Only Europe has seen a stronger level of growth in its inbound tourist arrivals from 2010 to 2023, with an increase of over 40% in tourist arrivals over the period.

This surge of travellers has helped to support many local economies in the Caribbean, with the IMF reporting accelerated GDP growth for the region, rising from an average of 3.6% annual growth between 2017-19 to 12.9% between 2021-23. Strong economic growth supports increased investment in infrastructure and real estate development, further increasing the attractiveness of the region to global buyers.

The Caribbean Community, known as CARICOM acts as a regional integration organisation akin to the European Union. It seeks to align member states and associate members on economic and foreign policy and coordinate responses to natural disasters and climate change. Through the organisation, there are now several free trade agreements across the region, which have been critical in improving economic development and allowing local real estate and tourism sectors to flourish.

The United States is the nearest economic power neighbouring the Caribbean and is a significant source for both tourists and buyers in local residential markets. While high inflation has dampened consumer sentiment across North America, the forecast falls in inflation rates should support a rebound in sentiment. As Americans begin to feel more confident about the economy and inflation begins to settle, many regional islands will likely see an increase in inbound tourism and property interest.

The Role of the Executive Nomad

Globally, some 58 jurisdictions offer visa programmes for temporary remote workers, 10 of which are in the Caribbean. Something that began as a niche visa type to offset weak tourist markets in the wake of the pandemic has now become widespread and is becoming a key tool for countries to attract skilled workers to their countries. In comparison to the more common digital nomad – usually characterised as a young backpacker with a laptop – executive nomads tend to be older, more likely to travel with family in tow and put more emphasis on physical and digital connectivity.

Executive and digital nomads require high speed internet, something that the average vacationer or resident can appreciate as well. Investments and improvements in this area are happening, with several islands developing fibre networks to meet this growing demand. Long term second home buyers demand power and airport access, an area of increased development as well.

As the Caribbean economy has been surging in recent years, the prime residential markets have done the same. Across the sample markets in this report, prime residential prices have increased by an average 27% in the past five years. Prime reflects the top 5-10% of prices across the studied markets. However, the locations across the Caribbean do not appear to have reached a price ceiling and, in fact, they represent relative value compared to other prime second home markets. On a price per square foot basis, Caribbean destinations are on average four times less expensive than Palm Beach, 75% less expensive than Miami, and 50% less expensive than Sardinia, the Hamptons, and Tuscany.

Within the region, there is a significant degree of pricing variation as well. Established destinations closer to the United States, such as Turks and Caicos Islands and The Bahamas, tend to see higher prime residential pricing than locations such as Antigua and Barbados, which are less popular with Americans. However, Antigua and Barbados see much more global buyer bases, with the large majority of their prime property buyers originating from across the United Kingdom and Europe.

The land-constrained nature of the islands across the region, coupled with increased global demand levels, means that over the coming years, prime residential prices are likely to continue their upward trajectory.

From the grounded and authentic island experience of Antigua to the fully fledged luxury developments in Barbados and The Bahamas, there are diverse opportunities for those seeking a part of Caribbean prime real estate.

Branded Residences and other purpose-built developments are popular for buyers looking to spend part of the year in the region. Amenities, services, and security are integral to these developments and are key selling-points for many global buyers. Brands are also taking notice; as of July 2024, there are 28 operating developments across the region with 1,800 residences. There are also 36 developments in the pipeline, which will bring an additional 4,400 residences to the region.

As a region of islands, climate change, with its associated risks of sea level rise, is a concern for many Caribbean markets. All of our featured markets are tackling this problem, with many governments actively working with the United Nations and various international organisations to raise awareness of the issue. Many nations are taking steps towards climate mitigation, such as the restoration of natural flood barriers, including coral reefs. With respect to real estate’s impact on the local environment and habitats, nearly all new developments on these islands must conduct environmental impact assessments in order to get planning approval to be built.

_{Read the articles within Savills Caribbean Island 2024/25 report below}