Luxury Real Estate Market Grows Stronger in Puerto Rico | Business
The Corcoran Group announced last week another milestone in the firm’s expansion with the launching of Corcoran Puerto Rico, its newest affiliate and its official entrance into Puerto Rico’s real estate market.
“Continuing to create more opportunities for all of our affiliated agents and clients is at the center of this growth, and I have no doubt that this new talented team will bring the Corcoran brand to the region in a strong and exciting way,” said Pamela Liebman, president and CEO of the Corcoran Group.
The new Corcoran affiliate is the product of an alliance with local Gramercy Real Estate Group, led by Puerto Rican entrepreneur Blanca H. López.
“We are thrilled to put Puerto Rico on the map with this new endeavor as Corcoran Puerto Rico. This is such a prime opportunity for growth, particularly given the current boomin real estate here on the island,”said López during the inauguration of Corcoran Puerto Rico new offices.
A former Corcoran affiliated agent in New York, López has specizalized in in high-end home sales and rentals and reported $50 million in sales this year.
Questioned about how significant the luxury segment can be for the real estate market in Puerto Rico, López said properties in this segment have experienced “substantial” price increases this year
“Demand for these properties has increased substantially, that is why prices go up. And given the high demand for these properties, inventory is running low,” López said.
According to the real estate broker, average prices for luxury properties around the Condado beach area range between $1,400 to $1,500 per square-foot, depending on their location and characteristics. If the property is on the beach and within high-end resorts such as the Saint Regis in Río Grande or the Dorado Beach Resort in Dorado, prices can reach $3,000 per square foot.
Corcoran Puerto Rico currently has in its inventory a 10,880 square-foot home in Guaynabo with a price tag of $7.7 million. Also, they have a condo in the Condado area with an asking price of $4.2 million.
“Property prices in Puerto Rico compete favorably with prices in cities like San Francisco and Hong Kong,” added the real estate broker.
Also influencing this segment of the real estate market in Puerto Rico are the tax incentives offered by acts 20, 22 and 60.
“Relocating has become easier nowadays. You can now work remotely, Puerto Rico’s [geographic] location and relation to the US, the climate, the vibrant culture… are also incentives for a family to relocate,” argued López.
But, are prospective buyers looking for primary housing or a second home?
According to López, both types of buyers are interested in coming to Puerto Rico.
“Many are buying second homes or vacation homes, but there are also clients interested in buying a home to take advantage of what Puerto Rico has to offer,” said López.
Aside from the real estate sales division, Corcoran Puerto Rico will also have a Sales and Marketing division and a Professional Consulting Department. The latter two concentrating in services for the development of new construction projects, including price setting, marketing strategies and construction project management.
“We think is important to be with every project from the beginning in order to develop a strategic plan covering all aspects,”López said.