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Sugar and spice and all things nice – what the latest Caribbean investment opportunities are made of
January 29, 2014Article by Ray Withers
Property experts have been keeping a close eye on the Caribbean luxury market in recent years. Now, the latest market insight report from Knight Frank has shown that it could be the perfect time to invest in the Caribbean.
An improving market
The Knight Frank Caribbean Prime Residential Insight 2014 report has highlighted the uplift in the Caribbean market during 2013, with the British Virgin Islands and Barbados seeing the number of prime sales increase by between 10% and 15% during the year. The increase follows a drop in prices of luxury Caribbean properties of around 30% since the global financial crisis took hold in 2007.
The renewal of the market has created some exciting opportunities for investors, who are keen to get involved in the Caribbean while prices are still on the up. The plethora of tax advantages available is also driving up interest in the market.
More than just a property
A key factor attracting investors’ attention to the Caribbean can be seen by examining the ‘spice island’ of Grenada. Investors there get more than just a luxury property for their money, thanks to the government passing the Citizenship by Investment Act late in 2013. The move is expected to attract a wave of wealthy investors to the island, particularly those looking for a lifestyle investment property. It is one of a range of ways in which several Caribbean islands are opening their arms to foreign investors.
The Caribbean’s fastest growing market
Predicted by the World Travel & Tourism Council to be the Caribbean’s fastest growing market in the decade to 2021, Grenada has also been flagged as an investment hotspot by award-winning investment experts Property Frontiers. CEO Ray Withers comments,
“Grenada is one of the most exciting investment prospects on the planet for 2014. Its tourism sector is undergoing rapid and significant expansion, particularly when it comes to investment properties that combine a financial return with a lifestyle element, such as a set number of weeks’ usage per year.”
The five star Cinnamon Suites at Bacolet Bay Beach Resort are an excellent example of the kind of resort investment that is drawing in investors from across the globe. With prices 25% below independent real estate valuation, 10.5% average projected NET yield per annum and guaranteed buy back three years after completion, the investment is already an attractive option. However, it also combines a lifestyle element with the impressive financial return – investors get four weeks’ personal usage (one of which is in high season) when purchasing the property.
In keeping with the Caribbean’s penchant for encouraging investors through innovation, Property Frontiers is tipped to announce details soon of its latest attraction – the Caribbean Private Residence Club. With vacation time including luxury boat use, chauffeur drive car and butler service (in addition to the usual superb returns), exclusive pre-release details of the Private Residence Club are available to those who register early for information.
If you would like to know more about Property Frontiers’ investment opportunities in Grenada, please get in touch for the latest details.