Monday, November 8, 2021, was marked by the US lifting its travel ban on approximately 33 countries, for vaccinated visitors. This also meant that most foreign real estate buyers, who’d been prevented from entry into the country would be back! They’d also bring with them billions of dollars in real estate transactions. These real estate investors are looking to score properties in cosmopolitan areas, like New York, Miami, and Los Angeles. They expect their massive wealth creation during the pandemic and the rising asset prices within the US to benefit them. The market this particular consumer is ready to invest in is the trophy home market. The thought process behind these transactions will be that they can hang onto the property, have a place to come in the US, enjoy the lavish lifestyle of the location, and hold onto this trophy as a point of pride, or they can rent it out when it benefits them and have an income property.
A caveat this group is seeking is new construction, making newly built mansions and never-lived-in mega-homes the largest beneficiary category. Experts have said they expect New York to be very popular among the European buyers, namely from the UK and Germany, while Florida brokers have said Brazilians will make up the largest chunk of foreign buyers in the area, Los Angeles will see an influx of Middle Easterners, who will be on the hunt for the lavish lifestyle offered by Beverly Hills and Bel Air. Prior to the pandemic, Florida was the mega-market for foreign buyers, while California, Texas, New Jersey, and New York were not far behind. Another observation that’s getting a lot of traction is that foreign buyers tend to like living in coastal cities best meaning those cities will also be the beneficiaries of these purchases.
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