The Caribbean is the name of a region in the Americas which consists of some 7,000 different islands - also commonly known as the West Indies.  Situated in the Caribbean sea the main islands are the Greater Antilles and the Lesser Antilles, as well as the Bahamas and Bermuda - all well know tourist locations for travellers around the world.  The islands did once attempt to create a new “country” in the shape of the Federation of the West Indies but this never really took off and they reverted back to the more general description of the area.

 

In a sentence the Caribbean consists of hot sunny days, long white sandy beaches and a party atmosphere not seen anywhere else in the world.  The locals are long renowned for their hostility towards tourists,  and this has encouraged a tourist trade which is growing year on year, and playing a large part in the overall economy of the islands.

Predominately an English speaking area of the world,, other well known islands in the collection include the Cayman Islands, British Virgin Islands, Dominica, Saint Kitts, Saint Lucia and Trinidad to name but a few.  Despite their relative close proximity to each other, the islands offer a massive range of differing landscapes with some islands consisting of flat terrain, while others contain very high mountainous areas.  While in general the weather is very hot, with regular tropical storms, it can vary from island to island, depending on the local terrain.

The Caribbean lifestyle and culture is very much reflected in their Reggae music and love of cricket not to mention love of partying and socialising.  The area offers an intriguing mixture of enjoyment and innocence, two main ingredients which seem to feed the ever more demanding tourist industry.

Property Market in the Caribbean

The Caribbean property only really began to receive attention from outsiders some 30 to 40 years ago, but since then there has been a massive increase in property prices. Many properties in some of the more sought after islands are even more expensive than houses in the UK, which is perhaps one of the more expensive property markets of Europe.  The prosperity of the area is firmly fixed on the tourist trade, and as this continues to take in some of the lesser known islands, the changes island by island are there for all to see.  The Caribbean is the type of area where we see millionaires acquire whole islands for themselves, often creating their own paradise which is then rented out to the ultra wealthy of the world. 

In essence the Caribbean property market is split into two different types, tourist dwellings and local dwellings and the difference between the two could not be starker.  The “local dwellings” as they are advertised can often be very basic stone dwellings with very basic plumbing and power supplies, very often the properties will require substantial additional investment.  The tourist market housing on the other hand is built to the highest standards with no expense or facility spared - you would never guess that they were on the same island.

It is very difficult to give exact growth figures for the Caribbean property market because of the 7,000 islands which make up the region.  However, historically the economies have been fairly buoyant with little or no currency risk (due to the fact that many are tied to the US dollar) and this has resulted in good dollar returns of late.

Buying Property in the Caribbean

The buying process in the Caribbean has been greatly simplified over the last few years, with little or no restrictions on foreign ownership - although the exact process and guidelines can differ from island to island.  The relative authorities were very quick to pick up on the tourist trade and the attractions of the weather and life style to many expats, who maybe have money to invest overseas.

Areas such as Barbados have no restrictions on foreign ownership, although foreign investors are required to obtain clearance from the national bank before they can complete a transaction.  The legal and technical requirements are very similar to those of the UK and it is estimated that legal fees will cost you in the region of 1.5% to 2% of the purchase price.

There have been signs of late that the island authorities are looking to attract further foreign investment to increase the standard of dwellings further inland.  This is an area which many investors have shunned over the year, but an area which may hold many gems for the future.  This idea about changing the focus of the property market has the potential to have a major effect on the look and feel of whole islands, rather than just the tourist areas.

Future Property Market

The watch word in the Caribbean property market is tourism, and while the market has grown exponentially over recent times, there is much more to come from this beautiful area of the world.  As prices in some of the more fashionable areas are pushed to ridiculous levels, it seems inevitable that investors will cast their nets wider to some of the more untouched islands.

While many of the 7,000 plus islands have been touched by tourism in some shape or form, there are riches of untapped properties to be considered.  As with areas such as Bermuda, which have been changed beyond all recognition with the tourist dollar, there is the potential to bring about major change and development in some of the lesser known islands.

The Caribbean property market is still one of the most predictable in the world, and demand from expats and overseas investors continues to grow.  The boost in visitor numbers has allowed many of the local economies to prosper, raising much needed funding to develop many of the local facilities and housing.  While you would possibly expect the property markets overall to be fairly young and under developed, this is not the case - although many of them still have many years of good solid growth left in them.

The Caribbean  is a fascinating area of the world which offers a rare mix of beauty together with one of the most welcoming cultures which you could experience.  Sun, sea and the potential of a very relaxed lifestyle have attracted many over recent times, with many more expected to join them in the future.