Just in time for the summer, the Caribbean property market is on the rise as the region sees an increase in buyer confidence and investment. After suffering a huge blow from the global financial crisis in 2008, many locations are recovering well. However, it remains to be seen how oversupply in some locations, as well as Donald Trump’s presidency, will affect the region.
Visitors are often driven by the white, sandy beaches and turquoise water that give off a paradise feel. Many visitors are enchanted by the region and dream to own a slice of the tropics and the Caribbean is one of the most sought after vacation destinations and place for retirement.
House prices in the Bahamas are around US$127 per square foot (sq. ft.). The Bahamas offers high yields but property rentals are seasonal. Condominiums in Nassau offer the highest average yields at a whopping 8%, while properties on the beachfront offer yields at around 7%. Houses in Abaco and Grand Bahama have moderate rental yields ranging from 3.57% to 4.45%.
In the Cayman Islands, property prices are around US$222 per sq. ft. This is paid off by good rental yields ranging from 5% to 7%. Smaller apartments tend to generate better yields.
In Jamaica, house prices are around US$179 and are rewarded by strong gross rental yields with 2-bedroom apartments yielding around 10%. In Aruba, on the other hand, apartments have a hefty price tag of US$717 with good rental yields of around 6.19%.
Each country in the Caribbean has its own policy for non-nationals purchasing properties. For example, there are no restrictions for non-Jamaicans owning a property in Jamaica. However, non-Jamaicans must secure a unique taxpayer registration number issued by the Tax Administration Department and consent from the Exchange Control Department of the Bank of Jamaica prior purchasing agreements.