Where When How — N/D 2017 - J/F 2018
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Real Estate & Development The Real Estate Market Quarterly Report

AFTER A SOFT FOURTH QUARTER IN 2016 AND SLOW FIRST quarter this year, which we largely attribute to the U.S. election, the second quarter of 2017 has shown significant improvement with the year-to-date numbers closing the gap on last year’s numbers. The sales volume was led by the steady sales in single family homes with sold listings up by 25 per cent and an increase in dollar volume from $57M to $60M.

As expressed in the previous market report, Turks and Caicos Islands (TCI) has perhaps the finest inventory of new luxury villa developments in the Caribbean. This has translated to increased sales in the segment. The home/villa segment has a stunning backlog circa $200M of pending sales which are pre-construction or under construction homes not included in the graphs within this report. These sales will be included over the next few years once construction schedules are complete.

With scarce luxury condominium inventory, and a lack of new vertical developments being launched, condominium sales continue to lag posting a 34 per cent decrease in year-to-date sales volume. With content owners, strong rental returns and successful management regimes, there simply are not many condominium resale opportunities in the market. This segment should normalise once The Ritz-Carleton Residences and other new developments ultimately achieve final government approvals and construction begins. The Shore Club, which opened earlier this year to wide acclaim, has certainly been a welcome industry leader in the new condo development segment, with only a handful of suites remaining available for sale.

The land sector is on par with last year after two quarters ($25.5M and $24.7M, respectively) with a lower average price of $305,160. There is strong activity in the lower and middle-range pricing segments, which is encouraging for the broader market. It is only a matter of time however until a major development parcel trades, which will boost these numbers significantly.

In the Commercial sector this quarter saw two significant sales posted - one on Middle Caicos, the stunning Dragon Cay Resort at Mudjin Harbour and the other with Island Club in Grace Bay, Providenciales. The new owners will look to enhance these commercial properties for future rental returns.

Looking Ahead

Based on pending transactions, and a late season of sales activity, it’s anticipated that 2017 sales volume will exceed last year’s. With exciting projects in the pipeline, TCI is poised to continue its healthy and sustained growth pattern.

Article and photography provided by: Turks & Caicos Sotheby’s International Realty Venture House, Grace Bay Road, Providenciales t. 649.946.4474 f. 649.946.4433 turksandcaicosSIR.com