Since Miami's housing market began making a comeback and Venezuelans remain heavily invested in real estate post- Chávez, more and more Latin American developers are flocking to invest in Miami properties, reported Reuters.
Currently, developers from Argentina, Brazil, Mexico and Venezuela are engaged in one-third of 80 resdiential projects in the works.
"I've never seen them with the kind of clout they are carrying right now in construction and development," Peter Zalewski, founder of real estate consultancy firm Condo Vultures, told Reuters. "It really is a coming of age period."
The recent death of President Hugo Chávez worried South Florida real estate businesses, reported The Miami Herald, since they were the No. 1 foreign buyers, according to Miami Association of Realtors. The investments sparked smaller businesses and ventures in the region.
As Spanish language thrives in the Miami, foreign developers are taking advantage of the rising real estate prices to drive their businesses.
According to Standard & Poor home price index, prices of residential properties in Palm Beach increased substantially-rising 0.8 percent since October 2011 and since 2010 it rose 9.9 percent, reported Waterfront Properties and Club Communities.
"Prices are rising, as are both new and existing home sales," S&P Chairman David Blitzer told Waterfront. The "housing market is clearly recovering"
For instance, 98 condos from Argentine Melo Group's new 17-story tower sold out in a mere five months. Jose Luis Melo, founder of Melo began constructing condominiums in 2010 on a $1.4 million property in downtown Miami.
"People told us 'You guys are crazy. The market is awash in units and you are going to build?'" Melo told Reuters.
Another Argentine firm, Consultatio seized the moment to buy property in Miami when the housing market was at its worst and prices were low. Consulatio invested $80 million in property at Key Biscayne and developed 154 luxury condominiums and another crowd-pleasing site in Bal Harbour for $220 million.
South Florida was among the cities notably hit the hardest during the bust, dropping 27 percent between 2007 and 2008 in Miami, reported CNN Money.
This current investment boom from foreign developers is a good sign for the overall housing market in U.S., especially in hard hit regions. As of this month, there are 67 Miami shores for sale, with houses selling at an average price of $483,500, reported Miami Beach Real Estate.
