CaribWorldNews, NEW YORK, NY, Tues. May 5, 2009: The Caribbean real estate market is also taking a beating amid the continued global recession, reports indicate.
International estate agency, Knight Frank, says sales of Caribbean second homes dropped 40 percent over the last six months. Prices also fell more than 20 percent.
Experts say the region is also experiencing the same foreclosure problems as in the U.S. with even the rich skipping out on a second home.
`We have seen increasing interest in up-and-coming islands, but over the last few months this has retracted,` states the Frank report. The trend reportedly began in late 2008 with resorts struggling to maintain traction and development plans being either scaled back or put on hold.
Knight Frank also revealed that only seven percent of the Global Wealth Distribution is in Latin America and the Caribbean with most of it spread over North America, Europe and Asia.
In an effort to combat the downward spiral in the real estate market, several Caribbean governments are stepping in and introducing incentives to attract buyers.
The British Virgin Islands, according to Property Wire, is set to ease some restrictions for foreign real-estate buyers while in the Cayman Islands the government has temporarily lowered rates on real estate transfer taxes.