Hot Tropics: The Renewed Appeal of the Caribbean

There’s no mystery to the Caribbean’s year-round appeal. Endless sunshine, clear blue seas and a laid-back beachfront vibe provide a lifestyle that’s hard to beat, especially on islands that benefit from easy access, a reliable high-speed internet connection and an array of leisure options. And while well-equipped marinas and scenic golf courses still attract property buyers, increasing numbers are targeting the islands for their compelling investment opportunities and the variety of homes on offer, according to Tom Vickery, head of Savills Caribbean desk.

“The Caribbean has always been a desirably scenic location for a second home, but now several islands are making it an easier place to conduct business, rolling out fibre networks and improving infrastructure,” he says. “Most Caribbean governments are doing their utmost to attract foreign investment, and real estate forms a strong part of that push. In the past year, with the changing tax environment and new rules for non-doms in the UK, we’ve seen a notable uptick in interest. People are looking at the region as a tangible alternative.”

As the Savills Caribbean Islands 2024/25 report highlights, upcoming developments and branded residences, and new flight connections from North America and Europe, are key factors driving interest. Tourism numbers have been building for a decade: the Caribbean as a whole has seen an increase in arrivals of more than 40% between 2013 and 2023, coming second only to Europe globally for the scale of growth. The post-Covid longing for a healthy outdoor lifestyle has amplified the desire for a Caribbean foothold, Vickery observes.

“The recent proliferation of North American-based elite hotel brands throughout the islands demonstrates that the region is seen as a good place to invest,” says Vickery. “There are superb one-off resorts – Jumby Bay Island in Antigua and Oil Nut Bay in the British Virgin Islands, for example – but major brands were harder to find. Now they are looking at Caribbean opportunities in a much more focused way.”

Hospitality brands already established or considering investment in the Caribbean include Hyatt, Ritz-Carlton, St Regis and Mandarin Oriental, many of which offer residences for sale. These are an especially attractive option in more seasonal second-home markets where on-site management and maintenance teams provide reliable, hassle-free benefits, explains Kelcie Sellers, associate director at Savills World Research and one of the authors of the Caribbean Islands 2024/25 report.

“The Turks and Caicos Islands, the Bahamas and the Cayman Islands have an established pool of branded residences,” says Sellers, indicating the Rosewood Residences at Baha Mar, on Nassau, as a prime example. “The proximity of these nations to the US and the upscale properties they offer have brought robust price growth. In the Turks and Caicos, prime prices have risen by 33% since 2019.”

The heightened quality of design and build on offer in the Caribbean is exemplified by Apes Hill Barbados – where, Vickery says, focused investment is bringing “really exciting results” – and Windward and Pearns Point, both on Antigua. These resorts are introducing a standard rarely seen before.

“Across the main Caribbean markets, prime property prices rose by an average of 27% over the past five years, yet the 2024/25 report illustrates that they do not appear to have reached their ceiling,” says Vickery. “Instead, they represent relative value. On a price per square foot basis, Caribbean destinations are on average four times less expensive than Palm Beach, 75% less expensive than Miami and 50% less expensive than Sardinia, the Hamptons and Tuscany.”

The Savills Caribbean Islands 2024/25 report explores eight nations in all their diversity, from the lush interior of St Lucia to the sailing hotspots of the Grenadines. “In all my conversations with our regional teams, there’s a real optimism about this winter season,” says Sellers. “They’ve seen increasing enquiries and rising activity for three or four years now. It’s a region that has been relatively insulated from many global factors and the data clearly shows that international buyers are choosing to expand their property portfolios there.”

Read the Caribbean Islands 2024/25 report in full