GRI InstituteLatin American Capital Is Buying Up US Real Estate
Family offices, asset managers, and developers find real estate opportunities in the US, reversing the traditional flow of investment
October 1, 2026Real Estate
Key Takeaways
- The United States has evolved from merely a vacation shopping destination for high-net-worth Latin American individuals into an institutional allocation strategy, drawing significant capital from family offices and asset managers.
- Preferred sectors among Latin American investors include luxury residential condominiums for individual buyers, alongside industrial assets and multifamily (build-to-rent) projects for institutional investors.
- The traditional trend of raising capital in the US to allocate across Latin America remains relevant; instead, what is underway is the consolidation of Latin American capital as an institutional equity provider for the US real estate market.
Capital flows in the Pan-American real estate market are shifting direction - or at least balancing a relationship that was previously heavily lopsided. Latin America is no longer just a recipient of US investment; it is establishing itself as one of the largest buyers of US real estate, with a strong concentration in Florida and the Sunbelt.
Most notably, this movement transcends the individual purchase of vacation properties, a trend that has existed for decades. The momentum observed in recent years - with strong growth in 2025 - is driven by a mature ecosystem composed of family offices, regional fund managers, and Latin American developers that now actively develop skyscrapers, multifamily projects, and logistics warehouses on US soil.
Capital flows between Latin America and the United States are at the center of the agenda for the GRI Institute’s upcoming Latin America GRI Real Estate 2026 - Miami Edition summit.
Data from the MIAMI Association of Realtors indicates that international investors purchased USD 4.4 billion in South Florida residential real estate in 2025, up from USD 3.1 billion in 2024, totaling 5,300 properties. Foreign buyers account for roughly half of pre-construction property purchases in South Florida, with an overwhelming Latin American presence in hubs such as Downtown Miami (99%) and Coconut Grove (97%), according to the same report.
Capital origins vary, with high-net-worth individuals (HNWIs) from Colombia leading the market (15%), followed by Argentina (12%), and Mexico and Brazil (7% each). However, average check sizes for Mexican and Brazilian buyers are higher, exceeding USD 700,000, compared to under USD 600,000 for Colombian buyers.
Yet the most striking shift is in institutional investment. According to studies released by the Society of Industrial and Office Realtors (SIOR), Latin American family offices are estimated to hold between USD 45 billion and USD 75 billion in assets under management invested directly in US real estate.
By comparison, this same group of families maintains a significantly lower exposure to European real estate, ranging between USD 15 billion and USD 27.5 billion. Real estate also stands out among the primary direct investment strategies for regional family offices, with over 75% of these structures holding active, direct positions in US physical property.
In addition, regulated real estate fund managers in Latin America are raising capital locally to invest in the United States. A prominent example is Chilean asset manager Independencia Asset Management (IAM), which manages over USD 2.3 billion in assets on US soil and has accumulated a deal volume exceeding USD 3.4 billion since establishing its Miami headquarters in 2004. Its portfolio encompasses over 1.6 million square meters (approx. 17.2 million sq ft) across 19 states, focusing on distribution warehouses, prime office space, and shopping centers in Seattle, Denver, Los Angeles, and Miami.
Dozens of other firms follow this same strategy of raising capital in Latin America to invest in US real estate, including Brazilian firms JHSF and RBR Asset Management, Argentine developers Melo Group and Consultatio Real Estate, and Mexican firm Leon Capital.
Colombia offers a clear example of this cause-and-effect relationship. The inauguration of President Gustavo Petro in 2022 and the swift passage of tax reforms establishing a permanent annual wealth tax - with marginal rates from 0.5% to 1.5% on individual net worth - accelerated the movement of private wealth to the US.
This regulatory shock pushed Colombia to the top spot among foreign buyer countries in South Florida, accounting for 15% of all foreign residential transactions and 23% of new construction volume in the region.
In Mexico, the consolidation of political power by the ruling Morena party, along with proposed judicial reforms and regulatory uncertainty surrounding strategic contracts, triggered proactive defensive moves among business owners and industrial groups.
Mexican families primarily seek shelter in Texas and Florida, recording the highest median purchase price among all foreign investors (USD 934,000 per unit), highlighting an allocation strategy focused on high-value properties.
In Argentina, decades of endemic inflation, chronic currency devaluation, and successive changes to personal property tax rates have entrenched the practice of holding tangible assets abroad. This behavior maintains strong Argentine demand, with the country accounting for 12% of South Florida's international buyer market and 34% of international acquisitions in Palm Beach County.
For institutional investors, currency hedging carries even greater weight. The thesis for hard-currency preservation stems from the continuous erosion of emerging market purchasing power. Even when interest rates in Latin America remain high - such as Brazil's Selic rate - the steady devaluation of local currencies against the US dollar diminishes purchasing power on the international stage.
Consequently, investing in US real estate protects family wealth by linking it to assets valued in hard currency while generating rental income in dollars. This acts as a financial hedge to cover overseas expenses, such as education costs and estate planning. This value proposition is how many asset managers pitch US investment strategies to their clients.
The drive for financial returns is grounded in the liquidity of the US real estate market and the consistency of operating margins. Prime logistics assets and proven multifamily developments support double-digit dollar-denominated IRR projections.
In Brazil, tax reform provided renewed momentum for overseas allocation. The end of tax deferral for offshore structures - replacing it with an annual 15% tax on accrued earnings - reduced the appeal of keeping idle cash in custody accounts. Capital shifted toward physical real estate benefiting from tax depreciation, structured through a two-tier model (a US LLC owned by an offshore entity) to secure tax efficiency and protection against the US Estate Tax (which can reach up to 40%).
This does not mark a breakdown in capital flows from the US to Latin America; rather, Latin American investors are solidifying their role as essential providers of institutional equity to recapitalize the US real estate market amid tightening domestic bank credit.
For developers and fund managers with international exposure, fundraising success hinges on the ability to design dual-jurisdiction corporate and tax structures that optimize tax efficiency on both sides of the border.
Most notably, this movement transcends the individual purchase of vacation properties, a trend that has existed for decades. The momentum observed in recent years - with strong growth in 2025 - is driven by a mature ecosystem composed of family offices, regional fund managers, and Latin American developers that now actively develop skyscrapers, multifamily projects, and logistics warehouses on US soil.
Capital flows between Latin America and the United States are at the center of the agenda for the GRI Institute’s upcoming Latin America GRI Real Estate 2026 - Miami Edition summit.
Data from the MIAMI Association of Realtors indicates that international investors purchased USD 4.4 billion in South Florida residential real estate in 2025, up from USD 3.1 billion in 2024, totaling 5,300 properties. Foreign buyers account for roughly half of pre-construction property purchases in South Florida, with an overwhelming Latin American presence in hubs such as Downtown Miami (99%) and Coconut Grove (97%), according to the same report.
Capital origins vary, with high-net-worth individuals (HNWIs) from Colombia leading the market (15%), followed by Argentina (12%), and Mexico and Brazil (7% each). However, average check sizes for Mexican and Brazilian buyers are higher, exceeding USD 700,000, compared to under USD 600,000 for Colombian buyers.
Yet the most striking shift is in institutional investment. According to studies released by the Society of Industrial and Office Realtors (SIOR), Latin American family offices are estimated to hold between USD 45 billion and USD 75 billion in assets under management invested directly in US real estate.
By comparison, this same group of families maintains a significantly lower exposure to European real estate, ranging between USD 15 billion and USD 27.5 billion. Real estate also stands out among the primary direct investment strategies for regional family offices, with over 75% of these structures holding active, direct positions in US physical property.
In addition, regulated real estate fund managers in Latin America are raising capital locally to invest in the United States. A prominent example is Chilean asset manager Independencia Asset Management (IAM), which manages over USD 2.3 billion in assets on US soil and has accumulated a deal volume exceeding USD 3.4 billion since establishing its Miami headquarters in 2004. Its portfolio encompasses over 1.6 million square meters (approx. 17.2 million sq ft) across 19 states, focusing on distribution warehouses, prime office space, and shopping centers in Seattle, Denver, Los Angeles, and Miami.
Dozens of other firms follow this same strategy of raising capital in Latin America to invest in US real estate, including Brazilian firms JHSF and RBR Asset Management, Argentine developers Melo Group and Consultatio Real Estate, and Mexican firm Leon Capital.
Why Is Latin American Money Flowing to the US?
Serving as political insurance - a flight to safety - historically acts as the primary trigger for private capital outflow from Latin American economies, reinforcing the dynamic where left-leaning political cycles drive an accelerated reallocation of liquidity toward institutionally stable jurisdictions like the US.Colombia offers a clear example of this cause-and-effect relationship. The inauguration of President Gustavo Petro in 2022 and the swift passage of tax reforms establishing a permanent annual wealth tax - with marginal rates from 0.5% to 1.5% on individual net worth - accelerated the movement of private wealth to the US.
This regulatory shock pushed Colombia to the top spot among foreign buyer countries in South Florida, accounting for 15% of all foreign residential transactions and 23% of new construction volume in the region.
In Mexico, the consolidation of political power by the ruling Morena party, along with proposed judicial reforms and regulatory uncertainty surrounding strategic contracts, triggered proactive defensive moves among business owners and industrial groups.
Mexican families primarily seek shelter in Texas and Florida, recording the highest median purchase price among all foreign investors (USD 934,000 per unit), highlighting an allocation strategy focused on high-value properties.
In Argentina, decades of endemic inflation, chronic currency devaluation, and successive changes to personal property tax rates have entrenched the practice of holding tangible assets abroad. This behavior maintains strong Argentine demand, with the country accounting for 12% of South Florida's international buyer market and 34% of international acquisitions in Palm Beach County.
For institutional investors, currency hedging carries even greater weight. The thesis for hard-currency preservation stems from the continuous erosion of emerging market purchasing power. Even when interest rates in Latin America remain high - such as Brazil's Selic rate - the steady devaluation of local currencies against the US dollar diminishes purchasing power on the international stage.
Consequently, investing in US real estate protects family wealth by linking it to assets valued in hard currency while generating rental income in dollars. This acts as a financial hedge to cover overseas expenses, such as education costs and estate planning. This value proposition is how many asset managers pitch US investment strategies to their clients.
The drive for financial returns is grounded in the liquidity of the US real estate market and the consistency of operating margins. Prime logistics assets and proven multifamily developments support double-digit dollar-denominated IRR projections.
In Brazil, tax reform provided renewed momentum for overseas allocation. The end of tax deferral for offshore structures - replacing it with an annual 15% tax on accrued earnings - reduced the appeal of keeping idle cash in custody accounts. Capital shifted toward physical real estate benefiting from tax depreciation, structured through a two-tier model (a US LLC owned by an offshore entity) to secure tax efficiency and protection against the US Estate Tax (which can reach up to 40%).
This does not mark a breakdown in capital flows from the US to Latin America; rather, Latin American investors are solidifying their role as essential providers of institutional equity to recapitalize the US real estate market amid tightening domestic bank credit.
For developers and fund managers with international exposure, fundraising success hinges on the ability to design dual-jurisdiction corporate and tax structures that optimize tax efficiency on both sides of the border.