St. Kitts Offers Spectacular Real Estate Investment Opportunities
Tourism is the way forward
St. Kitts real estate transactions this year have been nothing short of phenomenal. With the end of the sugar cane era, tourism and development are now the country’s top driving engines. The island will soon experience an expansion of infrastructure projects, tourism related services, property development and hotel construction. Investors are anxious to take part in this growth.
Brian Kassab of B. Kassab and Associates explains why St. Kitts has become such a desirable investment. "Although the national trend in America is a real estate lull, St. Kitts is experiencing a constant, stable flow of real estate opportunities for both buyers and sellers alike. The island’s allure comes from its beautiful mountains, lush rainforests, unspoiled beauty and tranquil paradise, and people want to own a part of this paradise. It may seem like a paradox, but sustainable and environmentally sensitive property development has actually enhanced this reputation."
A new strategic plan
The government of St. Kitts has also invested heavily in the creation of a new strategic plan that promotes a variety of investment properties so that the island has a "customer for life," explains Senator Ricky Skerritt, Minister of State for Tourism, Sports & Culture. The plan has changed the entire government/investor relationship. While the old model meant that the government was the driver of tourism development, the new model challenges the private sector to take the lead. The results have been impressive.
"St. Kitts is a small island and we want to create a partnership with the private sector," says Skerritt. "We will challenge the business sector to perform locally, but think globally."
Skerritt maintains that the results will balance development with environmental sensitivity, or as he describes it: "man-made assets with natural assets." The government’s vision includes an understanding of "how to sustain an investment by creating a formula that will bring success to all partners."
High quality properties, with villas, boutique hotels and condos, are the key to the plan. The government sets the terms and conditions of development, including strict environmental impact assessments and conscious decisions to work with quality investors. In return, the developers are expected to adhere to the high quality standards and ethics.
Million Dollar Homes
A new emerging trend is for clients who are shopping for residential property in excess of US $1,000,000. Several spectacular villa developments are underway, each catering to the variety of unique needs these new luxury buyers will demand. Wireless Internet, cellular telephone service and satellite television are only some of the state-of-the-art amenities that villa developers must include in their projects to create technologically ready homes for entrepreneurs and retirees who want to stay in touch with the rest of the world while living a tranquil life overlooking the Caribbean Sea.
"Our agency is also impressed with the increase in bookings for vacation and short term rentals," says Carla Kassab, wife and associate of Brian. "Return visitors often book their next stay in a villa or a beach front condo, rather than a hotel, and eventually come back to us looking to purchase their own property. We anticipate these markets to gain strength in the years ahead."
In terms of its Citizenship by Investment Programme, the government recently increased the minimum real estate investment for Economic Citizenship from US $250,000 to US $350,000. This program is very attractive to international investors since it allows for duty free imports of certain items for these homes and zero income tax. However, with real estate values on the rise, there are minimal opportunities for investment at these prices.
Port Zante, the Cruise Ship Terminal, is experiencing an abundance of new construction. As many as 40 stores should be open by February 2007, including some of the top names in Duty Free jewelry and designer stores. Tourists particularly like the Brinley Rum Store and Driftwood Duty Free where they can sample and buy one of the four rums produced in St. Kitts.
The South East Peninsula
High end resort properties, such as Auberge Resorts from California, are already in the development stages on the South East Peninsula. The new development will include a small luxury hotel, a spa, luxury villas and beaches on seven miles of pristine beach front with rolling hills and amazing views.
The property includes three private coves, acres of sandy beaches and an inland lagoon. Dramatic peaks allow for panoramic views of sunrises over the Atlantic and sunsets over the Caribbean Sea.
Spacious villas will all face the ocean and will include outdoor bath gardens, large soaking tubs and verandas. The hotel’s secluded rooms will have gorgeous vistas and all guestrooms will face the ocean. The resort will also feature a fine dining restaurant and a casual beachside bar.
Land prices on this peninsula have appreciated significantly in the last year and are expected to continue on an upward swing as other major resort developers observe Auberge’s progress and take steps to develop adjacent lands.
Back down the hill and on the roundabout at the entrance to the South East Peninsula, a vast amount of work is being done on Ocean’s Edge, a new luxury international resort.
The resort’s development team, Newfound Developers, in conjunction with local partners, chose this spot on St. Kitts because of its unique location and rich natural beauty. The 201 luxury properties at Ocean’s Edge all overlook Cable Bay and feature a range of accommodation choices, including beachfront and hillside apartments, garden cottages and villas. A variety of leisure and entertainment facilities will be provided, including a clubhouse, health and fitness center, restaurants, pools and tennis courts. These will be owned by the developers, but the operation of the resort will be outsourced to a carefully selected third party.
The resort operator will manage a rental program with income divided between property owners and the hotel operator. Villa owners will be able to place their property in the rental program if they wish to do so.
An affiliate member of Green Globe 21, the worldwide benchmarking and certification program which facilitates sustainable travel and tourism for consumers, companies and communities, Ocean’s Edge exemplifies environmentally friendly development.
Kittitian Heights
Nestled between Mt. Liamuiga and sugar cane fields on the northern tip of the island, which is known for its lush rainforest and fertile lands, is Kittitian Heights.. Set on 390 acres of prime mountainside land, this project is an inspiring new resort that will include a boutique hotel, luxury villas, duplex townhouses and condominium apartments.
At the heart of the development is the Artists’ Village. This area will be a meeting point in the Caribbean for painters, poets, musicians and writers to create and discuss ideas or to simply be inspired.
With a high-tech recording studio and comprehensive facilities for postproduction and film scoring, Kittitian Heights is set to become a world class brand name in creative services.
VIP Services
The Robert Bradshaw International Airport expansion and modernization will be key to the success of these projects. According to Samer Jumean, the Transitional General Manager and CEO of the St. Christopher Air & Sea Ports Authority (SCASPA), the government has begun a massive campaign to modernize the nation’s entry points.
A variety of joint venture programs between the government and the private sector have already begun, and the airport is well on its way to to dealing with the capacity, and providing the service first class travelers and villa homeowners demand.
The new fixed base operation will service the needs of corporate jets. Expected to be operational by mid-2007, this state-of-the-art terminal will cater exclusively to these jets and will have exclusive VIP amenities.
The main terminal will also be expanded and updated to accommodate the arrival of more jets and a larger influx of residents and tourists. Both terminals will have a strong focus on security.
"We will be one of the few airports in the Caribbean with closed circuit television that allows security officers to be in full control," Jumean explains. "This security will be an important incentive for major airlines to use our airport."
Once they’ve arrived at the airport and settled into their new homes, residents are never bored on St. Kitts. High end tours provide for splendid memories. Private fishing charters, catamaran sails and canyon dives are perfect for the active explorer. But for those not in the mood to get their feet wet, golfing is the answer. St. Kitts will have three new golf courses. The government is working on the La Valle course, while Kittitian Heights and Auberge Resorts also have golf courses planned.
Yacht owners who call St. Kitts home during the summer months when hurricanes are prevalent on other islands are in for a treat. The Caribbean’s second largest boat lift is now in operation, while plans are in the works to create a horizontally integrated industry focused around supplying and repairing these yachts.
People who come to St. Kitts want to immerse themselves in their own private paradise, and they are astute enough to know their investment carries short and long term financial rewards. Don’t miss your opportunity. Call St. Kitts’ reputable realtors, and invest in your future by buying your own slice of heaven.
