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
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