Despite the economic crisis Puerto Rico is facing today, where it moves closer to defaulting on its debt, a recent report suggests that the U.S. territory is emerging as one of the world's top luxury real estate markets. In fact, another report states that the archipelago recently secured a certain type of hotel investor.
According to Caribbean Journal, Puerto Rico may be Caribbean's "next big luxury real estate market." The report cites a study by Christie's International Real Estate, which states that the country experienced "105 percent luxury sales growth" in 2013 to 2014. This is reportedly due to Puerto Rico having been established as a tax haven in 2012.
The report further states that Puerto Rico's $1 million luxury home sales increased by an average of 16 percent in 2014, and it noted that the country's luxury real estate market is rapidly growing, catching the attention of global consumers.
Leticia Brunet Gonzalez, President of Trillion Realty Group, the exclusive Christie's International Real Estate affiliate in Puerto Rico, was also quoted as saying in the report that resort properties and luxury residences are being developed in the country, which hints that Puerto Rico is indeed ripe with opportunity.
"The confluence of the island's distinct tax advantages and strong appeal as a tropical luxury destination that is a U.S. territory are enticing prospects seeking the unique, Puerto Rico lifestyle," Gonzales said.
This is in line with another recent report from The Wall Street Journal, which states that a hotel investor actually dared to enter Puerto's real estate market despite the economic crisis it is facing today. According to the report, a buying group closed a deal with Blackstone Group LP for the El San Juan Resort & Casino, with the purchase led by Fundamental Advisors.
Fundamental Advisors Chief Executive Laurence Gottlieb revealed that the buying group includes private equity firm Leon Mayer & Co. and hotel management company Aimbridge Hospitality. The group reportedly aims to carry out a $35 million renovation to the resort to entice high-end business travelers and families. The renovation will include overhauls of all the rooms and remodeling of the resort's lobby, pool and spa.