It appears that at least one Caribbean island could be experiencing a dampened appetite with its property on the international market.
According to the International Property Journal, “International residential purchases on the once-popular islands of Trinidad and Tobago are grinding to a halt in the wake of new regulations…”
Trinidad’s appeal had been growing on the international property market with unique properties and condominium developments available for purchase.
It is noted by the International Property Journal that in 2007, the government enacted a new law requiring foreign buyers on Tobago to acquire a license. Since then, not a single license has been issued.
This development is being viewed as a serious impediment to a once flourishing property market. In fact it is an interesting situation given the current global financial crisis, and an international market where property destinations are trying to be as competitive as possible, it is an interesting challenge for the twin island republic.
A Trinidadian based lawyer has opined, “The regulators have been very slow to finalize a transparent procedure for obtaining the licenses.”
In Trinidad non-resident non-nationals can still buy up to one acre of land without a license, as long as they use an internationally traded currency. But industry observers fear that a controversial new property tax law proposal may further diminish interest from overseas investors.
According to the Global Property Guide in Trinidad and Tobago the local and foreign demand “plummeted” in 2009. “After enormous price increases from 1991 to 2006, Trinidad and Tobago’s property market suddenly cooled, and has been falling for the past two years,”
Property prices on the islands rose 157 percent from 1991 to 2006, thanks in part to the growth of the petroleum and construction. But the islands have been losing favor.
A UK based international property portal states, “Trinidad and Tobago was very popular with buyers from the UK, Canada and the U.S it seems the combination of the global slow down; reports in violent crime and new laws have dampened the appetite from international buyers.”
