Real Estate - Puerto Rico | Statista Market Forecast

Puerto Rico's Real Estate market market is expected to reach a staggering value of US$334.10bn by the year 2024.
Within this market, the Residential Real Estate segment takes the lead, with a projected market volume of US$253.70bn in the same year.
This indicates a strong dominance of residential properties in Puerto Rico's Real Estate market market.
Looking into the future, the market is anticipated to display a steady annual growth rate of 3.12% from 2024 to 2029 (CAGR 2024-2029).
This growth trajectory is expected to result in a market volume of US$389.70bn by the end of 2029.
This signifies a positive outlook for the Real Estate market sector in Puerto Rico, with sustained growth expected over the forecast period.
In a global context, it is noteworthy to mention that United States is projected to generate the highest value in the Real Estate market market, reaching a staggering US$132.0tn by the year 2024.
This showcases the significant contribution of United States to the global Real Estate market landscape.
However, it is important to note that Puerto Rico's Real Estate market market holds its own significance within its own context and contributes to the overall global market.
The real estate market in Puerto Rico is experiencing a surge in luxury beachfront properties due to the growing demand from affluent international buyers.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Puerto Rico is experiencing significant development and growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory. Customer preferences in the Puerto Rican Real Estate market have shifted towards more sustainable and eco-friendly properties. Buyers are increasingly interested in properties that incorporate renewable energy sources, such as solar panels, and have energy-efficient features. This preference for sustainability aligns with global trends in the Real Estate market, where environmental concerns and energy efficiency are becoming increasingly important to buyers. In addition to sustainability, there is a growing demand for luxury properties in Puerto Rico. High-net-worth individuals are attracted to the island's beautiful beaches, favorable tax incentives, and high standard of living. This demand for luxury properties has led to an increase in high-end developments and luxury condominiums. Trends in the Puerto Rican Real Estate market also reflect the increasing popularity of vacation rentals and the sharing economy. With the rise of platforms like Airbnb, property owners are capitalizing on the island's popularity as a tourist destination by renting out their properties to vacationers. This trend has led to an increase in the number of properties being purchased for investment purposes, further driving the growth of the Real Estate market. Local special circumstances in Puerto Rico, such as the island's status as a U. S. territory, contribute to the development of the Real Estate market. Puerto Rico's connection to the United States provides access to a larger pool of potential buyers, including both local residents and mainland Americans looking for a second home or investment property. This connection also provides stability and confidence for investors, as Puerto Rico operates under U. S. laws and regulations. Underlying macroeconomic factors also play a role in the development of the Real Estate market in Puerto Rico. The island's improving economy, coupled with government incentives and tax breaks for Real Estate investors, has created a favorable environment for property development and investment. Additionally, low interest rates and access to financing options have made it easier for buyers to enter the market, further driving demand. Overall, the Real Estate market in Puerto Rico is experiencing growth and development due to customer preferences for sustainability and luxury properties, trends in vacation rentals and the sharing economy, local special circumstances as a U. S. territory, and underlying macroeconomic factors. These factors are contributing to a positive trajectory for the Puerto Rican Real Estate market and creating opportunities for both buyers and investors.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Puerto Rico

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