The Turks and Caicos Islands (TCI) have seen immense growth within their upscale real estate market over the past 15 years, especially on Providenciales island. Luxury second homes and vacation properties are the main real estate assets traded in TCI, given its positioning as a tropical paradise getaway location. Over 80% of buyers are foreigners from USA, Canada and UK.
On Providenciales—the Grace Bay area commands TCI’s most expensive real estate, with beachfront estates averaging around $5 million. However, more affordable options exist on other islands like Grand Turk and South Caicos.
As of 2022— average home prices in Provo were up 18% compared to 2020. The pandemic led to heightened foreign interest in owning TCI vacation homes amid travel restrictions. Total transaction volume also set new records in 2021.
Second home purchases in Turks And Caicos Islands by foreigners usually entail acquiring long-term leases on Crown land as opposed to outright freehold ownership. Leases are typically for 40 or 99 years.
The government has attempted to increase stamp duties and fees for non-Belongers buying Turks And Caicos Islands real estate. However— demand remains so robust that these policy measures have had little impact in curbing foreign purchases to date.
With rising sea levels posing an existential threat to TCI’s low-lying islands, there is a push towards more climate resilient building codes and environmental protections. However, this could increase construction costs and impact profit margins for developers.
The TCI government implemented a stamp duty tax on foreign buyers in 2021. There is also discussion around subsidies and allocation of Crown land to develop more affordable housing for local islanders.
Construction of luxury resorts, villas and condominium projects continues to accelerate across TCI, especially on Providenciales. This drives further real estate sales to foreign buyers seeking vacation properties attached to luxury amenities.
TCI real estate has boomed over the past decade and is predominantly dependent on Providenciales. While the government attempts to restrain price growth and facilitate local home ownership, demand from foreign vacation home buyers continues rising.
