Few could have predicted that a year after Hurricane Maria the real estate market for luxury homes in Puerto Rico would be in high demand. What is even more surprising, is that in Palmas del Mar, existing custom built homes that needed complete renovations would be the hottest ticket in town.
Before Maria, most clients looking to purchase in Palmas del Mar, were looking for turn key properties they could move into without the need to remodel or renovate. After Maria, eighty percent of all custom built homes sold in Palmas del Mar, have been homes that were on the market for years, mainly because they required extensive renovations. We attribute this shift in buyer’s confidence to four key factors;
Price point: For years, homes that were built in the 80’s and 90’s remained in the market place for a long time. As the inventory of newer or renovated homes between $750,000 - $1,750,000 decreased, homes in need of renovations became more attractive to buyers looking for homes within that price range.
Location: Most homes that needed extensive work enjoyed privileged locations and for the most part, ocean views. Having a prime location eased the decision making process and shifted the buyer’s focus on visualizing the end result.
Available Local Contractors: Buyer’s confidence in local contractors has skyrocketed, probably because for the first time, prospective clients have had the opportunity to see contractors at work and the end result of those renovations. Up to that point, finding a quality contractor had been the biggest concern for future homeowners.
Value: Most economists agree that the Puerto Rico Real Estate market hit its lowest point during the third quarter of last year. Interestingly, the demand for pre existing homes that needed renovations increased dramatically during the same period. Buyers understand that once renovated the expected value of homes with ideal locations equals or exceeds the capital investment.
Taking into account that the buyers have been able find their desired price point and location during this time, cements the argument that the conditions after Maria proved ideal for this shift in buyers tendencies and value recognition. Even with the high demand experienced in Palmas del Mar during the last twelve months there are still great properties available for those who are looking for a great value and investment.
Palmas del Mar is not only a great investment opportunity, it is great resort community where lifelong memories are made.
If you would like a free consultation regarding Palmas del Mar real estate please contact us at: www.casillasrealty.com . Ricardo Casillas (lic. 11412) 939-545-4545 Follow us on Facebook @casillasrealty