A Taste of Margarita – the new emerging property market

According to an article written in the Los Angeles Times and the Economist magazine, oil rich Venezuela is the fastest growing economy in the world behind China.

The trade balance is currently a positive $22.1 billion.  That’s A LOT OF MONEY for a country with a population of only 26 million people.  Even more impressive industrial production is up 23.1%.  That’s mostly local money.

As a result, confidence is high locally, hence the political calm.  Instead of taking money out of the country, local business leaders and government are keeping it in and putting it into things like manufacturing, expanding/upgrading infrastructure, and controlling prices (97 octane gasoline is US 11 cents a gallon, for example).

So far as President Chavez and any perceived anti-American attitude is concerned, there has been a lot of the propaganda caused by the US government and its policies.  The Chavez government was against the wars in Afghanistan and Iraq, but then again so were many other countries, some of them supposed allies of the USA.

With the government committed to increasing tourism and Article 301 of the Constitution, no discrimination is allowed between local and foreign investors.  Juridical Stability Agreements are another incentive provided for in the Investment Promotion and Protection Law and its regulations.

Margarita Island is “tax free�, situated in the Caribbean (off the hurricane trail) and the largest of Venezuela’s 72 islands.  It is not as well known as it’s neighbours Trinidad and Tobago but Margarita has already managed to become a “hot spot� for many Europeans and has rightly earned recognition as the “Pearl of the Caribbean�.  With around 1.7m visitors last year and an average temperature of 30c, Margarita Island a 12 month of the year holiday destination.  Spanish is the local language yet Margarita is a fusion of Caribbean and South American cultures, which is clear to be seen during Carnival season.

Combined with the opportunity to buy investment property from £55,000 Margarita is already well on the way to becoming a major property investment market and has attracted regular media attention recently.  According to sources, top international boxer Joe Calzaghe has also invested in property there.

With good road infrastructure, low cost of living, fantastic  Beaches, Shopping Malls, Casinos and major Hotel chains, Margarita Island is ready and waiting for the shrewd investor.  Property prices are still cheap but there has been a steady rise over the past 2 years as the demand for new builds increase to meet the requirements of international tourism.

First Choice Holidays and P&O Cruises now feature Margarita in their brochures and many European airlines fly directly to the island, with more set to follow.  The interest in Margarita Island has not gone unnoticed by major International Hotel Groups who already have a presence on the Island.

As with all emerging markets cheap property prices will not last forever and it is generally those who have insight and courage to “get in early� that will benefit.  However, buying into the right type of project is also essential if you are looking to maximize capital growth and rental income.

For information on Margarita Island please click here.