Improvements in the Puerto Rican real estate: the latest news
The territory of Puerto Rico, one of the few not to be incorporated into the American continent, located in the north-east of the Caribbean Sea between the Dominican Republic and the Virgin Islands, is the subject of a very particular phenomenon, from the point of view of the real summer.
One of the most contaminated areas in the world, recognized for its beauty, it is an archipelago that has taken on more and more importance from the tourist point of view over the years. In fact, thanks to the tourist wave of many foreigners, who later became investors, it has managed to emerge, compared to many similar island realities, so that, the prices of houses have increased by 3.14% finding however a high level of demand.
And not because the target market is of extreme luxury. On the contrary, the range of investors has opened up more and more over the last few years, guaranteeing that every type of potential buyer can take ownership of a property in Puerto Rico. Positive indices, if we consider that in 2018, precisely in the first quarter there was a noticeable drop in prices (equal to minus 7 percentage points).
Although the increase in demand continues to a constant trend, real estate in general remains unfortunately still fragile. As the money from federal funding flows into Puerto Rico, an increase generated by the strong interest of the United States neighbors, the value of real estate has risen by 20% to a total of about 143 million dollars.
Positive elements, which however are not enough to cushion the economic and social problems of the island, and above all the state debts.
As far as current rental returns are concerned, it is not easy to find actual data, but the latest news tells us that after a period of stagnation, represented by five years of contraction, the Puerto Rican economy has shrunk by 3% per year. The problem seems to continue to persist, probably until 2020.
Are there any solutions according to economists able to solve this situation? The proposals are different, but none seems to have had an adherence to the circumstance such as to be considered valid to overcome this obstacle.
A lowering of the price level is not so simple to obtain. Usually it is through government policies that it is possible to smooth out critical issues. Creating international partnerships with the main investor countries, for example, could be a viable alternative to allow faster capital circulation, improved trade relations with foreign countries and, of course, greater economic stability that would entice even more more future buyers to buy a property.
What can we say, we hope that this nation can become even stronger, given that the geographical, landscape and low-cost potential of living are quite good, but need a little more help.
One of the most contaminated areas in the world, recognized for its beauty, it is an archipelago that has taken on more and more importance from the tourist point of view over the years. In fact, thanks to the tourist wave of many foreigners, who later became investors, it has managed to emerge, compared to many similar island realities, so that, the prices of houses have increased by 3.14% finding however a high level of demand.
And not because the target market is of extreme luxury. On the contrary, the range of investors has opened up more and more over the last few years, guaranteeing that every type of potential buyer can take ownership of a property in Puerto Rico. Positive indices, if we consider that in 2018, precisely in the first quarter there was a noticeable drop in prices (equal to minus 7 percentage points).
Although the increase in demand continues to a constant trend, real estate in general remains unfortunately still fragile. As the money from federal funding flows into Puerto Rico, an increase generated by the strong interest of the United States neighbors, the value of real estate has risen by 20% to a total of about 143 million dollars.
Positive elements, which however are not enough to cushion the economic and social problems of the island, and above all the state debts.
As far as current rental returns are concerned, it is not easy to find actual data, but the latest news tells us that after a period of stagnation, represented by five years of contraction, the Puerto Rican economy has shrunk by 3% per year. The problem seems to continue to persist, probably until 2020.
Are there any solutions according to economists able to solve this situation? The proposals are different, but none seems to have had an adherence to the circumstance such as to be considered valid to overcome this obstacle.
A lowering of the price level is not so simple to obtain. Usually it is through government policies that it is possible to smooth out critical issues. Creating international partnerships with the main investor countries, for example, could be a viable alternative to allow faster capital circulation, improved trade relations with foreign countries and, of course, greater economic stability that would entice even more more future buyers to buy a property.
What can we say, we hope that this nation can become even stronger, given that the geographical, landscape and low-cost potential of living are quite good, but need a little more help.
