Fractional ownership of Caribbean real estate continues to SKYROCKET!

January puts Caribbean real estate smack dab in the most active real estate time of the year – both for buyers and sellers. And, deeded fractional ownership of 5-star resort properties continues the momentum of 2007 into 2008. It is impacting the Virgin Islands and Caribbean re-sale of homes, town homes, and condos. The real estate developers of fractional ownership properties are getting into their “groove” regarding what the worldwide consumer is looking for in second homes that will be occupied for a month or less a year.

Some of the BIG players hitting the bullseye are The Marriott Corporation – which includes the Ritz Carlton fractional products from the Caribbean to Hawaii, The Westin Hotel Group – with properties from the Caribbean to Hawaii, and Harlequin Property – with the most choices of 5-star resorts in the Caribbean, from St. Vincent to the Dominican Republic. ( You may recall from past postings, Harlequin Property even has 100% financing available for all of their resorts.)

In 2007 80% of the buyers for Virgin Islands real estate came from the Eastern half of the U.S.  European buyers made up almost 20% of the purchases – a HUGE increase from any past year.  This increase in European buyers is because the Euro continues to kick the heck out of the U.S. dollar – $1.48 for one Euro today!  We expect Europeans to flock to the Virgin Islands even more in 2008 because all real estate connected to the dollar is on sale for those who own Euros. Of the 2007 real estate purchases, over 40% of them were ALL CASH!

What does all this mean for the sellers and buyers of Virgin Island and Caribbean real estate?  If you are a seller, get your home on the market NOW!  As sellers you want to be right in the middle of the hottest part of the real estate market year. Again, that is NOW!  Sellers need to contract with the most experienced Realtor they can find, and present their home in turn-key condition. When contracting with a Realtor find out what their international marketing plan is to the U.S. and to European buyers. It is critical for a Realtor serving the Caribbean real estate market to have an internet based marketing system, and have them demonstrate to you how it works. You want to confirm how they are reaching the potential buyers for your home.

As a buyer in 2008 of Virgin Island and Caribbean real estate, you are going to have your pick of some great bargains. Some have huge appreciation potential, if you know where the values are.  Some of the real estate “hot spots” are;  St. Kitts, St. Vincent, Anguilla, Dominic, and the Dominican Republic.  If you are up for some risk, there are even some great values on the Caribbean side of Central America.

The outlook for buyers and sellers in the Virgin Islands and the Caribbean is “bullish” for 2008!  Deeded fractional ownerships of resort properties will continue to gain market share away from the fully owned homes and town homes/condos. Those who have Euros will have the biggest buying power for any real estate connected to the U.S. dollar.  Find the best Realtor you can to represent you. Contact me anytime with questions.  No one knows the Caribbean real estate market like I do!