2020 TURKS & CAICOS REAL ESTATE MARKET CLOSES LIKE A CHAMP
The 2020 TCI real estate market performed better than we ever could have hoped for in the context of COVID–19, a four-month country-wide shutdown and stringent travel requirements. And I guess our task in this space is to seek to answer the question, as set forth by the great David Byrne of Talking Heads: “Well, how did we get here?!” Let’s start abroad: After the stock market cratered, it began to recover quickly and it became clear this was not a rerun of the 2008 financial crisis. Soon thereafter, we witnessed affluent buyers starting to move on luxury vacation property from Vail to Aspen, and from the Hamptons to South Florida. COVID–19 was triggering the opposite of the financial crash of September 2008, in that luxury real estate was highly desired by those looking for easy-to-access, safe-haven retreats away from urban areas and primary homes. With airports and resorts closed, and most commercial planes not flying, the luxury market was, quite urgently, seeking out real estate!
Anyone who has lived in the Equatorial zone, or has traveled to the Caribbean/S. America over the years during Christmas season, will be familiar with the Trade-winds. The Trade-winds, dominate most of the tropics and subtropics throughout the world and are a nearly constant (they only drop away during end of September and October) northeasterly wind in our hemisphere, that starts to blow in November of every year. By the time December rolls around we experience whether akin to Aspen, Colorado. Think bright blue skies with the sun beating down, but a cool chill in the air. Substitute snow-capped mountains for swaying palm trees and sandy beaches and you begin to get a feel for the special draw of Turks and Caicos (‘T&C’) during the holiday Christmas period.
Boat trips
Coral is beautiful to look at, but we don’t allow it to be taken out of the sea 🙂
Every December 26th since I was a child, we have enjoyed a Boxing Day boat trip on the Atabeyra. For those with British heritage you’re familiar with the joys of Boxing Day, which for all intents and purposes, is a much less chaotic day than its forefathers Christmas Eve and Christmas Day. The Irish call it Wren Day, other countries call it St Stephen’s Day, but for all who celebrate it, in practicality it has become a day to relax and unwind after the stress of the holiday season is over, and gather with friends and family to enjoy a final day of good food and great company. If you can enjoy this holiday, or any other day in December on a boat, you’re quids in! Boating is a year-round event in T&C, and it doesn’t stop during Christmas. The weather is beautiful, the sun is shining and we’re still swimming in the ocean. Granted the sea may be a little colder than we locals like it, but there’s no better way to wash off the cobwebs than taking a Boxing Day plunge, and let’s face it, anyone from the Northeastern seaboard or Europe would laugh if they heard us admitting we find it a little cold! The temperature is akin to taking a dip in the Mediterranean during Summer time, refreshingly cool, enough to enliven your skin and leave you feeling renewed and energized.
Inter-island travel is open again
Mudjin Harbour, Middle Caicos
If you, like many, have been confined to your homes/apartments since the outbreak of COVID-19, self-isolating, locked-down and going through the rigmarole of at home schooling like the saint that you are, imagine jumping on a ferry with your family (face mask on of course) and making your way over to North Caicos (population approx. 1,500). From North Caicos, you can rent a car and head over to Middle Caicos on the causeway to explore the caves and bluffs with virtually no one else in sight. Fresh air, clean breezes, big ocean and natural adventures abound in North and Middle Caicos, and are just what the doctor ordered after months and months of quarantine. Sure, you can stay cooped up in your apartment until the frost from winter thaws, or you can safely enjoy all that T&C’s sister islands have to offer, and give your family the gift of a memory they may not have otherwise had.
Outdoor Activities
Tip of the Tail Villa
With the end of the dreaded hurricane season in November, December’s climate is well known as the most hospitable environment for international travelers. We’ve talked about boating and beaching, but there is no end of outdoor activities to take advantage of. With highs in the low 80’s and lows in the high 70’s, December is a perfect time to get on that kayak or paddle-board and explore miles and miles of unspoiled natural environment. Mangroves, the same ecosystem that protects our shorelines during hurricanes, are peaceful and rife with small marine life, turtles and bird watching for the nature lovers out there. There are many places where you can enjoy these activities conveniently just by stepping out of your private villa’s backyard, like Tip of the Tail Villa. Otherwise you can join one of the many operators on a guided tour of these precious ecosystems. I especially like Big Blue Collective who have long been ahead of the game in focusing on small private groups and preservation of the flora and fauna of T&C.
Call me crazy, but without the usual queues of the seasons you receive when you live in the Temperate zone, its tough to know when Xmas is on its way. We tend to live in a perpetual endless summer in T&C, but there are a few key indicators that the Christmas season is well under way. The first of these signs is the lighting of the giant Christmas tree that has long been an annual tradition. In years gone by the space that Seven Stars now occupies, used to be home to one of the first resorts in T&C, the Ramada, and after that it changed hands to the Allegro. Those times are a distant memory now, and it’s hard to imagine a time when Seven Stars wasn’t Seven Stars. The resorts on this prime beachfront land are so varied in aesthetics, but the one common feature, other than the land they’ve occupied, is the lighting of the Xmas tree. That’s the thing about traditions, they stand the test of time.
Light At The End of The Tunnel 3Q Sales Show Steady Balance With Positive Year End Predictions
There is light at the end of the tunnel as we creep back to a somewhat normal life, albeit carefully, so as not to unleash further closures as parts of the world are now experiencing for a second time. The measures put into place have helped secure the health and welfare of our people here in the Turks & Caicos Islands and the steady stream of visitors fortunate enough to arrive over the past couple of months have been pleasantly surprised at the consistent protocols throughout the businesses on island. The atmosphere and the beautiful, uncrowded beaches make for a very refreshing place to rest and revive your spirit through this time. It is no surprise that real estate inquiries are streaming in and sales are continuing at a regular pace. Last year marked a record year in real estate sales so it’s humbling to compare to those numbers, however, the 3Q graphs for 2020 are indicating a constant and strong balance. It is noteworthy that, of the $147M in pending sales on MLS, we expect $80M of these deals to close out before the end of this year which would bring the projected annual total sales for 2020 to $273M, approximately $10M higher than our 2018 year end sales.
The Residence: COMO Parrot Cay, Turks and Caicos Islands
In the last decade, Turks and Caicos Islands (‘TCI’) has become known as a preferred location for High Net Worth (‘HNW’) and Ultra-High Net Worth Individuals (‘UHNWI’).
With year-round sunshine, clear turquoise waters and easy accessibility from most major North American cities and London, UK, it is easy to understand why TCI’s real estate market has moved from strength to strength. Strong fundamentals: an economy utilising the US dollar, a friendly local government strengthened by a UK Governor, a handful of innovative and professional architects, builders, and real estate professionals, and no annual property taxes sustain the market.
More importantly however, this rise to fame as a HNW and UHNWI location, is directly attributable to one serendipitous timeline that begins in the late 80’s with the first wave of development. This period and slow crawl towards tourism saw quality low-density condominium resorts arising with a maximum of 3 levels, a requirement that remained in place until the 90’s with small increases in the 2000’s. This low-density mindset has left much of TCI relatively untouched, providing ample space for private development amongst generous backdrops, and has ensured its attractiveness to the HNW and UHNWI, many of whom lead busy lives and look to our market for second or third homes that provide privacy, tranquility and natural beauty.
If you have never visited TCI, imagine the tranquility of the beaches of Cayman Islands or Barbados, but without swarms of beach loungers or someone trying to sell you a trinket, now breath out 😊, and let me walk you through some of our most impressive sales of the last five years.
1. Celebrity Home Sale in Parrot Cay
The Residence: COMO Resort, Parrot Cay, Turks and Caicos Islands
In July 2019, The Residence sold for $27M, weighing in as the second highest sale price in TCI (hint-hint: the highest sale price was also located on Parrot Cay). With box-office record breaking films like Die Hard, Pulp Fiction and the Sixth Sense under his belt, this American actor with German roots fell in love with a plot of land in Parrot Cay in the 1990s and set about creating a family compound which spanned roughly 8 acres and includes three homes, set apart distinctly over a remarkable sunset-facing beachfront cove. With 11 bedrooms, wrap around decking and an expansive 35,000 SF, this home saw multiple birthdays, summer and winter holidays, and most recently a vow renewal, before it took its place with its rightful new owner.
2. A Musical Legend’s Estate Sells in Turtle Tail
Prince’s Island Estate: Turtle Tail, Providenciales, Turks and Caicos Islands
This is what it sounds like when…. history is made and one chapter closes. The musical icon that brought us hits such as “Purple Rain”, “When Doves Cry”, and my personal favourite “Raspberry Beret”, purchased land on a rare peninsula in Turtle Tail, housing only one other neighbour. Complete with two adjacent waterfront land parcels of 2.74 acres, this Estate’s glory is attributable not only to its legendary ownership, but also due to it selling in under five months on market. The 5.74 peninsula with 6 bedrooms over nearly 10,000 SF sold after utilising Ro0omy technology to virtually curate the interiors, in June 2019, for $10.8M.
3. A Beachfront Bajan Beauty sells along Grace Bay
Coral House: Grace Bay, Providenciales, Turks and Caicos Islands
Coral House: an Oliver Messel inspired design based on the coral stone homes he famously created in Barbados, can be found along Grace Bay beach. It is hard to miss this timeless masterpiece. Coral House sits proudly and peacefully on powder white sand with easy ocean access, marking the beginning of the more residential zone of Grace Bay beach. At over 12,000 SF, with a gourmet kitchen, 6 bedrooms, a library, office for those zoom calls, breakfast room and more, Coral House is a dream family home. Neighboured by its sister property Coral Pavilion (sold in 2019 for $9.12M and available for private rentals via islandhouselvm.com), Coral House has no other immediate neighbours, enhancing the appeal of its locale. This rare home sold for $10.6M in October 2019.
4. Private Home Sale at COMO Parrot Cay Turks & Caicos
Serenity Villa: COMO Parrot Cay, Turks and Caicos Islands
Serviced by COMO Parrot Cay, Serenity villa sits amongst an unequaled panorama of unspoilt beach, luminous ocean, and infinite skies. With 373 feet of sugary sand over 5.38 lush acres, the home is nestled in a stunning half moon bay, offering 8,645 SF of impeccable living under roof. Serenity Villa is a beachfront estate like no other, with a design ethos that is sensitive to its surroundings, reflecting the glorious natural aesthetic for which Parrot Cay is known. The property sold for $17M during the summer of 2017 and marks the third most expensive home sale on the exclusive island of Parrot Cay. This private sanctuary near the water’s edge includes high-speed Wi-Fi and custom music (part of the villa’s master AV system), a refreshing outdoor shower and a beautiful cabana with a suspended circular daybed.
5. Dreams from Dallas Sold in COMO Parrot Cay Turks & Caicos
Oliver’s Cove: COMO Parrot Cay, Turks and Caicos Islands
Oliver’s Cove is a property close to my heart – it is as traditional as it is eccentric. With swathes of Royal Palms and verdant lawn, the elegant Caribbean exterior design alludes to the home of Oscar De La Renta in Punta Cana, but step inside and marvel at the surprisingly eclectic mix of antiques and custom touches. Hand-troweled Venetian plaster throughout, with aged exposed timber beams, hickory flooring and a pair of antique French doors at entry to the home, set Oliver’s Cove apart as a premier estate on the private paradise of Parrot Cay. With 7 bedrooms between the Main House and Guest House and nearly 800 FT of beach frontage over 6.54 acres, Oliver’s Cove set a record-breaking price when it sold in February 2016 for $27.45M, making it the highest sales price in TCI.
6. Amazing Grace in Leeward Set the Pace for Emerald Beach
Amazing Grace: Leeward, Turks and Caicos Islands
Amazing Grace sold in 2015 for $15.1M in the exclusive eastern end of the residential neighbourhood of Leeward, known as Emerald Beach. Emerald Beach is home to mega-estates, all of which benefit from wide expanses of virtually private beachfront. At Amazing Grace, white-washed interiors provide a sense of peace throughout while the traditionally Caribbean property boasts 282 feet of superb white sand beachfront right outside. With 8.4 acres, it was sold complete with direct and canal and dock access, a popular feature amongst the ultra-luxury properties of this location. Since the sale of Amazing Grace, Emerald Beach has become better known as a location for those searching for exclusivity and tranquility
The TCI HNW and UHNWI market is on the rise, with no signs of letting up in the face of a pandemic. In fact, the appeal of our fundamentals seems to be on the rise too.
Defying the Odds – First Half of 2020 Up Over Same Period Last Year
In late March, our world, and everything in it, came to a screeching halt, as Turks & Caicos Islands closed its borders to tourists and visitors through the end of June. Resorts, restaurants, airports and businesses closed and real estate deals, after a strong Q1, were either canceled or deferred.
However, unlike the aftermath of the financial crisis of September 2009, where we had weak fundamentals and luxury buyers disappeared, the opposite has occurred, with luxury and other buyers remaining in the game and continuing to shop and purchase real estate. Reports from our Sotheby’s International Realty network echo similar strength and trends in the US and Canada, and many countries internationally. In this regard, our market demand has shown much greater resilience and further, there has not been a flight to list property. So far, at least, our market has backed up prior assertions that we are stronger and fundamentally healthier. There are several reasons for this. First, we do not have an oversupply of inventory; second, we have very few speculators in the market; third, our debt–to–equity ratio is very low; fourth, throughout North America and beyond, there has been a COVID-19 surge to quality, open space and “safe” havens, and TCI checks all of these boxes. Finally, and most importantly, we continue to work diligently to communicate and serve our clients and customers. From our regular virtual internal team meetings to participation in Industry Zoom conferences, and virtual showings with customers and clients across the globe, we have placed quality communication at the forefront. In this regard, it is inspiring that we feel more connected with our network, team and community than ever.
1ST QUARTER 2020 CLOSES OUT ON A HIGH – PRE-COVID-19
As many of us are forced to slow down our lives and reflect inward, we are grateful for many things that this unprecedented time has brought us to evaluate, including of course our families, friends, communities and a country that has put all of our people first with their proactive decisions during this health crisis. We are further grateful to our TCI Government leaders, HE Premier Cartwright-Robinson, HE Governor Dakin, the Ministry of Health and their teams for their thoughtful leadership and communication.
As we begin to accept and absorb our new reality, we are advancing our way back to business activity and effectively working as a team and with clients and customers, and there are even new transactions in process, furthered by the recent reduction in Stamp Duty by 50%, which has provided a welcome trigger for short-term activity. Click link below to read more . . .
The Bight by Dream Hotel Group Celebrates the Launch of its 66-Suite / 89-Key Condo-Hotel Project in Partnership with Celebrated Brand & Management Company Dream Hotel Group
On Tuesday 11th February, Grace Bay, Providenciales came to life with an inspired Block Party Event to celebrate the official launch of The Bight by Dream Hotel Group and their new partnership with NYC-based Dream Hotel Group, who will now serve as Manager and Operator for the 66-suite/89-hotel key project. The event took place between Sandbox and Turks & Caicos Sotheby’s International Realty’s office with music by renowned DJ Munro spilling over to the streets and a botanical jungle theme scape that flowed throughout both venues, intertwining the buildings to one another. If the refreshingly simple and stunningly creative ambience is anything to go by, this development is off to a progressive start.
Ryan Jones and Natalie Zaidan of the EA Group are best known for the hip local coffee spot, Lemon-to-go-café and their successful landscaping company Environmental Arts, but this powerhouse couple, who have called Turks & Caicos their home for close to two decades, are lesser known for the multiple hats they wear, which include construction, real estate development and sales, art production, rum and vodka distilling and their latest food and beverage venue Sandbox, which caters to the on trend phenomenon of health conscious consuming. No mini sliders here. EA Group is always one step ahead of the curve. Everything from the mood, to the canapes was refreshing. Guests dined on air fried vegetable samosas and mini chicken satay, to name a few, and quenched their thirst with coconut water housed in Turks & Caicos grown coconuts provided by local business owner, JJ Jennings of Coco Vibes. The signature “cocktail with a Bight” was a spicy margarita with a slight bite as the name suggests.
Between speeches guests posed amongst giant foam letters that playfully encircled the Turks & Caicos Sotheby’s International office, spelling out “The Bight Hotel”. As the night progressed and guests, hoteliers, Government officials, and friends filled the space, Ryan Jones spoke to the crowd and announced his vision and dream of bringing an authentic, experience-based condo-hotel to the Turks and Caicos that focuses on lifestyle.
“So why do you want to build a hotel? Why do you want to be in this business? What is the origin story of this project? Natalie and I live in the Bight. This is our home, and we love the country. I loved it enough that I made my life here and had my kids here. We wanted to recreate the magical Turks and Caicos experience that people have when they come here for the first time and never leave. We want to share that with people. We were looking at the market and thought the five-star market is really well-served by a whole bunch of guys who have done an amazing job. The market that really needs to be addressed is the four-star boutique market with culture, design, art, experiences, and adventure. We wanted to align what we did with our life and that’s why we decided to build a hotel here. Then it was a matter of finding the right management partner. An established, creative and inspiring team to bring our vision to life.
“The Bight by Dream Hotel Group will cater to travelers and owners who share a passion for design, community, and food and beverage —all while celebrating the natural beauty and culture of the islands,” added Jeff Donnelly, Vice President of Development, Dream Hotel Group. “In our partnership with EA Group, we are committed to delivering a fresh and exciting experience to the Turks and Caicos Islands.”
Following a soft launch in April 2019, the last 10 months have seen 10 reservations. That’s an average of one reservation per month, a staggering number for an overseas jurisdiction and a new developer. Further confirmation that design- and lifestyle-driven EA Group have their finger on the pulse of the next real estate trend.
“The Bight by Dream Hotel Group is lean, and it’s designed for short term vacation rental. There’s no fat. What do you say?” Joe Zahm Presidentof Turks & Caicos Sotheby’s International Realty asked DeveloperRyan Jones, “Everything you need and nothing you don’t need. I look at it with the great end in mind. It is designed for the end user from the beginning with a real hotel lobby and bar, and a real vibe and lifestyle experience attached to it. And when you factor in the connectivity, elegance and simplicity of the design, at a wonderful price point, this will well serve the market, who really want to be part of the investment class, where your return on investment is just better per square foot. And when you add on just a great amenity set that’s going to be a part of the Bight, and you also add to that just amazingly smashing outlooks with the only elevated property and true beach access. It’s really a combination to die for.”
So what’s next for the EA Group you ask? More sweat and hard work. Starting with digging trenches in the Bight neighborhood to begin burying those old power lines and transforming the area to the beautiful vision Natalie and Ryan started dreaming about over seven years ago. Look out for more information on the underground power line initiative and the beautification of this local neighborhood.
Turks & Caicos Real Estate Closes The Decade With Record Shattering Year On the Strength of Luxury Villa Sales
Turks & Caicos real estate sales closed out the second decade of the 21st-century with a bang, after entering it tepidly in 2010, as the following graphs demonstrates that villa sales represented around 52% of the total market in 2019. Circa $219.7M of the record $334.7M dollar volume were villa sales with a stunning average price point of $1.98M. This incredibly impressive performance speaks volumes for the power of the Turks and Caicos Islands brand, our private and public sector, and our wonderful investors, homeowners and visitors. If the past ten years can make history as our decade of the luxury villas, what will the next ten years’ headline be?
November 26th, 2019, Providenciales, Turks & Caicos Islands. Beach Enclave Turks and Caicos, the private villa resort brand behind Beach Enclave North Shore , Beach Enclave Grace Bay and Beach Enclave Long Bay is proud to announce the further expansion of the successful Beach Enclave brand with the Official Groundbreaking of Phase 2 Beach Enclave Long Bay, the first true luxury boutique resort in the Turks and Caicos Islands. “We could not be happier with the three resort locations we have – eachone peacefully nestled on the best beaches Turks & Caicos has to offer,from the north shore to the south shore of Long Bay in Providenciales. Phase 2 at Beach Enclave Long Bay is perhaps our most ambitious project yet.Our ethos for low density private beachfront living and our signature personalized touch is established and our guests love us for it.Our goal now is to continuously improve the owner and guest experience by growing our resort amenities to provide everything they may needwhere they need it, right there, a short beach stroll away.- Vasco Borges, CEO, Beach Enclave
The Turks & Caicos Islands community of businessmen, agents and Government Officials showed up to support the Groundbreaking of Phase 2 Beach Enclave Long Bay, which consists of four 3 – 4 bedroom standalone Beach Houses and The Club, a 24 key boutique hotel with 7 select Club Residences available for private ownership (Phase 1 villas are sold out, resort is open to owners and guests).
“With 16 completed villas, a further 11 under construction,and another 10 planned, along with additional hotel keys and a host of amenities, Beach Enclave has quickly developed into a desired luxuryvilla and hospitality brand under the direction of CEO Vasco Borges.With three beachfront location options offering the best in luxury villa living and services, BE is an industry leader with over a 50% share in its real estate market segment and a #1 Trip Advisor rating from its highly satisfied guests.We love representing this awesome and emerging brand.”- Joe Zahm, President, Turks & Caicos Sotheby’s International Realty.
With the Beach Houses taking shape over the next year, The Club Boutique Hotel,a four-story soft-contemporary building, designed by acclaimed architects Jacobsen Arquitetura , will add further on-site resort facilities including one-of-a-kind rooftop Wellness Spa & Lounge, a beachfront restaurant, Club Pool, fitness centre, lighted tennis, full water sports and children’s area on 8 acres over 800 feet of white sand beach. With 24 hotel keys and 7 select Club Residences, all of the Residences will enjoy beachfront positions with wide frontage, full kitchen and indoor/outdoor living spaces.Private ownership opportunities range from a Junior Suite(with 34 ft. of frontage and 878 sq. ft.) to a Three Bedroom Club Penthouse(with 56 ft. of frontage and 3,240 sq. ft.) The Club brings an exciting, modern, tropical design to Turks and Caicos,enhancing the Beach Enclave ethos of low density living amidst a boutique environment. An offering for the few, allowing owners beachfront family living within the security of Beach Enclave’s proven rental and management program.
Beach Enclave Grace Bay in Leeward is also under development, with only one beachfront lot remaining. Be on the lookout for our official update coming soon.
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Turks & Caicos Sotheby’s International Realty, Venture House, Grace Bay, Providenciales
Impressive 3rd Quarter Leads TCI Market Towards Record Year
Led by our record-breaking sale of The Residence on Parrot Cay at $27,000,000, Q3 2019 posted an impressive gain over 2018 (up 38.8% from $64,785,600 to $89,918,500). Historically, Q3 is our sleepiest quarter, but it has become apparent over the past few years that TCI is now indeed a year-round market for both tourism and real estate, and not just a seasonal one, with strong summers and improving shoulder month performance. Overall, the market after three quarters is up 16.47% over last year in $ Volume ($241,145,500 vs. $207,048,195). This dollar volume is more than the market did in all of 2017! Average price is up 30% from $692,469 to $903,167.
Turks & Caicos Real Estate | Caribbean 