Real Estate

Caribbean Real Estate Outlook 2025 - not all markets perform equally.

Christoph Albeck Jul 25, 2025, 6:45:03 AM

🌴 Caribbean Real Estate Outlook 2025

Mid-Year Review & Strategic Outlook

The first half of 2025 has confirmed what savvy investors anticipated: Caribbean residential real estate continues to outperform — particularly in USD-based, politically stable markets like the Bahamas, Barbados, and Turks & Caicos.

High-net-worth individuals are turning to the region for asset protection, lifestyle flexibility, and tax neutrality. We've seen record-breaking luxury transactions, a spike in Residency-by-Investment applications, and continued growth in branded developments backed by global capital.

Outlook: For the second half of 2025, all signs point to accelerating demand. With limited supply in prime waterfront locations, the next few months offer a unique entry window — before prices climb further and inventory contracts.

Top 5 Caribbean Real Estate Markets (USD-Based) in 2025

1. The Bahamas – Premier Market for Tax-Free USD Investments

The Bahamas remain the top choice for strategic investors due to:

Zero income, inheritance, or capital gains tax
USD-based economy & full ownership rights for foreigners
Proximity to Miami and legal stability

Luxury properties commonly trade above $3.5M USD, particularly in Albany, Paradise Island, and Grand Bahama. The market has seen over 50% price growth since 2020.

Source: World Property Journal

2. Barbados – Tradition Meets Prime Real Estate

Barbados continues to draw international capital. Prime villas in St. James sell between $5M and $35M. The average transaction hovers around $2.5M USD.

Source: Terra Caribbean

3. Turks & Caicos – Boutique Luxury in High Demand

Private and exclusive, Turks & Caicos features homes between $1.5M and $6M+. Projects like South Bank and Rock House are driving premium valuation growth.

Source: New York Post

4. Dominican Republic – Rising Returns, Investor Buzz

Beachfront real estate in Punta Cana and Las Terrenas ranges from $1.5M to $2.2M USD, with net rental yields of 6–8% p.a.. The DR is especially attractive for lifestyle investors from Europe and Latin America.

Source: Samaná Group

5. Jamaica – Underrated Urban Growth

Upscale neighborhoods in Kingston such as Norbrook and Cherry Gardens are seeing sales between $500K and $1.8M+. Ideal for investors seeking long-term appreciation in an emerging metro market.

Source: Global Property Guide