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3 Reasons Why Guam Real Estate Investments Are Lucrative

Guam is an island full of many surprises. It is not uncommon for those who have visited Guam to fall in-love with the island life and even considered staying in Guam on a more long-term basis. Some have found a unique affiliation with the island and have considered making it their second home.

The Guam government has given a lot of attention to improving and developing various industries with the intention of creating business opportunities for both local and foreign investors. While real estate has become a popular investment vehicle over the last 50 years, Guam real estate has somehow become a point of interest for many venture capitalists. New real estate markets are now emerging and if you’re looking to invest in real property you might want to look into what Guam has to offer.

Here are 3 reasons why Guam real estate investments are lucrative:

1. Guam’s real estate market is on the rise. Land sales in 2016 reflected an annual volume of almost $150 million and 370 transactions. The average size of the land parcel sold was 1,850 square meters at an average cost of $80,000. The Guam real estate market has enjoyed a steady growth over the last couple of years, with more foreign investors showing even more interest.

Residential and commercial properties have also shown significant increases in both sales and rental activity. This kind of growth has been evident in the last 3 years and is showing no signs of slowing down.

2. Guam’s tourist profile affects real estate directly. The visitor industry is one of the major catalysts for the rise of the real estate market in Guam. With an average if 1.2 million visitors annually, tourism alone generates over $1 billion in revenues. Tourists’ travel preferences have shifted from “packaged” type to Free Independent Travelers (FIT), making short-term rentals for condominiums and apartments more popular.

Locals have taken notice of this trend and have taken steps to take advantage of this business opportunity. There seems to be an increased demand for condominiums and apartments. Property developers are quickly catching on as well in order to fill these requirements.

3. Guam’s location is strategic. Guam is the closest U.S. territory to the Asia Pacific Region. Many visitors from Korea, Taiwan and China have been buying beachfront condos and other property for a fraction of what it would normally cost in their own country. Japan is also a primary visitor and a source of foreign investment in the hotel, tourism and visitor transportation industries.

Guam’s strategic location is also a key factor for the U.S. Military. The island has become home to a large Navy Base, Naval Computer & Telecommunications Base and Air Force Base and other U.S. Military support units. This automatically means that a large number of military men and their families are relocated to the island, significantly increasing the demand for housing and property.

Whether you’re looking for a lucrative business venture, a second home or moving to Guam on a more permanent basis, your decision to purchase real estate on the island will always be a good investment. The island is so full of untapped potential and are all ripe for the picking. Guam is definitely a sound choice for investment.