Caribbean property is increasingly popular among high-end buyers, according to Knight Frank.
The firm's latest report shows that while sales of Caribbean property have fallen, demand for the market is growing from wealthy investors from Russia and Latin America.
Knight Frank's research shows that the Caribbean's economy is closer to America than the Eurozone, with the USA's positive economic trends forecasting a positive year for the housing market. And with house prices down on the market peak, prime real estate is more affordable for wealthy buyers.
"Prime prices have fallen by 10% to 20% since the financial crisis but the rate of decline is slowing and we expect some markets to experience price growth in 2013," reads the report. "The Barbados Government's move to loosen residency permit rules to attract high net worth individual investment in 2012 may be a trend we see replicated elsewhere in the region."
Indeed, property searches for Barbados, Grand Cayman and St Barts saw the largest rise in online property searches in the fourth quarter of 2012 compared to 2011.
US residents searched for the most expensive properties, while foreign investors account for 85 per cent of all luxury property purchases on the islands. With 230 properties sold in the first half of 2012 and the number of high net worth individuals in Brazil and Russia expected to rise by 59 per cent and 76per cent respectively by 2017, transactions in the Caribbean are predicted to keep climbing.
"The combined effect of globalisation and the climate of austerity has led many wealthy investors to seek out the world's best properties in the world's best locations, in particular those that offer the most tax efficient environment and lowest transactional costs," quotes Property Wire .
"The Caribbean ticks all these boxes, and generally enjoys a backdrop of political stability, legal transparency, as well as increasing accessibility."
Interested in Caribbean property?
Find your own piece of island paradise:Google+