It is still convenient investing in Margarita Island now, but property prices are already starting to rise. Hyperinflation, international sanctions, political instability and high criminality were holding back investors’ interest in putting their money in the South American country. However, the situation started to change and Venezuela will have double-digit GDP growth by 2022.
This scenario will further favor Margarita Island, a free port in the Caribbean Sea that has never been significantly affected by the country’s recession. With the return of tourism and an improving economy, interest in investing and living on the island is likely to increase.
Located in the state of Nueva Esparta, this island is one of Venezuela’s main tourist destinations. Before the COVID-19 pandemic, it received almost four million annual visitors. However, the number dropped drastically after the pandemic due to travel restrictions, but this year has seen a remarkable recovery. Margarita Island has even become a shopping tourism destination for Cuban citizens. The island also attracts Russian tourists who, in view of the sanctions suffered by their country after the invasion of Ukraine, have found an oasis of sun and beach on Margarita Island.
Why is Margarita Island so attractive? Temperatures are pleasant all year round. The beaches are spectacular and there is a wide variety of water sports to enjoy. Those who prefer nature tourism can visit impressive places such as Laguna de la Restinga, Tetas de María Guevara or Cerro de Copey. Crime is very low and the people are very friendly.
The Island’s climate favors the flow of tourists all year round. The maximum temperatures are almost always above 30 degrees, and the minimums are almost always above 20 degrees. The average sea water temperature in Margarita Island is 27.3°C, the minimum temperature is 25.5°C, and the maximum is 28.9°C. The holiday season, on Margarita Island, lasts from January to December, twelve months out of the year!
Margarita Island also boasts a strong hotel infrastructure, several restaurants and well-stocked stores offering international products of the highest quality. In addition, the cost of living is not high, especially if you have dollars. Its real estate market is also attractive due to the very low prices. A luxury apartment, for example, can be purchased for $50,000.
Margarita Island has three main cities. The most famous of all is Porlamar because it offers the most tourist attractions. La Asunción and Juan Griego are two other popular destinations. The most common way to get to Margarita Island is by air, with flights arriving at the Caribbean International Airport “Santiago Mariño”. You can also take a fast ferry, which offers a three-hour trip, while the conventional ferry, which also transports cars, takes five hours to complete the journey.
Hotel prices are not high. It is possible to spend a night in a luxury hotel on Margarita Island for a little over 100 euros a night. Prices in three- or four-star facilities do not exceed 40 euros and include breakfast.
Most visitors are attracted to Margarita Island mainly by its beaches. The best known are El Yaque and Manzanillo. You can also visit historical sites such as the Church of San Nicolas de Bari and the statue of Bolivar, both located in Porlamar. If you head to La Asuncion you can visit the Museum of Nueva Cadiz and the impressive Santa Rosa Castle. Meanwhile, you can’t miss a visit to La Galera in Juan Griego, the island’s other major city.
For nature lovers and hikers, the imposing hills of Las Tetas de María Guevara, located in the south of the island, are a must-see. Two other incredible destinations are the natural park Laguna de la Restinga, known worldwide for its great diversity of mangroves, and Parque El Agua, which has the highest water slide in Venezuela.
One of the most interesting and promising sectors to invest in Margarita Island is real estate. The prices of houses and apartments have continued to fall, although Venezuela’s economic recovery could bring about a progressive increase in those prices in 2023, making it the perfect time to invest.
Luxury properties in Porlamar, which is the capital of Margarita Island, can be purchased at prices ranging from US$300 to US$500 per square meter. Other property expenses, such as electricity, water and Internet, are extremely cheap, because they are paid in bolivares, the local currency which is highly devalued. In addition, hiring a housekeeper is not expensive either, as the price of their monthly services does not exceed US$50.
It is easy to acquire a high-speed Internet connection on Margarita Island, making it an ideal place for digital nomads. For those who don’t want to invest right away but want a taste of life there, you can rent a luxurious two-bedroom apartment near the beach and within walking distance of supermarkets. The price of this apartment will never exceed $400 per month.
The law firm Caporaso & Partners recommends taking a first step on investing in Margarita Island by traveling there to get to know the place and explore your options. Our specialists can advise you on the next steps to take in order to settle down and invest in real estate.