Residential Real Estate Leases - Puerto Rico

In Puerto Rico, the market segment for Residential Real Estate Leases market is expected to experience significant growth.
By 2024, the revenue is projected to reach a substantial amount of US$2.21bn.
House Leases, in particular, dominate this market segment with a projected market volume of US$1.94bn in 2024.
Looking ahead, the revenue is anticipated to exhibit an annual growth rate of 4.77% from 2024 to 2029 (CAGR 2024-2029).
This steady growth is expected to result in a market volume of US$2.79bn by 2029.
The residential real estate lease market in Puerto Rico is experiencing a surge in demand due to the island's attractive tax incentives for investors.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Puerto Rico is experiencing significant development and growth. Customer preferences in the market are shifting towards rental properties due to various factors. One of the main reasons is the flexibility that renting offers. Many individuals and families prefer the freedom to move and explore different areas without the long-term commitment of owning a property. Additionally, renting allows for a lower upfront cost compared to purchasing a home, which is appealing to those who may not have the financial means to buy a property. Trends in the market show an increasing demand for rental properties in Puerto Rico. This can be attributed to several factors. Firstly, the aftermath of natural disasters such as hurricanes has led to a higher demand for rental properties as individuals and families seek temporary housing while their homes are being repaired or rebuilt. Secondly, the rise of remote work and digital nomadism has made it possible for individuals to work from anywhere, leading to a desire for more flexible living arrangements. Lastly, the influx of tourists and expatriates to Puerto Rico has created a demand for short-term rental properties, such as vacation rentals and Airbnb accommodations. Local special circumstances in Puerto Rico also contribute to the development of the Residential Real Estate Leases market. One key factor is the island's status as a popular tourist destination. The demand for short-term rental properties, especially in tourist hotspots, is driven by the continuous flow of visitors to the island. Additionally, the availability of government incentives for real estate investors, such as tax breaks and grants, has attracted both local and foreign investors to the market. These incentives have further fueled the development of rental properties in Puerto Rico. Underlying macroeconomic factors play a role in the growth of the Residential Real Estate Leases market in Puerto Rico. The island's economy has been recovering from the impact of natural disasters, and this has led to increased consumer confidence and spending. As a result, more individuals are willing to invest in rental properties, either as a source of income or as a means of diversifying their investment portfolios. Furthermore, low interest rates and favorable financing options have made it easier for individuals to access capital and invest in real estate. Overall, the Residential Real Estate Leases market in Puerto Rico is experiencing growth and development due to shifting customer preferences, increasing demand for rental properties, local special circumstances, and underlying macroeconomic factors. This trend is expected to continue as the market adapts to the changing needs and preferences of individuals and families in Puerto Rico.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

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

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Residential Real Estate Leases - Puerto Rico

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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