6 Big Reasons to Invest in the Turks & Caicos Islands Real Estate Market
The Turks & Caicos Islands is a politically stable overseas British territory showing an impressive recovery from the global downturn.
Every world region experienced some degree of a financial downturn following the COVID-19 pandemic that emerged in Spring 2020. Depending on significant revenue from tourism and hospitality, the Turks & Caicos Islands were no exception. However, a rapid rollout of vaccines and the safe, responsible re-opening of the tourism sector proved successful, and the TCI healthcare system was not overwhelmed by their comparatively low case rate. As a result, a full economic recovery is expected in 2022 as the Turks & Caicos Islands are expected to return to surplus, with a further anticipated recovery of the cruise tourism sector in 2023.
TCI is a favorable investment environment, with no income tax, no property tax, and no capital gains tax.
There are no foreign exchange controls in the Islands meaning investors and workers are free to move money in and out of the country without restriction. Also, there are currently no limitations on foreign investment in the real estate market in the Turks & Caicos Islands. Investors may also purchase land with no national legislation requiring development within a mandated timeframe, meaning land banking or long-term holding of land investments is common. Turks and Caicos is known as a tax neutral country, and doesn't tax property, income, wealth, capital gains or inheritance.
There is a stamp duty due at the time of purchase. A 6.5 - 8.0% tax is charged on transactions valued at more than US$100,000 in Grand Turk, Middle Caicos, North Caicos, Salt Cay and South Caicos. Elsewhere, including Providenciales, the rate is 10% on transactions valued at more than $500,000, according to the country's Ministry of Finance website.
The stunning Crossing Palms Villa, Providenciales
Turks & Caicos is one of the fastest-growing tourism destinations in the world, and property owners enjoy a very high rental income-generating investment opportunity.
Villas in Providenciales commonly book out at impressive occupancy rates. Data acquisition and analytics firm AirDNA.co contextualizes Airbnb and Vrbo rental information for Providenciales and West Caicos, and reports an average occupancy rate of 50% during the low season and 79% during the high season. Overall, Providenciales enjoys a market grade of A+, the highest tier worldwide. Additionally, some privately managed rental properties are not captured in these numbers, suggesting even higher performance. Watch next month here on Insights, where we dive deeper into quantifying the often misunderstood short-term rental market in TCI.
Turks & Caicos is a highly accessible destination from North America, South America, and Europe.
Providenciales Airport (PLS) in the Turks and Caicos receives direct flights from many cities along the eastern seaboard of the United States and Toronto and is easily reached by European and South American travelers as well. Currently, 25 airports worldwide offer direct flights to PLS, spanning seven countries. Jet Blue alone offers a daily nonstop from Fort Lauderdale lasting only 75 minutes.
Data courtesy of FlightConnections.com
The beaches are in a league of their own.
CNN Travel declared Grace Bay Beach the #1 beach in the world, a title it has held many times. Found on the north coast of Providenciales, Grace Bay is home to many of the country's top luxury resorts and is part of the Princess Alexandra National Park. The bay is protected by a beautiful barrier reef system, which provides incredible scuba and snorkeling opportunities. The soft white sand and clear waters of Grace Bay are truly breathtaking, and Grace Bay Beach is one of the most photographed locations in the world.
Surrounded by stunning oceanfront, Turks and Caicos also boast Long Bay Beach, Leeward Beach, Mudjin Harbour, Half Moon Bay, Governor's Beach, North Bay Beach, Pine Cay Beach, Cedar Point Beach, Sapodilla Bay Beach, and many others.
Grace Bay Beach, Grace Bay, Providenciales
TCI's real estate market is highly attractive and has enjoyed significant growth.
The Turks & Caicos Islands comprise 40 islands and cays with 230 miles of postcard-perfect white sand beaches, crystal clear turquoise ocean waters, and beautiful coral reefs. The archipelago has a vibrant luxury property market, with consistently strong sales of luxury beach houses and exclusive apartments.
Like Anguilla, the BVI, and the Cayman Islands (all British Overseas Territories), the Turks and Caicos Islands offer spectacular luxury beachfront homes in some of the world's most prestigious property developments private property island resorts.
According to Sotheby's International Realty, The TCI real estate market in 2021 experienced a stupendous year where annual sales volume increased 158.5% from $290M to $751M. Single Family properties accounted for $369M, up 137% over 2020's $155M, with average prices up 30%, from $1.72M to $2.25M. Condominium sales, led by the completion of The Ritz-Carlton, improved by 282%, from $59M to $225M, with a 33.5% increase in average price from $1.03M to $1.38M.
However, the increasingly brisk real estate market has decreased the available inventory of turn-key properties, creating an imbalance where this inventory is priced significantly higher than the total cost of acquiring a parcel of land and building a custom property. A new, SKAPE Design+Build bespoke villa utilizing the highest-quality construction methods and sustainable technologies is the perfect vehicle for your investment into the Turks & Caicos Islands and its proven real estate market. Talk to us today.
SKAPE Design+Build, formerly RA Shaw Fine Architecture, is the pre-eminent builder of iconic villas in the Turks & Caicos Islands. We will be continuing our series of articles on the logistics, challenges, and opportunities surrounding investing in the Turks & Caicos Islands via new construction villas. Visit us at www.skapetci.com
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