Margarita The New Property Hotspot

Andy Biggar, April 17th 2007, 10:20AM

It is very exciting as a property investor myself when I come across a new and undiscovered property market and recently I have been fortunate enough to do just that, when I was contacted by a developer on the Island of Margarita, just off the Venezuelan coast.

Once I had discovered the islands exact location, I soon realised that Margarita is a Caribbean paradise Island with white sandy beaches and all year round sunny climate and a tranquil and relaxing atmosphere found only in the Caribbean, a property investors paradise. Margarita is quite correctly known as the “Pearl of the Caribbean”.

Discovered in 1498 by Christopher Columbus and then later ruled by the Spanish. Margarita has an interesting past, which has led to a very mixed and cosmopolitan culture.

Lying off the coast off Venezuela Margarita is protected from hurricanes and is virtually a hurricane free zone, unlike other islands in the Caribbean where this could be a concern for the investor.

Property prices are much lower than Margarita’s neighbouring islands with prices starting from a staggering £49,950.00 for a harbour front studio with sea facing views, just 200 metres from the beach and situated in a luxury development.

Not only this but Margarita offers the property investor a tax free environment in which to nurture their investment, no capital gains or income tax and no dreaded VAT, what more could you ask for?.

Rental opportunities and capital growth potential are huge, with a forecast of 100% growth in property prices over the next two years and a rental demand for property that already outstrips supply.

How has this island paradise been left behind by the property investor? Well you could ask that question about many of the new emerging countries that have appeared on property investor hit lists over the last couple of years. The secret of smart property investing though is to be first and take advantage of the low prices before they increase through investor awareness.

One factor of why Margarita may have been forgotten is that the World is changing and now thanks to reduced air travel costs is our oyster and no where is beyond the reach of the UK property investor and Margarita Island should be top of their list before it becomes common knowledge what a fantastic investment opportunity this island really is.

Margarita is around a nine hour flight away from the UK and prices start from only a few hundred pounds, at the moment First Choice holidays are one of only a handful of travel companies who feature Margarita in its top end glossy brochures, however, this is about to change.

More and more people are discovering the delights of this paradise island. Americans have been visiting the island for holidays for years and with increased flights, access it is becoming much easier and cheaper.
First Choice require thousands of rooms to accommodate its holiday makers so demand for property on Margarita is already high, but no where near peaked. More direct flights are planned and more airlines are looking at flying directly to the island.

Background to Margarita

Margarita Island is located on the northeast Caribbean coast of Venezuela and is one of three islands comprising the state of Neuva Esparta.

Nueva Esparta state is formed of three islands, Margarita Island, Coche Island and Cubagua Island.

Margarita is the main tourist destination and attracts visitors from all over the World. The East end of Margarita Island has the most development. At the western end of Margarita Island is the Macanao Peninsula which is mainly undeveloped.

The island is blessed with some of the most beautiful beaches in the world, 72 in all, including Moreno, El Silguero, Pampatar and El Yaque.

The island boasts many modern shopping centres of an international standard, nightclubs, entertainment centres and an abundance of restaurants. It also has a selection of 2 to 5 star hotels to choose from.

Weather

Margarita does not experience the extreme weather conditions of many other Caribbean islands. Offering visitors 320 days of sunshine a year, there are no seasons on Margarita Island.
The temperature on the Island ranges from 32 º C in September to 24 ºC in January. The island is virtually hurricane free, a consideration that many overlook when considering a move to other Caribbean islands.

The main holiday visiting times for tourists are from December to April and from July to September.

Margarita is not as well known as its Caribbean neighbours i.e. Trinidad & Tobago but it has already managed to become a hotspot for many Europeans.

Thanks to a triple identity as an Adean, Amazonian and Caribbean country, Venezuela is definitely a multi destination tourism magnet and an incredible investment opportunity.

The History of Margarita (The Pearl of the Caribbean)

In 1498 Christopher Columbus discovered Margarita or so it became known the "Pearl of the Caribbean". The Spanish later invaded Margarita and held the people under a strict regime. Margarita had to be fortified against pirate attack and many of these fortifications are still standing today.

In 1561 Margarita was seized by Lope de Aguirre a brutal dictator. In 1814 the islanders fought a bloody battle and won the Margarita back from their Spanish invaders and Margarita became the first free territory in Venezuela.

Margarita's Main Cities

Porlamar

The biggest city on Margarita island is Porlamar known for its commercial centre, it flourishes with shops and good restaurants. About 85,000 people live there during the low season and about 125,000 in high season. It has two city beaches and a soon to be opened harbour for cruise ships.

Pampatar

Pampatar is the second largest city. Most of the larger shopping malls are in its jurisdiction. It has a very nice city beach, which is fronted by lots of good quality restaurants and shops.

La Asunción

La Asunción is the capital of the Federal State of Nueva Esparta.It is the seat of the regional government. There are no discos due to a ban that was issued by the local government. In La Asunción you will find a few restaurants and two parks.

Juan Griego

Juan Griego is a city made up of around 45,000 people, it has small shopping areas and an array of very nice beaches. Some of the best restaurants are in Juan Griego.La Galera is a fortress not far from the city centre, where in the early 1820's a fierce battle for independence took place.

Summary

Margarita really is a property investors paradise and with its current low property prices and high demand for rental properties that will only increase in demand over the next few years,due to the increase in flights and holidays company packages from the UK and US markets.The future is extremely bright and prosperous.
Margarita is a truly great opportunity to buy a Caribbean property for less than £50,000.00 and by buying now you will be on the first wave of investors which is where the real returns are made.

In my opinion there is nowhere at the moment that offers anything like the future growth prospects of Margarita,but be warned these prices will not be low for long,speed is definately the order of the day where this beautiful Carribbean Island is concerned.

Tags: , caribbean, isle of coche, margarita, marina caribe, musipan, piedra negra, property, property find international
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