During the summer of 2021, Puerto Rico’s tourism increased 28% when compared with the summer of 2019, pre-Covid. Since then, the tourism sector of Puerto Rico has been making an astounding come back, outshining all other U.S. states and territories in post-pandemic tourism recovery.
At the same time, the housing market in P.R. is exploding. Wealthy Americans have learned about the tax benefits they can access by calling Puerto Rico home, and they are eager to make the move. With tourism, an influx of wealthy investors, and as digital nomads become increasingly popular and working remotely is more widely accepted, these numbers are expected to rise even further.
Some See Vacation Rentals, Others See Dollar Signs
According to Discover Puerto Rico, the independent rental market, such as Airbnb’s and other lodging types, has grown more than 235% over the last five years. Now, these short-term rentals account for about 40% of the lodging demand in Puerto Rico.
2021 saw record levels of demand for lodging types, even when compared to pre-Hurricane Maria times. However, the heightened demand inevitably increased hotel prices, funneling even more customers to look for short-term rental opportunities. Investors are capitalizing on the booming demand, purchasing properties throughout the island, and converting them into short-term rentals.
Mirroring Global Markets
It’s not just Puerto Rico, the demand for short-term rentals is skyrocketing around the world. From one perspective, adults today are given more freedom to live and work from anywhere, and people are taking advantage of that. Monthly stays in new places are becoming increasingly more common since so many nomadic workers are more free to explore.
Investors have learned that turning properties into short-term rentals is a great investment. These properties become passive income very quickly, some showing returns after just a few months of being operational. Average yearly earnings for short-term rentals in the U.S. were up 26.2% in 2021 when compared with 2019. Customers can’t seem to get enough, investors can’t seem to get enough, and that dynamic is running rampant all over the world. Puerto Rico is no different. Tourism is booming, visitors need places to stay, and many travelers that want to stay for longer amounts of time are looking for the amenities of an apartment, condo, or beachfront bungalow.
Caribbean Luxury Rentals Knows Both Sides
Since our business has been focused on serving the short-term rental industry for over ten years, helping visitors find places to stay and helping owners manage their investments, we know have experience with which types of properties make the most sense for short-term rentals. Because many of our properties are high-end we have found ourselves answering many questions about investing and sometimes we end up brokering real estate transactions for our previous guests. Having the experience of serving both sides of the business equips us with the knowledge and skill set to help our clients purchase or rent perfect property. If you’re interested in investing in a property to use as a short-term rental, we are excited to help you make your dreams a reality; contact us today!