Isla Margarita – An island at the beginning of a boom

The Venezuelan island of Isla Margarita as a stunning Caribbean destination without the usual high price tag, but it isn’t just the low-entry prices that appeal, but also the year-round sunshine, absence of hurricanes and the reassurance of the wealth of an oil-producing nation to provide stability. In fact Venezuela’s economy is one of the fastest growing in the world after China, experiencing in 2006 both a property price boom and a stock market rise of 160% according to the Economist.

Venezuelans have always flocked to the island for their summer holidays and for seasonal duty-free shopping sprees, but now that the global tourist has been alerted to the two 18-hole golf courses, Nikki Beach and perfect conditions for windsurfing, kitesurfing, sailing and scuba diving, the beginning of a boom is being detected. With a 350 million US dollar Formula One Circuit complete with Race Academy poised for construction, the boom could accelerate rapidly.

Capital growth was pitched at 32% in Isla Margarita in 2006 and as this Island is 85% undeveloped, and therefore a true emerging market, that 32% could even go higher. Isla Margarita is a tax-free haven (no VAT, no CGT etc) and the cost of living is remarkably low, Venezuela is the only country where petrol is cheaper than water, a 4 x 4 petrol tank can be filled for just 1.55 GBP (yes, one pound 55) and a meal for two costs £6 GBP.

GEM Estates has identified the Aparthotel of Marina Caribe in Porlamar as a superb investment vehicle. The luxurious resort is set just 150 metres from the beach, 100 metres from the Marina and 25km from Santiago Mariño International Airport. Comprising studios and one or two bedroom apartments, Marina Caribe will operate as a hotel but purchasers will also be able to enjoy their investment for perfect sunshine holidays. On-site facilities include a communal pool, rooftop Spa and second swimming pool, children's play area, upper floor restaurant with panoramic views plus lower level bar and restaurant and also a 700-seat conference facility. The Hilton Hotel with nightclub and casino is also within walking distance. All units are delivered fully fitted and furnished and come with ample parking for all.

Marina Caribe offers a guaranteed rental income for TEN years with a minimum of 6% guaranteed for inaugural year one and four weeks off-peak personal use. Isla Margarita currently has an average year-round hotel occupancy of 70% thanks to the presence of both domestic and international markets.

Prices from 45,000 GBP for a studio, 56,000 GBP for a one bedroom and 82,000 GBP for two bedrooms.

Payment terms - £ 2,000 GBP reservation, 50% deposit, then 50% upon completion (18 - 24 months from deposit). Anyone can own property in Isla Margarita regardless of nationality and there is no need for residency to live on the Island. For further information, visit gem-estates.com.