My 2 pesos worth.
I've been coming to the North Coast for over 12 years and have some experience in Real Estate. I studied, if you will, Sosua and Play Chiquita and thought that it would become a multi national retirement community. Started buying 10 years ago. Ocean front @ $20. M2 US; 2nd/3rd lots back at $12. Intown commercial "all most free".
Same land is now +-$200. M2 ocean front, $120 2nd/3rd and commercial is 3 to 4 times the price. However, I do not see the land or the villas moving as quickly.
US home sales prices have dropped and has to be considered. The other is, as pointed out before, an almost(?) OVER DEVOLPMENT that the infrastruction can not support. It's a problem just driving down a street, find parking? Stores of all sorts have raised prices (supply and demand) but not expanded goods or service. Carry this over to all basic wants of retiring people from all over that expect the same services and service that they are use to from back where they came from.
In Sosua, the All Inclusives do well with the inexpensive 2 week holiday that bring in the inexpensive tourist looking for... not investing other then booze, girls and drugs (supply and demand). Investors and new home owners look at the whole situation and socio economics of an area and try to figure where there is a balance of what is exceptable.
Would I buy more on the North Coast? NO. I'm selling now. Do I think prices will go up? YES; but only after some things are cleaned up, and others expanded.
|