(Vocus/PRWEB) 24 March 2011
The popularity of real estate St. Kitts and interest in the economic citizenship program is resulting in a boom for the Caribbean island by strengthening the local economy.
Although the St Kitts and Nevis economy contracted by about 1.5% in 2010, from a drop in the previous year, due to decreased activity in tourism and construction sector, the country’s economy is expected to recover during the next two years, with a projected GDP growth rate of 0.5% in 2011 and 1.5% in 2012.
The interest in real estate on St. Kitts from foreign investors and the pace of real estate development has increased rapidly in the past four years, and with an increased number of air flights into the islands during the next year, 2011 real estate sales will no doubt help the continued rise.
A Naturally Beautiful Island
There are many reasons why real estate in St. Kitts is so popular for overseas homebuyers. The first is the natural beauty of these tropical islands. Many investors in North America and the UK dream of a holiday home in the sun, where they can relax under sunny skies and listen to the waves crashing on white sand beaches. The particularly cold recent winters in the UK have left even more people longing for an escape to the sunshine. Real estate in St. Kitts gives them a chance to own a little piece of this idyllic climate.
Affordable Home Investment
Another reason for the property boom is that currently prices in St. Kitts are much less expensive than other Caribbean islands. St. Kitts offers the chance to invest in a holiday home for a cheaper price.
The island of St. Kitts attracts many tourists every year, and many investors are taking advantage of this by renting out their holiday home property. They are finding that this is a perfect way to make an income on their real estate investment when not using it themselves.
Citizenship for Sale
Of course, a major draw for many expats looking to move to the Caribbean is the St. Kitts economic citizenship programme. This process allows the foreign investor to acquire St. Kitts citizenship in exchange for a $350,000 purchase of a unit in a pre-approved development of real estate in St. Kitts as well as fees of $35,000 for the head of the household and $15,000 for each dependant family member. The economic citizenship programme also provides the right to live and work in St. Kitts, visa free access to many countries around the world, and several other benefits.
Not only does the economic citizenship programme benefit the foreign investor, it also has a hugely positive impact on St. Kitts. The money invested into real estate and infrastructure will strengthen the local economy. Also, the prospect of attracting wealthy foreign investors who will likely set up businesses on the island because of the relatively relaxed tax laws will create jobs and opportunities for the locals.
Another factor in the increased popularity of St. Kitts as a holiday home destination is the fact that it is easier than ever to travel there thanks to an increase in flights. British Airways has just launched their new Caribbean campaign this week, with increased frequency of flights to St. Kitts and several other destinations such as Barbados, Grenada, and Bermuda. The more flights there are to St. Kitts, the more convenient it is for UK citizens to own a second home there.
The local housing market in St. Kitts is predicted to stay healthy and continue its growth throughout 2011, as the economy recovers from the recession and the strong demand for property remains. Property prices are predicted to rise, so experts are encouraging those who want to find a great deal on a property in St. Kitts to act sooner rather than later.
The gorgeous weather, cheap prices, increased convenience due to more flights, and the appeal of the economic citizenship programme, will only serve to make St. Kitts a more enticing holiday home location in the future.