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What are the overarching trends driving the Caribbean region forward?
The 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.
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.
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.
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.
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.