Foreign investors pour money into Miami, LA and Manhattan luxury homes

In Miami, 8 of 10 properties above $1M are owned by someone outside the US

TRD LOS ANGELES /
Jan.January 29, 2018 10:00 AM
A mansion in Beverly Hills, the Livingston House at 12 East 96th Street in Manhattan, and the Terra Veritatis Home in Miami Beach (Credit: Wikimedia Commons, PixHere)

Foreign buyers dropped $7.5 billion on homes in the U.S. costing over $1 million, with a major chunk of those purchases in Miami, Los Angeles, and Manhattan, according to a new report. The report, which calculated purchases between March 2016 and March 2017, saw a nearly three-quarter jump in total foreign investment in U.S. luxury real estate from the 12 months prior.

Luxury brokerages Beauchamp Estates and Leslie J Garfield & Co., compiled the data.

Almost 40 percent of the purchases were done in those three cities, with Miami accounting for one quarter of the total. Los Angeles was next highest at 9 percent, and Manhattan was third with 3 percent.

The price-per-square-foot between the three cities was lowest in Miami, but foreign investors dominated the South Florida market. There, 80 percent of luxury Miami real estate is owned by foreign buyers, compared to 20 and 27 percent in Los Angeles and Manhattan, respectively.

In Miami, where 95 percent of those properties were bought with cash, many of those buyers came from South America. For homes costing $3 million and over, three quarters in Miami are owned by foreign buyers who paid cash.

Beauchamp Estates expects Miami to see a 40 percent growth in ultra-high net worth individuals through 2026 to 1,050 total, while New York and LA will grow by 30 percent each, to 8,541 and 4,095.

In LA, buyers seem to get more house for their buck. The average luxury home purchased was 11,211 square feet. That is smaller than Miami, but on average, the properties in LA came with two and half acres of land. Miami luxury homes, meanwhile, had less than 1 acre. Manhattan apartments had 4,276 square feet of outdoor space.

The most popular neighborhoods in New York were the Upper East Side, Greenwich Village and Tribeca. In LA, Beverly Hills and Malibu topped the list. In Miami, Miami Beach, Palm Beach and North Bay Road were the most attractive.  [Realty Biz] – Dennis Lynch 


Related Articles

arrow_forward_ios
Lauren Sanchez and Jeff Bezos with the property at 1441 Angelo Drive (Credit: Getty Images and Redfin)

A $90 million patch of dirt: A look at Jeff Bezos’ other record LA deal this week

Amazon CEO Jeff Bezos with the home (Credit: Pintrest and Getty Images)

Jeff Bezos buys David Geffen’s Beverly Hills estate for record $165M

Nile Niami and 1175 N Hillcrest Road (Credit: Redfin)

Niami gets $50M+ for Beverly Hills spec mansion

Institutional investment in Los Angeles is lagging

LA is one of the trickiest cities for institutional investors to understand. Here’s why

Jeff Bezos with  Casa Encantada and Palazzo di Amore estate (Credit: Getty Images and iStock)

Jeff Bezos is shopping for an Amazon-sized mansion in LA

Lori Loughlin and Mossimo Giannulli are reportedly trying to sell their Bel Air estate

Lori Loughlin, Mossimo Giannulli asking $29M for Bel Air estate

A judge will let Hearst estate be used as cash collateral (Credit: iStock)

Start your timer: Leonard Ross has 4 months to sell Hearst mansion

Sources say Gou is behind $33 million Bird Streets purchase (Credit: Hilton and Hyland and Wikipedia)

Bird Streets home flies off the market for $33M to reported Taiwanese buyer

arrow_forward_ios
Loading...