WILL U.S. PRESIDENT-ELECT ‘TRUMP’ FOREIGN INVESTMENT IN MIAMI?
Foreign investors have played a big role in the evolution of the Miami real estate market in the last decade. They come to Miami to buy residential and commercial properties, to build projects and to invest as silent partners. So what impact could President-elect Donald Trump’s anti-immigration rhetoric have on direct foreign investment in South Florida?
The South Florida Business Journal asked that question to real estate experts, who are hopeful that the underlying reasons South Florida real estate has been attractive to international buyers and investors for decades will persist.
Edgardo Defortuna, president and CEO, Fortune International Group: “If anything, Trump understands how the real estate market works, and many of his supporters are major real estate developers and investors. All his economic policies are for growth and to create new jobs and to jump-start the economy depending on factories going back to work and real estate booming, and I don’t see how that could possibly be a negative impact.”
Craig Studnicky, principal, ISG World: “I have a lot of investors from South America that say they would be very uncomfortable investing in an economy with Trump as president. But now that he is president, what choice do these people have as international buyers? U.S. real estate is one of the safest assets you can park your money in.”
Alex Zylberglait, senior VP of investments, Marcus & Millichap: “I do see capital from Latin American countries continuing to come here because it’s a very strong market relative to other global markets. Look at Venezuela, Brazil and Colombia. What other country will give you the safety with a regulatory framework that is very strong and secure?”
Steve Witten, executive director, Institutional Property Advisors in South Florida: “The election will likely have little effect on apartment demand in traditional workforce housing, as vacancy rates for these types of apartments are very tight and are not as influenced by the addition of new Class A properties. Over the longer term, immigration policies could influence commercial real estate performance in Southeast Florida, but it’s still too early to assess.”