The Caribbean real estate industry is booming

During the Covid-19 lockdowns, wealthy buyers moved to the peaceful Caribbean islands that get more than 300 sunny days yearly. But even though the pandemic is getting better, the buying spree hasn't stopped.

The Caribbean real estate market is on a roll after a buying rush caused by the Covid-19 pandemic. People wanted to get away from Covid-19 lockdowns, so they turned to the sun and sand beaches of the Caribbean.

There are more than 300 sunny days a year on the islands. The clean beaches, warm water, and peace and quiet of island life have led many wealthy people to buy property there to live in, use as a holiday home, or rent out to tourists.

The Caribbean hospitality financing study 2022 found that 56% of non-banks (80% of banks) think the current real estate boom will last for the next 12 months, and 44% of non-banks (20% of banks) think it will last much longer.

Many institutions still have a lot of cash on hand, and they are looking to real estate as the best place to put it.

"All of our banking respondents expect it to be invested in real estate rather than in stock markets or held as cash, and 75% of non-banks feel the same way," the study found.

No one who answered the survey said they thought the market was a bubble about to pop.

Banks in the Caribbean aren't sure where to spend, and all 15 countries in the survey showed the same level of interest. But for non-banks, the Turks and Caicos Islands stood out.

The Agency, a real estate business, says there have been more than 324 transactions on the islands of Turks and Caicos so far this year. This is worth more than $335 million. Demand for Turks and Caicos real estate stayed higher than it was before the pandemic, and sales in the first through third quarters of 2022 were 71% higher than they were in the same quarters of 2019.

"There has never been a better time to buy property in Turks and Caicos," says Walter Gardiner, director and broker at Christie's International Real Estate and a native of Turks and Caicos.

During Covid-19, sales on the island went through the roof as buyers, mostly from the US, came to the islands. Sotheby's says that 85% of the people who own real estate on the islands are from North America.

Gardiner has been a real estate agent in Turks and Caicos for 25 years. He has seen how quickly the islands went from being relatively unknown to visiting a world-famous luxury tourism hotspot with a fast-growing luxury real estate market. He doesn't think it will slow down any time soon.

In some places, the infrastructure hasn't kept up with how quickly the islands have grown, so building infrastructure is now one of the most important things to do. Visitors may have to wait a long time at the Providenciales International Airport, but a new international airport should cut down on that. Also, causeways between islands are being thought about to make it easier to get around the islands.

Gardiner says that places like Long Bay, which used to be empty, have become very busy.

"Even 15 years ago, few people bought homes in Long Bay because it was far away and the road wasn't paved," he says. "But if you go there now, it's one of the most expensive places in the islands." "On the beach, homes cost anywhere from $7 million to $25 million."

On the other hand, homes in North Caicos, which are less developed, may only sell for $500,000. Sotheby's says that in 2021, buyers were interested in single-family homes until the supply ran out. Now, in 2022, buyers are interested in condos.

Demand has grown faster than supply in some parts of the market because of the pandemic boom, but new properties are being built, and sales of old properties are still strong. The market for the building before it is built is also picking up.

Sotheby's second quarter report on Turks and Caicos real estate said, "Condominium sales continue to be strong, with a sales volume increase of 42.54%. This is due to the completion of the Rock House, the Ritz Carlton sales completions carry-over, and strong condominium re-sales."

Condos have always been the backbone of the country's real estate market. People buy them to live in them, use them as holiday homes, or rent them out.

The Agency finds that condo prices are still high. The average sale price is over $1.5 million, 50% higher than the average sale price across the country. Sales at the Palms, Grace Bay Club, and Ritz Carlton are helping to keep prices high.

Turks and Caicos have the second most dependent economy on tourism globally. However, the real estate market gives a good chance for economic growth.

"I want to see more Turks Islanders take advantage of the opportunities," says Gardiner. "There are chances for locals to make money by starting businesses that meet the needs of people buying property."

Even though people worldwide are worried about the economy and rising prices, the islands keep going.

Trevor Musgrove, a managing partner at real estate company The Agency T&C and president of the Turks & Caicos Hotel and Tourism Association, says, "In terms of building prices, I have told buyers to go ahead and build now because prices will only go up everywhere else."

Gardiner says again that now is the time to buy: "We have passed different levels of stress tests. From political issues to hurricanes to Covid-19, we have faced all these challenges and made the necessary changes."

The Turks and Caicos industry have a bright future, just like the sun that shines on the island's beautiful beaches, because people are working hard to improve facilities and offer more and different kinds of real estate.