The rise in global inflation, especially in the United States, and the consequent tightening of monetary policy in the main economies, are creating an environment of risk aversion. Stocks fall, dollar rises and cryptocurrencies plummet. The flight from risky assets to safer investments also impacts the real estate sector. Investing in real estate, after all, is one of the safest strategies to preserve heritage.

Global risk aversion impacts Florida Real Estate

The fear of a global inflationary escalation can be seen in the performance of the main stock exchanges. The S&P 500 index fell 3.88%, hiting its lowest value since March last year, to 3,749.63.

At the same time, the american currency rises. In a scenario of crisis and risk aversion, the demand for the American currency, either directly or through dollar-backed assets, increases.

The flight from risky assets was most impactful in the cryptocurrency market, which for the first time since January 2021 has dropped below $1 trillion, according to website CoinMarketCap. The value of cryptoassets has already reached US$ 2.9 trillion in November last year.

Florida Real Estate Investors

In a scenario of insecurity and risk aversion, the real estate sector gains the attention of large investors. And the Florida market is one of the most promising for investing, as it is part of the largest economy in the world (USA) and offers excellent appreciation potential.

The tightening of monetary policy, with an upward trend in US interest rates, does not seem to be an obstacle for large investors. The measure may even impact the individual buyer, who thinks twice about entering the mortgage. However, for large investors, who pay in cash (cash), the rise in interest rates is not, for the time being, bringing discouragement.

The presence of large investors in the Florida real estate market has greatly influenced the market, which was already in a critical situation of high demand and lack of inventory.

Investors come to buy, at once, dozens of properties. Many are left unoccupied, pushing Florida to the top of the rankings for unoccupied real estate in the US.

With the presence of these major players, residents find themselves in a complex situation, as they cannot compete with these investment giants.

Is it a good time to invest in Orlando?

Considering the high upside potential as a result of the growing demand for real estate in Central Florida, investing in Florida real estate is today one of the best global applications. Florida estimates that it will receive, on average, 849 new residents by 2026. Builders will not be able to face this audience by delivering enough units. There is a shortage of land and a new project can take up to 7 years to be delivered.

About AMG International Realty

AMG International Realty is a global real estate company specialized in Florida. If you want to know more about opportunities in the Florida real estate market, contact me right now and chat with me by WhatsApp: + 1 305 318 6968 (Heloisa Arazi).

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