01/02/2012

Brazilians becoming big buyers in Florida

Even in a city that has embraced so many waves of Latinos that it is jokingly referred to as the only South American capital in North America, no one group has been as courted and pampered as the Brazilians.

Flush with cash from a booming economy and enamoured of luxury, Brazilians are visiting South Florida in droves and spending millions of dollars on vacation condominiums, clothes, jewellery, furniture, cars and art, all of which are much less expensive here than in Brazil.

As a thank-you, Floridians are creating innovative ways to make the Brazilians happy and to encourage them to keep dipping into their wallets. Real estate agents, for example, have cobbled together one-stop-shopping firms that offer interior decorating and concierge services as well as legal advice and visa help. Some agents have even opened offices in Brazil to simplify the process.

Aware that Brazilians will not spend freely unless they feel at home, shopping malls have enticed them by hiring Portuguese-speaking sales clerks to proffer Dolce & Gabbana dresses and Hublot watches. Even Target has posted help-wanted signs in Portuguese.

Brazilian restaurants are also flourishing across Miami, including a popular chain from Brazil — Giraffas. 

While the United States and Europe continue to grapple with recession, Brazil’s economy gallops forward, powered by exports, a growing manufacturing base and abundant natural resources

Source: L Alvarez New York Times

P4P comment

Foreign investment in U.S. real estate is massive and growing. For example, 1.2 million Brazilians visited in 2010 and spent $5.9 billion. Foreigners account for more than half of all property sales in Florida, which is a very high level of support than should help boost the state’s property market.

This high level of Brazilian and other South American investment could increase further if the system of acquiring visas was made easier, or removed altogether. At present, it takes on average of 50 days a year for Brazilians to receive a visa – too long. There are moves, however, to pressure Congress and the state department to improve the system. 

But for investors from Brazil and elsewhere, these visa difficulties are of less important as they usually aren’t buying to live or holiday in America; only hold property there. And with property management services increasingly gearing to the foreign owner, the need to visit is greatly reduced.