A detailed look at where international clients originate and what they’re buying in the Sunshine State. Plus: A profile of the Florida international buyer.
ORLANDO, Fla. – Nov. 2, 2021 – Florida Realtors® has released its latest report on the state’s foreign buyer and seller transactions, the 2021 Profile of International Residential Real Estate Activity. The one report – from August 2020 through July 2021 – reveals the emergence from the global pandemic though massive disruptions in production and travel remained.
Tourist arrivals to the United States are rising gingerly but are still decimated due to the travel bans and advisories in many countries regarding inbound and outbound entry and quarantine regulations. During the period August 2020-July 2021, tourist arrivals to the United States totaled 13.8 million, a decline of 83% compared the level during the same period prior to the pandemic in 2019. What International Buyers are Looking for in the Florida Market. To learn more about the Estero FL region feel free to checkout our latest news for Southwest Florida.
Here are highlights from the 2021 report:
$12.3 Billion
Dollar volume of Florida’s existing homes purchased by foreign buyers during August 2020–July 2021, which is 5% of the dollar volume of Florida’s existing home sales (22% decrease from the prior 12-month level of $15.6 billion)
22,500
Number of existing homes purchased in Florida by foreign buyers, which is 4% of existing-home sales (34% decrease from the prior 12-month period level of 33,900)
71%
Share of foreign buyers whose primary residence is abroad (Type A)
Florida’s top 5 foreign buyers
- Canada ($1.8 B)
- Argentina ($0.9 B)
- Colombia ($0.8 B)
- Brazil ($0.7 B)
- Venezuela ($0.4 B)
Top foreign buyer destinations
Miami-Ft. Lauderdale-West Palm Beach (52% of foreign buyers)
Orlando-Kissimmee-Sanford (10%)
Tampa-St. Petersburg-Clearwater (8%)
Cape Coral-Ft. Myers (5%)
North Port-Sarasota-Bradenton (4%)
Naples-Immokalee-Marco Island (4%)
$347,300
Foreign buyer median purchase price ($310,400 for all Florida existing-homes sold)
66%
Foreign buyers who paid all-cash (39% among all U.S. foreign buyers)
72%
Foreign buyers who intended to use the property for vacation, residential rental, or both uses
52%
Foreign buyers who purchased single-family units
89%
Percent of foreign buyers who visited Florida at least once before making a purchase
73%
Percent of foreign buyers who were referrals of personal and business contacts and former clients, or who were former clients
18%
Respondents who reported clients (either non-U.S. citizen or U.S. citizen) seeking to purchase property abroad
42%
Percent of respondents who speak a language other than English
70%
Percent of respondents who “have not had problems” working with foreign buyers
Click the blue button below to download the most recent report, the 2021 Profile of International Residential Real Estate Activity in Florida. If you are visually impaired and need assistance reading the full report, please get in touch with Erica Plemmons at 407.438.1400.
FAQs: International Buyers and Sellers in Florida
1. Where do international buyers predominantly come from in Florida?
- The top countries of origin for international buyers in Florida are Canada, Argentina, Colombia, Brazil, and Venezuela. These countries accounted for significant dollar volumes in home purchases during the period from August 2020 to July 2021.
2. What are international buyers looking for in the Florida real estate market?
- Most international buyers in Florida are interested in residential properties for vacation purposes, residential rentals, or a combination of both. Single-family homes are particularly popular among foreign buyers, representing 52% of purchases.
3. What are the main regions in Florida that are attracting international buyers?
- The primary destinations for international buyers in Florida include Miami-Ft. Lauderdale-West Palm Beach, Orlando-Kissimmee-Sanford, Tampa-St. Petersburg-Clearwater, Cape Coral-Ft. Myers, and others such as North Port-Sarasota-Bradenton and Naples-Immokalee-Marco Island.
4. How does the purchasing behaviour of international buyers differ from domestic buyers in Florida?
- International buyers often purchase properties at a higher median price than all Florida existing home sales ($347,300 versus $310,400, respectively). They also tend to pay in all-cash transactions more frequently (66% compared to 39% among all U.S. foreign buyers).
5. How influential is personal and business referral in the decision-making of international buyers in Florida?
- Referrals from personal and business contacts and former clients play a significant role in the decision-making process of 73% of international buyers in Florida. This highlights the importance of personal connections and previous positive experiences.
6. Are there any language or communication challenges when working with international buyers in Florida?
- Forty-two percent of respondents report speaking a language other than English when working with international buyers. However, 70% state they have not encountered significant problems when assisting foreign clients, indicating a generally smooth transaction process.
7. How do international buyers view Florida as a real estate investment?
- Most international buyers (72%) purchase properties in Florida to use them for vacation purposes, residential rentals, or both. This underscores their confidence in Florida’s real estate market as a sound investment opportunity.
8. What percentage of international buyers had visited Florida before making a purchase?
- Eighty-nine percent of international buyers had visited Florida at least once before deciding to purchase a property, indicating a high level of familiarity and comfort with the region.
9. What was the total dollar volume of homes purchased by foreign buyers in Florida from August 2020 to July 2021?
- Foreign buyers collectively purchased approximately $12.3 billion worth of existing homes in Florida during this period, which accounts for 5% of the total dollar volume of existing home sales in the state.
10. How has the COVID-19 pandemic affected international buyer activity in Florida?
- While disruptions have occurred due to global travel restrictions and economic uncertainties, Florida remains attractive to international buyers, with notable activity observed despite challenges.
