commercial division of RelatedISG Realty, a real estate company based in Miami.
"We have seen accelerated growth over the past four years. Some 176 of the top 500 companies have already established offices in Miami," Sulichin said.
He says that while many owners use residential property for a few months during their holidays and then rent it out for the rest of the year, commercial properties are purchased with the aim of renting them out throughout the year, which could generate greater profitability.
The minimum investment in a small office or warehouse can start at US$300,000, he added. Although Sulichin agrees that a Trump victory could give a new boost to the real estate market, as he is considered "pro-business", he stresses that in any case the expectations are positive.
He also highlights the growth of investors from South American countries. "They feel very comfortable in Miami, they travel frequently, so we see a natural growth in investment," he says.
Sulichin adds that the flow of investors from South America depends on the political moments of each country; thus, when some measures in these countries generate uncertainty among investors, this generates an increase in the flow of capital to Miami.
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