The crisis associated with the Covid-19 pandemic has not been reflected in real estate in Puerto Rico, where the arrival of Americans seeking tax breaks has sparked a historic start in the industry, particularly luxury, to which is added the notable boom in the sale of pleasure craft.
Leading island representatives of luxury real estate and luxury boats confirmed to Efe on Wednesday that unlike other industries that the pandemic has taken its toll on, theirs have experienced unprecedented growth this year.
The owner of Luxury collection real conditionFrancisco Díaz Fournier told Efe that this pandemic year has without a doubt been very positive for his company, probably the most prominent in the luxury real estate sector.
“There is no inventory to meet demand, causing prices to skyrocket,” said Díaz Fournier, recalling that more than $ 1,000 per square foot is currently being paid in Puerto Rico, comparable to those in Miami, New York or San Francisco. .
Díaz Fournier emphasizes that the arrival of US citizens to Puerto Rico in search of tax incentives is what has transformed the industry.
A good example of the surprising rise of the luxury real estate industry during the pandemic is the news released a month ago reporting the sale of the most expensive house in history in Puerto Rico for $ 30 million.
The property is located in the municipality of Dorado, about 20 minutes from the capital San Juan, near the luxurious Ritz-Carlton Reserve hotel.
Record but no exception
While it was a record high, it is no exception among millionaire house prices as the island’s second most expensive house in Dorado sold for $ 25 million, followed by another at a price of around $ 19 million, according to the island’s media.
Díaz Fournier said that when the pandemic broke out a year ago, in the United States people of great wealth appreciated moving to safe contagion areas and especially with favorable tax conditions for their money.
They no longer pay millions in taxes
Local media remind you Hundreds of Americans who have moved to Puerto Rico are no longer paying millions of dollars to the federal treasury.
Law 22 encourages people who were not residents of Puerto Rico for the last 15 years prior to the adoption of the ordinance and who maintain investment in or outside the United States to settle on the island.
This rule, in order to encourage the transfer of these investors, exempts them from paying tax on passive income, including interest, dividends and capital gains on the sale of shares.
The businessman pointed out that a sale was recently closed in San Juan that exceeded $ 7 million and others in the Condado district of the capital are above $ 3 million.
Processing in other parts of the Caribbean
Puerto Rico is therefore close to what is happening in other parts of the Caribbean, where, for example, a house on the island of San Bartolomé was recently sold for $ 90 million.
But not only houses are on the rise, the luxury boat sector is also experiencing unprecedented growth so far.
CFR Yacht Sales Director Carlos Rodríguez told Efe that during this pandemic year, “ more boats were sold than ever, ” something that a priori few could think of at a time when the economy in general is experiencing major global troubles.
He explained that CFR Yacht Sales, which sells boats from the Viking Yachts and the English luxury brands Princess, is going through a sales period that was not remembered.
The manager explained that there are two reasons explaining this fact and that his own customers have responded to him.
The first is that because of the impossibility of making trips, people choose to buy a boat as a recreational alternative.
The second is that the elderly started the purchase before there is the possibility that it is their last chance to enjoy a boat with the permanent threat of possible death from the virus.
“The people who buy these boats usually do so with loans from banks and they are business people and professionals like doctors,” he said.
These two economic sectors contrast with others severely affected on the island, such as tourism, restaurants and recreation, where many jobs have been lost. EFE