The Caribbean has long been a popular destination  for holidaymakers and property investors alike. The white sands of the Caribbean dotted with palm trees rustling in the breeze as vividly aquamarine seas lap gently, are enough to keep luring those tortured souls of the modern, stress-saturated world back to the exotic Islands time and time again.

The Caribbean is sure to retain its reputation as an earthly paradise for quite some time. Snapping back to the reality of Caribbean property prices and investments, though, and you will find that the different islands are in fierce competition for international capital. Harvey Edgecombe at J Way Investment says, "With the exception of a few islands, the Caribbean is an incredibly stable area, which equals safe property investment opportunities. Airfares are continuing to fall so more people are able to travel there, providing demand for further property developments." As different governments continue to open their doors to tourism and actively encourage international investment, there is now an attractive choice of Caribbean destinations to put your money in.

Barbados
Property on Barbados is the epitome of a coveted status symbol. Tony Blair and handfuls of sports and film stars choose the Island to escape from the headaches of British life. The golf courses are fantastic and the scenery epic. As a well established British getaway, property prices in Barbados tend to be fairly high. Due to the Island's long history of tourism and the country's close relationship with the UK, it is nonetheless still a good place to invest money because rental income is considered guaranteed for the foreseeable future.

Property developments are now taking place on different parts of the island. The Crane Resort, set on Crane Beach, is hoping to set a trend amongst property developers by locating on the south-east coast. The developers anticipate property on this side of the island to become increasingly popular with tourists looking for an alternative to the high prices on the west coast. It is a multi-million pound development offering fractional or freehold apartments within the resort community. One- two- and three-bedroomed residences are available and prices start at around £6,790 for interval ownership, or £370,000 for outright ownership.

Back on the west coast, near Speightstown, Maynards Point is counteracting the notoriously high prices by marketing itself as an 'affordable luxury' development. Here, there are around 50 apartments starting from approximately £152,600 and rising to £509,000.
 
The Dominican Republic
If you are looking for lower prices and higher growth potential, you will need to veer away from old favourites such as Barbados and St Lucia, and cast your eye over some of the Caribbean islands that are not yet fully colonised by overseas property buyers.

The Dominican Republic is one of the largest Caribbean Islands and has a lot to offer. In 2004, the country received 3.4 million tourists, approximately 28 per cent of all tourists travelling to the Caribbean, this is projected to grow by another 8 per cent this year. The current president, Leonel Fernandez, is bringing economic stability to the country, which is a good sign for property investors as vacation homes have seen substantial gains in value over the last five years.

Pauline Scrace of International Horizons says, "Money is being spent on the whole of the north coast with new beaches being developed, better roads, and power supplies. There are an enormous amount of new projects coming on line, mainly condo developments, and these will be on the market within the next few months."

The island currently caters to a wide range of budgets, "It is perfectly possible to find a nice three-bedroom/two-bathroom villa with further development potential, in a decent area close enough to major resorts to make it an ideal investment/rental property, for considerably less than £100,000," according to Ruth Ramos de Smith owner of visiting the Dominican Republic website. For the more affluent customer there's a greater choice of  developments than ever before, such as the Sea Horse Ranch community which has acquired an additional 350 acres to accommodate a world-class golf course.

Grenada
The island of Grenada in the Caribbean boasts a stunning mountainous landscape containing rainforests, waterfalls and rugged coastlines. There is much to do and see on the Island, ranging from scenic beaches to the culturally rich captial city, St George. Currently one of the less developed islands in the Caribbean, Grenada is now ready to change and move forward with the times. The island's tourism market is growing very quickly (an expected increase of 5.5 per cent per year until 2015) and therefore could be a very wise choice for property investment.

A whole host of upscale establishments have chosen Grenada as the location for their exclusive resorts and developments. Bacolet Bay, St David, is a five-star resort and spa set amid tropical gardens, with a sandy beach fringing the development. Two–bedroom apartments will cost from around £150,000. Owners will benefit from health centre usage and a close proximity to beach bars and restaurants.

Prickly Bay is a modern and innovative development that won 'Best Caribbean Development' at the International Property Awards. The architect, Richard Hywel Evans, believes that Grenada is an excellent choice of Island for investment: "The island is so naturally beautiful and unspoilt with a wealth of attractions. The locals are also extremely friendly and it is easily accessible – two factors incredibly important to visiting tourists." The price tags of the futuristic houses and apartments on Prickly Bay begin at approximately £272,000 through to £1.99 million.

Antigua
2007 is going to see some some exciting coverage opportunities for some of the Caribbean Islands. "The Caribbean will shortly become focus of the world as it is hosting the Cricket World Cup in April 2007. The event will attract many thousands of visitors and media people from around the world," says Geoff McClure, director of the Caribbean at Premier Resorts. As one of the hosting Islands, the publicity is sure to be a great boost for tourism in Antigua.

The Island is one of the largest in the Leeward. The 365 beaches provides plenty of 'wow' factor for the average British tourist. The new Antiguan government, elected in 2004, has placed tourism and foreign investment policies high on it's agenda. "Antigua will be expanding its international airport and are spending $75 million on improving the roads over the next few years," comments McClure.

The boutique hotel Elle Antigua is an example of the different kinds of property investments now available in the country. The hotel situated on the north-west coast is close to the capital of St Johns and the international airport. The 22 residences are part of the old Great House at Hodges Bay and are being restored and sold on a buy-to let basis. Prices for a two-bedroom garden cottage start at approximately £309,500, town houses and waterfront
cottages are also available.

Another option is La Perla Living development at NonSuch Bay, 25 minutes from St John's on the east coast of Antigua. The townhouses and apartments by the beach or on the hillside, set amongst 40 acres of tropical landscape compromising paradise flowers, bougainvillea, cannas and hibiscus, are an attractive option for investors. Prices start at US$485,000 (approximately £262,801) for a one-bedroom apartment.

St Kitts
Originally named Saint Christopher's Island, until shortened (by the lazy British), St Kitts is a small – about 68 square miles of land mass – but delightful Island in the Caribbean offering plenty of culture and history. The population of 36,000 is generally open and friendly towards tourists.

During 2006 the airport underwent substantial expansion enabling it to accommodate increased numbers of aircrafts. James Barnes, vice president-sales, Newfound NV said: "Such development is expected to improve economic performance and suggests that St Kitts may well be at the beginning of a period of significant growth, so this is an excellent time to invest here."

In the Frigate Bay area, the £56 million Ocean's Edge development contains 201 properties that all overlook Cable Bay. Leisure and entertainment facilities are also to be part of the development, which includes a health and fitness centre, restaurants, pools and tennis courts. Investment owners will be able to use their properties as desired. One-bedroom beach front apartments start from approximately £160,076.

Near the town of St Pauls, Kittian Heights is an artistic property development on a mission to support the local economy and culture. The 195 properties are to be based around a cultural centre that will encourage local people to follow through their creative aspirations. Prices for property will start at £172,000.

Montserrat and other Caribbean options
When looking for property in the Caribbean there are a variety of Islands to choose from, all offering their own charm and attractions. Less well-known options, which although at the moment may seem like a risky investment, are looking towards the future and hoping to increase tourism.

Montserrat is the small Island infamous for its Soufriere volcano, which came to life in the 1990s and buried the capital in ash. It is still fairly difficult to reach the island – you have to fly from Antigua, and smoke from the volcano can cause problems. However, in the northern 'safe' parts of the Island there are many villas available at reasonable prices. By no means a get-rich-quick option, Edgecombe advises the following: "Montserrat property is something to perhaps buy and sit on for a while."

There are plenty of opportunities for property investment all over the Caribbean and most are a safe bet, as tourism to the region shows no signs of abating.

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For further information:
The Crane      
Maynard's Point      
Visiting the Dominican Republic     
International Horizons Overseas Property Specialists      
Bacelot Bay 
NonSuch Bay
Premier Resorts Antigua 
Ocean's Edge 
Kittian Heights
Montserrat

Article published on 5 February 2007