Are immigration laws stymieing South Florida real estate?

August 13th, 2008

igration is a hot button issue in the 2008 presidential elections, but long after the votes are counted the real estate industry may still be pressing for immigration reform of a different kind.

That’s because some realtors believe current immigration laws, including those dealing with visas and drivers’ licenses, are putting a brake on foreigners interested in investments and second homes in South Florida. Others say the issue is a red herring, a knee-jerk reaction from the real estate community reeling from a downturn. Still others say the bigger issue is immigration’s impact on business.

“The real estate market is obviously going through a terrifically horrible time and there are many other issues that need to be addressed,” said Roy Barquet, a partner at Foley & Larder LLP in Miami.

“Immigration issues are on the periphery of the real estate issue,” he continued. “Immigration law is not having a chilling effect on real estate.”

But some realtors strongly disagree. Their complaints include: foreigners’ difficulties getting long-term visas, a long and rigorous immigration procedure upon entering the country, and driver’s license mandates.

Stefan Bolsen, managing director of Engel & Voelkers Florida headquarters, said Congress doesn’t seem to understand the consequences of these challenges on the local real estate economy.

“As we all know, the procedure of selling is highly influenced by psychology and investors tend to act in herds,” Bolsen said. “If the herd starts to run, everyone follows and the European investor could be the spark to start the engine.”

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