The positive economic noises emanating from the US Federal Reserve in late 2012 has boosted buyer confidence in the Caribbean’s luxury housing market. Under the influence of the US economy more than that of the Eurozone, the steady flow of good news – falling unemployment, strengthening GDP and rising house prices – had a direct impact on markets such as Barbados, St Barts and Mustique, translating into enquiries and sales in early 2013. Not since 2007 has the year started so positively. That said, the prime Caribbean market continues to lag the recovery seen in US prime cities such as New York and Miami, but it has been the large hotel-condo developments which have been most heavily affected with many mass market developments shelved. The positive news is that those developers that are not reliant on bank finance have either continued or restarted highend or ‘trophy’ projects in the more active markets such as St Barts, the Bahamas and Barbados.
Source : Knight Frank