Caribbean Sales Volume
After a tough few years, the continued development and high demand from wealthy investors will continue to fuel the growth of the Caribbean real estate market.
Based on the Caribbean Luxury Investment Index, the total value of luxury property sales in the Caribbean for 2022 was US$10.5 billion, up by 15% compared to 2021.
In 2022 the most sought-after islands for property buyers were the Bahamas, Barbados, and the Turks and Caicos Islands. The Bahamas witnessed a surge in sales with a year-on-year increase of 25%. Following closely behind was Barbados with a growth rate of 20%, while the Turks and Caicos Islands experienced a rise of 15%.
The average price of luxury properties in the Caribbean during 2022 reached US$4.5 million, representing an increase from US$4 million in 2021. Notably, one standout transaction involved a villa on Mustique Island that fetched a price tag of US$85 million.
Heightened Demand for Properties
Multiple factors contributed to the heightened demand for properties throughout 2022. A significant factor was the influx of buyers, whose numbers increased by 20% compared to figures, from 2021. The most common nationalities among those who buy property in the Caribbean are Americans, Britons, and Canadians.
Another reason for the growing demand for property is the low-interest rate environment. The availability of low-interest loans has made it more affordable for people to finance their property purchases. Additionally, the limited supply of properties has also contributed to this high demand. As more people express interest in buying Caribbean real estate than there are properties available for sale, prices have been driven up.
The outlook for the property market in 2023 appears optimistic, with luxury property sales in the Caribbean expected to increase by a further 10% in 2023. This growth will be fueled by sustained demand from buyers, favorable interest rates, and a scarcity of available properties.
Most Popular Caribbean Islands
The Bahamas – In 2022, on average a property in the Bahamas was priced at US$3.5 million. The highest-priced sale recorded was that of a villa located on New Providence Island which fetched US$45 million.
Barbados experienced a 20% increase in sales compared to 2021, primarily fueled by demand from buyers from the United Kingdom. In 2022 the average price of a property in Barbados stood at $2.5 million and the most expensive property sold on the island of St. James fetched $35 million.
The property market in Turks and Caicos Islands witnessed a notable rise of 15% in sales compared to 2021. Like the Bahamas, this surge was mainly driven by demand from American buyers. The average price of properties in Turks and Caicos Islands throughout that year amounted to $1.5 million. The highest-priced property sale occurred on Providenciales Island, where a luxurious villa changed hands for $25 million.
Although there was a deceleration observed in the Cayman Islands it still ranked as one of the most successful years ever recorded for sales, with a total transaction value reaching $972 million.
Despite the market cooling down property prices, the Cayman Islands continued to rise reaching an all-time high of $1.131 million in 2022. This demonstrates the resilience and enduring appeal of the real estate market on the Caribbean islands in the face of challenges.
Types of Property
Luxury villas and luxury beachfront condos were the most sought-after types of properties in the Caribbean during 2022. These properties are highly desired by international buyers who are enticed by the incredible beaches, top-notch amenities, and advantageous tax regulations offered by the Caribbean Islands.
In 2022 St. Lucias property market experienced growth, with total sales amounting to $450 million, a 5% rise from 2021. Luxury villas and condominiums were the property types in St. Lucia during 2022. These properties are sought after by international buyers due to St. Lucia’s breathtaking landscapes, lush greenery, and relaxed ambiance.
In 2022 there was a 3% increase in sales within the Antigua property market with a sales value of $320 million. Similar to St. Lucia, luxury villas and condominiums were the most popular property types among prospective buyers during 2022. Some of the best areas for individuals looking to purchase properties in Antigua include Jolly Harbour, English Harbour, and West End. Jolly Harbour is a community that boasts a marina, golf course, and shopping village. English Harbour holds significance with an array of restaurants and shops. West End is a tourist hotspot with beaches, resorts, and dining establishments.
Caribbean Real Estate Market 2023
The Caribbean real estate market is projected to continue flourishing throughout 2023. Solid demand from buyers, alongside healthy interest rates and restricted supply, is anticipated to support increased growth in property sales. The Cayman Islands, St. Lucia, and Antigua all stand as premier destinations with robust property markets.
Looking to make your mark on the Caribbean real estate market in 2024? Contact us today and let’s talk about which island is best for you.