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CARRIBEAN
PROPERTY
Conquest and settlement by the British, Danish,
Dutch, French, Portuguese and the Spanish have given the Caribbean
a colourful cultural and linguistic diversity unparalleled
elsewhere in the world. Stretching over a 4,000-kilometre
arc from the southeastern seaboard of the United States to
Guyana on the coast of South America, the region’s swathe
of volcanic and coral islands have become a hub of international
tourism. Some would even argue that the region is the world’s
premier holiday destination. No wonder when you consider rum
punch sunsets and year round water sports – from sailing
and snorkelling to diving and deep sea fishing – along
side benign turquoise seas and crystalline sands. Not only
tourism, but increasingly the Caribbean has become a major
hub for international real estate.
Buyers are drawn to the area for reasons similar to tourists,
but with two additional elements. In the first place many
islands have few or no restrictions on the foreign acquisition
of property. Second, generous tax incentives may be available
such as an absence of capital gains tax on the sale of a property
or estate duties.
Wherever you go in the Caribbean, almost without exception,
the international property market is in the ascendancy. Although
some well established destinations have long attracted those
of fame such as Noel Coward, Ernest Hemmingway and Sir Anthony
Eden, in latter days it is the likes of Richard Branson, Jodie
Kidd and Michael Douglas (& Co) who are attracted to the
region. Nowadays there is a quiet revolution taking place
in some of the more ‘remote’ destinations, to
date largely overlooked by the property purchasing celebrity
dollar. Take St. Lucia.
St. Lucia
With rain forests, palm-fringed beaches and the
Piton Mountains (a World Heritage Site), St. Lucia has all
the hallmarks of a tropical paradise. Not surprisingly, Nobel
Laureate Derek Walcott describes his homeland as ‘heaven’.
Once dominated by banana plantations, the economy is nowadays
benefiting from a massive programme of tourist development,
along side which is a burgeoning property market. A fillip
for this economic transformation is that the island has been
selected to host the English team for the 2007 Cricket World
Cup. “There is massive infrastructural development in
preparation for 2007, which no doubt will provide a major
boost to the property sector,” says Graeme Grant, MD
of Premier Resorts, a marketing consultancy with a strong
presence on the island.
Two new Premier developments are ‘firsts’ for
St. Lucia. Calabash Cove offers for the first time on the
island a fractional ownership scheme that – at around
US$115,000 – provides an affordable entry into property
ownership. Elsewhere, The Landings development is St. Lucia’s
largest ever capital project and will feature its first ever
private marina.
Calabash Cove is an ocean front development with 23 Balinese
style bungalows – The Cottages – and a ‘great
house’ in neo-classical Caribbean style. The ocean-
front bungalows are flanked by a gentle undulating hillside
exploding with lush tropical foliage. “Mango, white
cedar, calabash, cashew and 31 types of banana trees are in
place by nature,” notes Calabash co-director Chris Mullins.
All one-bedroomed detached and semi-detached properties feature
spacious Lanai style verandas for dining and relaxation, including
a hammock. Bungalows have local mahogany and teak on the exterior
and inside. Properties are fully furnished and include a plasma
TV, hifi, plus all furniture and fixtures. In addition to
a fully fitted indoor bathroom, there is an enclosed external
shower.
The Cottages are available on a fractional basis. Fractional
ownership is not timeshare. Despite some overlapping similarities,
fractional confers part ownership of the leasehold (or freehold),
whereas timeshare typically buys one or more weeks of annual
use-time only. Fractional ownership, unlike timeshare, has
an investment component where you benefit from long-term capital
growth, plus your fraction becomes part of your portfolio
of heritable wealth. “Fractional ownership has a proven
re-sale value in the United States, and in Europe –
in this expanding market –there are now 11 ongoing fractional
schemes,” says Mr. Grant.
At Calabash Cove Cottages, fractions are sold on an ownership
basis of 1/10th fractions for five weeks a year. “The
Cottages fractional principle works out at two weeks in high
season in rotation and three weeks from May to December,”
explains sales director Oliver Gobat. Completion is scheduled
for August this year.
Phase two of the development is Calabash House, where eight
one bedroom apartments, ten two bedroom luxury suites and
three penthouses, are available on the same fractional basis
as the cottages. All Calabash properties are being sold on
a 75-year leasehold basis and range from US$115,000 upwards.
The Cottages will be completed in February 2006 and Calabash
House a year later. “Shared facilities throughout the
resort cover everything from 24-hour concierge and room service
to a Far Eastern inspired spa and retreat,” says Robert
Buchsbaum, Calabash co-partner and onsite MD.
The Landings with its massive investment of US$165m is unique
in a number of ways. In the first place, the 220 seaside apartments
are being sold freehold, unusual because the Queen’s
Chain regulation stipulates that all waterfront property 20
metres from the shoreline is owned by the government and therefore
is available on a leasehold basis only. However, because this
is reclaimed land of old, the regulation does not apply. “Freehold
owners receive free lifetime membership at the nearby St.
Lucia Golf and County Club,” says Canadian partner Frank
Heaps, who has enthused about St. Lucia since he worked on
the island in the 1970s as an economist for the United Nations.
The development includes tennis courts, swimming pools, a
helipad and private yacht moorage. “A tax exemption
has been negotiated with the government to allow the first
100 buyers to bring in a boat duty free, saving a tax of around
50 per cent of the boat’s value.”
One bedroom apartments start at US$495,000 with three bedrooms
from US$836,000. Phase one will be up and running by February
next year. See Premier Resorts for details.
In contrast to St. Lucia’s fledgling international property
market, Barbados is long established and much favoured by
foreign buyers, especially the British. And like for like,
it is more costly.
Barbados
Just launched in Barbados is the final phase of
55 three-bedroom properties and plots at Royal Westmoreland,
widely considered as one of the island’s most prestigious
developments. Hamptons International has been appointed sole
agent.
The 500-acre Royal Westmoreland development has over 120 luxury
homes built around a championship golf course. Existing owners
are a ‘who’s who’ from the world of sport,
entertainment and business. “Barbados attracts many
celebrities as well as normal people who work and live on
the islands,” says Deitmar Caspar- Richards. “Away
from five star hotels and top end developments, there are
plenty of options for property and we have the full spread
of restaurants from top international cuisine to local rum
shops where fresh local food is cheap.” He adds: “The
island is not only for the rich and famous.”
In Royal Westmoreland’s new phase, plots are priced
at US$500,000. The three bedroom semi-detached and detached
houses range from US$1.5m to US$1.8m. Although there is a
communal swimming pool, all detached properties have their
own pools. Construction is scheduled for completion by late
2005.
Unlike Barbados, Anguilla has a less well established property
market; but similar to Barbados, properties may command top-notch
price tags.
Anguilla
The small island of Anguilla has a population of
some 12,000. The St. Regis Retreat, Temenos – at the
very top end of the Caribbean market – is a new development
of houses, condominiums and five-star hotel geared toward
multi-home owners, especially those who seek anonymity and
privacy, according to Knight Frank international director
Patrick Dring.
A total of 39 ‘ultra exclusive’ properties range
from freehold ocean front houses of nearly 5,000 square feet
(464 square metres) priced between US$6.5m and US$8.5m to
leasehold condominiums – which can be put into the St.
Regis rental pool – costing US$2.9m.
The project is due for completion at the end of 2007, although
the resort’s 18-hole Greg Norman golf course will have
a ‘soft launch’ next summer. Individual houses
are scheduled to take 18 months to build. More affordable
are two further new Caribbean developments, one in Antigua
and the other the Turks & Caicos.
Antigua
Recently launched on the Atlantic side of Antigua
is NonSuch Bay, a La Perla Living development on 40 acres
with 24 townhouses, 75 apartments and 22 private villa plots,
marketed by Newfound Properties. Its secluded cove setting
features an array of native plants from bird of paradise flowers
and cannas to bougainvillea and hibiscus. Three bedroom townhouses
with private moorings and plunge pools start at US$495,000.
One to three bedroom apartments range from US$185,000 to US$590,000.
Turks & Caicos
The Pavilions development on Providenciales in the
Turks & Caicos is set on a virgin stretch of the 19-kilometre
long Grace Bay. All properties – studios, one, two and
three bedroom apartments plus some penthouses – range
from US$200,000 to around US$800,000 and are on the market
freehold. Phase one is complete and phase two is on schedule
to open in August. Ultimately the Pavilions will feature five-star
hotel facilities with all the requisite amenities. See Premier
Resorts for details. Contacts
Hamptons International
www.hamptons-int.co.uk
Knight Frank
www.knightfrank.com
Newfound Properties
www.newfoundproperty.com
Premier Resorts
www.premierresorts.co.uk
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