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St Lucia’s aesthetic value is undeniable. The island’s resplendent beauty is on display everywhere you look, from the serenity of Pigeon Island National Park in the north to the sprawling white sand beach of Anse des Sables in the south. St Lucia’s economic value, while less obvious, is just as remarkable and is reflected in the lucrative property market.
In this article, we explore St Lucia real estate and provide a comprehensive guide for prospective buyers that offers insights into the intricacies of the St Lucia real estate market. Whether you desire a dream home in paradise, or an investment opportunity with a great return on investment, St Lucia may be exactly what you’re looking for.
Why You Should Invest in St Lucia Real Estate
St Lucia has unmatched aesthetic appeal, from its lush rainforests and waterfalls to its many beaches. It’s why tourists flock to her shores yearly in record numbers. St Lucia’s physical appeal is hard to beat.
A flourishing tourism industry and real estate market are a match made in heaven. The high demand for tourist accommodation makes for a lucrative investment.
Political, social, and economic stability are hallmarks of life in St Lucia. Visitors and residents can rest assured that they are safe on an island with a low crime rate.
St Lucia has several tax advantages, such as a personal income tax allowance and a low Value Added Tax (VAT) rate, contributing to a low cost of living.
Its geographical location in the English-speaking Caribbean and proximity to the US allow it to be well connected to the rest of the world. Direct service is available from North America, the UK, and other Caribbean islands.
A real estate investment can be a pathway to citizenship through the citizenship by investment program.
Understanding the St Lucia Real Estate Landscape: An Overview
Geographical overview
Choosing a location for your real estate investment is a strategic decision since it will significantly impact the success of your investment. Understanding the nuances of the different regions and neighborhoods is crucial – north versus south, coastal versus inland, and urban versus suburban.
Parts of the island
Although more difficult to get to from the airport, the north of St Lucia is perhaps the most popular region for visitors to stay. It is home to Rodney Bay, a town where some of St Lucia’s top beaches and popular nightlife spots are located. There are a wide variety of activities available because of the close proximity of both the calmer Caribbean Sea on the west and the Atlantic Ocean on the east, which is more conducive to watersports like windsurfing. It is also home to the Treasure Bay Casino and Pigeon Island National Park that attracts nature lovers.
The island’s southern side is closest to the airport and is more historic. The beaches here are no less beautiful, with Sandy Beach and Anse des Sables being the most popular and the longest beaches, with almost a one-mile stretch of white sand.
The western coast is the most densely populated part of the island and is home to the original French capital, Soufrière, and the cruise ship port. It’s also where you will find Gros and Petit Piton, the majestic volcanic plugs St Lucia is known for in most tourist brochures.
Districts
The island of St Lucia is divided into ten districts or quarters, as they are traditionally known. Each has its own unique character and charm. Whether you are looking for a relaxing beach, an outdoor adventure, a vibrant cultural experience, or serene getaway, you are sure to find it in one or more of the ten districts:
- Anse-la-Raye: A small fishing village on the northwest coast that is known for its beautiful beaches, lush rainforests, and laid-back peaceful atmosphere.
- Canaries: The smallest quarter, it is located on the west coast, the windward side of the island.
- Castries: The capital of St Lucia, Castries is a vibrant and bustling city with a mix of old and new. It is home to a variety of historical sites, shops, restaurants, and bars and it has the largest population on the island.
- Choiseul: Located on the southwest coast of St Lucia, this is a rural district known for its lush rainforests, waterfalls, and friendly people.
- Dennery: This is a popular east coast spot for hiking, biking, and birdwatching. It is home to the Dennery Fish Market, where visitors can buy fresh seafood and local produce.
- Gros Islet: A popular tourist destination for its beautiful beaches and lively nightlife, Gros Islet is located on the northwest coast of the island. It is the largest district and has the fastest growing population. In fact, it has the second largest population after Castries.
- Laborie: Located on the south coast, this is a quiet, peaceful district known for an enchanting oceanfront, lush rainforests, and friendly people.
- Micoud: This rural district on the east coast is known for its stunning untouched scenery, including the Soufrière Drive-In Volcano, the only drive-in volcano in the world.
- Soufrière: This is a popular tourist destination on the southwest coast known for its stunning scenery, including the Pitons, a UNESCO World Heritage Site, the Diamond Botanical Gardens, and the Sulphur Springs.
- Vieux Fort: Located on the south coast of St Lucia, it is the second largest quarter and home to the island’s main airport, the Hewanorra International Airport. It is also a popular spot for fishing, sailing, and windsurfing.
Types of real estate properties available
You are spoiled for choice with the various types of residential and commercial property available for sale:
Residential real estate: For a full-time dream home, vacation home, or rental property
- Land is available in all parts of the island for purchase for building your own home or developing commercial properties
- Single-family homes
- Villas: More spacious and luxurious, they are found all over the island from beachfront to hillside locations, residential areas and resorts or estates.
- Apartments and condos: Condos are typically larger than apartments and are found in gated communities with extra amenities such as swimming pools, tennis courts, and fitness centers.
- Townhouses: These usually have more space than an apartment but less maintenance than a villa
Commercial real estate and tourist accommodations
- Hotels and resorts: Located mostly all along the coast
- Restaurants and shops
- Eco-lodges: A sustainable, environmentally-friendly option for those wanting to experience the beauty of nature up close. They are typically located in remote areas.
- Overwater bungalows: Luxurious accommodations typically located in resorts
- Marina villas: Located in marinas, they are the choice of those who love boating and fishing.
Market trends
The current real estate market trends in St Lucia are positive, with strong demand and rising prices. The market is being driven by a number of factors, including:
- Increased interest from foreign investors, particularly from North America and Europe
- A growing tourism industry, which is driving demand for vacation rentals
- A limited supply of available land and property
As a result of these factors, property prices in St Lucia have been rising steadily in recent years. According to a report by real estate company Terra Caribbean, the average price of a house in St Lucia increased by 10-15 percent annually from the early-2000s to 2008. Prices have continued to rise since then, with the average price of a house in St Lucia now standing at around $1.6 million.
The outlook for the St Lucia real estate market is positive for the next few years. Demand is expected to remain strong, and prices are likely to continue to rise. However, it is important to note that the market is still relatively small, and there is a risk of oversupply if too much new development comes onto the market at once.
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Where to Buy
When deciding where to buy real estate in St Lucia, you will want to consider several factors such as proximity to amenities, access to transportation and the airport, demand and popularity, and your own lifestyle and preferences. These considerations will ultimately determine if there will be a good return on your Caribbean real estate investment and your own satisfaction with the purchase.
Some of the best and more popular places to buy property in St Lucia are in the west of the island:
- Rodney Bay: A vibrant cosmopolitan area on the northwest coast with a variety of shops, restaurants, bars and nightclubs, beautiful beaches, and watersports.
- Marigot Bay: A picturesque bay on the southwest coast, it is known for its luxurious villas that attract celebrities and honeymooners.
- Soufrière: Also on the western side of St Lucia, it is a charming town at the foot of the Pitons that attracts a lot of visitors because of the Pitons, the Diamond Botanical Gardens, and the Sulphur Springs
- Cap Estate: This is a prestigious residential area on the northern tip of St Lucia with a world-class golf course. Cap Estate consists of mainly luxury villas and apartments and is a popular choice for retirees and second homeowners.
- Vieux Fort: Home to the island’s main airport in the south, this is a good option for those seeking more affordable real estate.
Property costs
Like anywhere else in the world real estate prices in St Lucia vary depending on the location, size, age, type, and condition of the property. A qualified and knowledgeable real estate agent will help you find the perfect property for your needs and budget. We’ve selected a few examples of various types of properties in different parts of the island:
- A luxury beachfront villa in Rodney Bay starts at $2,000,000
- An oceanfront villa in Soufrière starts at $1.5 million
- A rainforest villa in the hills of Marigot Bay starts at $1,000,000
- A one-bedroom apartment in Rodney Bay starts at $300,000
- A two-bedroom apartment in Soufrière starts at $400,000
- A three-bedroom apartment in Marigot bay starts at $500,000
- A one-bedroom condo in a gated community in Rodney Bay starts at $200,000
- A two-bedroom condo with a view of the Pitons in Soufrière starts at $300,000
- A three-bedroom condo in a luxury resort in Marigot Bay starts at $400,000
- A two-bedroom townhouse in a quiet residential area in Rodney Bay starts at $250,000
- A three-bedroom townhouse with a private pool in Soufrière starts at $350,000
- A four-bedroom townhouse in a gated community in Marigot Bay starting at $450,000
- A half-acre lot of land in Rodney Bay starts at $150,000
- A one-acre lot in Soufrière starts at $100,000
- A two-acre lot in Marigot Bay starts at $200,000
- A retail space in a busy shopping center in Rodney Bay starts at $500,000
- A restaurant space in a popular tourist area in Soufrière starts at $750,000
- A hotel space in a luxury resort in Marigot Bay starts at $1,000,000
Transaction costs, fees, and taxes
St Lucia real estate costs do not end at the purchase price. Depending on the jurisdiction, associated fees and taxes will apply. In St Lucia, these costs will depend on whether the buyer is a citizen or non-citizen and are as follows:
- Alien Landholding License: Non-citizens of St Lucia must obtain an Alien Landholding License to purchase property on the island. The license cost depends on the size of the property, with a minimum fee of $5,000 for properties up to one acre, and a maximum fee of $50,000 for properties over 100 acres.
- Stamp Duty: A stamp duty of two percent is payable on all property purchases in St Lucia.
- Legal Fees: Legal fees range from 0.5 percent to 2.5 percent of the purchase price of the property.
- Registration Fees: Registration fees are typically around $1,500.
- Transfer Tax: The transfer tax is a sliding scale tax that is based on the purchase price of the property. The maximum transfer tax is five percent for St Lucian citizens and CARICOM members, and ten percent for non-nationals.
In addition to these transaction costs, there are also several other expenses that buyers may need to budget for, such as:
- Real estate agent’s commission: Real estate agents typically charge a commission of five percent of the purchase price of the property.
- Home inspection: A home inspection is recommended for all property purchases, and the cost typically ranges from $500 to $1,000.
- Insurance: Property insurance is required by law in St Lucia, and the cost will vary depending on the type and value of the property.
How to Buy St Lucia Real Estate
If you’re looking to buy property in St Lucia, the process will differ depending on your nationality. If you are buying as a foreigner versus as a St Lucia citizen both the steps and the transaction costs will vary.
Foreign buyers
- Search property listings, select a property, and make an offer in writing through a qualified real estate agent.
- Once the offer is accepted apply for an Alien Landholding License through the Ministry of Physical Development, Housing and Urban Renewal.
- Sign the Purchase Agreement with the seller
- Pay the purchase price, stamp duty, and transfer tax.
- Register the new ownership with the Land Registry. This confirms you as the legal owner.
Buying within the CBI framework
The alternative to buying property as a foreigner is to purchase via the St Lucia Citizenship by Investment Program. The process becomes more streamlined and cheaper, since no Alien Landholding License is required. In addition, you gain not just property ownership but St Lucian citizenship and a second passport.
Once you are deemed eligible for the program you must make a minimum investment of $200,000 in a government-approved property. These are usually tourist accommodations such as resorts or villas.
- Hire an Authorized Agent, such as Global Citizen Solutions, that will help you complete the relevant application forms and gather the required supporting documents.
- Your agent will submit the application to the St Lucia CBI Committee on your behalf.
- Upon receipt of your application, the CBI Committee will verify your documents and conduct a due diligence background check. Successful applicants will be notified that their application is ‘approved in principle’ and must pay the requested fees.
- Execute the real estate purchase for the qualifying amount.
- Submit proof of purchase to the CBI Committee.
- The Committee will issue final approval, your certificate of registration, and your passport.
After the purchase
Once you’ve completed your property purchase, you may have some further decisions to make if you do not intend to occupy the property.
Property management and maintenance
If this is a second or vacation home or if you intend to earn rental income from it, you may want to consider enlisting the services of a property management company. This company will handle general maintenance and repairs, lawn and pool care, pest control, plumbing, and electrical work. For rentals, they will manage the rental process of finding and screening tenants, collecting rent, and paying bills. Typically, their fees range from five to ten percent of the rent collected.
The rental income potential will depend on the type and location of the property, amenities offered, the condition of the property and the time of year. You can expect to earn a rental income of five to ten percent of the value of your property per year.
Property and land taxes
When it comes to St Lucia real estate, property and land taxes are paid annually. The tax rate for residential property is 0.25 percent of its market value. For commercial property, the rate is 0.4 percent of market value. Land is taxed at a rate of 0.1 percent.
Resale
Under the CBI program, investors can only resell their property after five years.
Check out our Ultimate Guide to St Lucia Citizenship by Investment
Global Citizen Solutions: Who We Are and How We Can Help You
Global Citizen Solutions is a boutique investment migration consultancy firm focused on finding the right residency or citizenship by investment program for individuals wishing to secure their future and become global citizens.
At Global Citizen Solutions, we have a team of local lawyers and real estate experts working directly with the developers, so we can provide you with valuable guidance on which of these properties are the most advantageous and reliable options. We are also corporate members of the Investment Migration Council, with local expertise in the Grenada Citizenship by Investment Program.
Get in touch with one of our experts and book a free 30-minute consultation today to discuss Grenada real estate.
Frequently Asked Questions about St Lucia Real Estate
Some of the best locations to buy real estate in St Lucia are Rodney Bay, Castries, Marigot Bay, Soufriere, and Cap Estate.