In this interview with the Mortgage Bankers Association of Puerto Rico (MBA), Adam Greenfader, Chairman of AG&T, shares his perspective on the economic trends that were beginning to reshape Puerto Rico’s real estate market and why the island was entering a new cycle of investment and development.
As Puerto Rico emerged from one of the most challenging periods in its modern history, leaders from the island’s housing and financial sectors gathered to discuss the outlook for residential development, mortgage lending, and economic growth.
While the conversation originally focused on the twelve-month outlook, many of the themes discussed remain highly relevant today.
A Market Entering a New Cycle
Several powerful forces were converging to support Puerto Rico’s economy.
Historic levels of federal reconstruction funding were beginning to flow into infrastructure, housing, and public works. Private investment was increasing as entrepreneurs, manufacturers, hospitality companies, and technology firms expanded their presence on the island. At the same time, Puerto Rico’s competitive tax incentives and strategic position as a U.S. jurisdiction continued to attract new residents and businesses.
Together, these factors created renewed confidence in both the residential and commercial real estate markets.
Housing as an Economic Multiplier
One of the central themes of the discussion was the importance of housing.
A healthy housing market extends far beyond homeownership.
Residential development supports employment across construction, architecture, engineering, finance, legal services, manufacturing, retail, and countless local businesses. Every new home generates economic activity while helping strengthen communities and improve quality of life.
As Puerto Rico continues to modernize its infrastructure and attract new investment, the demand for quality housing remains one of the island’s most significant long-term opportunities.
The Role of Responsible Mortgage Lending
The Mortgage Bankers Association of Puerto Rico has long played an important role in promoting responsible lending practices, professional education, and sound mortgage underwriting throughout the island.
By bringing together lenders, financial institutions, regulators, and housing professionals, the Association helps strengthen confidence in Puerto Rico’s housing finance system while encouraging sustainable homeownership and responsible access to credit.
Strong financial institutions are essential to supporting long-term residential growth, particularly as new investment continues to enter the market.
Looking Beyond the Recovery
The discussion also emphasized that Puerto Rico’s future cannot depend solely on federal recovery funding.
While reconstruction dollars have accelerated economic activity, lasting prosperity will ultimately be driven by private investment, entrepreneurship, innovation, manufacturing, tourism, and continued confidence in Puerto Rico’s business environment.
Housing will remain one of the cornerstones of that growth.
As more families, professionals, entrepreneurs, and investors choose Puerto Rico, the need for resilient communities, quality residential development, and well-capitalized lending institutions will continue to expand.
AG&T’s Perspective
For more than three decades, AG&T has worked alongside developers, lenders, investors, and public agencies throughout Puerto Rico and the Caribbean, helping structure residential, hospitality, and mixed-use developments that contribute to long-term economic growth.
Our work has reinforced a simple principle:
Healthy housing markets are built on more than favorable interest rates.
They require confidence in the economy, responsible lending, thoughtful planning, resilient communities, and collaboration between the public and private sectors.
Puerto Rico possesses all of the ingredients necessary to support that long-term vision.
We invite you to watch this conversation with the Mortgage Bankers Association of Puerto Rico as we discuss the forces shaping the island’s housing market and why we believe Puerto Rico remains one of the most compelling real estate opportunities under the U.S. flag.
The Governor of Puerto Rico Pedro Pierluisi made the historic announcement at The Puerto Rico Symposium in Miami that Puerto Rico was officially out of bankruptcy. The message was well received by over 250 industry leaders from both the public and private sectors. The event was organized by The Urban Land Institute South East Florida / Caribbean and The Puerto Rico Builders Association.
Governor Pedro Pierluisi makes historic announcement
The Symposium was kicked-off by Scott McLaren, President ULI SE Florida / Caribbean. Scott spoke about the longstanding relationship and collaboration between ULI and the Puerto Rico Builders Association. He highlighted the work on the ULI National Advisory Services Panel on social, economic, and physical resilience in Toa Baja, Puerto Rico. https://seflorida.uli.org/toa-baja-puerto-rico-panel/
Scott Maclaren finished his remarks by recognizing Vanessa de Mari, the new President of the Puerto Rico Builders Association and the first women president in the organization’s 70 year history. The Symposium was dedicated to this historic accomplishment. In attendance were some of Puerto Rico’s top government leaders. This included the Honorable Pedro Pierluisi, Governor of Puerto Rico, Manuel Laboy, COR3 Executive Director, Maretzie Diaz, Deputy Director PR Housing Department CDBG-DR, Natalia I. Zequeira, Commissioner of Financial Institutions, and in attendance, the Secretary of Housing of Puerto Rico, William Rodríguez Rodríguez. The keynote address by the Honorable Pedro Pierluisi, Governor of Puerto Rico’s highlighted the island’s economic accomplishments, the end of Puerto Rico’s population exodus, and the conclusion of the bankruptcy which was officially announced the day of the Symposium.
In the private sector, Ricardo Alvarez-Diaz, CEO, Alvarez-Diaz & Villalon discussed some of progress of the island’s rebuilding after the 2017 hurricanes Irma and Maria. The reconstruction of the island was a constant theme throughout the day with specific examples of over 900 started projects.
The first panel, “Why Puerto Rico: Stories of Success, was a testament to the resiliency of the development community. Moderated by Andrew Carlson, SVP Country Manager, of JLL the discussion highlighted the historic growth of the island’s hospitality sector with the construction and/or renovation of over 3,000 new room keys from El Conquistador, Grand Reserve (formerly known as Coco Beach), Sheraton, AC , and many others. The panel included Federico Sanchez, President & CEO, Interlink Group.
Dan Kodsi, Brad Dean, Rafael Rojo, Andrew Carson
Dan Kodsi, CEO, Royal Palm Companies, Rafael E. Rojo, President & CEO, VRM Companies. Also in attendance was Brad Dean, CEO, Discover Puerto Rico who highlighted the island’s impressive tourism growth (ADR and occupancy rates) during the Covid 19 pandemic and new expansion of tourism throughout all U.S. feeder markets.
As Puerto Rico seeks to build back its tourism and other industries, the financial sector will invariably play a major role. One of the goals of the Puerto Rico Symposium was to facilitate the conversation of growth in both traditional banking as well as new Fintech, IFEs, and other debt/equity players. Natalia I. Zequeira, Commissioner of Financial Institutions, explained the ease of regulations and process for new financial institutions as Puerto Rico shares many of the same regulations of the U.S. states on the mainland. Ms. Zequeira also mentioned that International Financial Entities (IFE) can now participate in special opportunity projects.
Michael McDonnell, Executive Vice President, First Bank, that recently re-opened its construction division, was bullish on the island’s economic prospects and announced that the Puerto Rico will achieve positive economic growth (GDP) this year– something it has not done in over a decade. Banesco USA announced the U.S. Department of the Treasury, will invest more than $8.7 billion through ECIP in institutions across the country – Banesco USA is the only bank recipient located in Florida or Puerto Rico.
Over the last few years, we have all hear about the 80 billion dollars of relief aid that has been allocated to Puerto Rico and is coming. In the “Myth versus Reality panel: Federal Funding Opportunities on The Island,” moderator Ella Woger Nieves of Invest Puerto Rico helped lift-up the proverbial transparency veil. Manuel Laboy, the COR3 Executive Director spoke with detailed facts of the funding by agency with FEMA authorizing 5 billion for temporary work, 21 Billion for 9,000 permanent projects and 800 that are currently under construction today. He also discussed the next wave of over 900 projects that are currently under engineering and design. Much of this work will be channeled through CDBG-DR and the PR Housing Department. Maretzie Diaz, the Deputy Director PR Housing Department, explained the process for companies wanting to participate in the island’s rebuilding of housing and infrastructure. Mahdu Beriwal, Owner/founder of EIM provided first-hand knowledge of the rebuilding work in Puerto Rico.
Adam Greenfader, Ricardo Alvarez-Diaz, Pamela Pautenade, Vanessa de Mari, Alfredo Martinez, Emilion Colon
Keynote Speaker Pamela Pautenade, Ex. Deputy Secretary of HUD, was also on hand to share her experiences about the collaboration with the Puerto Rico Builders Association during the 2017 hurricanes crisis. In a moving conversation with Ricardo Alvarez-Diaz, Mrs. Pautenade explained the dedication of the island’s public and private sectors and dispelled any rumors about misuse of relief funds.
Andrew Farkas, Adam Greenfader
Puerto Rico, like much of the Caribbean is in the process of bouncing back from the Covid 19 pandemic. Adam Greenfader, who chairs the ULI Caribbean Council had a high level sit down conversation with keynote Speaker Andrew Farkas, CEO Island Capital Group. The conversation was focused on social equity and specifically what role the financial sector has in supporting the region with a particular focus on sustainability, ESG, and helping economic migrants return back to their island homes.
In the last few years Puerto Rico has become known as blockchain capital of the world. While thousands of tech savvy individuals have moved to the island to take advantage of federal tax incentives they have inadvertently created a new economic driver for the Puerto Rico.
In our “Fintech & Financial Innovation panel in Puerto Rico, Moderator Nathan Whigham, Founder & President, EN Capital discussed the growth of this huge industry. Rodrick Miller, CEO, Invest Puerto Rico, explained what his group is doing to change the paradigm in Puerto Rico from selling tax incentives to focusing on the island’s quality of labor, education system, and proficiency in bio science and other innovations. Stephen Inglis, CEO, Importal explained his new portal to monetize tax credits and Yael Tamar, CEO & Co-founder, SolidBlock explained how her company is integrating real estate and blockchain.
After a marathon day of conversation it was amazing to see the room still full for our last panel “Growth Industries and Tax Incentives” moderated by Carla Campos and an all-star team including Jorge Ruiz Montilla, McConnel Valdez, Francisco Luis, of Kevane Grant Thornton and Rogelio “Roy” Carrasquillo, of the Carrasquillo Law Group. In this panel, specific programs like the Tourism Tax Incentive were explained in detail and there was robust conversation regarding how these incentives have created new jobs in manufacturing, life sciences, construction, and agro-science.
On behalf of all of us at the Puerto Rico Builders Association and The Urban Land Institute SE Florida/ Caribbean, thank you to all of the people and sponsors that made The Puerto Rico Symposium possible. We are all hopeful that together both the public and private sector can create long lasting sustainable economic growth.
For more information about investing in Puerto Rico visit our web site or contact us.
