St. Kitts and Nevis Real Estate Market

St. Kitts and Nevis Real Estate Market

The real estate market in St. Kitts and Nevis continues to flourish, and property demand is increasing. Global Property Guide calls the Federation an "emerging luxury property market," noting that prices have risen steadily since the early 2000's, while real estate costs in St. Kitts and Nevis are still lower than most Caribbean Islands. In 2009, 29% of the Gross Domestic Product (GDP) in the Federation was the mortgage market, a growth of 3% from 2001 to 2008. According to the Eastern Caribbean Central Bank, mortgage loans rose 10.3%, an increase of $164.2 million US dollars in 2009. As housing demand in St. Kitts and Nevis continues to increase, banks and lending institutions are dedicated to the island’s growth, and are promoting additional financing options for property ownership. One key benefit to note is that banks in the Federation impose strict lending criteria, allowing for a larger and sounder real estate market for well-qualified investors.


Taxes/Rentals

There are additional benefits to real estate investment in St. Kitts and Nevis, including minimal taxation on investors, and a growing demand for luxury rentals. In St. Kitts & Nevis, minimal taxes are imposed upon an investor, as there is no income tax, and rental income is generally not taxed. In addition, there are generally no capital gain taxes levied on the island. In the past four years, with real estate development heavily increasing, rental yields have also seen improvements, and the rental market in St. Kitts and Nevis remains strong. This is based on the increasing number of tourists, and students attending the local medical schools, allowing rental yields to rise to 5.11% in the past year. British Airways recently ranked St. Kitts and Nevis as fourth on their top 10 holiday destinations list, further illustrating the growing interest and appeal of this growing Federation.


St. Kitts and Nevis Real Estate Market