St Lucia Property Investment
Country: Caribbean; St Lucia, Caribbean; St. Lucia and Martinique, Caribbean
The investment market for property in St Lucia is a young, sprightly one - up until two-and-a half years ago, there really was little development, and certainly no buy-to-let, on the island. Still now, people buying in St Lucia are unlikely to be purchasing purely for investment reasons but lifestyle ones, too, seeking out a piece of land and a palm tree to call their own, with the possibility of renting out their property from time to time to recover some of the costs. And even though St Lucia - a lush, palm tree-packed gem of a tropical island - is less expensive than some if its neighbouring islands (Barbados in particular), it is still a rich man's game. Prices at the very bottom of the market start at £100,000 for the most basic of one-bedroom flats, rising to £400,000 for a good quality two-bedroom apartment in a well-regarded resort. There is also the cost of flying to the island to consider, which starts at £400. Virgin is the main airline flying direct to the island - it operates three flights a week, and will be bringing in daily flights from next year. BA also offers services, but not as frequently. Those whose pockets are deep enough to afford investing on the island will most likely do very well. Capital growth is racing: Rufus Gobart, of Prestigious Properties, which represents The Landings and the Cap Maison developments on the island, estimates that properties have gone up between 50 and 60 per cent over the last two years, and he believes that 2007 will see a further 15 per cent gain. The majority of developments are being built in the northwest of the island. The west coast of the island is where the nicest beaches are - its shores are lapped by the green seas of the Indian Ocean; the rough Atlantic seas are on the east coast. There are also some top-end developments being built in the south of the island. As Mark Sullivan, head of trading for Currencies Direct points out, the currency used for buying and selling property in St Lucia is the US Dollar, meaning favourable exchange rates for us Brits. And, as he also points out, there are deals to be done on the island. "There is a certain amount of competition among these Caribbean islands to attract prospective buyers," he explains. "One prestigious development on the island, Le Paradis, is waiving stamp duty and tax to encourage people to buy - this can mean a big saving for the buyer." He also points out that the World Bank compiled a table earlier this year of the Top 30 countries in the world to invest in, and St Lucia was the only Caribbean island to make the top 30 - ahead of Barbados and Antigua. "While entry-level prices on some of the other islands are over twice the price of St Lucia, if you are brave and get in there early, the returns may be higher in St Lucia than if you bought in one of its bigger and more established neighbours". Like Barbados, for example. One reason why the market for St Lucia property is doing well is because buyers are increasingly finding themselves priced out of the more established (expensive) market in Barbados. Agents and developers working in St Lucia agree that prices are between 40 and 50 per cent cheaper compared with Barbados. One good yardstick to help us measure the price differential between St Lucia and Barbados is by looking at two comparable developments on both islands. The Landings development in St Lucia, for example and the Port St Charles development in Barbados, are two such developments: both used the same marine architecture team and offer a similar standard of facilities. A three-bedroom beachfront villa at The Landings development will cost £1 million; the equivalent will cost £4 million at Port St Charles in Barbados, so we see that at the top of the market prices in St Lucia can be even less than half. Most of the developments on the island, as with much of the Caribbean, are high-end, five-star developments. "New developments are being tightly controlled by the government, which is a good thing," explains Sullivan. "Like the Seychelles and Mauritius, the government is relaxing the laws for foreigners to buy on the island, but the developments they are allowing are mostly upmarket ones. The island is not interested in appealing to the mass market." "The other good thing about the St Lucian market is it is a volcanic island, and most of it is covered in mountains or jungle, meaning there is a limit on how much of the island that can be built on," adds Rufus Gobart. "This means the island will never be overdeveloped, and there will never be an oversupply of stock. The effect of this is that long-term, house prices will hold their value well." Another good sign for the future health of the property market, is that there are a number of nationalities investing including Americans, Germans and Canadians - not just Brits and Irish - meaning there are people to sell to if it all goes pear-shaped for the UK housing market. On a more positive note, buying property in St Lucia is pretty straightforward. To buy land as a non-resident, you need to have an alien land holding licence, which costs $1,850 (£970). This is an administration charge, allowing the authorities to check buyers are legitimate and not money-laundering fraudsters. Mostly the legal system is the same as the UK - there is a stamp duty of two per cent, plus a property tax of five per cent of the "unfurnished local rental value" - what you might rent out the property for. According to Gobart, rental demand is strong, and during peak season, in the more established resorts you can charge between £150 and £200 a night for a high quality two-bedroom St Lucia apartment. Most developments are offering rental pools and guaranteed rental yields of around five to six per cent for between one and two years. First published in January 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
Jessie Hewitson
There's also a range of articles for you to read about buying property in Caribbean:
As well as our overseas news stories affecting the property market in St Lucia .
Or view our range of property for sale in St_Lucia.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
Some properties in St Lucia, Caribbean
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Type: House
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Bedrooms: 2
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Price: £226,959
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Type: Apartment
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one bedroom first floor apartment with views over the gardens and Marigot Bay
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Price: £249,719
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Type: House
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Price: £252,880
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Type: Apartment
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Bedrooms: 2
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2 Bedroom second floor Marina Village apartment overlooking Marigot Bay harbour, Reduced by $200,000
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Price: £276,271
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Type: House
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Price: £284,490
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Type: House
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Bedrooms: 2
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Price: £309,778
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Type: House
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Bedrooms: 3
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Villas on the Green is a private gated residential community located in the highly desirable area of Cap Estate. This gated community consists of 20 beautifully appointed semi-detached homes all overlooking the fairways of the exclusive St.
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