The real estate market is experiencing a price increase in Puerto Rico. This is how we inaugurate our mini guide today. Analyzing the phenomenon that is affecting the real estate in Puerto Rico.Ma before getting to the heart of this article, we will try to make a broader reasoning. A historian of the Puerto Rican situation. So, if you are interested in buying a property in Puerto Rico, or if you are simply curious, you just have to read the next lines. We can start!
Puerto Rican real estate has begun to gain momentum after years of collapse. In particular, towards the second quarter of this year, the situation has changed. There is talk of a 14 % increase in the price index. A net improvement if you consider that such a growth has not been seen since 1995.
But let’s see together the situation of last year.
What was the real estate situation in Puerto Rico last year? Starting from this year, sales volumes have increased by almost 80% compared to 2017. And it was predicted (what happened) that they would increase in the following years.
This increase was sustained by the ever-increasing demand for new initiatives and new tax and housing incentives. In short, a more or less favourable situation.
But which are the strongest markets in Puerto Rican real estate? The highest number of sales was recorded in Ponce , San Juan and Mayagüez . And the momentum, as we anticipated, will continue in an exorbitant manner, doubling the results of the first quarter.
Although it may seem like a more than florid scenario, the same cannot be said of the construction sector. In 2018, the value of construction, especially residential construction, fell by 30 %. The annual basis for the collapse was $400.6 million. Public buildings were down 34 % and private construction 27 %. But why did real estate manage to survive and improve?
The latter decided to take over various types of pre-existing properties, which had remained in the Puerto Rican real estate market for years. The new buildings have not been able to appear in real estate, precisely because of the inefficiency of the sector.
What were the incentives that contributed to the increase in demand? Everything starts with new legislative manoeuvres. In particular, we are talking about two laws that came into force in 2012. In detail :
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