Venezuela, once plagued by economic collapse, vast migration, and authoritarianism, is now navigating what the post-Maduro era will entail. The prospects of political freedom and an improved economy is prompting enthusiastic brokers to begin raising home prices.
Interestingly, many brokers are planning on many who migrated out of Venezuela to begin investing in housing. The New York Times highlights Carlos Peñalver, an expatriate, who recently bought a three-bedroom apartment following Maduro’s capture.
What’s fueling this enthusiasm?
The oil sector is the primary industry paying the country’s bills. With Maduro no longer acting as president of Venezuela, lawmakers finally were able to exercise the ability to attract more foreign investors.
New legislation aimed at increasing production and growth hopes to incite foreign investors in Venezuela. That being said, many are still thinking twice about investing due to the potential volatility of the market and the time it could take for the economy to bounce back.
Expectant increases in home prices
Nonetheless, home prices have been noted to increase which has been evident in Ciudad Guayana where the New York Times reported one townhome’s price increased from $55,000 to $85,000.
These price increases are not limited to homes. Beach front properties and commercial buildings in tourist areas are also acting in anticipation of a rebounded economy and drastically increasing prices.
Could all of this be preemptive?
Although Maduro’s detention is a sign of hope for Venezuela’s economy, the immediate price jumps on housing is an unjustified exaggeration of the times according to real estate agent Diogelis Pocaterra.
In an interview with New York Times, she shared that the economy may take time to recover, and the home price jump seen now is fueled by euphoria more than anything.
The future for Venezuela’s housing market is still uncertain and heavily dependent on the future of the oil industry.
