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Real Estate Market Trends in the Caribbean

Home | Real Estate Market Trends in the Caribbean

The Caribbean countries occupy the land on the western side of the Atlantic Ocean and are bounded by the Central American countries, the South American countries and the islands of the West Indies. The property rates in the Caribbean are seeing a rapid hike with the passage of time. This is because of the region’s dependence on tourism that boosts the economy Consequently, the government is trying to invest more in the real estate sector to further up the tourism game in the region. For this purpose, incentives have been announced for private investors and they would also receive assets from the government in addition to a Caribbean passport and the liberty to travel 140 countries around the world. 

The region has experienced two unfortunate events since the last decade. One in 2017 with the hurricanes destroying come countries in the Caribbean and the other in 2019 with the devaluation of local currency, leading to an instantaneous economic downfall. In both these years, the real estate sector and hence tourism, were greatly affected, with tourist numbers dwindling post their disastrous impacts. However, the real estate market quickly rose up and began to grow, inviting demands for rental villas from outside the region (Canada, US, etc.). The region experienced yet another shock owing to the pandemic that reduced the number of tourists arriving. 

The strategy the government uses to attract investment from the private sector has laid the foundation stone of economic boost in the region. Not only do the investors get assets but also other incentives that compels them to invest for a better return. The beauty of the region lies in the fact that if an investor gives a nod, there are potential others willing to buy with hiked prices, too. This makes the investors rather dependent on investing in the region rather than the government trying hard to make the economic ends meet. 

Real estate property in the Caribbean still shows marked prices but not to the astonishment of people, there are still investors within and outside the region who want to invest in the market and grow my leaps and bounds. 

The market trend in the Caribbean makes it compulsory for an outside investor to get a license first if he/she is not a citizen of the country. An agreement is made on the property that the buyer wants to buy and the buyer transfers 10-15% of the total transaction amount to the developer. This makes the property unavailable for sale. The complete purchase process takes a week and the buyer transfers the purchase amount to the developer. All legal paperwork is done and the contract is considered to be completed. Once purchased, a registration is done for the property with the local land and department. 

Post-disaster strategy in the region also focuses on developing resilient structures that do not fail under the hurricane attacks. Therefore, a set of standard guidelines have also been formulated to lessen the adverse impacts of disasters when they strike the region. The Caribbean islands are a hub of economic prosperity in the region and the government keeps on striving to keep its doors open for the tourists that throng the lands and boom its economy.

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