Florida has traditionally been one of the most attractive states for Russian-speaking real estate buyers due to its favorable climate and tax conditions.
Now, due to demographic and economic trends, the demand for housing and commercial real estate in this region has increased significantly. Nikolay Polyushkin, founder of the investment company Vera Fund, has been developing business and investing in the Florida real estate market for 11 years.
The state’s attractiveness has increased due to internal migration, which intensified during the pandemic, as well as external migration – its growth occurred after the 2008 crisis. In 2022, Florida took first place in the country in terms of population growth. Now 1,200 people move to the state every day! Due to high demand, there has been an increase in prices for residential real estate. Another reason for interest in the state is taxes. In Florida, unlike other states, there is no income tax or state taxes; only federal taxes are paid here.
A recent study published on the commercial real estate platform CoStar showed that since 2019, corporations and funds with a total of more than $3 trillion (RUB 277.8 trillion – here and below as of March 2024) have moved to the state. In addition, these companies have moved their head offices to Florida, which not only significantly increased demand for residential real estate, but also had a positive effect on the development of the commercial real estate sector. For example, in Miami-Dade, there was an increase in rental rates by 7%, in Fort Lauderdale – by 5%, in Palm Beach – by 4%, compared to a 13% drop in California.