Puerto Rico’s luxury market resilient, amidst continued economic woes
Puerto Rico’s housing market is now showing some signs of improvement, after previous house price declines. During the year to end-Q3 2015, the seasonally-adjusted purchase-only house price index rose by 3.97% (4.51% inflation-adjusted), in sharp contrast with the annual decline of 5.7% a year earlier, according to the Federal Housing Finance Agency (FHFA). On a quarterly basis, house prices increased 2.76% (1.88% inflation-adjusted) in Q3 2015.
In fact, the luxury segment is thriving, according to local property experts. This is because Puerto Rico’s high-end market attracts mostly high net worth individuals and foreign investors who are not affected by the debt crisis, and who want to take advantage of tax incentives being offered by the Puerto Rican government.
