Foreign investors have an incentive to pursue commercial real estate projects in Miami

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The U.S federal government made an announcement recently that signs Miami to be an EB-5 Regional Center for Foreign Investments. To make this much easier for foreign investors, the administration also has designed a program that allows for a foreigner to gain permanent residency in the U.S

Although this program had been in place since 1990, it is expected to thrive further with the new EB-5 designation. Miami will not only be akin to New York City but will also attract foreign developers at mass.

A foreign investor is only required to invest with a minimum of $500,000 and show a proof of creating at least 10 jobs in two years of running his enterprise before he can be granted permanent residency in the U.S. Once acquired, he and his family (or her) can move into Miami to become full-time residents. Miami is also blessed with pleasant climate conditions and residents do not have to pay state income tax. This however, will grow the interest of developers from other countries.

Speaking with representatives of The Real Deal, CEO of Farah Group of Companies, Emile Farah believes that “the combination of troubled areas or troubled countries where people don’t feel safe keeping their money there is leading them to look elsewhere to invest,” therefore an increase in foreign investments is expected in Miami as a result of flexibility and comfortability with which respective investors are going to enjoy.

Farah added that, “The growth that is going on here has been amazing. For instance, the amount of development that has been going on just in the Brickell area, everyone is now calling it a mini-Manhattan.”

Following this, it was observed that a huge number of Chinese are dominating the EB-5 immigration program. Most of these Chinese investors were moved from Canada after the Canadian government cancelled her immigration program designed mainly for investors and redirected over 40,000 Chinese investors to the U.S. They are now said to have gained as much position to become the largest group to embrace Miami’s EB-5 services.

“China is the number one user of this program and are pursuing more visas through it. They have come to learn more about Miami and seem to like the number of universities that are nearby and the lack of pollution compared to other big cities.”
– This was a statement made by Liliana Gomez, director of international sales for ISG WORLD.

Gomez’s sales consultant in China, Ying Peng also observed a shift in the foreign investment strategy. With New York still making top list, his observation gave a remark to Miami and South Florida for an increased and significant growth. Gomez added that Chinese investors made 3.7% purchases of Florida’s real estate scheme in 2013; improving on 2% and 1% purchases in 2012 and 2011 respectively.

Middle East investors are also showing interest in Miami as Miami Mayor, Tomas Regalado and Farah hosted Beirut’s Mayor recently to discuss partnership in order to entice more investors from the Middle East. Farah revealed that they are making partnerships with Qatar and Dubai as well and there are newly available flights between Miami and Doha.

Farah, in an additional statement said, “We are definitely working together now, trying to start enticing people from the Middle East to come and invest here, so that was one of the subjects that we discussed with the mayor of Beirut. They would be interested in having some investors go into Beirut and invest. So the sister city [Beirut’s] agreement was a very important agreement to sign and was actually the first time an Arab mayor visited the City of Miami on an official visit.”

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