In spite of the credit woes of major world markets, the Caribbean condo / fractional ownership markets continue to expand!
The news last Friday from the Wall Street Journal and the National Association of Realtors is the second home purchases last year represented almost a third of all home puchases, and the focus on those purchases were in the condo / fractional markets! If you have been following my postings, you know my belief that the trend in Caribbean real estate is in the fractional deeded ownership world. And, the great majority of those purchases are in the condo products. There are seveal factors leading to this thriving segment of the real estate markets in the Caribbean.
- Easy access of the purchase because of pricing and financing. Many of the homes and villas in the Caribbean have priced themselves out of the reach of
most consumers. - Location, location, location!!! Developer of the condos and fractionals realize the intense interest in owning something in Paradise, so they are building them on a beach setting in the most beautiful part of the world.
- NO maintenance other than making sure you care for the interior of the condo. All outside maintenance and management is included in the price.
- With the fractional condos, the product has created such an easy access appeal to consumers all over the world, that even the major luxury resort builders are recognizing the profitability for them to create and expand the product.
- The incredible value of the world currency compared to the U.S. dollar. Wouldn’t like to have your currency in Euros today - $1.61 per Euro?
If you are in the shoes of the developers, they are able to leverage their investment in the development and buildout of the condo / fractional markets because they are able to sell them at a higher per square foot price than with a single home. For example the fractional market pricing allows developers to sometimes be able to triple their square foot price because the purchaser is willing to pay a premium so they do not have to own the condo by themselves.
Check out what the Ritz Carlton Residence Club is doing in the Dominican Republic if you want to notice the health of this aspect of the real estate markets in the Caribbean. They announced last month THE largest Residence Club in their history of resort development in the Cana beach region. From all reports, it appears to be their most luxurious project so far. I have not reviewed the annual financial reports of the Marriott Corporation, but I would venture to guess the Residence Club division of the company is their #1 profit center. So, where are the DEALS? Here are just a few that I am very excited about for those who ask me this question from time to time;
- Turks & Caicos - L’Emeraude Resort
- Belize - South Beach Belize
- Dominican Republic - Los Altos Residence Club
- St. Lucia - Le Paradise Beach Resort
- Bermuda - The Reef Club
- St. Maarten - Pelican Marina Residence Resort
- Cayman Islands - The Waterford Private Residence Club
- St. Thomas, USVI - Ritz Carlton Residence Club
There are several other favorites, too. If you want my expanded list, contact me and I will share it with you. For those who are interested in condo / fractional real estate ownership, this is the time to purchase! I have never seen anything like it in the Caribbean before. Until next time…your Caribbean lifestyle detective remains on duty!