St. Lucia’s increasing property market

St Lucia is often called “The Helen of the West Indies” for its captivating beauty. With a total land area of about 620 square miles, St Lucia is one of the most beautiful islands in the world.
The island has excellent beaches, scenic waterfalls, mountains, rainforests, orchids and exotic plants. The twin mountain peaks of Les Piton drop dramatically to the water´s edge on the west coast. In the south, visitors get close to bubbling pools of lava and steaming sulfurous spouts at Sulphur Springs Volcano, or splash in the sulfur-infused waters of the Diamond Waterfall and Mineral Baths.

St. Lucia is increasingly seen as one of the world’s most interesting property markets. The island is in many ways comparable to neighboring Barbados, but St. Lucia’s property prices are about 40% to 60% lower.

Reasons for the rising buzz about St Lucia:
The island is one of the most accessible in the region, with direct flights from the US, Canada, Germany, and the UK. British Airways recently increased direct flights from Gatwick to St. Lucia. 

One of the region’s lowest crime rates.

A tax haven with no VAT, no capital gains tax, no inheritance tax and no estate tax.

Top destination for weddings and honeymoons 

St Lucia’s first casino recently opened, plus a multi-million pound shopping mall, multi-screen cinema, and new restaurants and bars.

St. Lucia has a new niche—health and wellness.
With the support of the government and other private institutions, the first St
Lucia Health and Wellness Retreat is set to open mid-November 2011 with the new Alaia spa designed and operated by ESPA opening on the Marquis Estate 2 years later.

St Lucia’s currency is pegged to the US dollar at EC$2.7 to US$1.

House prices
Property values rose by about 10% to 15% annually from early-2000s to 2008, local analysts estimate. The northern coast, with most residential developments, saw the highest house price rises.
According to the Global Property Guide research prices now in St Lucia range from US$1,207 to US$2,649 per square metre (sq. m) for houses from 150 sq. m to 700 sq. m.
Typical prices in March 2011:

150 sq. m. house: US$181,050 

250 sq. m. house: US$390,750 

350 sq. m. house: US$927,150 

700 sq. m. house: US$1.32 million 

130 sq. m. condo unit: US$389,220 

The average condominium price was US$2,994 per sq. m. 

Most new developments are in the island’s north, including Castries, the capital city, and Rodney Bay. South Coast development is limited by strict planning laws, and by the area’s dense rainforest.

 St. Lucia’s economy expanded by a healthy 4.4% in 2010 after a 1.3% decline in 2009 and 5.8% growth in 2008, mainly due to an increased activity in construction and tourism, supported by a buoyant property market. 

Inflation was 3.3% in 2010, up from -0.2% in 2009. From 2003 to 2007, St Lucia had average inflation of 2.6% per year.
According to the latest IMF report, “In the face of increasing headwinds from subdued growth in the U.S. and Europe and an uncertain global financial environment, we expect growth at about 2% in 2011, shored up by post-hurricane reconstruction. High world commodity prices are expected to put temporary pressures on inflation and the balance of payments in 2011, but these will subside over the medium-term”.

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