Caribbean Luxury Real Estate Is Back On The Investment Radar
After a few years in the cold, booming tourism and steady prices have made the Caribbean hot again.
Let’s face it, 2016 was a downer for many people. If the election had you feeling the blues and the winter wonderland of Canada isn’t your thing, you may want to consider the Caribbean. After all, who wouldn’t?
The good news is, after a few years in the doldrums, the Caribbean luxury market is not only a wonderful place to escape from the madness elsewhere, but it also makes good sense as a place to invest, according to global real estate consultancy Knight Frank’s “Caribbean Insight 2016” report, which was just released.
“The Caribbean property market is gaining traction [after] having been hit hard by the global financial crisis,” said Kate Everett-Allen, partner of International Residential Research at Knight Frank. “The stage and speed of the recovery varies from island to island.” In particular, “St. Barts and Mustique have recorded steady sale rates in recent years, popular with buyers seeking a secure and discreet lifestyle,” she added.
With tourism increasing by seven percent in 2015, consumer confidence favors an increase in high-end real estate in the Caribbean, with the usual players—the U.S. and U.K.—likely to buy or rent. Although the Caribbean’s economy remains implacably tied to the U.S., the new face on the sun-kissed block is China. In fact, there has been a 500 percent increase in foreign direct investment during the 10 years prior to 2012, according to Knight Frank.
“While for some, the repercussions from the Brexit decision, Trump’s electoral victory, currency shifts, and lingering oversupply may add an element of uncertainty, for others they represent a buying opportunity,” Ms. Everett-Allen said.
“The expected U.S. rate rise in early 2017 will result in a stronger U.S. dollar, potentially providing an advantage for U.S. buyers looking in euro-denominated markets such as St Barts,” Ms. Everett-Allen told luxury real estate website Mansion Global in an email.
The domain of pop stars and the super wealthy, St Barts has been a particularly good market for those buyers from the U.S., France and the U.K. who can afford between $3 million to $5 million, which is the going rate for a property on the celebrity-soaked island. The strength of the U.S. dollar has been a boon for investors.
If St. Barts is a little too well-known for your taste, Mustique may be worth an investigation. It’s an island of around 100 villas and, due to limited supply, prices always seem to be inching upwards. If it’s privacy, security, and exclusivity you’re after, Mustique is a must go. Just don’t tell anyone about the midnight jam sessions with your neighbor Mick Jagger, who also owns on the island.
The British Virgin Islands have long been attracting visitors from the U.S., U.K., and Italy—and if you happen to have a spare $1-4 million floating around, you may choose to while away your days at the ultra exclusive super yacht development at the YCCS yacht club and newly renovated Little Dix Bay Hotel.
Right, where’s my sun cream?
AGORAFYAvocado toasts are the reason why millennials can’t afford a home, says one Australian real estate developer. #AvocadoToast #Millennials https://goo.gl/TBCPnv
AGORAFYFive years on since Superstorm Sandy, Queens’ coastal peninsula is in the midst of a development boom. #Development #Rockaways https://goo.gl/BRKRrD
AGORAFYIt turns out, renters can’t get enough of good ol’ no-doorman-no-frills apartments. Too bad developers aren’t building any. #Doorman #LuxuryRentals https://goo.gl/pdnbo6