St. Barths Real Estate Update – State of the Market Dec, 2020
The island is booming, with many clients extending their stays, as they realize St. Barths is a pretty great place to be right now. The St. Barths real estate market in November and early December is normally dormant, however, not this year. The real estate market is showing traction rarely seen in the last thirty years. Ultimately, that means that publicly listed properties are getting snatched up quickly. This includes purchases made sight-unseen by buyers unable to get to the island.
What Buyers on St. Barths Are Looking For
What’s hot? Three out of every four buyers who I talk to are asking for properties within a 10-minute drive of Gustavia. Thus areas like Lurin, Flamands and Lorient, and, of course, St. Jean all remain hot. With that said, the popularity of Le Toiny Beach club has helped increase the value of properties on that end of the island.
Who Are the Buyers?
St. Barths continues to attract buyers from all over the world. US and EU citizens continue to represent the majority of buyers, however, we are also receiving offers from clients living in South America, Eastern Europe and Russia, and the occasional Middle East. In addition, large institutional investors are starting to dip their toes into our small market.
What’s the trend with property values and pricing?
As the inventory gets sucked up, bidding wars occasionally ensue. Those interested in buying properties in St. Barths in the near-term should be prepared for an increase in all baseline prices.
With that said, there is still some very good low-hanging fruit in all price tiers; those options are likely to be devoured in the next few months, however, as buyers who were not able to visit last spring return this winter. As good value buys disappear, it is likely that we will see a 15% to 20% shift in the under €10 million market over the next few months. Of course, this is all predicated on the island staying open.
The action in the market is not limited to the value sector. There have been three landmark sales of waterfront properties in the last six months, ranging from €25MM to €75MM.
Update to the island’s Zoning Map
Another factor that impacts demand and pricing is how land is zoned. The Collectivite recently approved an updated version of the island’s zoning plan, la carte d’urbanism. Once officially published on January 1, 2021, this plan will provide stability to the market. Land owners and buyers will get clarification about what can and cannot be done on land with existing buildings, in each area of the island, and more importantly, on undeveloped land that is not in a green zone. Further distinctions will be outlined as to what land is within a green zone, and therefore cannot be developed. We expect this new zoning plan to positively impact the building permitting process on St. Barths by reducing ambiguity.
Read about St Barts new zoning map
My Take on the market
All I can say is, try to get down here as soon as you can because it’s truly wonderful. I personally believe the majority of the inventory – that is properly priced – will no longer be available come March. If you have any questions, comments or thoughts, please let me know!
Director, WIMCO International Real Estate
Agent Commercial, WIMCO Real Estate
See real estate listings in St Barts – https://www.wimco.com/villas/villasalessearch.aspx
How to buy a villa in St Barts – https://www.wimco.com/sales/howto.aspx
Contact a St Barts real estate broker – https://www.wimco.com/sales/contactus.aspx
Related Articles on St Barts Real Estate
St Barts Carte D’Urbanism (Zoning Map) – January, 2021
St Barts Real Estate News – December 2020