Real Estate - Caribbean | Statista Market Forecast

The Real Estate market market in the Caribbean is expected to reach a value of US$2.16tn by 2024.
Among the various segments, Residential Real Estate dominates with a projected market volume of US$1.77tn in 2024.
This segment is expected to grow at an annual rate of 4.49% from 2024 to 2029, resulting in a market volume of US$2.69tn by 2029.
When compared globally, United States is projected to generate the highest value in the Real Estate market market, with US$132.0tn in 2024.
The Caribbean real estate market is experiencing a surge in demand for luxury beachfront properties from international investors.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Caribbean is experiencing significant development and growth.

Customer preferences: One of the main customer preferences in the Caribbean Real Estate market is the desire for beachfront properties. The stunning beaches and crystal-clear waters of the Caribbean make it a highly sought-after location for vacation homes and luxury resorts. Additionally, customers are increasingly looking for properties that offer a range of amenities such as private pools, spas, and access to golf courses. The demand for these types of properties is driving the growth of the luxury real estate sector in the Caribbean.

Trends in the market: One of the key trends in the Caribbean Real Estate market is the increasing popularity of eco-friendly and sustainable properties. With growing awareness of climate change and environmental issues, customers are seeking properties that are built and operated in an environmentally responsible manner. This trend is particularly evident in countries like the Bahamas and Barbados, where there is a focus on preserving the natural beauty of the islands. As a result, developers are incorporating sustainable design features and technologies into their projects, such as solar panels, rainwater harvesting systems, and green roofs.

Local special circumstances: The Caribbean Real Estate market is influenced by several local special circumstances. One of these is the impact of hurricanes and natural disasters. Caribbean countries are prone to hurricanes and tropical storms, which can cause significant damage to properties. As a result, customers and developers are increasingly investing in hurricane-resistant construction techniques and insurance policies to protect their investments. This focus on resilience and preparedness is shaping the development of the Real Estate market in the region.

Underlying macroeconomic factors: The Real Estate market in the Caribbean is also influenced by underlying macroeconomic factors. One of these is the growth of the tourism industry. The Caribbean is a popular tourist destination, attracting millions of visitors each year. This has led to an increase in demand for vacation rentals and second homes, driving the growth of the Real Estate market. Additionally, favorable tax policies and incentives for foreign investors are attracting international buyers to the Caribbean, further stimulating the market. In conclusion, the Real Estate market in the Caribbean is experiencing significant growth and development. Customer preferences for beachfront properties and sustainable design are driving the demand for Real Estate in the region. Local special circumstances, such as the impact of hurricanes, are shaping the market by influencing construction techniques and insurance policies. The growth of the tourism industry and favorable tax policies are also contributing to the expansion of the Real Estate market in the Caribbean.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Caribbean

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Value Split

Volume

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Transaction Value

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