The Caribbean has witnessed a surge in luxury property investments as affluent buyers, attracted by its beauty and tax incentives, seek secondary homes in tropical settings. Global property consultancy Knight Frank reports that, since the pandemic, the Caribbean has become a top destination for high-net-worth individuals (HNWIs), sparking new high-end developments that are redefining island luxury.
On Cable Beach in the Bahamas, recent luxury projects like the Rosewood Residences at Baha Mar provide condominium owners with five-star amenities. Meanwhile, the Four Seasons’ Ocean Club offers villas and penthouses set against Paradise Island’s stunning beaches and Versailles-inspired gardens. This growth mirrors a broader shift in Caribbean real estate, driven by buyers seeking “lock-and-leave” condos, typically priced between $1 million and $5 million. “We’re seeing strong demand for condos near the beach, especially as buyers prefer the low-maintenance lifestyle they offer,” says Susie Vazquez, General Manager at The Isles Group.
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Favorable tax structures continue to attract international buyers. The Bahamas and Barbados offer substantial tax advantages, such as no capital gains, inheritance, or wealth taxes, which appeal particularly to wealthy individuals from the UK and Canada. Extended-stay visas introduced during the pandemic allowed remote workers to relocate temporarily to the Caribbean, and many have since decided to stay, making the region their permanent home. “We’ve seen families, especially from Canada, purchase homes virtually and relocate for the lifestyle and quality of education options,” notes Vazquez.
Luxury properties across the Caribbean have seen significant appreciation. In the Bahamas, standalone home values have doubled since 2020, with properties in gated communities that once sold for $3 million now going for $6 million. While prices have soared, some properties remain on the market longer as demand stabilizes.
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Barbados’ luxury market is also booming. Knight Frank’s local partner, Terra Luxury, reports high demand along the West Coast, where properties priced over $20 million are scarce. “Securing prime land on the West Coast is becoming increasingly difficult,” says Betty Cathrow of Terra Luxury. In Barbados, large branded residences are less common, leading many affluent buyers to build custom homes, often demolishing existing structures to create tailored escapes. New villa developments like Callidora, located inland near Gibbs Beach, are attracting buyers with prices reaching up to $3.25 million.
Private islands like Mustique offer another level of exclusivity. With only 100 properties, Mustique’s market is highly competitive, with villas priced between $6 million and $30 million. “We provide full services, from security to airport management, ensuring a secure, lock-free environment for our residents,” says Roger Pritchard, Managing Director of The Mustique Company. Property values on Mustique have surged by 25% since the pandemic, though inventory remains tight as younger buyers hold onto their investments.
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Overall, the Caribbean’s luxury real estate market is flourishing, appealing to buyers drawn by favorable tax policies, the appeal of island life, and the opportunity to craft bespoke properties in paradise.
Caribbean Luxury Market Highlights:
- Tax Benefits: The Bahamas and Barbados offer advantageous tax regimes, with no capital gains or inheritance taxes, which draws HNWIs from high-tax countries.
- Extended-Stay Visas: The Bahamas and Barbados introduced pandemic-era visa programs, allowing remote workers to live in the Caribbean, with many choosing to stay permanently.
- Preference for Condos: With rising property values, buyers increasingly prefer luxury condos for convenience, especially in the $1 million to $5 million range.
- Global Buyer Demand: U.S., UK, and Canadian buyers are leading the charge, attracted by the Caribbean’s lifestyle, privacy, and remote work appeal.
- Exclusive Options on Mustique: Limited inventory and high security make Mustique a secluded haven for HNWIs, commanding top market prices.
- Intense Demand for Barbados Land: Limited land on the Barbados West Coast is highly coveted, with developers focusing on luxury markets as property values climb.
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