sect. a 1...minium-hotel development on paradise is-land in nassau, the bahamas, well into the...

34 MAY 2007 / MiamiMonthlyMagaz ine.com

ome developers that have built condos in Miami have exported their ex-pertise abroad. Several of the same companies that put up condo towers onBrickell Avenue, Biscayne Boulevard and Collins Avenue are betting on

such foreign locations as Panama City, Panama; Puerto Vallarta, Mexico; andNassau, the Bahamas – to name a few.

Condo developments outside the competitive Miami market can turn into re-

Localcondominiumbuilders look

overseas for new

developmentopportunities

grettable gambles, of course. Butseasoned developers have foundenough financing to place somebets abroad. “There’s so muchmoney out there, there is excesscapital,” said real estate consult-ant Mike Cannon, managing di-rector of the Miami office of NewYork-based Integra Realty Re-sources.

Lenders active in condo devel-opment finance in the Caribbeanand Latin America, Cannon said,range from Puerto Rico-basedBanco Popular and Portugal-based Banco Espirito Santo to

Canada-based Bank of Nova Scotia andKansas City-based Hillcrest Bank.

Of course, locally based developers needmore than just money to move an offshorecondo project from concept to completion.Gaining clear legal title to land, obtainingconstruction permits, and covering the costof imported building materials can be dev-astatingly difficult for U.S. developersabroad. “It isn’t easy,” Cannon said.

But some local developers are beating theodds against getting overseas projects built.For example, Aventura-based TurnberryAssociates has moved a 495-unit condo-minium-hotel development on Paradise Is-land in Nassau, the Bahamas, well into theconstruction phase. The condo-hotel, calledThe Residences at Atlantis, shares part of a34-acre site where Atlantis, a mixed-use,aquatically themed resort complex, is locat-ed. Turnberry teamed up with Kerzner In-ternational, the developer of Atlantis, tobuild the condo-hotel as part of an ongoing,phase-three expansion of the resort com-plex.

Construction of The Residences at At-lantis started in the summer of 2006 andshould be done by the end of 2007. Effi-ciency, one-bedroom and two-bedroomunits with prices from $700,000 to more than$3.4 million have been marketed at an Aven-tura Mall sales center, complete with a mod-el showroom, and the results have been en-couraging.

“Due to the allure of our Aventura Mall

sales center, we’ve experienced brisk sales,”Turnberry executive Bruce Weiner said in aprepared statement accompanying the com-pany’s September 2006 announcementthat ground for The Residences hadbeen broken.

Miami-based construction contrac-tor Tom Murphy Jr., president ofCoastal Construction Group, is try-ing his hand at resort housing devel-opment in Eleuthera, a part of the Ba-hamas less developed than Nassau.Murphy and other investors are rede-veloping a property called ValentinesResort and Marina in Harbour Island,a longtime yachting, fishing and scu-ba diving destination. Planned prop-erty upgrades include constructionof a restaurant, marina facilities,and about four dozen condo-hotelunits. “Tom Murphy is definitelydoing it. I’ve seen [the site] …It’s a very quaint spit of land,”Cannon said.

One of the nation’s largestcondo developers, Miami-based Related Group hasformed Related Internation-al, a business unit to pursueoverseas opportunities,and has moved a projectin Puerto Vallarta, Mex-ico, to early-stage sitepreparation. RelatedInternational set a

MiamiMonthlyMagaz ine.com / MAY 2007 35

EX

PO

RTI

NG

S

REA L

ESTA

T E TR E ND S

Where else are you going to find a two-bedroomfor $176,000 in a good neighborhood?

Roberto Rochaof Related

International

Tom Murphy Jr.of Coastal ConstructionGroup

Mike Cannon of IntegraRealty Resources

PHO

TO B

Y M

ICH

AE

L M

CE

LRO

Y

BY MIKE SEEMUTH

Expertise

0507 34-41 People 4/24/07 3:48 PM Page 34


preconstruction price range of between $300,000 and $400,000 to $1 million for the 336condo units and four waterfront villas that will comprise the development, Icon Vallarta,which has been marketed mainly to U.S. buyers. “We hope to start our vertical construc-tion in June. It’s three towers, so that will take probably two to three years to completethe whole thing,” said Roberto Rocha, president of Related International.

The development team, including owners of the Icon Vallarta land, who are partnersin the project with Related, expected to get a construction loan of about $100 millionfrom a Mexican source to build the three towers. “We will be going with a Mexican bank.I can’t tell you who right now,” Rocha said in a March 21 interview. “We have quite afew U.S. banks and Mexican banks that are willing to offer us financing there.”

Beyond Mexico, Related International has begun seeking condo development permitsfor land it owns in Buenos Aires, Argentina, and has become a participating partner witha lead local developer in Punta del Este, Uruguay, to build villa-style cluster of condobuildings anchored by a hotel. “We will bring in a very high end hotel, a St. Regis or FourSeasons, and then have residences, too,” Rocha said. “Within the next two to threemonths, you will see at least three more public announcements” about Related Interna-tional developments abroad.

Retail mortgage lending has become more robust in many Caribbean and Latin Amer-ican countries due to regulatory changes that expanded borrowers’ options, driven in partby the immigration of international banks from other parts of the world.

Real estate analyst Lew Goodkin recalls shopping for a second home in Mexico yearsago, when local credit was harder to come by. “My wife and I were considering buying,and the only financing we could get was a seven-year loan through a Mexican bank,”Goodkin said. “Now it’s quite conventional, and [New York-based] Citibank and a lot oflenders like that are providing the financing” for condo unit purchases.

“We are very open to financing foreign buyers,” said Evelyn Acosta van Hoorde, anassistant manager in the mortgage loan department of Panama City, Panama-based Ban-co General. “This is a big business for the bank. Our core business is mortgage loans.”

Banco General has agreed to serve as a preferred mortgage lender to buyers of condounits in a Panama City project called Moon Tower. In late March, the planned 83-unit de-velopment was in the preconstruction marketing phase, and it was “probably 80 or so per-

cent sold,” mostly to Americans, said real estate agent Maria Lopez. She is a sales asso-ciate of North Miami-based brokerage Sheldon Green & Associates, which represents thedeveloper of Moon Tower, Miami-based Prodigy International.

Units in Moon Tower are affordably priced by South Florida standards, starting around$176,000, partly because the land for the planned building is not in a waterfront location,said Lopez.

Construction of Moon Tower has been permitted in the pedestrian-friendly, boutique-filled San Francisco district of Panama City where a building moratorium has since beendeclared by the local government.

“If you buy a unit there, you are sitting pretty,” Lopez said. “Where else are you goingto find a two-bedroom for $176,000 in a good neighborhood?” m

Retail mortgage lending has become more robust in manyCaribbean and Latin American

countries

The Residences at Atlantis

Icon Villarta

Valentines Resort and Marina

Moon Tower

0507 34-41 People 4/24/07 3:48 PM Page 36

aris leads this year’s list of top com-mercial real estate investment mar-kets in Europe, according to the

highly regarded real estate investment re-port, “Emerging Trends in Real Estate®Europe 2007” published by the UrbanLand Institute (ULI) and Pricewater-houseCoopers.

The study, which covers 27 marketsthroughout Europe, is based on surveysand interviews with more than 390 of theindustry’s leading authorities.

Paris rates highly for both total returnprospects and low risk, making its risk-adjusted total return prospects the best inEurope. Respondents point to the city’seconomic stability and sustainability – inaddition to its status as a global gateway –as major reasons for its top ranking as aninvestment market. Ample urban regener-ation and redevelopment opportunitiesalso attract investors, notes the report.

As a top market for the past severalyears, “Paris still has good prospects forthe next two years,” the report says.

Paris is a favorite among those looking

to buy property, with about 54 percent of respon-dents recommending buying office space in Paris,57 percent recommending retail, and 41 percentrecommending industrial/distribution properties.

London ranked a close second to Paris as aninvestment market. Survey respondents said Lon-don offeres the least investment risk and the bestprospects for rental growth in Europe, “reflectingoptimism for property value trends supported byincome growth.” A strong “hold” market, 44 per-cent of the participants recommended holding of-fice space in London; nearly 41 percent advisedholding retail; and nearly 59 percent advised hold-ing industrial/distribution space.

Stockholm ranked third place for overall in-vestment ratings, as its redevelopment prospectscontinue to strengthen. It is considered a “bal-anced” market, in terms of an even distribution ofbuy and holdsell ratings: 50 percent advising hold-ing office space, 49 percent, retail; and 44 per-cent, industrial/distribution.

Munich is ranked as the fourth best investmentmarket, moving up from 17th place last year. “Ris-ing office demand, a vibrant city centre, and aneducated workforce create synergy for this city,”says the report. It is a strong “buy” market, withnearly 65 percent of the survey participants advising buying officespace in Munich; nearly 55 percent, retail space; and nearly 48 per-cent, industrial/distribution space.

Lyon rounds out the top five investment markets, with many re-spondents viewing the city as an attractive lower-cost alternativeto Paris. More than 56 percent of the respondents recommend buy-ing office space in Lyon; more than 62 percent, retail; and morethan 47 percent, industrial/distribution properties.

Other cities listed as strong “buy” markets: Madrid, Barcelona,Hamburg, Istanbul and Moscow. Cities with strong “hold” ratings:

Copenhagen, Edinburgh, Vienna, Brussels, Dublin and Amster-dam. In addition to Stockholm, cities with relatively balanced buy-sell-hold ratings include: Helsinki, Zurich, Milan, Prague, Rome,Lisbon, Warsaw, Athens, Budapest, Berlin and Frankfurt.

In terms of development prospects, the report ranks Istanbulhighest, pointing to its emerging global market. “The market stillneeds many developers rather than pure investors…real estate sec-tors are now in a learning curve,” notes one respondent. Says an-other: “Istanbul will be the star of the next decade.”

RESIDENTIAL OUTLOOKThe European residential sector continues to provide attractive

opportunities for investment and development, due to its steadycash flows. “Emerging Trends” said this sector is likely to pro-

vide modestly good total returns and rent increases for the com-ing year.

France remains a favorite among residential property investors.Central and eastern European markets are also seen as offeringvalue, primarily due to the potential of redeveloping housing,much of which is now viewed as poor quality.

Larger cities in Poland and the Czech Republic are among thoseoffering substantial opportunities. High housing demand inTurkey also keeps it ripe for investment.

Among the places in which caution is advised: Germany. Some

respondents recommend voiding Spain, where the residentialprices are largely viewed as “absurd.” Still, other respondents be-lieve demographics in that country will continue to support thehigh residential prices.

In general, real estate is becoming a global asset class, “Emerg-ing Trends” notes. “Not only are investors worldwide pouringcapital into property – an estimated U.S. $600 billion was pur-chased directly in 2006 – but they are also crossing frontiers to doso…Five years ago, hardly anyone was ‘Pan-European’; now it isthe only way to operate,” the report says.

ULI, based in Washington, D.C., is a global education and re-search institute dedicated to responsible land use. Pricewater-houseCoopers LLP is a major international professional servicesorganization. m

MiamiMonthlyMagaz ine.com / MAY 2007 3938 MAY 2007 / MiamiMonthlyMagaz ine.com

Survey sees less risk, higher returns for European cities

P

REA L

ESTA

T E TR E ND S

EUROPEANTHEOUTLOOK

The European residential sector continuesto provide attractive opportunities

Paris

London

Stockholm

Lyon

Munich

0507 34-41 People 4/24/07 3:49 PM Page 38

Being selected was a remarkable coup for the Cuban-bornAjamil, 56, who has directed numerous South Florida infra-structure projects, including a major expansion of the Port ofMiami, the NAP of the Americas and the City of Hollywood’smaster plan.

Ajamil’s new prominence on the world stage is no surpriseto Willy A. Bermello, his long-time friend,business partner at B&A and president of thefirm’s affiliate company, BAP Development,which specializes in residential projects inSouth Florida and the Caribbean.

“Luis is a highly organized and methodicalindividual, as well as a very fast thinker,”says Bermello, who has known Ajamil sincethey were classmates at Coral Gables HighSchool. “He has tremendous ability to ana-lyze situations and devise well integrated strategies for growthand development. He’s a big picture guy who delegates to hissubordinates with proper controls, so the client receives qual-ity results at the end.”

Born in Havana, Ajamil arrived in the United States withhis sister at the age of 11. After earning degrees from Miami-Dade Community College and the University of Florida, he

joined Post Buckley Schuh & Jernigan as an engineer. In 19years with the firm, Ajamil worked his way up the ranks tobecome executive vice president responsible for 41 nationaloffices.

Meanwhile, Bermello earned a degree in architecture andwent to work for a small family-owned Miami firm foundedin 1939. Then, in 1992, Ajamil and Bermello formed a part-nership to create B&A, ini-tially with less than a dozenpeople.

“We wanted to create adifferent type of firm withthe ability to handle theplanning and infrastructurecomponents, as well as thearchitecture,” Ajamil says.“In our first formativeyears, we developed thenew areas of our practiceand slowly earned our rep-utation in those fields.”

In 1999, Ajamil and Bermello embarked on a new growthstrategy designed to carry the firm beyond South Florida intoother U.S. and international markets. Today, the firm has of-

fices in New York, Orlando, West Palm Beach, Fort Laud-erdale and Dubai.

At the same time, Ajamil decided to focus the firm’s prac-tice around its core market segments: aviation, maritime,transportation, housing, healthcare, education, municipalgovernment and commercial projects. “Clients today want ex-

perts in those fields,” he says. “We try to create synergy andapply multiple disciplines to attack complex problems in to-day’s urban environment.”

Today, B&A is the largest locally based architecture andengineering company in Miami-Dade County, with 260 em-ployees and more than $50 million in revenue projected for2007. “Our target is $100 million in five years,” Ajamil adds.

B&A’s strategy of diversification – in terms of markets andgeographic areas – has allowed the firm to keep growing de-spite the continuing slowdown in South Florida’s residentialmarketplace. “Two years ago, high-rise residential was about25 percent of our projects; this year it will be just 12 percent,”he says.

The firm’s long focus on the maritime sector – includingmajor waterfront projects in HongKong, St. Petersburg (Russia), Scan-dinavia, Spain, South America andCanada – helped open the door to theDubai assignment. In addition to mas-ter planning the project, Ajamil hasalso been hired to design some of theindividual islands.

B&A has some 30 people in itsDubai office, including Ajamil, whospends about one week a month there.Later this year the on-site staff willjump to 100.

“This project has allowed us to take a fresh look at how acity operates – especially if you don’t have the burden of hav-ing a car,” Ajamil says. “It’s an extremely exciting, very cre-ative process for our entire firm.” m

PLANNER

REAL

ESTA

TETRE

NDS

PHO

TO B

Y S

CH

ER

LEY

BU

SCH

Luis Ajamil ishelping toshape The

World

BY RICHARD WESTLUND


From his Coconut Grove office, Luis Ajamil has the world at his feet –literally. As one of South Florida’s most accomplished land plannersand professional engineers, Ajamil is playing a key role in the cre-ation of The World, a multi-billion dollar development in the Arabian Gulfoff the coast of Dubai.

“Mankind has never before tried a land reclamation project of this scopeand scale,” says the CEO and president of Bermello Ajamil & Partners(B&A), a planning, design and construction company. “It really challengesthe creative juices.”

When completed in 2020, The World will be a sprawling residential, re-sort and commercial city, where all transportation and services will be pro-vided by boat. Designed as an aquatic playground for the rich and famous,this massive undertaking will consist of about 300 man-made islands,strategically placed to resemble continents (see “A World Unto Itself,”page 39).

Because of the Miami firm’s extensive maritime, transportation andplanning expertise, B&A was commissioned by United Arab Emirates de-veloper Nakheel Properties to prepare the master plan for the entire project.That included establishing the density and locations for the different landuses, the design of the marine transport system and plans to deliver elec-tricity, water and other utilities to the islands. B&A has also prepared thedevelopment control regulations (the equivalent of a zoning and buildingcode), as well as the construction drawings for all land reclamation.


Dredging takesplace around theclock to form theislands of “TheWorld”

MA

STE

R

0507 34-41 People 4/24/07 3:49 PM Page 40


The world’s landmass will have grown by some 38 squaremiles between 2003 and 2008, thanks to a project taking shapeoff the coast of Dubai in the United Arab Emirates.

Billed as “the most innovative real estate development onthe planet,” the undertaking involves the creation of morethan 300 man made islands that collectively resemble a mapof the world. Appropriately named The World, the islands aregrouped together to roughly resemble continents, and bearnames like Queensland, Chile and Denmark. Hundreds ofcountries are represented, butby no means all.

The brainchild of His High-ness, General Sheikh Mo-hammed bin Rashid Al Mak-toum, crown prince of Dubaiand defense minister of theUnited Arab Emirates, TheWorld will eventually host acommunity of homes, apart-ments, resorts, restaurants andretail establishments, alongwith 144 miles of brand new,pristine beaches. The multi-bil-lion-dollar project, completelydredged from the sea, is so large that it is visible from space.

The World joins several other ingenious land reclamationprojects built by the Nakheel property development companyas part of a massive government strategy to increase tourismand position Dubai as the business and commerce hub of theMiddle East.

The plan is simple enough: sell the unimproved islands todevelopers from around the world, and let them create andmarket their own masterpiece environments, as inspired bythe islands’ designated country themes. Greek, Thai, Mediter-ranean, Modern, Italianate, Japanese, Tudor and other archi-

tectural styles will likely coexists within an intricate networkof marine channels. With each island covering an average of300,000 square feet, there is room for leisure, residential andtourist development, as well as dockage for boats large andsmall. Although most of the properties will be private, someareas will be open to the public.

Located about three miles off the mainland, The World isaccessible by boat or helicopter. With the cost of each islandranging from $10 million to $45 million, individual residences

are likely to be pricey as well,but developers are already grab-bing up choice properties. AnIrish business consortium, forexample, recently purchased theisland of Ireland with plans tobuild a resort, homes, apart-ments, restaurants and retailstores.

More than 90 percent of theislands are now above water, andthe reclamation process is ex-

pected to be completesome time next year.

Meanwhile, dredg-ing continues aroundthe clock, with sandfrom the sea floor be-ing pumped non-stop toform the remaining is-lands. By the time it iscompleted, some 362

million cubic meters of sand will have been used to form theislands and 32 million tons of rock used to construct the break-water that surrounds them.

For more information, visit www.theworld.ae m

WORLDUnto ItselfA

Luxury living and tropical splendorin the planet’s largest cluster ofman-made islands


hether one is a Venezuelan purchaser of a condo onKey Biscayne, a retiree from Kendall seeking a sec-ond home in Panama, or an investor in a commer-

cial development project in Miami, Milan or Malaysia, properplanning in the purchase, management and disposition of realproperty is essential to avoid otherwise unforeseen legal andtax problems. Here are a some of the issues that both foreignpurchasers of U.S. real property and American purchasers offoreign real property should take into account before enteringinto a legally binding arrangement.

THE PURCHASE STAGENonresident aliens are subject to U.S. estate and gift tax

rules different than those applied to U.S. citizens and residents.Absent an applicable estate tax treaty, U.S. real property ownedby a nonresident alien individually or jointly at the time of hisdeath is subject to Federal estate tax.

There is an exemption equivalent of only $60,000 for non-resident aliens (in contrast with the current rates for U.S. resi-dents and citizens of $2,000,000), and a marital deduction isavailable only if the surviving spouse is a U.S. citizen or if theproperty is transferred to a “qualified domestic trust.”

Real property held in an individual’s name may require aprobate proceeding to convey title to the proper beneficiaries.Stock in a foreign corporation through which a nonresidentalien owns U.S. real property at the time of his death is exemptfrom Federal estate tax and is considered as property locatedoutside the jurisdiction of state probate courts.

Gifts of U.S. real property by nonresident aliens are subjectto Federal gift tax, while their gifts of intangible personal prop-erty, such as stock in a foreign corporation, are exempt fromgift tax. Differing income rates for individuals and corpora-tions, however, also play a role in the decision of how titleshould be taken, as individual capital gains rates are currentlyonly 15 percent, while Federal and state corporate income taxrates can combine to total almost 40 percent. Alternative hy-brid ownership structures may provide better tax benefits.

For American investors in foreign real property, unfamiliarlegal and tax systems may present challenges best handledwith proper local counsel and advice. Without planning, onemay be disappointed to find that there are severe taxes, restric-tions on foreign direct ownership of beachfront land, an in-ability to obtain title insurance or other problems.

MANAGEMENT OF RENTAL PROPERTYUnless the foreign owner of U.S. rental property informs the

property manager that the rental income is to be treated as “ef-fectively connected income” by providing that person with aduplicate executed Internal Revenue Service Forms W-8ECI,the property manager must withhold 30 percent of the gross

rental receipts. The property manager is considered a with-holding agent and is personally and primarily liable for any taxthat must be withheld. Some foreign investors are unaware thatU.S. rental income is subject to tax in this country.

The U.S. investor in foreign real property must likewise becautious as to the legal, business and tax aspects of propertymanagement and/or joint venture arrangements. Commonsense would dictate that proper advance due diligence be giv-en to these issues.

DISPOSITION OF REAL PROPERTYEvery real property transaction in the U.S. is affected by the

Foreign Investment in Real Property Tax Act of 1980 (FIRP-TA) withholding requirements, including the disposition ofreal property owned by nonresident aliens and foreign corpo-rations. (For complete information go to www.irs.gov; key-word FIRPTA.)

Any buyer of a foreign owned U.S. real property interest,and anyone who is required to withhold tax, must file InternalRevenue Service Forms 8288 and 8288-A to report and trans-mit the amount withheld. These forms must contain a taxpay-er identification number for the foreign seller. The sale of stockof a foreign corporation, or another foreign entity rather thanits underlying U.S. real property, may avoid imposition of Fed-eral income tax. Like kind exchange deferral of income treat-ment may also be available in specific circumstances.

As is the case with any other venture, an American investorin foreign real property ought to have an exit strategy and beaware of the available alternatives in structuring its disposi-tion.

Successful real property investors – whether from the U.S.or abroad – must remain informed of the critical legal and taxissues affecting their properties. Reliance on proper local coun-sel is essential to address a wide variety of these issues, only afew of which have been discussed herein. m

REA L

ESTA

T E TR E ND S By Steven L. Cantor

AVOID LEGAL AND TAX PROBLEMS WITH PROPER PLANNING

Global Real Estate Primer

Steven L. Cantor([email protected]) is managingpartner of Cantor & Webb P.A., a Miamilaw firm representing high net worth private international clients in tax, estateplanning, wealth preservation, real property and commercial matters.

W

0507 34-41 People 4/24/07 3:49 PM Page 42

exico is likely the Latin American country most oftenvisited by U.S. citizens. But day trips to border towns orweekend jaunts to popular coastal cities do not begin to

reveal the beauty and mystery of our neighbor to the south.

Once home to ancient civilizations that left behind awe-inspir-ing architecture, Mexico is about three times the size of Texas. Itis a land of towering mountains and vast plateaus, roaring riversand remote islands – not to mention 6,300 miles of coastline. The

climate ranges from temperate to tropical and there are two distinctseasons: rainy and dry.

ECONOMYDriven largely by industry and agriculture, Mexico’s free mar-

ket economy recently topped $1 trillion. The private sector is in-creasingly involved in the country’s seaports, railroads, telecom-munications, electricity generation, natural gas distribution, andairports – industries historically controlled by the government.The county’s main exports are manufactured goods, oil and oilproducts, silver, fruits, vegetables, coffee, cotton.

Despite Mexico’s growing prosperity, wages remain low, pover-ty and underemployment are widespread. Per capita income is re-ported at one-fourth that of the U.S., but the distribution of wealthis decidedly imbalanced. The current exchange rate is$1USD=10.899 Mexican pesos.

GOVERNMENT Established in 1917, the Mexican constitution outlines three

levels of government: the federal union, the state governments andthe municipal government. The country consists of 31 states and aFederal District.

Elections are held every six years, and the President of the Unit-ed Mexican States also serves as the commander in chief of thecountry’s military forces. Military service is compulsory at age 18,but voluntary enlistment is open for those 16 years of age, with

A land of beautyand mystery

parental consent. The bicameral Congress of the Union en-compasses a senate of 128 seats, as well as a chamber ofdeputies with 300 single-districts members.

CULTUREA predominantly Catholic country, Mexico is composed

largely of people of mixed ethnicity. Spanish is the principallanguage, although many Mexicans speak some English,thanks to the tourism industry, and indigenous languagescan still be heard in partsof the south.

The Mexican govern-ment has a history of sup-porting the arts, the resultbeing organizations suchas the Ballet Folklorico,the Modern and ClassicalBallet, The National Sym-phony Orchestra and theNational Institute of FineArts.

National musical stylesinclude ranchero andmariachi, which transcend borders. Bullfighting is the coun-try’s national spectator sport, while soccer and baseball reignas the most popular participatory sports. The literacy rate is92.2 percent.

RESIDENCYForeign nationals are welcome to apply for temporary res-

idency – renewable for one year at a time up to five years –before becoming eligible for permanent resident status. There

are separate requirements for retirees, investors, professionals,artists and sportspeople.

BUYING REAL ESTATEMexico has become an investment hotspot. Fee

simple ownership is permitted. As advised in alloverseas real estate transactions, engage the serv-ices of a reputable realtor, surveyor and real estateattorney.

Vacation or retirement property purchased byforeigners within the area known as the “restrict-ed” zone (within thirty miles of any coastline orsixty miles of either border) is secure, but subjectto special regulations established in 1973 to getaround Article 27 of the Mexican Constitution of1917, which prohibits foreign ownership withinthat zone.

DEVELOPMENTSOcean views, tropical islands, sun-kissed

beaches and mountain resort communities enticemany foreign investors seeking second homes oran exotic retirement location.

Inland locations such as San Miguel de Allendeand Oaxaca have long been popular with expats,but it is the seaside communities that draw the

most interest from international investors. Cancún, developed from a remote fishing village on the Yu-

catan Peninsula to a world renowned resort town, is experiencinga resurgence of luxury condominiums and mega developments,some still offering pre-construction prices. Currently marketedprojects include Maioris Tower, Emerald, Lahia, Campestre Resi-dencial, Bay View Grand and Punta Dorada.

The archaeologically rich Isla Mujeres, off the coast of Cancún,is another investment gem. New projects include Puerta del Mar,

Playa Mujeres Golf Club Resi-dencial Ixchel and La Amada.Designed as a low-density vil-lage, complete with services andamenities, La Amada boasts twoGreg Norman signature goldcourses.

The so-called Mayan Rivieraruns from Cancún south to Tu-lum and features an array of in-vestment properties. Cobá, 20miles west of Cancún, is hometo such resorts as Barceló’s newTropical Beach Hotel and Colo-

nial Beach Hotel, with design details taken from the Mayan cul-ture.

Perennially popular Puerto Vallarta along stunning BanderasBay on the Pacific, offers a wide range of condos and villas. Anumber of units are currently on the market in properties such asSierra del Mar, Marina Vallarta and Paradise Village Marina Res-idences.

At the southern top of the Baja California Peninsula, San Josédel Cabo and Cabo San Lucas – collectively known as Los Cabos(The Capes) – also offer stunning and exclusive properties. m

MEXICO

M

REA L

ESTA

T E TR E ND S

Mexico has becomean investment

hotspot


Palenque

Mexico City

Cancún

COUNRY PROFILE

0507 34-41 People 4/24/07 3:49 PM Page 44

COUNRY PROFILE

espite the fact that the DominicanRepublic shares the Caribbean is-land of Hispaniola with the im-

poverished nation of Haiti, it has devel-oped a huge following with financiers andvacationers thanks to its affordable beachresorts and exciting investment opportu-nities.

Just two hours by plane from Miami,the country is about twice the size of NewHampshire, and boasts rugged mountains,fertile plains and sunny coastlines. Theaverage annual temperature ranges be-tween 65 and 81 degrees. Situated on theeastern two-thirds of the island (locatedeast of Cuba and west of Puerto Rico),more than 1,000 miles of sandy beachesbeckon visitors all year long.

The Dominican Republic is often re-ferred to simply as “the DR” althoughmany people mistakenly call the countryby the name of its capital city, SantoDomingo.

ECONOMYThe Dominican Republic is one of the

fastest growing economies of Latin Amer-ica, thanks to its increasing internationalappeal. Agriculture, which drove theeconomy for decades, was surpassed bytourism in recent years, which accountsfor over 60 percent of the country’s $29billion GDP. Other engines of economicgrowth include industry, exports (to theU.S., Canada, Western Europe and SouthKorea), and non-fuel minerals.

The monetary unit is the peso, with anexchange rate at the end of April of$1USD=31.986 pesos.

GOVERNMENTUnder the constitution in 1966, the Do-

minican Republic vests executive powerin the president, who is elected by popu-lar vote and is eligible for two four-yearterms. Congress consists of an upperchamber of 32 members and a lowerchamber of 150 members. All membersof congress are elected by a popular voteto four-year terms.

The country is divided into 31 provincesplus the Distrito Nacional, which sur-rounds Santo Domingo. The president as-signs governors to each province, whichare subdivided into municipalities andtownships.

CULTUREMusic is a major part of Dominican cul-

ture and the music – and dance – of choiceis usually merengue. Created in the DR inthe 1920s, merengue gained popularity inthe 1930s, and the rest is history. A two-week merengue festival takes place eachsummer in Santo Domingo with internation-al musicians and dancers.

Spanish traditions are a big part of na-tional culture, but African and indigenouselements are also woven into the colorfulfabric of Dominican life. The staple foodcasabe – a thin, flat, bread made from thecassava root – has endured since pre-Columbian times.

Baseball is the country’s favorite sport,and many Dominicans have become U.S.Major League players – Sammy Sosa andAlex Rodriguez included.

Most of the country’s 9,219,800 citizensare of multiracial (European, African andindigenous) descent. The literacy rate is 84.7percent.

RESIDENCYThe process of applying for residency can

be lengthy, but is fairly straightforward. Amedical exam and tests by a government ap-pointed doctor is mandatory, during whichapplicants are screened for things like AIDS,illegal drugs and tuberculosis. Other re-quirements include passport, birth certifi-cate, affidavit of good conduct, proof of fi-nancial solvency, background check.

BUYING REAL ESTATEThe Dominican Republic is known as one

of the few remaining real estate bargains inthe Caribbean. It is important, however, todeal with a well-known and reputable real-tor, a competent surveyor and a good realestate attorney.

There are no restrictions on foreignerspurchasing real property in the DominicanRepublic. Taxes and expenses on the con-veyance of real property are approximately5 percent of the sale price. Taxes must bepaid before filing the purchase at the TitleRegistry Office.

DEVELOPMENTSReal estate investors are swarming to this

little piece of paradise, offering condos andvillas priced from under $100,000 to sever-al million dollars. A number of luxuriousdevelopments call the island home, includ-ing Casa de Campo, a 7,000-acre oceanfrontcommunity of villas, lots, apartments andfour Pete Dye golf courses, surrounded bysugar cane fields and lush tropical foliage.

A favorite hideaway for many celebritiessuch as Bill Clinton, Michael Douglas andOscar de La Renta, Casa de Campo is hometo Los Altos Condominiums, the only resi-dential project in the vicinity of Altos deChavon, a 16th Century Mediterranean-styleartisan community.

Donald Trump recently announced the de-velopment of Trump at Cap Cana, a lavishresort that promises to be “the world’s great-est destination.”

The long list of developments in the DRthat offer investment opportunities includes:Sea Horse Ranch, Punta Perla Golf Marinaand Spa Resort, Las Canas Beach Resort,Playa Turquesa Ocean Club, Westin Con-dos and Beachfront home sites, White SandsGolf & Beach Resort, Cocotal Golf &Country Club, La Estancia Golf Resort,Guavaberry Golf & Club, Las TerrenasCountry Club, Punta Cana Resort, PalmaReal Villas, Roco Ki and White Sands Golf& Beach. m


Rugged mountains, fertile plains and

sunny coastlines

Rugged mountains, fertile plains and

sunny coastlines

DO

MIN

ICA

N

REPUBLICREPUBLIC

D

REA L

ESTA

T E TR E ND S

The DominicanRepublic isknown as oneof the fewremaining realestate bargains

Casa de Campo

0507 34-41 People 4/24/07 3:49 PM Page 48

CITY PROFILE

any of us who live here tend to take Miami for granted.Caught up in everyday life, we often lose sight of thebeauty, charm and panache that captivates much of the

world. Millions flock to the area each year to enjoy its beaches, weath-

er, shopping opportunities, cosmopolitan surroundings, culturaldiversity and numerous attractions. A number of those visitors likeit so much, they buy second (or third, or fourth) homes here.

Miami’s location near the southern tip of Florida affords thebenefits of cool trade winds and a warm subtropical climate, re-sulting in an average annual temperature of 76 degrees. The cityand its environs occupy an expanse of low, flat land between Bis-cayne Bay and the Florida Everglades.

Just below the surface lies a huge underground river, known asthe Biscayne Aquifer, which supplies the area with drinking water.Surface water that makes its way into the aquifer is filtered througha layer of oolitic limestone formed thousands of years ago.

Biscayne Bay is protected by hundreds of barrier islands, mak-ing it ideal for recreational boating. The shallow bay waters arewarm for most of the year and numerous sandbars make greatspots to anchor for playing and swimming.

Much of the area between the bay and the Everglades is packedwith housing. Environmental protection laws prohibit building be-yond a point know as the urban development boundary (UDB), thusprotecting the fragile ecology of Florida’s renowned “river of grass.”

In 2006, Miami-Dade County’s population was 2.4 million-plus,and growing. Those residents were dispersed among close to 100census designated neighborhoods and municipalities.

ECONOMYWith over 10 million visitors spending at least one night in Greater

Miami each year, tourism is a noteworthy economic engine. Otherindustries of importance are manufacturing, service, trade, finance,agriculture, real estate and construction.

More than 1.1 million people make up the area’s labor force,which increased by 2.5 percent in 2006, according to the GreaterMiami Chamber of Commerce. Small businesses, mid-sized com-panies and Fortune 500 corporations absorb much of that work-force. As the internationally acknowledged Gateway to the Ameri-cas, Miami also enjoys a significant global business communityand is home to 500 multinational companies. It has ranked as thebest U.S. city for doing business with Latin America.

GOVERNMENTMiami-Dade County has a two-level system of government:

county and city. County government is overseen by an executivemayor and 13 commissioners, each elected to four-year terms. Inaddition to unincorporated areas throughout the county, there are35 municipalities (the City of Miami being the largest), each withits own mayor and board of commissioners.

In addition to enacting laws and policies, county government isresponsible for running services such as transportation, water andsewer throughout the area, while municipal governments run mostaspects of daily life within their boundaries.

CULTUREMiami has a strong Latin flair, in-

fluenced by Hispanics from theCaribbean, Mexico, Central andSouth America. The area is alsohome to Native Americans, Israelis,Russians, Greeks, Asians, Haitians,Europeans, Africans, Middle East-erners and people from throughoutthe U.S. With its melting pot of peo-ple and backgrounds, there is awealth of cultural celebrationsthroughout the year that welcomeone and all.

Miami boasts an ever-growingmanual arts community and one ofthe newest performing arts centersin the world. Unlike many majorcities, Miami (relatively young at 111) does not have a significantnumber of historic buildings. Until recently, the trend has been todemolish older buildings to make room for modern structures. The

few older buildings that remain – including the Freedom Tower,Miami-Dade County Courthouse, Villa Vizcaya and the BiltmoreHotel – are now jealously guarded and form part of an architectur-al heritage that includes Art Deco and Miami Modern (MiMo)styles.

DEVELOPMENTGreater Miami is experiencing a major growth spurt. Construc-

tion cranes dot the ever-changing skyline from the Biscayne Boule-vard corridor to downtown Miami to the Brickell Financial Dis-trict, and Miami Beach to Coral Gables to Kendall.

In the City of Miami alone, there are currently 22,254 residen-tial units under construction and an-other 60,232 units recently ap-proved, according to the city’s Plan-ning Department. Luxury develop-ment is currently leading the hous-ing market. Projects like Asia,Cipriani, One Broadway, Icon atBrickell and Skyline at Mary Brick-ell Village promise to bring new vi-tality into downtown Miami andBrickell. Planned urban develop-ments like Midtown Miami to thenorth and Downtown Dadeland tothe south are creating brand newneighborhoods attractive to youngprofessionals.

During the 1920s real estateboom, the city changed so rapidly

that many remarked it was “growing like magic.” Miami came tobe know as the Magic City, a nickname it continues to live up toin many different ways. m


Growth and diversityadd new luster to the

Magic City

Growth and diversityadd new luster to the

Magic City

M

MIAMIGREATERGREATER

The urban development boundaryprotects the Everglades

The urban development boundaryprotects the Everglades

REA L

ESTA

T E TR E ND S

0507 34-41 People 4/24/07 3:49 PM Page 52

56 MAY 2007 / MiamiMonthlyMagaz ine.com MiamiMonthlyMagaz ine.com / MAY 2007 57

Miami is a colossus in international real estate circles. Itsreputation among consumers as a desirable, inventory-rich location is equaled by the prominence of its associ-ation of licensed professionals. The Realtor Association of GreaterMiami and the Beaches (RAMB) have, for more than a decade,been shaping the way property is marketed around the globe. Thisinternational clout has developed alongside an impressive arrayof services that help agents connect buyers and sellers locally,throughout the U.S., and in 75 countries.

The association’s executive director, Teresa King Kinney, andher team have helped real estate organizations in France, Russia,and Brazil – among others – develop policies and set up mecha-nisms for sharing listings and exchanging information on inven-tories and price trends.

“Language barriers and the lack of widespread multiple listingsystems (MLS) are obstacles in this business. But thanks to Inter-net technology, the properties themselves become the connectionbetween buyers and sellers,” Kinney said.

RAMB’s 13,000 members have free access to Immobel.com, awebsite they can link to their own homepages to let clients searchfor properties by city, country, and price. Listings on Immo-bel.com can be displayed in thirteen languages including Chinese,Japanese, and Korean, in addition to familiar western tongues. Tomake sure Miami Realtors are represented everywhere they needto be, RAMB organizes participation in real estate expos, confer-ences and trade missions. In 2007, they will be at events in Mex-ico City, Nicaragua, Panama City, Sao Paolo, Cancun, Paris,Madrid and Cannes. Moscow and the Philippines are in theirsights as well.

RAMB member Vanessa Moya, director of sales for Infinity atBrickell, estimates that 40 percent of her condo project’s buyersare foreign nationals. Moya confirms that RAMB’s leadershipand contacts are helpful. “If RAMB is going to an internationalexpo, we know it’s legitimate and worth the effort and expense toattend. Developers can go on their own, but being part of the well-organized RAMB section adds a certain status,” she said. The as-sociation’s bulk purchase of booth space makes member partici-pation more affordable, and ensures a uniformly attractive displayarea, she adds.

The Miami association’s section at the Paris Real Estate Con-gress and Expo, held annually in March, has become one of the

most crowded and crowd-pleasing booths of that high-energy international event. A year ago, Kinney showedthe Paris executive group how referrals can workthrough a presentation called TRC (Transnational Re-ferral Certification). The French were so taken withthe concept that a week later, when both the Miamiand Paris teams were in Madrid for another confer-ence, the entire French executive committee asked tomeet with Kinney and set up the mechanism to ex-change properties with RAMB.

Real estate relationships depend on mutual trust, soit is essential to make personal connections in eachmarketplace. RAMB’s eleven-year-old InternationalReal Estate Congress and Expo (June 12-14 at TheBiltmore in Coral Gables) is a prime example of howrelationships are forged. Kinney expects official dele-gations from 15 countries, general brokers, and ex-hibitors marketing specific properties. The event,which includes seminars and conferences primarilyfor real estate professionals, has swelled to 70 boothsfrom an initial 20.

Because of South Florida’s strong business linkswith Latin America, RAMB has occasionally founditself a step ahead of the National Association of Re-altors (NAR) when it comes to executing real estatetransactions. RAMB’s working relationships with bro-kers in Nicaragua and Argentina, for instance, predat-ed those countries’ organization-to-organizationarrangements with NAR simply because the market-to-market relationships developed spontaneously. In-ternational buyers sometimes look to their real estateagents for legal and other resources, so RAMB tapslocal attorneys to help prepare an annual guide for for-eign investors. The booklet, issued in five languages, containswhite papers on tax laws, immigration, and other legal issues af-fecting foreign nationals.

Visibility via RAMB-organized marketing pieces in nationaland international publications is another way the association helpsmembers cultivate business. “I have put my property listings inBelize, St. Martin, the Dominican Republic and Florida [throughRAMB],” says international property specialist Maggie Muñoz.

BY SUSAN CUMINS

RReeaallttoorr aassssoocciiaattiioonnbestows businessaaddvvaannttaaggeess aatt hhoommeeand abroad

PH

OTO

BY

SC

HE

RLE

Y B

USC

H

R EAL

ESTA

T E TR E N D S

She is also participating in the association’s current marketing ef-fort which will be distributed at the European and Latin Americantrade shows RAMB attends.

“We try to relate all our efforts to helping members get expo-sure and visibility with buyers and sellers everywhere,” Kinneysaid. “Foreign visitors don’t immediately think of our members ashaving connections all over the U.S. and throughout the world,but that is the case.”

Kinney tells of a RAMB member who was asked by Miamiclients to list their villa in Italy. The Realtor easily located fouragents in Italy and sent them email queries. Within minutes shehad responses from three qualified professionals in that part ofItaly, willing to pay a referral fee to handle the sale. “The owner’sgrandmother lived in the villa, so Grandma had the final say onwhich one got hired,” Kinney said.

For more information on RAMB, visit miamire.com. m

CompetitiveRAMB executive director,Teresa King Kinney

CLOUT

0507 34-41 People 4/24/07 3:49 PM Page 56

sect. a 1...minium-hotel development on paradise is-land in nassau, the bahamas, well into the...

Documents