During a time of lockdowns and limited travel, the real estate market in a number of Caribbean islands are doing very well. The number of tourists are way down, the economies are sluggish at best, yet real estate is bucking the trend. So what is driving this boom in the market?
Covid I believe is the main driver of property sales in the Caribbean. Being locked down during the winter months has taken its toll on many people in North America. The Caribbean offers a safe retreat, with much fewer cases, less restrictions and a climate that allows you to spend your time outdoors. Some countries, such as the Cayman Islands, have managed to get through this pandemic with next to no cases. Luckily, they have a thriving financial sector that means they do not rely on tourism for their economy.
Islands such as the Turks and Caicos have seen larger Covid numbers, however much less restrictions than most places in the US and Canada. Quality of life during this pandemic is no doubt better in the Caribbean.
Although air travel is down significantly from previous years, private jet travel again is bucking the trend. Wealthy visitors to the island are coming in droves, and they are bringing money. Snapping up oceanfront properties at a rapid pace, existing home sales and new home builders are seeing surprising numbers. A number of realtors we spoke with reported site unseen sales during the pandemic as well, which is obviously not the norm for multimillion dollar purchases.
We have also seen a number of buyers looking for ‘compounds’. Large properties which can be developed into a safe haven to get away from it all back in the US. The pandemic has truly had an unprecedented effect on the local real estate markets in the Caribbean.
The real estate market is booming, but what are the financing options like during Covid? Not as good as pre-Covid, but still not bad. The private investors we deal with have cut back in some regards however for good properties with good borrowers, we still have options.
The banks are fairly quiet at this time, which is not all that different from before Covid. The difference in rates are enough for some borrowers to at least try the banks, while others skip right to the private options in the market.
If you would like to discuss the financing options we have in the Caribbean today, we would love to hear from you. Call us to discuss the mortgages we have available in our different markets.