The boom in real estate was not predicted during the Covid pandemic, it was a pleasant surprise which helped to offset some of the damage done by the slow down in tourism. Many jobs are tied to the Caribbean real estate market either directly or indirectly in this region, and it was one bright spot in a sea of doom and gloom.
As the vaccine has started to have a major effect on controlling Covid, and normalcy starts to come back into view, what can we expect moving forward? We have been pretty much dead wrong on all our predictions to date, why not go out on a limb one more time. Keep in mind, not all Caribbean markets are the same, this generally applies to our primary markets.
The Caribbean property markets are still going strong. It has slowed a little since the peak, however the summer months are usually pretty slow in terms of property sales and tourist numbers. July is very unique in terms of visitors this year, with many hotels reporting 100% occupancy! These are welcome numbers for those in the hospitality industries, and good timing as the real estate market sees a slight dip in activity.
The slow down however is likely more related to the seasonal nature of the islands than a down turn. There are still plenty of buyers, and less and less inventory. This lack of inventory is driving a construction boom, with builders struggling to keep up with demand.
As mentioned above, we have been underestimating the real estate market for the past 18 months now. As the economies in the US, Canada and UK continue to grow stronger, we would expect tourism and real estate to respond accordingly. There are concerns about inflation, however in higher-end Caribbean markets, this is less of a concern due to the financial strength of the typical buyer.
We predict sales to remain strong for the rest of this year and 2022. Home prices will continue to go up but price increases will slow down but don’t count on decreases, there is simply too much demand. For those looking to rent their Caribbean properties, we would expect tourism to boom over this time as well, as demand will be very high as more countries open up to international travel.
We have learned to stop betting against the Caribbean real estate market, we see it as a great investment moving forward. There are just too many arrows pointing in the right direction right now for potential investors, talk to us today about how we can assist you in purchasing Caribbean real estate.