The Evolution of Real Estate Development in Turks and Caicos Islands

The Turks and Caicos Islands continue to experience a steady economic growth, in great part due to the expansion of development, real estate sales and tourism.  This evolution will continue to make these Islands a place for people to come and invest in and enjoy. In 2008 the islands have been impacted by what is happening in the United States where over 85% of investors come from. The world economy also impacts us as we have tourists from all over the world and they are feeling the costs of travel and what is happening in their homeland.   The natural beauty, white sandy beaches and turquoise waters are some of the best in the world and it will continue to make the islands a high end destination.  There has been continuous appreciation in real estate prices over the past few years and there are still plenty of opportunities for investors here. The prices have held here in the islands and largely due to the many investors on the islands who have second or third homes. 

Tourism and land development drives the TCI economy.  More direct flights out of New York, Charlotte, Atlanta, Miami, London and Toronto has increased the number of people visiting the islands to over 200,000 this past year not including over 250,000 who have come on the cruise ships to Grand Turk.
           
The straightforward purchase and sale procedures on the Islands are attractive to the potential investor, and also appealing is the fact that the Crown guarantees title.  The US dollar currency and a stable government instil confidence.  Economy-focussed incentives, a skilled workforce, no income tax, no annual property tax, no capital gains tax, a low crime rate and state-of-the-art technology together make these Islands a wonderful choice of location for international investors who want to buy land, a condo, a house or even looking to create a business in the Caribbean. The land registry which is in Grand Turk is being streamlined and is becoming computerized and will have many of the same features that the Caymans have.

The Turks and Caicos Real Estate Association was set up in 1999 to provide buyers and sellers with the highest level of service when they are working with real estate agents. There are 107 agents most of whom are working in Providenciales with agents going to other islands to show and list properties  on all of the inhabited islands. There are 18 real estate companies who work together and there are over 1100 listings at the present time. Giving back to the community is an integral part of the Association and this happens with children, the elderly, handicapped and with national disaster work.  With the multiple listing service an agent can show listings from any company which is much different than buying in the United Kingdom where only the estate agent can show and sell the listing.

Constant easterly breezes keep these Islands comfortable with the coolest months in the 70s and the warmest months averaging in the low 90s. The average rainfall is 40 inches a year with the Autumn as the rainy season although the rain never lasts very long before the day goes back to warm sun and blue skies.  North Caicos tends to get more rain than the other Islands and a result it has more fertile land with fruits and vegetables.

Over the past 100 years we have had some hurricanes come through but most of the hurricanes in the Caribbean come up the corridor between the islands of Puerto Rico/Jamaica/Dominican Republic/Cuba on one side and Mexico/Belize/Costa Rica on the other side. Turks and Caicos was hit by two hurricanes in September 2008 - Hanna and Ike. In the early stages the world news reported that the islands were destroyed but in fact the storms hit Grand Turk, Salt Cay and South Caicos. They were badly damaged with roofs off, power outages and damage to houses but they are in a rebuilding stage where the islands are going to better manage any natural disaster in the future.  The other islands received more rain and winds with damage at a minimum as a number of the island homes were built in the past 15 years when Dade County Building Codes required concrete blocks and concrete construction.

Turks and Caicos is in the early stages of development, with the most dramatic changes occurring the past 30 years and a major move forward in development in the past 10 years. In 1966, in exchange for 4,000 acres, a company called Provident Limited began the development of Providenciales.  Provident constructed an airstrip, built roads that linked three settlements together and built a 10-room hotel called the Third Turtle. The first car arrived on island that same year. Barclays Bank opened a full service branch on Providenciales in 1981 and in 1984 Club Med Turquoise opened. Cable television came in 1985 and in 1989/90 Ocean Club became the first condominium project on the Island.  Now many condominium resorts have been built in Providenciales on the North shore along Grace Bay.  Grace Bay Beach has been given awards for one of the best 12 miles of beach in the world.  Most of these condominium/hotel resorts were built between 1998 and 2008 and go from residential condominiums with 18 units to larger condo/hotel resorts that can have 100 plus rooms. There are only 2 all inclusive resorts in the Turks and Caicos Islands on Providenciales - Club Med built in 1984 and Beaches Resort built in the late 90’s. Most recently the Italian Village in Beaches opened in the first quarter of 2009. 

In 1980 approximately 7,500 people lived in Turks and Caicos. By 1990 that figure had grown to 12,500.  In 2001 the number grew to just under 20,000 and by the end of 2008 the population was over 32,000 people in all of the islands.  Approximately 2/3 of this population of the islands are residents of Providenciales.   People from the US, Canada, Jamaica, Dominican Republic, Haiti and the Philipines  make up the difference with local people called Belongers who have been born and raised here comprise 25% of the population. A large part of the growth is due to the opening of Provo’s International Airport in the early 90’s where vacationers and investors alike come from Miami and other US locations to discover the many opportunities TCI offers.

In 1991, there were fewer than 1,000 hotel or condominium rooms available to visitors. Now in 2009 that number has doubled with many more resort suites coming on the market as buildings are completed. Point Grace, Grace Bay Club, Amanyara, Somerset
and The Regent Palms are receiving hotel awards and Grace Bay Club boasts of having the largest bar in the Caribbean. 

Is all this resort / condo development and international attention going to continue in the Turks and Caicos Islands?  Absolutely because these Islands are still in the early stages of development and growth and the opportunities are still there for small and large investors.
More recently the outer inhabited islands are offering investment opportunities as well, each with its own character and charm.  A few years ago no one had heard of the Turks and Caicos Islands but now the European and North American newspapers are publishing articles and columns regularly about this still untapped wealth of opportunity. The Turks and Caicos Tourism Board has offices set up in New York and Toronto Canada and going to be expanding into Europe. Internet has opened up the doors to these islands.

Land, condos and homes are the investments on the islands.  Buying a parcel of land instead of a condo or home provides a toehold into this developing country and it gives them time to decide what they will do with it in the future.  Purchasing a condominium allows people a chance to enjoy vacation time here and still provides rental income when they are not using their unit.  Some of the existing condo resorts have excellent track records for service and good rental histories. Some people prefer to take more of a risk and buy preconstruction with staged payments.