The British Virgin Islands property market may be appreciating with an increasing cost per home, but demand, on the other hand, remains low.
In an effort to develop the market, tour operations have been vastly improved and expanded in hopes that attractive tours will land more buyers.
Just last year property prices of the residential market boosted at least 10% compared to one year prior. The average price tag for a home in the BVI hit US$780,000, according to the Land Registry.
The region’s largest, most well-known, most densely populated island, Tortola, boasted an average high-end property price of US$2.27 million in 2015.
Virgin Gorda, the third largest island, coming in second for sheer population in the region, had an average selling point of US$4.2 million per property in the same year.
These high-end homes might come with healthy price tags, but the demand for the luxury market is low. Sales transactions for the luxury market in the BVI (anything priced over US$500,000) have seen a decrease of 38% in the last few years. Foreign-buyer transactions decreased, too, by 18%.
A great opportunity for growth in the area is land for purchase. The islands are hardly developed, and large parcels of land can be bought for US$100,000.
The currency is tied to the U.S. dollar, so investors do not have to worry about unsteady exchange trends.
Owners who rent out their three-bedroom villas on Tortola Island enjoy an easy US$3,000 to US$5,000 rental income, and two-bedroom apartments on the same isle bring in around US$1,700 per month.