Demand for Caribbean real estate has doubled in the first six months of 2015 compared to the same timeframe last year, according to an examination of inquiries conducted by Caribbean luxury property specialist 7th Heaven Properties. houses
According to an analysis of inquiries obtained via the 7th Heaven Properties website and the company's magazine The Caribbean Property Investor, interest in Caribbean residential and commercial real estate has risen significantly across all price ranges.
The bulk of inquiries come from the United States, Canada, and the United Kingdom, with inquiries from American and Canadian buyers more than doubling, and inquiries from British buyers up more than 30%.
Inquiries for residential real estate have increased significantly in St Kitts and Nevis, the Turks and Caicos Islands, Antigua, and the Dominican Republic.
Inquiries for properties in all price ranges have increased: inquiries for properties priced between $1 million and $2 million USD have more than doubled, and inquiries for properties priced below $1 million USD have increased from 39 percent to 44 percent.
Inquiries for commercial real estate, such as hotels for sale and land for construction, have increased significantly in St Lucia and Jamaica.
"Inquiries for Caribbean real estate have increased significantly during the first half of this year as economic growth in the United States, Canada, and the United Kingdom has stimulated buyer confidence," says Walter Zephirin, Managing Director of London-based 7th Heaven Properties. The impressive performance of the region's tourism sector, especially in places like the Dominican Republic and the Turks and Caicos Islands, as well as the continued success of highly attractive Citizenship through Investment Programs in St Kitts and Nevis and Antigua, has fueled demand for Caribbean property.
"The outlook for the second half of 2015 is highly positive, with a solid revenue pipeline," Zephirin said. A series of announcements on increased airlift to the area, major resort developments linked to Robert de Niro in Antigua and Barbuda and Leonardo DiCaprio in Belize, as well as Jamaica's first approved casino, have raised the Caribbean's profile and enhanced its accessibility and appeal to buyers."
In April, the pipeline for hotel development in the Caribbean and Mexico shrank.
According to STR's April 2016 Pipeline Study, there are 28,715 rooms under contract in 178 projects in the Caribbean and Mexico. In comparison to April 2015, there was a 3.8 percent drop in rooms Under Contract, but a 9.3 percent rise in rooms In Construction.
Projects in the In Construction, Final Planning, and Planning stages are included in the Under Contract details, but projects in the unconfirmed stage are not.
For the month, the area announced 12,809 rooms in 79 projects under construction.
Central Mexico (3,846 rooms in 30 hotels) had the most rooms in construction, followed by the Yucatán Peninsula (1,795 rooms in eight hotels) and Northwest Mexico (1,795 rooms in eight hotels) (1,441 rooms in 12 hotels).
In May, the pipeline for hotel development in the Caribbean and Mexico shrank.
According to STR's May 2016 Pipeline Study, the Caribbean/Mexico area has over 28,368 rooms under contract in 178 projects. The total reflects a 5.8% drop in rooms under contract compared to May 2015, but a 3.0% rise in rooms under construction year over year.
Projects in the In Construction, Final Planning, and Planning stages are included in the Under Contract details, but projects in the unconfirmed stage are not.
For the month, the area announced 12,616 rooms in 80 projects under construction.
Mexico had the most rooms under construction among the countries in the country, with 7,981 rooms in 58 hotels. The Dominican Republic was the only other country with more than 1,000 rooms under construction (1,208 rooms in six hotels).