The Caribbean Report is a monthly overview of the Caribbean Basin for real estate buyers, investors, and developers. We offer a snapshot of current regional trends regarding real estate values, prices, transactions, and additional attendant issues.
The Caribbean and Bahamas are still experiencing a well-performing real estate sector. Activity regarding new development and sales of especially new real estate is bris in preferred areas. The upmarket category has been on cruise control for the past two years with numerous properties in the $2M to $10M category transacted throughout the region. We do believe the window of opportunity is tightening for this market segment and anticipate reduction of demand through the end of 2007. The region, as yet, is not witnessing a decline in the real estate sector as in the US in regard to any value decreases. Higher-end Caribbean residential values, especially within new elite projects are buoyant.
| Regional RE Sample Transactional Analysis (1st Quarter 2007) |
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| avg. 2 bd condo | avg. 2/3 bd home | avg. 0.5 acre land | |
| Anguilla | N/A | $820K | $138K |
| Belize | $202K | $485K | $72K |
| Nassau, Bahamas | $655K | $947K | $380K |
| Nevis | N/A | $617K | $119K |
| St. Kitts | $288K | $584K | $104K |
| St. Maarten | $449K | $782K | $165K |
| St. John, USVI | $491K | $953K | $289K |
The call for more moderate pricing has become quite pronounced, but as yet few developers are addressing this category of midlevel property, in the $400K to $800K range. Our understanding is that several new projects in Anguilla, Grenada, St. Kitts, Nevis, Belize, and the Bahamas will address the needed inventory. Of course, numerous developments in Belize, Costa Rica, and Panama have quickly worked to fill this gap. But, as yet, considerable areas of these locations often do not have the service thresholds or infrastructure required by more upscale buyers.
Higher-end residences, especially within newly developing projects are doing well due to attendant aspects of full-service, concierge applications, complete amenities, superior locations, and tested management programs. Branding has become a phenomenon for the first time in the region in just the last few years. Many buyers state their unequivocal comfort level with a quality brand name attached to a project. A dozen significant new projects are emerging simultaneously in the Caribbean and the Out Islands of the Bahamas. As stated, there certainly has been a need for more moderately priced real estate inventory and several of the newer projects will address mid-priced condominiums and townhouses in the near future. Many developers have stated their intent to meet the demand for vacation condos and villas in the range of $450K to $1M+ beginning in late 2007 or early 2008.
British Virgin Islands Real Estate
St. Maarten/St. Martin Real Estate