Profitability of investment real estate in the Caribbean in 2022
The profitability of Caribbean real estate is comparable to European and ranges from 2 to 5% per annum. At the same time, the management company is usually involved in the maintenance and leasing of objects, so investors do not have to find tenants themselves and monitor the condition of the property.
Let’s talk about profitable properties in five Caribbean countries and how to get a second passport for purchasing real estate in the region.
Author •Frederick Ellul
Lawyer and Immigrant Invest's partner in Malta
Profitability of investment real estate in the Caribbean in 2022
Saint Kitts and Nevis: shares in hotels with income guarantee up to 3% per annum
A hotel complex at Frigate Bay on the island of St Kitts has been hosting guests since 1983. It is located on an arearnof more than 72,000 m², has several pools and a private beach. Rooms offer scenic views of the Caribbean Sea, mountains, lake or garden.
The current project involves the renovation of condominiums and the infrastructure of the complex. Investors can purchase hotel apartments and commercial real estate in shared and full ownership.
Options for investing in a real estate hotel complex
$200,000
share in apartments or commercial property
$400,000+
purchase of apartments in full ownership
$4,000,000
purchase of commercial real estate in full ownership
The management company is responsible for the renovation and maintenance of the property. At the same time, equity holders and owners of apartments receive income from the lease of objects in the amount of 2‑3% per annum.
If an investor buys an apartment in the ownership, he also gets the opportunity to relax in the hotel for free at any time.
A five star hotel under Hyatt group management has been operating on the island of St. Kitts since 2017. It attracts vacationers with a secluded and relaxing atmosphere, beautiful views of the Caribbean Sea and mountains, a clean sandy beach of Banana Bay and a premium level of service.
$220,000
price of a share
The hotel includes 134 rooms and suites. Investors are offered to buy a share in the project and receive a guaranteed income from the lease of objects.
3% per annum
guaranteed profitability
Shareholders can also stay free of charge at the hotel seven days a year.
The hotel complex is situated near Frigate Bay, not far away from the capital city of Basseterre
Apartments and shares in Grenada with a profitability of up to 6% per annum
Studios and apartments in full ownership are offered by two projects of residential complexes on the island. The cost of housing in projects is from $350,000, while management companies guarantee income from renting out objects in the amount of 3% per annum.
$350,000+
apartment price
Condominium complex on the coast of Caribbean sea. Eight apartments ranging from 35 to 93 m² are available for purchase. They have one bedroom and one bathroom and a panoramic terrace or patio overlooking Mo e Rouge Bay.
From 3%
annual profitability
The apartments are furnished. The developer is in charge of maintaining, managing and renting out the property.
Six-storey residential complex in the capital of Grenada, the city of St. George’s. Investors can purchase studios and apartments with one or two bedrooms. The arearnof the apartments is starting from 37 m².
The complex is located opposite the St. George’s University, one of the largest and most prestigious universities in the region. Therefore, most of the tenants of the apartments in the complex are university students.
Two-level apartments in a residential complex on the coast of Mo e Rouge Bay
A purchase of a share is possible in the project for the construction of a university complex and a spa resort on the island. The cost of one share is $220,000.
$220,000
price of a share
The modern university complex will be situated in Hartman Bay. It will include a campus for students, as well as shopping, entertainment and sports facilities.
Investors are invited to buy an apartment of 60 m² in shared or full ownership. The cost of a share is $220,000, the entire apartment is $350,000.
The construction of the facility will take place in four stages, the first will be completed in 2022. Profitability of objects after putting into operation will be from 3 to 5% per annum.
3 to 5%
annual profitability
The new resort complex is also under construction. It will include several five-star hotels, villas with sea views, a spa, shops and water sports facilities.
The commissioning of the complex is scheduled for 2022. After it begins welcoming guests, the owners of the shares will begin to receive income from 2 to 6% per annum. They will also be able to stay at the hotel free of charge for one week a year.
2 to 6%
annual profitability
The university complex in Hartman Bay is going to look this way
Profitable real estate in the resort complexes of Antigua and Barbuda
A resort complex on the Eastern coast of Antigua island has operated since 2010. In 2022 investors are able to buy:
a townhouse in shared or full ownership;
apartments with one or two bedrooms;
a cottage on the first coastline;
a villa with five bedrooms;
a plot of land for the construction of a villa.
The cost of real estate starts from $200,000 which is the price for one share in a townhouse. Apartments will cost from $400,000 and cottages from $900,000. Land plots are being sold for $550,000 or more.
The profitability depends on the type of property purchased. For the share it will be 2‑3% per year, for apartments — up to 6%.
2 to 6%
profitability per year
A villa in a five star resort complex costs $400 000, in case it includes two bedrooms. A three-bedroom villa will cost $450,000. At the same time, it is possible both to purchase the object as a whole, and half in fractional ownership.
The owner of the villa can live in it himself or transfer it to a management company for a long-term lease. In the second case, the yield will be from 3 to 5% per annum.
Apartments in a boutique hotel can be purchased in fractional ownership: the cost of a share will be from $200,000. The price for full ownership depends on the room type. For example, a standard 47 m² room costs $250,000 while a 93 m² penthouse costs $600,000.
Construction of the project started in the first quarter of 2021. The planned commissioning date is the third quarter of 2022. The annual profit from renting rooms will be from 2 to 4%.
Townhouses and apartments of the resort complex in Antigua island with scenic sea view
Shares in Dominica hotels with a yield of up to 7% per annum
A resort complex under Hilton management is located on the Caribbean coast. The complex includes 73 studios and apartments, as well as villas with one, two or three bedrooms.
The hotel has a spa, wellness center, gym, swimming pool, restaurant, gift shop and parking. Resort guests have access to secluded beaches.
Investors purchase a share in the hotel for $220,000. The expected yield is from 3 to 7% per annum.
$220,000
price of a share
A five star hotel under Kempinski management is located in the Cabrits National Park. It includes 151 rooms with panoramic views of the Caribbean Sea, a spa, four restaurants and bars, two tennis courts, an art center, four swimming pools, a gym and a conference room.
Shares are available for purchase for $220,000 under a guaranteed yield of 3 to 5% per year. Shareholders also stay free of charge at the hotel up to seven days a year.
A resort spa complex consisting of 42 villas allows investors to purchase shares for an amount of $208,000 or the entire object in full ownership. The cost of the villa will be from 1.5 to 3.8 million dollars. The resort will be completed in October 2022. After that, investors will begin to receive an income of 3% per annum.
If desired, the owners of shares will be able to stay in the complex free of charge: the period of stay is up to one month per year. They will have access to three secluded beaches, an open-air restaurant, a treehouse-style spa, a saltwater infinity pool, a fitness center, a kids' club and eco-trails.
Shareholders of the Hilton group hotel will receive Hilton Gold status and 1,250,000 points that can be redeemed for stays at any Hilton hotel
Apartments and commercial properties with guaranteed yield in Saint Lucia
A luxury hotel in Micoud consists of 380 rooms costing from $300,000. The construction will be completed in May 2023, after which the owners of the hotel apartments will begin to receive an income of 3% per annum.
3% per annum
guaranteed profitability
Guests of the hotel will enjoy panoramic views of the Atlantic Ocean, the white sand of local beaches and the tropical nature of the island of St. Lucia. On the territory of the resort, they will have access to a restaurant, several bars, a spa center, a conference room, a kids club and recreation areas.
A resort complex in a city of Vieux-Fort offers to investors for the purchase:
apartments costing from $318,000;
duplexes starting at $318,000;
retail spaces starting at $368,000.
The construction of the complex will be completed in the second half of 2022. A terminal for cruise ships, a marina, a hippodrome, free trade zones, business centers, beach lagoons with hotels and villas, entertainment centers will begin to operate on the territory.
The yield of objects will be up to 5% per annum.
The luxury hotel will cover an arearnof 93,707 m²
Second citizenship by investment in Caribbean real estate
The investor can obtain a passport of the selected Caribbean country for the purchase of real estate. To do this, the value of the object must comply with the established limits. In a few years, the investor will be able to sell the property and return the money invested.
Conditions for obtaining citizenship in the Caribbean for the purchase of real estate
When buying real estate, the investor pays a tax in the amount of 0.2 to 1,27% of the value of the object. To obtain citizenship by investment, you must also pay a government fee, a Due Diligence fee and an application processing fee. The total amount of expenses depends on the chosen country and the number of applicants from the investor’s family.
Immigrant Invest is a licensed agent who helps to choose investment property and obtain a second citizenship in the Caribbean. If you would like to become a citizen of a Caribbean country, seek advice from our investment program experts.
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