It was a historical vote.
Brits voted to exit the European Union in June, causing an uproar in markets both locally and internationally.
Many centers in the UK, primarily London, are among the most profitable real estate markets in the world. But the recent Brexit vote is already causing property prices to plummet in the UK, prompting international investors to look elsewhere, including South Florida.
The Sunshine State has already been a hot spot for foreign investment, particularly in the south. With the recent Brexit vote, real estate in South Florida will likely move up a few notches on the list of most popular international investment destinations.
Foreign investors seek out stable and safe markets to invest in, and right now, Florida fits the bill compared to the UK. In particular, Miami has the most stable housing market in all of the US. Investors who previously bought in UK real estate – which was once considered one of the most stable and lucrative real estate markets across the globe – are now understandably concerned about its current shaky ground and are looking for a more sound real estate investment. Right now, South Florida real estate offers a safe, valuable investment.
Miami is well known for its prime location, fabulous climate, multiculturalism, vibrant lifestyle, and bustling international business environment, and foreign investors are attracted to that. In fact, Miami has long been a popular destination among global investors, and this recent vote is anticipated to make it even hotter.
Miami also proved its ability to bounce backed relatively unscathed following economic turmoil, as it did after the housing crisis of 2008. After the previous financial plunge, Miami came back quicker than expected, and garnered global attention as a result.
Miami also offers up plenty of great deals in comparison to other high-end cities across the globe, including London, Paris, and New York City.
Gateway cities such as Miami are set to reap the rewards from global investors who have already started looking for other places to plant their capital. With so much uncertainty in many global markets right now, including in the UK, investors want a save haven in which to invest their money. And right now, Miami meets the criteria.
Of course, high-rolling investors with plenty of liquid cash to play around with will likely continue to snatch up real estate in London. While down in the dumps right now, London is expected to eventually inch its way back to luxury real estate status that many foreign investors seek out. When that happens, these investors will profit handsomely.
In the meantime, all the foreign billionaires who traditionally looked to London to invest in luxury real estate are now turning to park their cash in elsewhere. A plummeting pound, probable economic chaos in the UK, and skepticism over the future role and status of London within Europe will is placing a restraint on the city’s housing market. That means that Miami and other hot South Florida markets could be making huge gains in the luxury residential.
The continued low-interest rate environment in the US will further entice foreign buyers to look to South Florida to pick up investment properties. And with the onslaught of Brexit, the possibility of a global recession continues to loom, prompting the Fed to hold off on increasing rates even longer. That points to cheaper financing, which is always a strong selling point with investors.
Of course, only time will tell what will eventually happen to South Florida real estate as a result of Brexit. But as long as the global economy maintains somewhat solid ground, there’s plenty of reason to believe that Brexit could boost South Florida real estate.