Research article

Islands

Explore eight glorious Caribbean islands and what drives their enduring appeal.




The Bahamas

A sprawling archipelago of nearly 700 coral islands, The Bahamas is the northernmost market analysed in this report. The allure of the pink sand beaches leads many travellers and homebuyers to its shores as many seek to carve out a piece of the small island culture it offers.

Located just 300 kilometres from the coast of Miami, the capital Nassau is a mere hour flight from the south Florida business hub. This proximity lends the country to see most of its buyer interest come from the United States, with places further afield such as the United Kingdom and South America comprising smaller segments of buyers. Much like Miami, The Bahamas is increasingly seen as a key residential destination for those from the global south who wish to do business inside the United States, as proximity and ease of access allow for frequent business travel.

Akin to its Caribbean neighbours, The Bahamas is a tourism hotspot, with many internationally known resorts and high- quality cruise ports. In terms of visitors by air, the island has seen a recent boom period with 1.72 million visitors in 2023, up from 1.47 million in 2022. Compared to the pre- pandemic travel which also sat at 1.66 million total visitors in 2019, the rebound in tourism has been significant.

This significant increase in tourism helps the local economy, but it is not the only source area of activity in The Bahamas. The country is also home to a growing finance sector, including investment into cryptocurrency. Financial services constitute the second-most important sector of the economy, accounting approximately 15% of GDP. The government recently passed additional legislation to protect investors and consumers through increased disclosures and risk management processes. Nassau seeks to continue to be a hub for responsible innovation in the financial sector. 

This increased interest and international appeal has also been felt in the real estate market, where mainstream and prime prices have risen significantly in recent years. From 2019 to September 2024 , prices per square foot for mainstream and prime second-hand villas have risen by 41% and 26%, respectively.

Prime second-hand villas currently sit at $1,290 per square foot, while mainstream prices sit at $360 per square foot. In the ultra-prime sector, prices have stayed relatively flat, with a modest -4% decline from 2019 to September 2024. Price increases are generally the result of a lack of supply and capacity constraints in new construction. 

The rise of remote work and an influx of professionals leaving urban centres have also fuelled the Bahamian real estate market, resulting in second-hand prime apartment prices per square foot increasing 82% from 2019 to 2022. While this trend is still very prevalent and drives large sales volumes, it has subsided from its peak in the immediate post-pandemic period, and prices in this asset class have fallen by -27% from 2022 to September 2024, sitting at $920 per square foot.


Being a nation of many islands, new developments take advantage of the access to the sea. One such example is the recently announced Rosewood Exuma development, situated on its own 124-acre private island; the development looks to feature a fully serviced beach club along with two marinas built to accommodate local yachts. The development seeks to offset its impact on the environment through sustainable building practices, including utilising solar energy to help power the development.

In the next five years, The Bahamas seeks to continue on its path of growth, both with its economy and real estate markets. Scarcity of beachfront property across the islands is intensifying demand, with interest growing in secluded, underdeveloped areas that promise privacy and exclusivity away from busier tourist hubs. The country’s strategic location near the United States remains a significant asset, attracting buyers driven by favourable economic forecasts in The Bahamas and the United States. As demand for residential and investment properties strengthens, The Bahamas’ appeal as a destination with close ties to the United States will continue to make it one of the Caribbean’s most dynamic real estate markets.

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Turks and Caicos Islands

An archipelago of 40 islands to the southeast of The Bahamas, Turks and Caicos attracts a global base of visitors and residents with its beaches, pristine marine environment, and established prime residential market.

The economy of the Turks and Caicos Islands is primarily driven by tourism, which accounts for 65% of GDP. The islands attract travellers with their pristine beaches, luxury resorts, and world-class diving spots. Tourism supports a thriving services sector, including hospitality, real estate and construction, with many foreign investors purchasing second homes and rental properties. Offshore financial services also play an important role in the economy, benefiting from the islands’ tax- neutral status, which attracts international business and investment. The government has been working to diversify the economy by promoting sustainable tourism and developing infrastructure across the country. 

The residential market in the Turks and Caicos Islands is heavily influenced by the islands’ reputation as a luxury destination, attracting high net worth individuals, retirees, and international investors. The market is dominated by upscale properties, including beachfront villas, resort-style apartments, and luxury estates, particularly in popular areas such as Grace Bay, Providenciales, and Parrot Cay.

The prime market - properties priced at $5 million and up - accounts for 10% of the market, with ultra-prime properties such as those in Emerald Point commanding over $25 million. Price sensitive prime buyers tend to look for more inland properties where residences tend to transact for between $1-2 million. The beachfront remains highly coveted, particularly in Grace Bay where prices reach $1,200-$1,500 per square foot, driven by new developments such as St. Regis and The Ritz-Carlton.

Increased demand for prime residential property across the islands is reflected in the pricing dynamics. Since 2019, prime prices have increased by an average of 33%. Both new build and second-hand properties have seen elevated demand in the post-pandemic years, as global buyers seek the quality of life found across the Caribbean.

 

The majority of prime residential buyers in Turks and Caicos originate from three markets: the United States (60%), Canada (30%), and the United Kingdom (10%). The government’s policies encourage foreign ownership, allowing non-residents to buy property without restrictions, which has boosted the real estate market. Additionally, the islands’ tax-neutral status—no income, capital gains, or property taxes—makes it an attractive option for international investors.

While there is no Citizenship by Investment Programme (CIP), there is a programme known as the Investor PRC which helps high net worth buyers establish permanent residency on the island. This programme requires an investment of $1 million or more and does not allow participants to work on the island, but they are able to maintain businesses outside of the jurisdiction.

In recent years, there has been a growing interest in environmentally friendly developments and sustainable living options, catering to buyers who are conscious of their carbon footprints, with some new build villas adopting solar energy.

The Turks and Caicos Islands housing market remains robust, supported by strong demand for prime residential and investment properties. The government’s focus on infrastructure development and sustainable tourism will likely continue to drive interest in real estate, keeping the market attractive to foreign buyers.

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Barbados

Among the Caribbean’s most established residential markets, Barbados embodies the idyllic island lifestyle with a distinct blend of history, culture, and natural beauty.

Located in the southeastern Caribbean’s Lesser Antilles, the island has long been celebrated for its pristine beaches, vibrant Bajan culture, and an array of recreational activities. A prime attraction is its world-renowned golf courses, such as the prestigious Country Club and Green Monkey at Sandy Lane, Royal Westmoreland and Apes Hill, which draw both residents and tourists.

Travellers from the United Kingdom make up the majority of holiday home owners in to Barbados. A growing number of Canadians and Americans round out the top three tourist source markets. In a bid to attract even more international residents in recent years, the country introduced the Welcome Stamp, allowing global visitors to live and work remotely in Barbados for up to a year. As of April 2024, over 3,000 individuals have taken advantage of this programme, highlighting its appeal for for digital and executive nomads alike.

The Welcome Stamp, combined with a streamlined property purchase process, reflects Barbados’ commitment to bolstering its economy by attracting long- term visitors who contribute to the local community.

Barbados’ real estate market has seen robust  development across all income segments, with both mainstreamandprimepropertiesexperiencingnotable growth. New developments have been delivered to the market at speed, with all classes of product seeing consistent price growth. For new build villas, there has been significant growth in both mainstream and prime assets, with prices per square foot growing by 22% and 18%, respectively from 2019 to September 2024.

In the mainstream market these prices now sit at $275 per square foot, while prime properties costs upwards of $500 per square foot. For the ultra-prime segment, there has been price growth of 24% from 2019 to 2024. As is the case in other Caribbean markets, supply is becoming tight and new developments sell quickly.

Notable developments on the island include the planned Limegrove Hotel and Residences, part of a high end, mixed-use complex in historic Holetown, blending luxury residential spaces with premium retail outlets. New developments tend to be concentrated on the western coast of the island, with another large-scale development at The Pierhead in the nation’s capital. The Pierhead, the first phase completing in 2026, will include commercial spaces and residences. This inspiring development is expected to be the catalyst for Bridgetown’s redevelopment.

In the prime and ultra-prime segments there is a continued desire for themed offerings - such as golf, tennis and marina; as well as sea views and beach frontage.. As development continues, this is becoming an increasingly scarce commodity and prices for these properties have risen significantly. In some cases, properties with a beach frontage can be almost double the price of comparable properties, while properties with a view can be up to 25% more expensive than those without.

This has led to a trend towards development of gated communities with beach frontage. Regardless of views, all members in these communities have private access to the development’s beach and other community amenities.

Barbados has a very stable rental market which has not seen the same degree of price fluctuation as many of its peers. From 2019 to September 2024, apartment rents have increased as the introduction of the Welcome Stamp boosted demand across the island and supply has been unable to keep up. Digital nomads and potential home buyers use this as a means of sampling the local lifestyle before deciding to make a more permanent move to the island.


Looking forward, Barbados is positioning itself as a top- tier destination for high net worth individuals, not merely as a vacation spot but as a full-time residence. With an emphasis on quality of life and access to amenities that rival those of major cities, the island is aiming to attract individuals who are interested in immersing themselves in the local community while enjoying the comfort and tranquillity of island living. Expanding its digital and executive nomad programmes remains central to Barbados’ strategy, as these initiatives aim to retain skilled, entrepreneurial individuals who can invest and contribute to the economy long-term.

The combination of seamless residency programmes, growing property market, and strategic development initiatives makes Barbados one of the Caribbean’s most dynamic and appealing real estate markets. With strong prospects for continued growth and an emphasis on attracting global talent, Barbados is well on its way to establishing itself as an ideal destination for those seeking a blend of Caribbean charm and investment potential.

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Antigua and Barbuda

Positioned where the Atlantic and Caribbean meet, Antigua and Barbuda is known for reef-lined beaches, rainforests, and resorts.

Antigua’s economy is primarily driven by tourism, making up 80-85% of GDP, supported by hotels, short-term rentals, and digital and executive nomads. The services sector, especially banking and financial and modern amenities, appealing to affluent buyers from North America and Europe. The majority of buyers come from the United Kingdom, accounting for 60-65% of the market, followed by the Netherlands (10%), Italy (10%), and the United States and Canada (10% and 5%, respectively).

Foreign ownership is common, as the government encourages international investment in real estate. Antigua’s CIP, which grants citizenship to individuals who invest in local property with a minimum price of $350,000, has also spurred interest in the housing sector. While Americans and Canadians were initially less present, the CIP has attracted increased interest from these regions over the past two years. Antigua also offers a digital nomad visa, which gained huge popularity during the pandemic, but demand has since tapered off. Remote workers, however, still comprise a portion of the market.

Recent developments include the Sugar Ridge condos and Pearns Point, both attracting international buyers through the CIP. Antigua’s charm lies in its lack of gated communities and standardised developments, with many buyers seeking bespoke, authentic Caribbean homes. The $3-7 million range is gaining popularity, with buyers favouring custom-built homes over more standardised and uniform properties.

The prime residential market in Antigua is robust, with average prices per square foot of approximately $490. Prime prices across the island have risen by over 17% since 2021, with second-hand prime apartments seeing the steepest increases in pricing at 43% over the period. The supply-constrained nature of the islands, coupled with the desire of international buyers to have properties which are easy to lock-up and leave, is likely contributing to this strong price increase.


Notably, the ultra-prime market, with homes priced above $10 million, constitutes approximately 10-15% of the market, while prime properties range from $3-5 million. Branded residences and turnkey properties in the $600,000-800,000 range are expected to dominate the market over the coming years, especially as more schemes are brought online.

Challenges persist, with the limited availability of land in prime locations supporting additional price increases in the near term. Despite this, the prime residential property market in Antigua remains stable, supported by international investment and local demand. Efforts toward sustainable and eco-friendly developments have also been increasing, reflecting a global shift toward more environmentally conscious living. The market is expected to remain vibrant, fuelled by tourism and continued investment in infrastructure.

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Cayman Islands

The Cayman Islands combines economic stability with a sophisticated lifestyle, making it one of the region’s premier locations for high net worth individuals.

A collection of three islands, Grand Cayman, Cayman Brac, and Little Cayman, the islands offer a peaceful lifestyle combined with a healthy business environment. Well known for its established financial and tourism markets, it boasts the highest GDP per capita in the region, at $96,073.

As is the case for many of its Caribbean neighbours, the Cayman’s tourism industry was negatively impacted by the pandemic and subsequent lockdowns. In terms of airline arrivals into the islands, the Cayman Islands saw a pre-pandemic peak of 59,563 visitors in March 2019. As travellers have returned to the islands and tourism has returned to pre-Covid levels, airline arrivals reached 57,040 in March 2024, reflecting an almost full recovery. The majority of these travellers come from the United States, with second and third positions being filled by Canada and the United Kingdom, respectively.

The local real estate market benefits from a simplified buying process and few taxes. Foreign buyers are subject to only a 7.5% stamp duty tax of the purchase price, with no property tax or controls on foreign ownership of land. Known for its luxury condos and exclusive beachfront estates, Seven Mile Beach has become a hub for affluent buyers who desire direct access to the Caribbean’s clear waters and high-end amenities.

The residential market has seen some marginal cooling following the post pandemic boom, but prime and ultra- prime property continue to be in high demand and sell with minimal time on the market. Supply, however, remains limited due to strict land-use regulations and environmental protections, which support long-term value retention and make these properties highly desirable.

Recently, the Cayman Islands have closed their Global Citizen visa programme for digital nomads. This has helped alleviate some pressure in the rental market. However, the closure so far has had no effect in slowing interest in the islands, as low supply continues to drive this sellers’ market.

Looking towards the future, the Cayman Islands stand to benefit from recent interest rate drops in the United States and other global economies. As the local currency is traded at a pegged exchange to the US dollar, these lower interest rates abroad should translate to an increase in residential market transactions and development as access to capital is made less expensive. This combined with a positive economic outlook in the face of global uncertainty bodes well for the near future.

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GRENADA

A small nation in the southeast of the Caribbean, Grenada is known as the island of spice due to its large-scale cultivation of nutmeg, mace, and cinnamon.

Grenada features a thriving tourism industry, with long coastlines and picturesque waterfalls dotted across the interior. Tourism visits have almost fully recovered from the lows of 2020-21, with over 500,000 international visitors in 2023.

Grenada has a digital nomad visa, similar to many of its neighbours. Implemented in 2021, the visa allows for 12 months of residency and remote work on the island. This has helped introduce the market to a wider group of potential buyers, as well as giving the already strong rental market a boost. There is also a growing CIP which has drawn increased international attention.

The process for foreign land ownership has also been streamlined. Purchasing property in Grenada for foreigners is a simple process, requiring the acquisition of an Alien Land Holding License, granted by the government with a 10% of the property purchase price fee.

Grenada’s prime residential market has gained traction in recent years, drawing attention from buyers looking for properties in secluded, scenic areas. High-end developments are typically found along the pristine beaches and lush hillsides, where the combination of ocean views and privacy appeals to discerning clients. Those looking for property in Grenada are likely interested in a more authentic, relaxing Caribbean lifestyle. The prime property market in the island is popular with retirees who enjoy the pace of life and weather. Most frequent buyers are from the United Kingdom, with American and Canadian buyers taking up second and third place, respectively.

The government’s forward-looking stance on sustainable tourism and development, along with its tax policies, make Grenada an attractive base for investors. Its stable rental market, bolstered by the tourism sector, also presents opportunities for rental income, especially with the rising trend of long-term stays among digital nomads and expatriates.

Looking towards the future, the supply of residential property will likely continue to be a barrier for the market. This is not only due to limited development, but general land constraints which play a large role in this small market. However, Grenada’s favourable tax environment, peaceful stability will likely prove to advance the islands enduring appeal to the international community.

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ST VINCENT & THE GRENADINES 

St Vincent & the Grenadines is a nation made up of 32 islands located on the eastern flank of the Caribbean, south of St Lucia, north of Grenada and west of Barbados.

Well known for its natural beauty, sailing culture, and private islands the nation remains a popular international tourism spot.

Much like its neighbours, tourism has rebounded to just below 2019 levels after the slowdown in 2020, with 394,000 visitors in 2023. St Vincent is serviced by an airport in its capital of Kingstown which has direct flights to several North American markets, allowing for easy access to the remote islands.

This tourist resurgence has prompted further development in the hospitality sector, such as the recent opening of a second Sandals hotel located on Buccament Bay. While many tourists come for the relaxing lifestyle there are many more activities on offer. These include a climb up to the top of La Soufrière, St Vincent’s active volcano, which is home to many rare birds and wildlife.

The nation does not offer a digital nomad scheme, but it does allow 30 days entry without any visa requirements. A favourable tax environment further enhances the appeal of St Vincent and the Grenadines, particularly for international buyers seeking a luxurious Caribbean retreat.

The prime residential market in St Vincent and the Grenadines is characterised by exclusivity and natural beauty, with high-end developments in secluded coastal areas and private islands. Mustique Island remains a hallmark of the ultra-prime market, known for its custom-built estates that attract clientele from around the globe.

New developments in the Grenadines cater to the luxury traveller with an emphasis on eco-friendly, low-impact construction. Projects such as the Glossy Bay Marina on Canouan Island provide residents with amenities such as private marinas, golf courses, and world-class spa facilities. These developments are designed to preserve the natural environment, with sustainable building practices that respect the islands’ delicate ecosystems.

The local government is dedicated to supporting the economic and infrastructure of the island through implementing a resilient city plan Kingstown and neighbouring area Arnos Vale. This plan seeks to create a sustainable and stable foundation for the expansion of the city and to better facilitate investments in the real estate and tourism sectors on the islands.



St Lucia

Known for its sandy beaches, rainforests, and the iconic Pitons — two volcanic peaks designated as a UNESCO World Heritage Site.

St Lucia offers a blend of natural beauty and exclusivity, making it an alluring choice for second-home buyers. Tourism, the cornerstone of the island’s economy, is booming, with over 380,000 arrivals recorded in 2023, signalling a robust post-pandemic recovery. Many visitors are captivated by St Lucia’s stunning landscapes, culture, and relaxed lifestyle, inspiring an increase in foreign investment in local property.

The recent uptick in tourism has sparked a surge in demand for vacation rentals and second homes, propelling property prices upward. St Lucia attracts both high net worth individuals and families seeking citizenship or investment opportunities. Demand is primarily driven by North American and European buyers attracted to its CIP, which allows qualifying real estate investments as a pathway to citizenship.

The island’s housing market is as varied as its landscapes, from beachfront villas to mountainside retreats. Property prices vary considerably based on location and size. However, despite rising property prices, St Lucia remains a comparatively affordable Caribbean option, with a cost of living below that of many neighbouring islands.

Development across St Lucia has ramped up to match the demands of its growing tourism sector. New hotels, resorts, and infrastructure projects are reshaping the island’s landscape and enhancing visitor experience. A notable development is the expansion of St Lucia’s cruise ship terminal, which is now equipped to handle larger vessels and increased cruise passenger arrivals, thus feeding the island’s tourism pipeline. Additionally, there are new residential developments in the pipeline, with a variety of property types, which are designed to cater to the heightened interest in purchasing prime residential property on the island. These projects are pushing property prices higher and generating increased interest, creating a vibrant real estate market.

Looking forward, St Lucia’s appeal to tourists and property buyers alike shows no signs of slowing. With government efforts likely to continue attracting businesses and bolstering infrastructure, the island is positioned for sustained economic growth. It is expected that there will be further property developments and enhancements to tourism infrastructure, ensuring St Lucia remains an attractive and increasingly luxurious Caribbean destination.

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