Sunday, 1 April 2012

British Virgin Islands Feel Little Impact from the Global Economic Crisis

The British Virgin Islands have seen little impact on property prices from the global economic crisis as prices of luxury property have remained largely unchanged in recent years and are expected to continue to hold up well.

This is partially due to the nature of the market, as the British Virgin Islands consists of around 50 islands and islets, and due to strict planning regulations, there is a distinct lack of high-density development.

Around 60% of luxury homes are bought by European buyers, and there are also a considerable number of US buyers. During the latter half of 2011, some owners of luxury property revised their selling prices downwards, resulting in renewed interest from purchasers.

The British Virgin Islands is relatively well insulated against fluctuations in the market as most of the purchases are lifestyle driven, and the small size of the market has helped to keep prices high.

Most of the residents are wealthy, and it's a rarity for anyone to be forced to sell. As such most are prepared to wait for more favourable conditions before putting their homes on the market. Compared to neighbouring islands, where high-density residential resorts have struggled to sell during the past four years, the British Virgin Islands have suffered only slight price falls.

The islands attract high net worth individuals as they have a reputation as being a low tax jurisdiction, and residents aren't liable for death duties, capital gains, corporation, income, or wealth taxes. As always, waterfront property is the most attractive, and homes with private moorings are particularly sought after.

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