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CARIBBEAN
ISLANDS
REPORT
Savills Research
PRIME RESIDENTIAL PROPERTY
/
CONTENTS
4-5
6-7
8-20
21
Caribbean Prime
Residential Market
Caribbean Region
Overview
Islands In Focus
Market Outlook
Contacts
22-23
3
W
elcome to Savills Caribbean
Research report. As you will see
the market is vibrant and for the first time
since before 2008, we have substantial new
projects in development region-wide.
Following the pandemic, people are
seeking fresh air, open spaces and, in short,
a great lifestyle. The Caribbean climate
and the warmth of the Caribbean people
have never been more in demand.
We have new golf projects in Barbados,
Marina projects in Antigua and numerous
branded hotel and residential communities
coming to the market in 2023.
With flights returning to pre-pandemic
levels, our clients have discovered that
working from home can now mean working
from anywhere, including a break from
European and North American winters,
in a region where fundamentals such as
excellent digital infrastructure, education
and healthcare are well-established.
Many islands, have indeed created special
visas enabling our owners and long term
rental clients to stay as long as they like
and enjoy everything this dynamic region
has to offer.
We have also provided unprecedented
levels of Development Consultancy in the
Caribbean and from 2023 onwards you will
see some of the world’s top brands such as
One and Only, Rosewood and Four seasons
all with new Caribbean projects.
We have seen record sales years over
the last three years and expect demand
to continue. We are especially excited to
strengthen our network with partnerships
on the eastern seaboard of the USA with
Corcoran and a partnership with Harvey
Kalles in Toronto.
If you are an investor, developer or
looking for your dream Caribbean home
at Savills we have the best network to help
you find your perfect island in the sun.
FOREWORD
James Burdess
Savills Head of Caribbean
and Latin America
+44 (0) 20 7016 3783
jburdess@savills.com
Scan the QR code to
view our web pages
4
CARIBBEAN PRIME RESIDENTIAL MARKET
Source: Savills Research and Savills Global Residential Development and Consultancy
T
he Caribbean offers a high quality of life, beaches,
open space, a warm climate, and is particularly
appealing for those looking to escape northern-hemisphere
winters. Between December and April, hotels and second
homes across the region are full of people searching for
winter sunshine and warmth. Average temperatures for
these five months range from 24 degrees centigrade in the
Bahamas to 28 degrees in St Lucia.
People are willing and able – thanks to hybrid working –
to spend longer away from their primary base, benefiting
the Caribbean in particular. Stays which previously lasted
two weeks are stretching into two months, or longer.
Several islands have embraced remote working and have
targeted ‘digital nomads’ by offering remote-working visas.
Caribbean
prime residential market
Since the lifting of travel restrictions, international buyers have returned
to the region in large numbers with branded residences proving popular
The Bahamas offer the Bahamas Extended Access Travel
Stay (BEATS), Antigua offers the Antigua Nomad Digital
Residence, and Barbados provides the Barbados Welcome
Stamp for temporary residents.
As with prime markets in major global cities, location and
access to amenities are key determinants of property pricing.
In the Caribbean, beach front properties command higher
prices, a trend made more acute by a shortage of beachfront
stock. Easy access to airports, beach clubs, golf courses
and marinas are all favoured and properties in closer
proximity often command higher values.
Across the region, prime residential property markets
have seen an increase both in transactions and pricing since
2019. Although hampered by the global pandemic, the lifting
Total number of branded residences by island
1600
1400
1200
1000
800
600
400
200
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Pipeline
■ Antigua & Barbuda ■ Bahamas ■ Cayman Islands ■ Grenada ■ St Lucia ■ Turks & Caicos
Number of branded residences units
Across the region, prime residential property markets
have seen an increase both in transactions and pricing
since 2019.
5
Source: Savills Research
Note: Excludes domestic purchasers
International buyer profiles by island
International buyer profiles in the
Caribbean vary by island, but primarily
come from the United States and
Canada, the United Kingdom and
elsewhere in northern Europe, but there
is representation from across the globe.
They tend to be over 40 years old,
self-employed, self-made, or retired.
The weakening global economic
outlook, coupled with rising interest rates
are a headwind for property markets
worldwide, but most purchasers in the
region are less reliant on debt financing.
For many, buying a property in the
Caribbean is a purchase of passion rather
than a purely investment decision, and
there exists a strong rental market across
the region as many owners choose to rent
out their properties, at least for part of
the year. Good returns can be achieved,
particularly given the limited supply of
properties and high demand during the
peak winter season.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
International buyer % share by nationality
Bahamas Turks and
Caicos
Cayman
Islands
St Vincent
& Grenadines
Grenada Antigua &
Barbuda
Barbados St Lucia
■ British ■ American ■ Canadian ■ Other European ■ Other
of international travel restrictions and improvisation of
agents proved fundamental to maintaining the markets
momentum. Buyers have returned to the region in large
numbers looking for second or retirement homes. Prime
prices range from $650 per square foot for off the beach
villas in Antigua to $2,780 per square foot for villas on the
beach in the Cayman Islands.
One interesting development in recent years has been
the growth of branded residences in the Caribbean,
particularly appealing to buyers seeking hassle-free
ownership, security of a known-brand, and a rich amenity
offer. The Bahamas comprises the largest supply of branded
residences units with a 27% market share, followed by
Cayman Islands (26%) and Turks and Caicos Islands
(23%). Overall supply across these eight islands is set to
double over the next five years to more than 1,500 units as
demand for these types of properties continues to grow.
CARIBBEAN ISLANDS
6
Caribbean
region overview
Cayman Islands
The Cayman Islands property
market performed well over the
previous three years and is forecast to
continue to see growth into 2023.
Developments along the Seven Mile Beach
include the Yacht Club and Watercolours,
which command prices upwards of $1,000
per square foot. The newest addition, The
Watermark has seen prices of upwards of
$2,500 per square foot.
THE BAHAMAS
CAYMAN ISLANDS
Caribbean Sea
Gulf of
Mexico
UNITED
STATES
HONDURAS
NICARAGUA
COLOMBIA
CUBA
DOMINICAN
REPUBLIC
HAITI
COSTA RICA
TURKS
& CAICOS
6
REGION OVERVIEW
The Bahamas
The Bahamas prime residential market
made a strong recovery in 2021
following the global pandemic, and prices rose as
demand outweighed supply. Prime prices average
$735 per square foot for an apartment and $1,650
per square foot for a villa, while some developments
such as Albany and the Ocean Club Estates achieve
prices upwards of $2,000 per square foot.
7
Source: Savills Research
Turks & Caicos
An undersupplied market, the Turks
and Caicos prime residential market
has experienced price growth of more than 10%
since 2019, in spite of the global pandemic. Demand
continues to exceed supply, and growth is set to
continue into 2023, fuelled by a limited
development pipeline and resilient buyer base
dominated by North Americans.
BARBADOS
ST VINCENT
& THE GRENADINES
ANTIGUA
& BARBUDA
Barbados
Location is
key to prime
residential prices in
Barbados. Prime
property is concentrated
on the west coast,
favoured areas for their
beaches and access to
amenities. A thriving
economy, comparatively
high volumes of foreign
direct investment, and
recovering tourism
industry have
underpinned stable
pricing on the island
which is set to continue
into 2023
Antigua & Barbuda
A competitively priced prime residential
market, average prime prices stand at
$860 per square foot. European buyers outnumber
North American buyers five to one, though the
number of Americans active in the market is rising.
This supported price growth of 5%-10% in 2022,
which is expected to slow in 2023.
GRENADA
Grenada
Grenada’s prime residential market is
largely domestic and has performed
steadily in the last three years. British buyers and
a small number of American and Canadians are
attracted to the island, which oers a discrete and
tranquil second home or retirement location.
ST LUCIA
North Atlantic Ocean
St Lucia
St Lucia saw a surge
of activity when
Covid-19 travel restrictions
eased. Historically undersupplied,
a number of new schemes have
completed in the past three
years, and a number of Sugar
Beach’s prime residences
exchanged last year. With
limited prime stock, prime prices
on St Lucia range from $2.5
million for a one bedroom
property up to $8.5 million for
a beachfront residence.
St Vincent
and the
Grenadines
Supply and demand is,
at present, balanced in
St Vincent and the
Grenadines. Forthcoming
hotel schemes include St
Vincent Marriott Resort
and a Sandals Beaches
Resort. These new
developments look to
take advantage of rising
tourist numbers to the
islands.
VENEZUELA
DOMINICAN
REPUBLIC
7
CARIBBEAN ISLANDS
T
he island of Antigua and its sister island, Barbuda,
are located in the Leeward Islands, and are home
to just under 100,000 people. Residential demand and
transactions in Antigua were rising pre-pandemic and
activity has remained buoyant since. Antigua and Barbuda
are particularly European in their buyer profile, with 60%
of buyers being British and another 25% made up of other
European buyers. Agents are reporting that interest is
increasing among Americans.
Antigua is only 108 square miles in size. New residential
product is in short supply as a consequence of these land
constraints, driving price growth. There are, however,
several developments planned or under construction; the
redevelopment of Jolly Harbour, Barbuda Ocean Club,
high-end luxury holiday homes by Discovery land, is
underway, and the infrastructure has been put in place and
construction is underway at Pearns Point.
Though there has been price growth in recent years,
Antigua remains a competitively priced market compared to
some neighbouring islands with an average price per square
foot for prime properties of $660 and $1,250 for apartments
and villas, respectively. Though the return of international
travel and the increased attractiveness to Americans means
that there is ample opportunity for growth.
POPULATION 2021
SAINT JOHN’S
98,728
18
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
27°C (80°F)
CLIMATE, AVERAGE TEMPERATURE
27
FLIGHT CONNECTIVITY,
NO. OF DESTINATIONS
AIR
PASSENGERS,
2019
300,990
CRUISE SHIP
PASSENGER
VISITS, 2019
752,600
TOTAL TOURIST
NUMBERS,
2019
1,053,590
GDP 2021 $1.4 billion
YoY GDP Growth (2020 vs 2021) 7%
5-year GDP Growth (2015 vs 2019) 26%
Beachfront apartment $665
Beachfront villa $1,250
Non-beachfront villa $650
ISLANDS IN FOCUS - ANTIGUA AND BARBUDA
8
Average price $ per square foot
GDP
Source: World Bank, FlightConnections, and national sources
CAPITAL
Saint John’s
ANTIGUA
AND BARBUDA
Source: Savills Research
A beach for everyday of the year and extensive tourist
infrastructure it is no surprise that tourism accounts for
upwards of 60% of Antigua’s national income. There are 20
independent hotels operating on the island, seven luxury
properties and 13 upper upscale properties, with the Rosewood
Half Moon Bay in the pipeline. Rosewood Half Moon Bay
is the newest prime residential development on Antigua,
and this branded scheme commands premium prices at an
average of $2,000 per square foot. It offers 8,000 feet of
private oceanfront and sits south of 27 acre Nelson’s Dockyard
national park.
Host to the annual Antigua Charter Yacht show, Antigua
and Barbuda are popular yachting and sailing destinations.
Attracting keen sailors and superyacht owners to both
the marinas and prime residential market. To add to its
international appeal, the country also offers a Citizenship
by Investment programme. The Antiguan passport is the
23rd most powerful passport in the world, offering free
movement to Hong Kong, Russia, Singapore, the UK and
Europe’s Schengen Area, among other locations. Well
connected, there are flights to 18 countries from V.C. Bird
International Airport. There have also been additional flights
added in recent years, which is helping to increase the appeal
of the island.
Source: Savills Research. Excludes domestic purchasers
Antigua and Barbuda International buyer profiles
British
60%
Other European
25%
American
10%
Canadian
5%
CARIBBEAN ISLANDS
PRIME MARKET PRICE
PERFORMANCE 2019 - 22
5% to 10%
PRIME MARKET
PERFORMANCE 2022
No change
PRIME MARKET FORECAST
PERFORMANCE 2023
Minor decrease
9
T
he Bahamas, comprising of more than 3,000 islands, spans
some 5,300 square miles. The Bahamas residential market
has experienced significant growth since the Global Financial
Crisis. In the intervening years, the government actively
enacted policy to boost the property market, including low
property tax measures. This put the islands in a strong position
when the pandemic hit and prices have risen by more than 10%
since 2019, fuelled by low levels of supply, tight rental markets
and the draw of amenities on offer.
The Bahamas prime market is typically characterised
by unleveraged buyers who are searching for a new chief
residency or place to reside for a minimum of four months
of the year. The islands historically have been dominated by
North American buyers; however in recent years, buyers from
Europe have become more active in the market.
The Bahamas economy made a strong recovery during 2021
from its Covid-19 slump with GDP growing 15.6% year on
year. Tourism comprises 50% of total GDP, a relatively strong
financial service sector however aided this recovery and has
attracted companies and talented individuals. A reliable and
fast internet connection and infrastructure which supports
remote working has all facilitated confidence in people
relocating to the islands.
Capitalising on the surge in digital nomads has been a
boost for the Bahamas tourism industry. The government
POPULATION 2021
NASSAU
396,914
10
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
26°C (79°F)
CLIMATE, AVERAGE TEMPERATURE
50
FLIGHT CONNECTIVITY,
NO. OF DESTINATIONS
AIR
PASSENGERS,
2019
1,662,419
CRUISE SHIP
PASSENGER
VISITS, 2019
5,587,110
TOTAL TOURIST
NUMBERS,
2019
7,249,529
GDP 2021 $11.2 billion
YoY GDP Growth (2020 vs 2021) 16%
5-year GDP Growth (2015 vs 2019) 11%
Beachfront apartment $735
Beachfront villa $1,650
Non-beachfront villa $390
ISLANDS IN FOCUS - THE BAHAMAS
10
Average price $ per square foot
GDP
CAPITAL
Nassau
THE
BAHAMAS
Source: World Bank, FlightConnections, and national sources
Source: Savills Research
launched the Bahamas Extended Access Travel Stay (BEATS)
programme in October 2020 to attract digital nomads. This
visa grants temporary residency in the Bahamas for 12 months
and can be renewed for up to 36 month stay.
The country also has a business-friendly environment with
incentives for investment, offering a favourable tax regime.
Personal income, capital gains, corporate profits, inheritance
and dividends are all tax exempt. Businesses can also receive
relief from customs duties on approved building supplies, raw
materials and equipment.
Receiving an average of over 6 million visitors per year
pre-pandemic, a large tourism sector lends itself to a
flourishing rental market. Despite tourism levels dropping
during the pandemic, long term lets of between one and three
years have experienced an estimated 20% increase in rental
values. Agile working has played an important role in driving
demand, according to agents.
There are over 50 high end hotels located on the islands,
eight of which are branded from major international chains.
The bounce in tourism is attracting institutional investors
as well; in March 2022, a hotel in Nassau transacted for
$54 million. Branded residences are expanding on the islands,
with three pipeline developments set to increase the current
number of units by 31%.
Source: Savills Research. Excludes domestic purchasers
Bahamas International buyer profiles
American
35%
British
10%
Other
25%
Other European
20%
Canadian
10%
CARIBBEAN ISLANDS
PRIME MARKET PRICE
PERFORMANCE 2019 - 22
10%+
PRIME MARKET
PERFORMANCE 2022
5%
PRIME MARKET FORECAST
PERFORMANCE 2023
No change
11
B
arbados, the most easterly of these eight Caribbean
islands, has a population of nearly 300,000. Largely
dependent on tourism and finance, it also receives significant
inflows of foreign direct investment, totalling $720 million
between 2018 and 2020.
The island’s prime residential market has performed well
in 2022 to date, with prices growing in excess of 10% following
several years of flat growth. Next year is also set to be a
positive year for the prime property market on the island
particularly now that pandemic-related travel restrictions
have been removed. Non-resident foreign buyers must obtain
permission from the central bank to purchase a property,
though this is seen largely as a formality.
Barbados has had a long-standing appeal for buyers
from Europe and the Americas. Because of historical ties,
British buyers dominate, accounting for 70% of purchasers.
They are followed by Canadians who make up a further 10%
of purchasers.
Most prime property is located on the west and south coasts
where the most popular beaches and amenities are found,
areas that also command the highest prime prices. A number
of new developments have come to market in recent years,
including as Porters Place, Azzurro, and Ocean Grove. Apes
Hill, set overlooking the Caribbean Sea has seen the addition
of more than 80 new homes and a revival of the 18 hole golf
course. Also on the west coast is the Sandy Lane development,
which comprises of hotel rooms and suites,
POPULATION 2021
BRIDGETOWN
287,708
17
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
28°C (82°F)
CLIMATE, AVERAGE TEMPERATURE
28
FLIGHT CONNECTIVITY
NO. OF DESTINATIONS
AIR
PASSENGERS,
2019
520,881
CRUISE SHIP
PASSENGER
VISITS, 2019
443,233
CAPITAL
Bridgetown
TOTAL TOURIST
NUMBERS,
2019
964,114
GDP 2021 $4.9 billion
YoY GDP Growth (2020 vs 2021) 5%
5-year GDP Growth (2015 vs 2019) 12%
Beachfront apartment $750
Beachfront villa $1,400
Non-beachfront villa $550
ISLANDS IN FOCUS - BARBADOS
12
BARBADOS
Average price $ per square foot
GDP
Source: World Bank, FlightConnections, and national sources
Source: Savills Research
two golf courses and multiple private villas. These villas range
in price from $2.5 million for a second hand residence in need
of modernisation, up to just short of $10 million and with an
average per square pricing of $700 to $800.
Barbados also aims to attract foreign buyers and investment
through its Special Entry and Reside Permits (SERPs). Non-
residents can gain residency for five years in return for US$2m
property investment, though there are some conditions to
the scheme. The island was also one of the first countries to
implement a ‘digital nomad’ visa which allows for workers
employed at companies outside of Barbados to work in the
country for up to a year. The island also has one of fastest
internet speeds in the Caribbean, download speeds of 90.7
mbps, a further incentive to internet-dependent digital nomads.
The pandemic saw tourist numbers to Barbados
plummet, along with most other locations, as lockdowns
and international travel restrictions limited the movement
of people. For an economy dependent on tourism, this had
an outsized impact on the local economy and employment
figures, especially as annual visitor numbers were reaching
close to a million in 2019. However, since restrictions
have lifted, the island has made a strong recovery with the
government actively encouraging travel to Barbados. Figures
for the year to date suggest 2022 will exceed a total of 400,000
tourists. This has also been reflected in prime residential
transaction numbers and rental market values which have
increased in line with the return of travel.
Source: Savills Research. Excludes domestic purchasers
Barbados International buyer profiles
British
70%
Other
20%
Canadian
10%
CARIBBEAN ISLANDS
PRIME MARKET PRICE
PERFORMANCE 2022
No change
PRIME MARKET
PERFORMANCE 2022
Increase 10% +
PRIME MARKET FORECAST
PERFORMANCE 2023
No change
13
T
he Cayman Islands are a British Overseas territory
comprising of three islands: Grand Cayman, Cayman
Brac and Little Cayman. Home to 66,500 people, the islands
saw approximately 1,000 immigrants per annum prior to
the pandemic. An important financial and insurance centre,
ranking 67th in the Global Financial Centres Index, the
Cayman Islands have a particularly high GDP per capita
of nearly $85,000. Tourism is the other major economic
driver, and the sector was largely responsible for the Cayman
Islands economic bounce-back after the pandemic.
The islands’ prime property market remained buoyant
during the pandemic, and prices have risen by more than
10% in the past three years. They are expected to grow
by a further 5% in 2023. Price growth is underpinned by
a fundamental lack of supply, with new delivery further
compounded by material shortages and rising costs. During
the pandemic, there was significantly increased demand
for single family homes with water access. More recently
demand for beachfront condos has returned. No annual
property tax, income or withholding tax is levied, and a
stamp duty of 7.5% of the purchase price or market value is
paid on property sales, creating a comparatively attractive
property purchase market.
POPULATION 2021
GEORGE TOWN
66,498
6
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
28°C (82°F)
CLIMATE, AVERAGE TEMPERATURE
24
FLIGHT CONNECTIVITY,
NO. OF DESTINATIONS
AIR
PASSENGERS,
2019
502,700
CRUISE SHIP
PASSENGER
VISITS, 2019
1,831,000
TOTAL TOURIST
NUMBERS,
2019
2,333,700
GDP 2020* $5.6 billion
YoY GDP Growth (2019 vs 2020) 7%
5-year GDP Growth (2015 vs 2019) 26%
Beachfront apartment $1,140
Beachfront villa $2,780
Non-beachfront villa $585
ISLANDS IN FOCUS - CAYMAN ISLANDS
14
Average price $ per square foot
GDP
CAPITAL
George Town
CAYMAN
ISLANDS
Source: World Bank, FlightConnections, and national sources
Note: *2021 GDP figures unavailable
Source: Savills Research
There are several developments in the pipeline which
should help to mitigate – but not alleviate – the situation.
Most of the new schemes are located along Seven Mile Beach
(in fact 6.3 miles long), the most popular stretch of Grand
Cayman. Future developments include The Watermark, a
luxury beachfront condominium development with over 90%
of units sold; Aqua, a development of large four-bedroom
lateral residences; and Seacrest, which launched in 2018 and
offers 20 beachfront condominiums.
The Cayman Islands offers a programme to attract
digital nomads for short-term residency. The Cayman
Islands Global Citizen Concierge Program allows people
employed for companies outside of the territory to relocate
to the islands for up to 24 months, though there are some
income restrictions.
Since 2015, just under a billion dollars has transacted
in commercial property ($991 million). The majority of
this activity has been in the hotel segment, notably the
sale of the Ritz Carlton Grand Cayman, while $4 million
of offices transacted have transacted, including the sale of
Bermuda House which is occupied by the Cayman Islands
Government. It is the second largest commercial real estate
market in the Caribbean for transactions, after Puerto Rico.
Source: Savills Research. Excludes domestic purchasers
Cayman Islands International buyer profiles
Other
30%
Canadian
15%
British
20%
American
20%
Other
European
15%
CARIBBEAN ISLANDS
PRIME MARKET PRICE
PERFORMANCE 2019 - 22
10%+
PRIME MARKET
PERFORMANCE 2022
Increase 5% to 10%
PRIME MARKET FORECAST
PERFORMANCE 2023
Increase 5% to 10%
15
A
British Overseas territory, Turks and Caicos has a
dynamic economy with finance, tourism, and fishing
accounting for the majority of national income, and a GDP per
capita of $24,050 per annum. No income or corporation tax is
levied, and this has encouraged individuals and businesses to
relocate to the island.
The population, totalling just under 40,000, is one of
the youngest in the Caribbean and grew at an average of
4% per year prior to the pandemic. In recent years in-
migration has risen, adding an average of 1,000 people a
year since 2018. Air connectivity is good, with daily flights
departing from its international airport to 26 destinations
across seven countries.
The residential property market on the island has
experienced strong growth over the past three years, with
prime prices increasing by more than 10%, and are forecast
to continue to grow by an additional 2% to 5% in 2023.
Beachfront properties are most in demand, with average
prime prices reaching $2million and $8million for condos
and villas, respectively.
Cash buyers in particular are looking for stand-alone,
full-service luxury beachfront villas – creating further
opportunity for the Branded Residences sector. Several
new developments have come to market in the last year.
POPULATION 2021
COCKBURN
TOWN
39,226
7
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
27°C (80°F)
CLIMATE, AVERAGE TEMPERATURE
26
FLIGHT CONNECTIVITY,
NO. OF DESTINATIONS
AIR
PASSENGERS,
2019
1,111,818
CRUISE SHIP
PASSENGER
VISITS, 2019
486,739
CAPITAL
Grand Turk (Cockburn Town)
TOTAL TOURIST
NUMBERS,
2019
1,598,557
GDP 2021 $943.3 million
YoY GDP Growth (2020 vs 2021) 2%
5-year GDP Growth (2015 vs 2019) 27%
Beachfront apartment $1,100
Beachfront villa $1,500
Non-beachfront villa $700
ISLANDS IN FOCUS - TURKS & CAICOS
16
TURKS &
CAICOS
Average price $ per square foot
GDP
Source: World Bank, FlightConnections, and national sources
Source: Savills Research
The beachfront properties at The Loren, Turtle Creek are
achieving per square foot prices upwards of $1,100 and
comprises 25 condos, five villas, and a marina. Grace Bay
continues to see development, such as the Ritz Carlton at
Grace Bay Beach, which will include a hotel and residences,
as well as pipeline branded residences projects of St Regis
Turks, The Night and Andaz at Grace Bay.
There is also significant demand for new development
on the islands as the market remains undersupplied.
Developments taking advantage of the islands’ climate,
catering to clients seeking a luxury amenities and ease of
living are set to benefit in price as buyers aspire to the high
quality of life which these islands offer.
Although Turks and Caicos is a market largely comprised
of North American buyers (approximately 90% of the
international buyers come from the United States and
Canada) there has been an increase in buyers from the United
Kingdom. The share of British buyers is expected to rise in
the future as new flights from the UK are added to airline
schedules; British Airways are adding a second weekly flight
to Turks and Caicos via Antigua from London Gatwick at
the end of 2022. The tourism industry is being supported by
the addition of new five-star branded hotels, including the
Amanyara Hotel and further schemes in the pipeline.
Source: Savills Research. Excludes domestic purchasers
Turks & Caicos International buyer profiles
American
60%
Canadian
30%
British
10%
CARIBBEAN ISLANDS
PRIME MARKET PRICE
PERFORMANCE 2019 - 22
10%+
PRIME MARKET
PERFORMANCE 2022
Increase 10% +
PRIME MARKET FORECAST
PERFORMANCE 2023
Increase 2% to 5%
17
O
ne of the smallest countries in the western hemisphere,
Grenada is well known for its spice exports, particularly
nutmeg, and its tourism industry, a sector that has rebounded
as the island opened up after the pandemic.
The island introduced a digital nomad visa in October 2021,
allowing workers to live and work from the island for a year.
These remote workers will only provide a boost to the already
strong local rental market.
The sales market has also performed well over the past
three years. Driven primarily by domestic buyers, there is
some international demand. Prices on the island have been
stable and are forecast to remain so through the coming year.
International buyers are predominantly British, either self-
employed or retired. The residential market on the island is
largely a vacation or retirement location for non-Grenadines,
looking for a more tranquil experience at their second homes.
The supply of residential property on Grenada is highly
limited, both by the land constraints and the limited
development over recent years. Nonetheless, there is a
strong pipeline of projects, including schemes such as the
Six Senses Residences by Range Developments in La Sagesse.
This is projected to open in the first quarter of 2023 and most
notably, is the first island resort for the brand in the Americas.
Less developed than the south, developments on the north
side will aim to provide luxury accommodation in a more
remote part of the island.
Source: Savills Research. Excludes domestic purchasers
Grenada International buyer profiles
ISLANDS IN FOCUS - GRENADA, ST LUCIA
PRIME MARKET PRICE
PERFORMANCE 2019 - 22
No change
PRIME MARKET
PERFORMANCE 2022
No change
18
Source: World Bank, FlightConnections, and national sources
GRENADA
CAPITAL
Saint George’s
British
42%
American
33%
Canadian
25%
GDP 2021 $1.1 billion
YoY GDP Growth (2020 vs 2021) 8%
5-year GDP Growth (2015 vs 2019) 22%
GDP
SAINT
GEORGE’S
POPULATION 2021
113,015
8
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
28°C (82°F)
CLIMATE, AVERAGE TEMPERATURE
11
FLIGHT CONNECTIVITY,
NO. OF DESTINATIONS
TOTAL TOURIST
NUMBERS, 2019
525,634
Source: Savills Research
CARIBBEAN ISLANDS
19
Source: World Bank, FlightConnections, and national sources
I
n common with much of the Caribbean, St Lucia’s
economy is highly dependent on tourism. Launched in
2021, Saint Lucia’s ‘Live It’ programme allowed tourists to
stay for a maximum of 6 weeks, however in a bid to appeal
to digital nomads, the programme was extended in 2022 and
now allows visitors to stay up to a year on a multi-entry visa.
The island’s prime residential market is highly
undersupplied. At Sugar Beach, one of the most desirable areas
of the island, there are only 23 homes, six of which changed
hands in 2021. Prime residential prices range from $2.5 million
for a one bedroom property up to $8.5 million for a beachfront
residence. Most houses which have come to market are selling
for the first time since they were built. As with many islands,
location is key to the price, with ocean-front and beach-front
properties commanding higher prices than other locations; an
apartment on the waterfront can average $660 per square foot
whilst a villa on the beach can command almost three times
this value at $1890 per square foot.
St Lucia saw price falls during the pandemic, and
subsequently saw a surge in activity when travel restrictions
eased. The island saw renewed interest as buyers re-prioritised
lifestyle, attracted to the quality of life on offer
in the island. The British account for the majority of
international buyers on the island, seeking second homes or a
place to retire.
CASTRIES
PRIME MARKET PRICE
PERFORMANCE 2019 - 22
Positive
PRIME MARKET
PERFORMANCE 2022
No change
ST LUCIA
CAPITAL
Castries
POPULATION 2021
184,401
6
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
29°C (84°F)
CLIMATE, AVERAGE TEMPERATURE
16
FLIGHT CONNECTIVITY,
NO. OF DESTINATIONS
GDP 2021 $1.8 billion
YoY GDP Growth (2020 vs 2021) 9%
5-year GDP Growth (2015 vs 2019) 17%
GDP
TOTAL TOURIST
NUMBERS, 2019
423,736
Source: Savills Research. Excludes domestic purchasers
St Lucia International buyer profiles
British
90%
Other
10%
Source: Savills Research
20
ISLANDS IN FOCUS - ST VINCENT AND THE GRENADINES
K
nown for its sailing and numerous private islands,
St Vincent and the Grenadines has a well-established
prime residential market. Prices have held steady over the past
three years, thanks to balanced supply and demand, despite
global economic headwinds. Prime property here is viewed as
good value for money in the Caribbean market. The islands
attract a variety of nationalities, with North American and
British nationals together accounting for 70%, of purchasers,
and German, French and the Nordics buyers the remainder.
There is a significant amount of hotel development in the
pipeline. Branded hotels have a limited presence on the islands,
presenting opportunity for investment. The branded hotel
currently operating is the Mandarin Oriental Canouan, 26
suites and 13 villas command luxury prices as they sit in prime
positioning on the Godahl Beach with an ocean view.
Tourism and tourist services account for over 60% of the
Islands economy, so these future developments demonstrate
confidence in the growth of the tourism sector. Although
disrupted by the global Covid-19 pandemic, pre-pandemic
visitor figures doubled in five years to over 300,000 visitors
in 2019. Global citizens are also drawn to the international
accessibility a St Vincent and the Grenadines passport grants,
with the ability to enter 152 countries. Unlike other islands
in the Caribbean, there is no Citizenship by Investment
programme, though it remains a legislative possibility.
CAPITAL
Kingstown
KINGSTOWN
PRIME MARKET PRICE
PERFORMANCE 2019 - 22
No change
PRIME MARKET
PERFORMANCE 2022
No change
ST VINCENT AND
THE GRENADINES
POPULATION 2021
111,269
8
FLIGHT CONNECTIVITY,
NO. OF COUNTRIES
28°C (82°F)
CLIMATE, AVERAGE TEMPERATURE
9
FLIGHT CONNECTIVITY,
NO. OF DESTINATIONS
GDP 2021 $889.8 million
YoY GDP Growth (2020 vs 2021) 2%
5-year GDP Growth (2015 vs 2019) 16%
GDP
TOTAL TOURIST
NUMBERS, 2019
323,677
Source: Savills Research. Excludes domestic purchasers
St Vincent and the Grenadines International
buyer profiles
British
25%
Other
5%
American
25%
Other
European
25%
Canadian
20%
Source: World Bank, FlightConnections, and national sources
Source: Savills Research
21
MARKET OUTLOOK
Market outlook
What are the overarching trends driving the Caribbean region forward?
T
he Caribbean has benefited from a global search for
space and quality of life among buyers, a trend spurred
by the pandemic but one that continues to shape property
markets across the globe. These trends are set to continue.
Each Caribbean island has distinct characteristics and market
drivers, but as a whole, the regional outlook is positive. Many
prime markets are undersupplied. The return of tourism and
popularity of remote work will continue to help underpin
regional economies, and support wider investment.
Four overarching trends will continue to drive the region
going forward.
1
Prices to grow, but at a slower rate
Rising economic headwinds will weigh on growth in the
near term, but the fundamentals remain solid: finite supply,
competition for prime sites, an increasingly diverse buyer base
seeking a high quality of life. At the micro level, location will
continue to determine price and performance. Beachfront
properties are the most in demand and command the highest
prices across the Caribbean, while proximity to airports and
amenities will still matter.
2
Pandemic-induced trends stick
The global pandemic saw a re-prioritising of the home,
driving demand for residences that support quality of life and
wellness, and have access to open space. These trends will
continue to benefit the Caribbean. This has benefited the market
for houses in particular, a trend to remain, whilst demand for
apartments has returned. Remote and hybrid working is here to
stay; further supporting second home ownership in the region.
3
New, high quality supply
New supply will further improve the quality of stock and
expand the prime residential markets, catering to a growing
and increasingly diverse buyer base. The number of branded
units are forecast to double in the next five years across the
eight islands, supported by demand for quality ‘lock up and
leave’ with a strong amenity offer and the security of a known
brand. Varying from island to island, Turks and Caicos have the
highest number of brands present, with six existing Branded
Residences schemes and four in the pipeline including Andaz
and Wymara.
4
Rental returns
The rental market across the region remains buoyant
and will remain so, particularly as tourism gains momentum
in a post-pandemic world. This, in turn, is a key driver of the
sales market. Many buyers will choose to lease their property
for some of the high season between December and April
when rental values are highest. This window may widen as
people spend longer in the Caribbean, supported in part by the
increasing tendency to work remotely in the region.
OUTLOOK
22
Paul Tostevin
Director
+44 (0) 207 016 3883
ptostevin@savills.com
Kelcie Sellers
Associate
+44 (0) 203 618 3524
kelcie.sellers@savills.com
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CONTACTS
James Burdess
Director, Head of Caribbean
and Latin America
+44 (0) 20 7016 3783
m. +44 (0) 780 799 9119
jburdess@savills.com
Savills Global Residential
Jelena Cvjetkovic
Director
Global Residential
Network
+44 (0) 20 7016 3754
jcvjetko[email protected]om
Tom Vickery
Director
Global Residential
+44 (0) 20 7016 3744
tvickery@savills.com
Lucy Palk
Analyst
+44 (0) 20 7409 8017
lucy.palk@savills.com
Riyan Itani
Director, Head of Savills
Global Residential
Development
+44 (0) 20 7016 3759
ritani@savills.com
Peter Grmek
Associate Director
+44 (0) 20 7330 8664
peter.grmek@savills.com