Archive for the 'Real Estate Market Update' Category

It is very evident that we are seeing more real estate traffic and this is an encouraging sign that buyers have recognized that property prices have actually stabilized over the last two to three months, after a fall of approximately 30-35% across the sector.

We are interestingly seeing more developers looking at commercial land and sales of residential land, in general are doing slightly better compared to this time last year.

On the condominium front, we see a steady absorption of current stock (not frantic by any means) at reduced prices, compared to say 2007 prices. This is a healthy process, given the level of stock that we had in 2008 and 2009. As this inventory depletes, we shall look for new projects as the typical real estate cycle kicks in to touch once again.

The future of Turks and Caicos Real Estate brings developments such as the Third Turtle Club, a branded Beach and Marina experience in Turtle Cove Marina and the Shore Club in Long Bay Hills.

As we start to progress through 2010, we already see some positive signs of optimism for the real estate industry, which will transcend through to other industries including the construction industry and hospitality.

For Turks and Caicos Real Estate advice, please contact a member of our team at RE/MAX ELITE

Simon Padgett, Broker

Chart for Caribbean Growth Vs. US and Europe

The Turks and Caicos and Caribbean Markets are prime for real estate investment. Recent research shows that the TCI and the Caribbean are ahead of the curve against other regions when it comes to people visiting the islands. Not surprisingly 2009 has seen hotel performance suffer, however, long-term trends have moved in relative sync with their larger feeder markets, the US and Europe. This combined with a move into peak season has seen the first growth rates in occupancy since April 2008. Small revenue increases on this period are also apparent.

Moving forward, analysts are predicting further growth in this final quarter and into 2010 as European, Canadian and Us economies gain momentum.  Most encouragingly these growth rates currently outperform their feeder markets, which is promising news for the region.

More detailed analysis can be found at HotelNewsNow.

So, start looking for your next second home!

RE/MAX Elite has more positive real estate news to report following the latest economic announcements in the U.S.  Close adviser to the president, Warren Buffett, has again gone on record stating reasons for optimism. His opinion holds that there are crucial reasons to believe that America has seen the worst of the economic situation and is now progressing back towards health.

When questioned on current economic prospects Buffet responded that “enormous” progress had been made since this time last year, he attributed this positive state to the government’s actions in in the Fall of 2008. Buffet believes that those actions prevented America’s economy from “going over a cliff”.  Furthermore he went onto state that the worst in this regard is behind us.

He was candid when asked about unemployment, citing that companies confidence would take time to be restored before before this improved.

It doesn’t seem that we are in for a quick recovery, but experts such as Buffett are confident that the fundamentals are strong and that a full return will be made. This is great news for the Turks and Caicos Islands real estate market, which is so closely linked to the fortunes in the north!

Please contact us if we can assist you in in your real estate inquiries as the market returns.

Here in the beautiful Turks and Caicos islands, like in much of the Caribbean, we find our fortunes tied to that of the American Market. So its pleasing to see yet more positive news coming out of the financial site www.bloomberg.com today. Have a look at some more reasons to invest in our real estate market:

Housing starts in the US rose 1.5% to an annual rate of 598,000 last month, taking it to a 9 month high. At the same time, the Federal Reserve Bank of Philadelphia said its general economic index rose from 4.2 to 14.1 in August.

Federal Chairman Ben Bernake has stated his belief that the worst economic depression in seven decades is probably now over, and an unexpected decline in jobless claim is seen as support.

Josep La Vorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York,  went on to offer:  “There is a recovery and it’s going to be sustainable, we just don’t know how fast it is.”

Non-profit groups and households saw their Net worth rise from $51.1 to $53.1 Trillion last quarter. This jump represents the biggest climb in stock prices since 1998. This gain was the first since the third quarter of 2007.

In construction there is also promising signs for our markets here in the Turks and Caicos:

Permits for future construction climbed to a 579,000 annual rate in august. Which is a 2.7% increase. Furthermore, work on multifamily units jumped a massive 25% to a 199,000 rate!

Chief executive of Toll Brothers LTD, Robert Toll, commented: ‘In the last six months, we see a pretty significant change in some markets.” …. People are now concerned with missing the market.”

Please contact out team here at RE/MAX Elite if we can help you with any real estate enquires as we continue to witness slow but steady growth.

The Turks and Caicos real estate market relies heavily on the US economy and this week has seen a number of positive headlines:

Some encouraging news from the US Investor Warren Buffet in relation to the US Economy. Buffet has explained this week that he feels the US markets have bottomed out and only a 9/11 type situation could cause disruption at this time. The CEO of Berkshire Hathaway Inc has stated ‘we are past the critical point’ in an interview with CNBC reporter, Becky Quick.

Meanwhile, Ben Bernanke the US Federal Reserve Chairman has made an announcement this week that he feels that it is “very likely” that the recession is over, albeit the economy will be weak for some time.

According to www.bloomberg.com, US retail sales for August were up 2.7% and this has exceeded economists’ forecasts. One of the reasons is the US government offering its Citizens the ‘cash for clunkers’ program. However, surprisingly, items that exclude auto sales, showed a separate 1.1% increase. This was following overall results in July of 0.2%. Overall, this shows increased confidence in consumer demand.

It is good to be optimistic and read such headlines, however we all must be realistic and accept that we have a reasonable way to go. As President Obama cautiously stated this week “we do not want to be taking the crutches away from the patient too early”

As regards our property market, RE/MAX ELITE has received an increased number of enquiries over the last few weeks, along with several offers for property, so we are boosted by these results and continue to explain to those with cash, that now is certainly a wonderful time to pick up that bargain buy, before somebody else finds it and we start to have an increase in absorption of current stock!

Simon Padgett, Broker of RE/MAX ELITE simon@remax-tci.com

Finally we have some news……. an announcement for the Turks and Caicos Islands that bodes well for our real estate market.

It has now been confirmed that Britain has acquired direct rule over the Turks and Caicos Islands, following a long winded commission of inquiry into allegations of corruption within the government. The constitution has been suspended for two years and the British based governor, Gordon Wetherell , will take immediate control. The governor has made it very clear to the local population (Belonger’s) that they are not taking over, but it is a temporary step to ensure good governance and sound financial management.

The British Foreign Minister stated “This is a serious constitutional step which the UK government has not taken lightly, but these measures are essential in order to restore good governance and sound financial management.”

“It remains our intention that elections should be held by July 2011, if not sooner.

“The governor and his advisors have much to do, but I know that many people in Turks and Caicos Islands will welcome this move and have high expectations for the end outcome.

“I encourage them to work with the governor to rebuild stability and confidence in their territory.”

The Governor then went on to say “Our guiding principles will be those of transparency, accountability and responsibility. I believe that most people in the Turks and Caicos will join with me in welcoming these changes.”

In summary, it would appear that everyone can now look forward to some positive direction for these beautiful islands that are known for their stunning beaches, turquoise water and upscale developments.

In our last blog, we had mentioned the increase in enquiries for our commercial real estate listings. Therefore, with a possible light at the end of the recession tunnel, along with this announcement, one could suggest that it is an ideal time to purchase real estate at prices which are 30% less than they were three years ago. Once again, it’s all about timing!

It is amazing when you look back at previous recessions and the length of their existence. At 34 years old and for anyone else in their thirty’s or less, I am not sure any of us have experienced a recession as long as this or even as bad as this. In speaking with some of my clients recently who are in their mid 50’s, even they are unable to remember a recession like this. In reality, most people are affected, except some are worse than others, so in essence, you will always get a differing view of one persons last memories of a recession, compared to another.

However, one consistently mentioned aspect, from virtually everyone I have spoken to is that for every loser, there is a winner in a recession and that apparently five times more millionaires are created as a result.

Turning to the real estate sector, it is amongst the majority of savvy investors I have chatted with, that there has never been a better time to buy property, than in the final third part of the term of a recession. The reason being is that there are limited number of people with cash and ‘Cash is King’ as they say. Additionally at this stage, you find the most motivated of sellers and you are in the best position possible to negotiate the very best deal.

As an interesting observation, I have  hardly had anyone call me about large commercial parcels of land in the last eighteen months, however in the last eight weeks, I have had a number of enquiries from established developers. Do they know something that we do not?

There are no guarantees in life with anything except death and taxes (although I may add we have no income , capital gains or annual property taxes in the Turks and Caicos Islands) but the best investors take calculated but sensible risks when investing and it’s all about timing!

Simon Padgett, Broker. RE/MAX ELITE, Providenciales simon@remax-tci.com

RE/MAX ELITE in the Turks and Caicos is delighted to have secured the listing of three condominium units at the Luxury Somerset Condo Hotel Resort.

The Somerset in Grace Bay is the height of luxury and has been a haunt for a number of A-List Celebrities who have stayed at the resort, since its opening in 2006.

As a fortunate member of the Small Luxury Hotels of the World, The Somerset offers its guests a varied number of accommodation types ranging from Villas, condos and Cottages that make up the 53 suites.

Amenities at the resort extend to 300ft of stunning Grace Baybeachfront, two breathtaking pools including a lap pool, Croquet lawn, fitness centre, steam room, a fine dining restaurant (O’Soleil) and poolside lunchtime bar (LunaSea). In room Spa services can also be arranged.

Simon Padgett, Broker of RE/MAX ELITE explained that the three luxury condominiums, including a sumptuous 5300sf two story penthouse are attractive listings for the market, particularly as the developer has reduced the pricing by 20 %, compared to comparable condominiums that were priced in 2008 at the resort.

In addition to marketing these properties, RE/MAX ELITE have agreed with the Somerset to have a sales desk based in reception for the needs of their guests.

Anyone interested in further details on any of the condominiums on offer, should contact the RE/MAX ELITE office.

The government of the the Turks and Caicos Islands officially announced the extension of the reduction of stamp duty effective April 1st to June 30th 2009.  This is great news for buyers and sellers in the real estate industry.  The stamp duty will remain at a low 6 %.  This is part of the economic stimulus program to encourage buyers to the Turks and Caicos.  With real estate prices dropping and a smaller stamp duty to pay upon purchasing, this is the ideal time to buy land, condominiums and homes in the Turks and Caicos Islands.

Although the overall global markets have presented a challenge in the real estate market, one of the Hartling Group’s newest developments, “The Shore Club” continues to move forward.

This is an excellent addition to their already impressive portfolio, which includes The Sands at Grace Bay and The Regent Palms.  The Hartling Group is known to conceive and build properties of high quality construction, high end features and luxurious comforts.  .

With over 820 feet of prime beachfront; it is a full service resort incorporating the ultimate mix of indoor and outdoor living. There are 85 units in total, comprised of two and three bedroom suites and penthouses with an impressive array of amenities.

The development itself is designed in an “S shape” in order to provide stunning ocean views from every suite.

The Hartling Group is devoted to protecting and preserving the natural habitat in Long Bay, where some of the most unique indigenous vegetation can be found.  Old forgotten Plantation Walls are being preserved and incorporated into the natural landscape.  Wooden walkways have been created to help preserve the sensitive vegetation on the beach.

The visionaries at Shore Club have planned the ideal community in the ideal spot bordered by clear turquoise waters and on one of the most exquisite beaches in Turks and Caicos, known as Long Bay Beach.  This truly is an exceptional investment in Real Estate.

“During these periods, quality rises to the top and proves its value during times of economic confusion” states Stan Hartling, Developer of Shore Club.

For more information on this development Please contact: Simon Padgett 1.649.941.3394