Puerto Rico Housing Market Prices, Trends, & Forecasts 2023

Maria del Mar Ortiz


Puerto Rico remains one of the most beautiful islands in the Caribbean, with its rich culture and incredible landscape. Though the Puerto Rico real estate market has slowed down in the past year, the island’s luxury market has been experiencing consistent interest, attracting investors seeking the perfect tropical paradise. So whether you’re looking to purchase a vacation home, invest in rental properties, or sell your current property, there are a few key factors to consider when navigating the housing market in 2023.

Housing market forecast: Puerto Rico 2023

Overall, the Puerto Rico real estate market provides a few challenges, with decreasing home values and rising interest rates. But in the luxury market, there could be greater potential for stabilized home values and an uptick in demand. Buyers should be prepared to act quickly and have financing in place, while sellers may need to price their high-end properties more competitively. Regardless of your role, it’s imperative to work with a knowledgeable real estate professional and stay informed about the trends you can expect in the latter half of 2023.

Decreasing home values

Puerto Rico ended 2022 with lower home values overall, and while this trend poses challenges for homeowners looking to sell, it presents opportunities for buyers seeking more affordable properties. However, it's important to note that the luxury market in Puerto Rico has displayed different pricing trends. In select areas, luxury properties have maintained their value or even experienced growth due to their exclusivity, prime locations, and top-of-the-line features. For buyers interested in the luxury market, this presents an opportunity to acquire prestigious properties at competitive prices.

Interest rates on the rise

The real estate market in Puerto Rico has experienced a rapid rise in mortgage interest rates, creating significant implications for buyers and sellers. When interest rates rise suddenly, they impact affordability and purchasing power and make it more challenging for prospective buyers to secure financing for their dream homes. Higher interest rates often lead to higher monthly mortgage payments, which can deter potential buyers from entering the market or prompt them to reconsider their budgets. For sellers, the rise in interest rates may lead to a slowdown in demand as buyers become more cautious. For buyers, an increase in rates means it’s more important to evaluate their finances prior to investing.

Investing indicators could favor landlords

With an increase in interest rates, the Puerto Rico market may continue to favor landlords throughout the second half of 2023 as newcomers seek to save on monthly payments by renting versus owning. That being said, anyone who owns a rental property on the island will also want to keep population changes in mind. When more individuals are relocating to the island, demand for properties will increase, thus putting landlords in a more favorable position. The government's efforts to stimulate the economy and attract more newcomers may also contribute to a positive third and fourth quarter for landlords. Ultimately, it’s difficult to say with confidence that the coming months will see an uptick in returns for landlords, but high-interest rates may spur more buyers to switch gears and rent instead.

Net decrease in population

In recent years, Puerto Rico has experienced a notable trend of net negative population growth due largely to economic challenges. The devastation caused by Hurricane Maria in 2017 resulted in a significant exodus of residents, which, coupled with a declining birth rate, led to a shrinking population across the island. However, efforts continue to be made to revitalize the economy and attract new residents, with some incredible luxury destinations making waves in this regard. Government initiatives, such as tax incentives for businesses and individuals, aim to reverse this trend and stimulate the country’s slower population growth rate in the coming years, but it’s important to keep this trend in mind if you’re looking to buy or sell on the island in 2023.

The impact of Covid-19

The Covid-19 pandemic had a notable impact on the real estate market in Puerto Rico. Like many other regions, there was a slowdown in real estate activity initially as lockdowns and restrictions limited property showings and transactions. However, as 2020 progressed into 2021, demand for properties saw an unprecedented rise as interest rates were set to historic lows. And with a shift towards more remote work, many individuals sought to invest in second homes or relocate, choosing destinations like Puerto Rico for its natural beauty, favorable tax incentives, and relatively lower population density. While Covid-19 initially posed challenges, the Puerto Rico real estate market demonstrated adaptability, with certain segments like the luxury market continuing to see robust demand and climbing prices.

Is 2023 the year to invest?

The Puerto Rico real estate market offers investment opportunities, but careful consideration is crucial. Lower home values and potential demand for rental properties make Puerto Rico an attractive destination for investors seeking long-term returns. However, factors like population decline and economic challenges should be taken into account. For those seeking luxury property, the island has seen stronger demand for top properties, with record-high sales prices in the eight figures. To maximize their investment, buyers should explore more upscale neighborhoods, but conducting thorough market research, understanding local regulations, and working with an experienced real estate professional are key to making the right investment in the Puerto Rico real estate market.


Condado is one upscale option for those seeking a beautiful neighborhood in San Juan. Known for its luxurious high-rise condos, upscale hotels, and beautiful beaches, Condado offers everything from a vibrant nightlife to high-end shopping options.

Dorado Beach

Located on the northern coast of Puerto Rico, Dorado Beach is another exclusive option. This gated community features lavish residences and world-class amenities minutes from the shore. Residents can make the most of championship golf courses and resorts, all housed within a serene and luxurious community.

Palmas del Mar

Further southeast, Palmas del Mar is a prestigious resort community with a mix of luxurious homes, condos, and villas. It features beautiful beaches, two stunning golf courses, a marina, restaurants, and various recreational activities that make it an ideal destination for upscale living.

Invest with confidence in 2023

The Puerto Rico housing market in 2023 is expected to present a mix of opportunities and considerations, and it’s important to remember that demand and pricing aren’t consistent across the island. Whether you’re looking to buy or sell, the best way to find success is by partnering with a dynamic real estate professional like Maria Del Mar Ortiz. Contact Maria Del Mar Ortiz today to learn more about what you can expect when you buy or sell in Puerto Rico this year.


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