Foreign investors take advantage of cut price condos

Cut condo prices in the second half of 2009 triggered a foreign buying frenzy in Miami, it has been claimed.

Condo Vultures has released figures that show over 2,350 condos were sold in the state during the course of 2009, with 1,655 purchased in the latter part of the year.

Peter Zalewski, a principal with the real estate consultancy firm, commented that an increase in buying activity was seen in the second half of the year after prices were slashed by around 30 per cent.

"The new prices triggered a buying frenzy by foreign nationals with strong currencies and private equity groups that finally began to purchase, completing a dozen condo bulk deals in the Brickell Avenue Area, Downtown Miami, and the Biscayne Boulevard Corridor in 2009," he said.

In Greater Downtown Miami, 82 condo towers have been constructed within the last seven years, with 34 of them completely sold out.

Florida was recently revealed as one of the US states with the highest foreclosure levels.