Big 3rd Quarter in Real Estate Market
In what is normally the slowest time of the year, TCI saw a huge 319% increase in real estate sales over the 3rd quarter of 2020. This was truly an historic year, especially when you consider that it was primarily only Americans travelling to the islands. As more countries open up, expect this strong market to continue as others come into the fray.
As we have seen for a while in the local market, single family homes led the charge in terms of new sales. 56% of new sales came from this segment. while raw land accounted for 21%, over 1% higher than the condo market.
Check out more of the latest 3rd quarter numbers on the Turks and Caicos Real Estate Market Report from Sotheby’s.
What will the 4th Quarter Bring?
As mentioned above, tourists from outside the US are just scraping the surface now in terms of visitor numbers. Canada just recently changed it’s position on essential travel. This will bring a lot more demand to an already busy market. This push will be satisfied by new developments (existing such as the Ritz or projects yet to get off the ground) and new villa construction which continues to be a strong market segment.
This momentum in 2021 is forecast to continue into 2022, so the best time to buy in TCI is sooner than later if price is a factor in your decision making.
The Financing Situation
As has been the case for some time, the banks are still de-risking in the Caribbean. Getting out of some markets completely, while keeping their toes in other areas. In TCI, the Canadian banks are still here, likely due to the large amount of cash on deposit in these institutions. (For those with sitting on cash, we have a great alternative to earn you higher returns). They can be an option for the right buyer at the right time, but qualification is much more difficult than you might expect.
Borrowing is a challenge, the secondary market is very active as borrowers look for alternatives to the banks. We are now actively lending in Providenciales and look to become a force in the local market in 2022!