Puerto Rico: Price History

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An American in the tropics

Puerto Rico is holding Commonwealth status as one of the U.S. territories in the Caribbean. Puerto Ricans get the best of both worlds: gorgeous Caribbean beaches and the benefits of having an American citizenship.

It may not be one of the most esteemed spots in the Caribbean like Bermuda and the Bahamas, but Puerto Rican property prices are still higher than the average in the region. This is commonly attributed to its association with Uncle Sam and the use of the U.S. dollar as currency.

According to Global Property Guide research, the average price for properties in the capital San Juan is US$3,800 per square metre (sq. m). The average price for properties located in Puerto Rico’s coastal areas is about US$1,600 per sq. m, while properties in Culebra Island cost about US$11,800 per sq. m.

There are no restrictions on foreigners buying property in Puerto Rico.

Recuperating from crisis

The commonwealth had many years of economic progress, but that ended a long time ago. Puerto Rico is now adopting reforms to get back on its feet after years of economic struggle.

The Puerto Rican government has become generally poor -- much poorer than the poorest U.S. state -- and is in a huge amount of debt from last year’s emergency loan.

In May 2006, the government shut down due to a budget shortfall towards the end of its fiscal year. Schools were temporarily closed down and around 95,000 government employees were left without work.

The government is Puerto Rico’s biggest employer, providing around 200,000 jobs.

On November 15, 2006, Puerto Rico implemented its first sales tax at 5.5%. A portion of this is set aside to repay the US$740 million emergency loan it borrowed to keep the government afloat until the end of its fiscal year on June 30, 2006.

Insufficient private-sector employment

The U.S. government has made efforts to help Puerto Rico, albeit lacking and ineffective. Many manufacturing firms, for example, took advantage of the U.S. International Revenue Code’s Section 936, which provided huge tax breaks to corporations operating in U.S. possessions.

Large pharmaceutical firms moved plants to Puerto Rico, but did not generate as many jobs as the government hoped. The factories generally required huge amounts of capital but only few workers.

There are few improvements from having an unemployed third of the population in 2000. According to Governor Anibal Acevedo Vilá, 43,000 jobs were created by the private sector in 2005. However, the government of Puerto Rico still employs around 30% of the working population.

Unemployment rate of 11.4% in February 2007 is higher than the 10.4% in February 2006. Puerto Rico’s labor force in February 2007 is made up of 1.46 million people, with only a difference of 42,000 workers from the same month last year.

Encouraging advancements

Nevertheless, there are still stars to brighten up Puerto Rico, like in pharmaceuticals -- one of its important industries. Significant players include Pfizer, Merck, and American Home Products.

Adding to the list, Abbot Laboratories opened a factory in Barceloneta, Puerto Rico in April 2007. The new US$450 million factory is said to be Abbot’s biggest capital investment to date. The facility will focus on manufacturing biologic drugs, which the Puerto Rican government hopes to boost the biotechnology industry.

The tourism industry also sees developments, as the commonwealth is starting to get the attention of big U.S. sports groups. In September 2006, NHL played its first game in the Caribbean region when it performed a warm-up game in San Juan, Puerto Rico. In March 2008, it is going to be U.S. PGA Tour’s turn to put Puerto Rico in the spotlight with the first Puerto Rico Open.

The total number of people visiting Puerto Rico increased by an average of 3.3% per year from 2000 to 2004, whereas stay-over tourists increased an average annual rate of 3.6% over the same period. The total number of visitors to the islands is 4,889,200 in 2004, of which more than 3 million were stay-over visitors. In 2006, hotel registrations from July to October are a total of 632,600, made up of 424,800 non-residents.

Puerto Rico - more data and information

• Puerto Rico house prices, rents, and letting income - real data!
• How expensive are houses in Puerto Rico compared to the rest of Caribbean?
• How much rent can be earned from Puertorican property, compared to the rest of Caribbean?

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posted by rosemarie piacentile | 2007-10-18

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posted by Carmen Ramirez | 2007-08-21

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