Forecasts suggest that Caribbean and Central American property sectors are likely to grow over the course of this year. Experts are claiming that more people will be drawn to these areas by increasing quality of life, strong value, and a relatively stable economic environment.
London’s 7th Heaven Properties have analyzed the current situation, and drawn a number of positive conclusions relating to these regions. The Caribbean, they reported, has strengthened its pre-existing appeal among international property investors and buyers. At a time when many otherwise similar regions are struggling with various political, economic and social factors, the Caribbean region seems to be an island or relative stability. The increase in buyer confidence is evidenced by sale numbers that are fast catching up with their pre-crisis counterparts and an increase in inquiries.
According to 7th Heaven’s managing director Walter Zephirin: "Many investment locations such as the Turks and Caicos, the Bahamas and the Cayman Islands experienced strong growth last year and we expect 2015 to be the year that the Caribbean real estate market as a whole turns a corner."
Zephirin also pointed out that upturns in countries like the UK, the US and Canada are also benefiting markets in the Caribbean and Central American regions. Investors from these countries are putting more funds into Caribbean and Central American properties. Tourists are also spending more and coming in greater numbers.
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The tourist aspect of this is bolstered by an increase in direct flights to many destinations within these regions from a range of locations around the world. The Dominican Republic, Costa Rica, St Lucia and the Bahamas have all become more accessible recently, and this has further encouraged an increase in tourist numbers which has helped to stimulate local economies.
"A growing pipeline of new projects, significant infrastructure investments and a thawing in relations between the USA and Cuba," Zephirin added, "are also expected to provide an additional boost to the region."
Wider economic forecasts for these regions are also positive, and this naturally reflects well on the prospects of their respective property sectors. For example, Panama is expected to see 5.8% GDP growth in 2015 and the Dominican Republic is forecast to see growth of 4.8%.
The appeal of these destinations to international property investors is further boosted by a relative wealth of new, high-profile projects. These are filling the market with new, attractively-priced and potentially profitable opportunities to invest in new-build and off-plan properties. Many of these are luxurious residential or holiday accommodation for either investment or personal use.
The region is made still more appealing by increasing numbers of government incentives designed to attract foreign funds. In particular, many buyers from around the world are drawn to citizenship-by-investment programs, which are increasingly being introduced by jurisdictions within these regions.