CZP Article

TCI - A major player

When it comes to investing, everyone has certain goals and aspirations.
Since the last downturn in the global stock market where millions saw their life savings eaten away, the real estate market experienced a global boom. Property prices climbed as thousands of investors sought alternative asset classes in which to invest their hard earned money.

Today, while major markets such as the USA, UK, Australia and Europe are slowing down, investors realize that there are still relatively untapped property markets abroad. Though consisting of only a small group of islands, Turks & Caicos' growth in popularity has made it one of the fastest growing economies in the Caribbean. What makes Turks & Caicos a better investment choice may be best explained by considering a few simple guidelines.

According to most financial and property advisors the best measure of a property's market value is often the sale prices of nearby properties. Cayman is similar in many respects to the Turks & Caicos. Some would even go so far as to describe them as sister islands. Their Seven Mile Beach is in many ways comparable to Grace Bay Beach. Their luxury condo/hotels enjoy similar rates, and share the same client profile. Close proximity to Miami makes both destinations accessible to the growing demands of guests seeking unique experiences in breathtaking locations.

As Joe Zahm, owner of Connolly Zahm Properties and Turks & Caicos' luxury condominium expert states, "what also sets Turks & Caicos apart from Cayman is that most of the condominium developments here provide full services, facilities and amenities so that purchasers receive much more than just a condominium."

However, what sets Turks and Caicos apart in an investor's point of view is value. In comparing sales prices, the Ritz-Carlton Grand Cayman's 4,670 sq ft 3-bedroom signature residence is currently on the market at over $8 million. Similarly, one of Provo's crown jewels, the Grace Bay Club's premier 3,900 sq ft 3-bedroom penthouse suite is for sale at $3.8 million. Both enjoy unparalleled oceanfront views and offer some of the world's best amenities, facilities and service.

Amplifying on the growth of Cayman, Mr. Kim Lund, owner of Remax Cayman stated that, "in another year or two, it will be almost impossible to buy a two-bedroom beachfront condominium on Seven Mile Beach for under one million dollars."

Local government regulations are also an important consideration. When investing in real estate, there are no restrictions on foreign ownership in Turks and Caicos. If you like it and can afford it, there is absolute freehold title regardless of whether you are a resident or not. US Dollar currency facilitates the process while the status as a Dependent Territory of the British Crown offers security and stability to foreign investment.

Real estate gurus suggest that one of the first rules to a sound real estate investment is to employ an expert. Developers and investors alike have successfully relied on the island's top brokers and consultants to provide their expertise throughout the different stages of the islands’ and projects' life cycles.

For those who fear they may have missed out on the real estate boom, the Turks & Caicos Islands offer you a second chance. Leading the way to further enhance the positioning of Turks & Caicos as the benchmark of luxury destinations, investors will be further inspired by the addition of world class developments such as Molasses Reef a Ritz-Carlton Reserve in West Caicos, The O Property Collection in Dellis Cay and the uniquely breathtaking Turks & Caicos Sporting Club at Ambergris Cay.
With the Turks & Caicos condominium property market reaching new heights in terms of quality, pricing and sales volume, last year witnessed a significant leap in the average price from at $900K in 2004 to just under $1.1 million per condominium in 2005. The average is expected to climb to well over $1.3 million in 2006 with a particularly captive audience for the most exclusive and high-end products on the market.

Turks & Caicos Islands have gone from a fledgling destination to a major player as a high-end hot spot in the past five years. Being in the right place at the right time, with the right product, the islands have attracted major real estate developments and hospitality talents that continue to fuel growth which is expected to remain strong and steady over the next few years.

Advantages are numerous and choices abundant so come visit it, love it, own it and call it home!

Tina Lyra
published November 2006
Real Life magazine