Friday, April 4, 2014

Venezuelan Builders help recover real estate in Miami

More and more builders of Argentina , Brazil, Mexico and Venezuela are choosing to meet the demand for Latin American looking for a stable place to invest your money and generate revenue.

The Argentine constructor José Luis Melo watched the real estate market of Miami was affected by the housing crisis in the U.S. and thousands of apartments in the city remained unsold , and decided it was time to build.

It was late 2010 , and Melo , which operates the real estate company Melo Group with his two sons , purchased a plot of land of 1.4 million near downtown Miami.

Months later, Melo raised their first construction crane post housing bubble was in town , betting they could find buyers for departments of a new 17-story tower .

" People told us ," You are crazy . The market is crowded with units and going to build ? "He said, adding that he preferred to sell their own new building. 's 98 departments of the structure were sold in just five months.

The apartments were purchased by wealthy Latin Americans were flocking to buy real estate in Miami , helping to encourage an unexpected recovery in a market that was only three years had faced a housing crisis .

The purchase highlights the role that investors have played in some major U.S. cities that show strong signs of recovery after the crisis.

Wealthy Latin Americans have long invested in properties in South Florida, but this time the revival in Miami also is being driven by South American builders like Melo .

" I've never seen the influence that they are now taking on development and construction," said Peter Zalewski , director of real estate consultancy Condo Vultures . " It really is a period of maturity ," he added .

Driven by high property prices and rising sales , the real estate industry in South Florida faces a frenzy with over 80 announced plans for new residential projects, and Latin American builders are involved in about a third of them, according Zalewski .

The builders are benefiting from the view that Latin American realty industry in Miami is a safe haven from political and economic volatility.

The city, which has a strong Latino presence and where Spanish is widely spoken , is a popular shopping destination and resort.

Recent devaluations in Argentina , Brazil and Venezuela , and fears that currencies continue to weaken these countries are encouraging the purchase of properties, brokers said .

In 2012 , Venezuelan frightened by an economy destroyed by inflation , rising crime and local political uncertainty led all foreign purchases in Miami for the third consecutive year, representing 15 percent of all sales .

A Venezuelan purchases followed the Argentinean and Brazilian .

A sharp increase in the prices of real estate in Latin America has also made more attractive properties in Miami.

According to the website Zillow real estate , the value of the properties in Miami are down almost 50 % from a peak in 2006.

The growing presence of Latin American builders also reflects how the region has benefited from healthy economic growth and given them unprecedented opportunities to look beyond their own borders to build.

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