Antigua and Barbuda

The basics – The islands of Antigua (pronounced An-teeg-uh by people in the Caribbean, not An-teeg-wuh as most others do) and Barbuda (Bar-buddha) are a British Crown territory, located in the center of the Caribbean and near the top of the Lesser Antilles. The Capital is St. John’s (also the cruise ship port) and the currency is the Eastern Caribbean Dollar (pegged to the US Dollar at $2.70 EC to $1 US). The total land area - for both Antigua and Barbuda - is 108 square miles and the population is estimated at 65,000 (63,500 on Antigua alone). Antigua is far more developed than Barbuda and plays host to the vast majority of visitors and investors to these islands (and we will consequently focus here). English is the official language, though island “Creole” is the norm.

Antigua is known for having 365 beaches (“one for every day of the year”) and Barbuda for having secluded, pink sand beaches (we couldn’t count 365, but we’ll take the tourism board’s word for it). As you might expect, typical Caribbean activities – such as snorkeling, sport fishing, scuba diving, nature hikes, Carnival festivals and the like – are first rate. Additionally, Antigua houses a modern cricket facility as part of their hosting world cup cricket practice and hosts both an international yachting (Classic Yacht Regatta) and sailing event (Antigua Sailing Week). Infrastructure is a little better than Caribbean-average. The roads and signage are fairly good, though not great. Access to most tourism destinations is something of a challenge, as everything from accommodations to attractions requires a bit of a trek by car. As usual, most of the destinations are on the periphery of the island and necessitate a pretty good sense of direction and even better map-reading skills to go from one place to the next.

Topography is rolling hills with a few “mountains” in the southwestern part of Antigua. Barbuda is even flatter. Weather is predictable – highs from 73 to the upper 80s (23-32 degrees Celsius) throughout the year. September can be hot when the trade winds don’t blow as much and September to November is the official rainy season (usually short duration showers).

Accessibility/Getting there – The primary airport is VC Bird, International (Sir Vere Cornwall Bird, Sr. – in case you were wondering), which is about average by Caribbean standards. Notably, Liat/Caribbean Airlines uses Antigua as its hub, offering direct or connecting flights to virtually all parts of the Eastern Caribbean and also Guyana in South America. International flights from North America and Europe also come directly into VC (airport code ANU). Antigua is a fairly frequent cruise ship destination, though not nearly to the extent of a St Thomas or even a St Maarten. Once on the island, rental cars are recommended as getting around the island any other way is problematic (unless you simply go to your resort and never leave). Be prepared for rental car counters without computers! A temporary driver’s license (valid for 90 days) is required ($20 US or $50 EC) and can be obtained at the rental car counters. Remember to drive on the LEFT side of the road – British style.

Many arrive under sail or motor by boat, often into the famous Nelson’s Dockyard in English Harbour or Falmouth Harbour to the south or Jolly Harbour on the west side of Antigua.

Desirability for investment – Aside from the usual Caribbean beauty and activities, Antigua has a bounty of beaches, good ease of access and steady demand by tourists. Infrastructure - including electricity (primarily US 110 volt, 60 cycle), telephone, architects, developers, builders and such - are above average for the Antilles and Caribbean in general. Water and electricity are government-provided, though expensive by US standards.

Several new developments are in the works and substantial building is going-on from the northwestern area of Antigua (the Runaway Bay area) south to Jolly Harbour. By way of example, La Perla International Living has purchased the Jolly Harbour development, comprising 500 acres of coastline, marina and overlooking hillside. They are offering condos, villas, condo-hotel units and plots for sale. They are also doing a development on the east side of the island in an area called Nonsuch Bay. Apartments (condos), townhouses, villas and plots (upward of 1/3 of an acre in size) are again available.

Location: WITH MAPS OF CARIBBEAN AND AREA

Antigua's location in the Caribbean

Antigua

Investment Appeal:

The tax and land use landscape of Antigua:

Closing costs can be estimated at 10% in total, plus realtor’s commissions of 5-7% if applicable. Non-residents have to obtain an alien landholder’s license (which can take 4 months to issue) to buy property – at 5% of the value of the property. Occasionally, larger developers negotiate away this fee for first-time buyers from the government. In Jolly Harbour, for example, initial sales appear to get this fee waived (not resales) – please check with the developer if you are interested, to be sure. Government transfer fees are 2.5% to the buyer and 7.5% to the seller. Lawyer’s fees of 1-2% round-out the fees to close and are typically paid by the buyer.

Title to property is guaranteed by the government and registered therefore no title insurance is required. There are penalties and mandatory development timetables for foreign investors in Antigua and Barbuda. The terms of your non-resident license will dictate them.

There are property taxes, which are assessed based on the rental rate of the property. These appear cheap but are very difficult to estimate, but factor-in 1% in your homework. This appears to be changing to a more typical ad valorem system, but expect this to take considerable time to accomplish.

Rental taxes are 25% on net rental income for non-residents and there is a 5% capital gains tax on profits from sale of real estate.

RENTAL

There are few significant condominium developments in Antigua and none that we are aware of on Barbuda. The Jolly Harbor area is the primary driver of new rental opportunities. It is difficult to make any generalizations about rental climate. Few statistics are kept so the consistency of rental rates and occupancy numbers are pure conjecture. One can assume typical management fees of 30-50%, high season from December to April and the other standard Caribbean rental conditions. Stated rates are usually 10% for management (which includes nothing but giving out keys and calling the maids for you), rental commissions of 8 1/3% and various other fees. Again, rental taxes are 25% on net rental income for non-residents and there is a 5% capital gains tax on profits from sale of real estate.

OWNERSHIP AND TITLE INFORMATION

As stated above, foreign ownership is not subject to any special stipulations and can be held individually or via another vehicle. The one exception is with the purchase of raw land where, typically, there is a requirement to build within a certain period of time, e.g., to commence construction within 6 months of closing. Almost all land is freehold. Title is recorded in the central land registry and title insurance is not involved, as the Government certifies title at the time of transfer.

DIFFERENCES FROM ONE AREA TO ANOTHER - "NEIGHBORHOODS"

Realtors/MLS:

There is no MLS system on the island and the usual “hit-or-miss” tactic of trying to find as many realtors as possible is your best bet for finding opportunities. Like most islands/countries without MLS, it is sometimes easiest to plan a 4-5 day stay in the islands and talk to as many people as possible – realtors included, of course. Often there are parcels, homes, etc. people are willing to or interested in selling, but you would never know unless you speak to the person directly or someone who is aware of their desire.

The VAST majority of development (and projected development) on Antigua is focused on the northwest, southwest and southern shores of the island. Runaway Bay in the northwest and Jolly Harbour seem to be the busiest - if you are looking for condos/apartments, these areas are for you.. Additional smaller projects on the easternmost parts of the island seem to be picking-up steam. We feel that the eastern and northeastern sides of the island, as well as Barbuda, are best bets for getting "ahead of the curve."

Representative listings:

All prices in US Dollars

Land (building costs can be estimated at $125-300 per s.f.)

Harbour Island – average plot size 800 sq. meters (or 1/5 acre), minimum 66’ sea wall, from $400,000.

Jolly Harbour beachfront – average plot size 1,200 sm (or 3/10 of an acre), minimum 100’ of sea wall, priced from $800,000.

Cobbs Hill – ¼ acre, $150,000.

Brown’s Bay – 2.14 acres, $650,000.

Various others from $12 to $20 US per square foot (or $500,000-900,000 per acre) though almost all available lots are small *under 1 acre*.

Villas/Houses

Jolly Harbour villas (new) – 2 bedrooms, minimum 16’ of sea wall, priced from $350,000.

Harbour View villas (new) – 4 bedrooms, ¼ acre plots, priced from $450,000.

Willoughby Bay villa – 5 bedrooms, priced at $1.2 million.

Center island villa – 4 bedrooms, 3 baths, priced at $600,000.

Condominiums

Jolly Harbour apartments (new) – 2 bedrooms, priced from $275,000.

South Point Condo/Hotel (at Falmouth Harbour) (new)– 1 bedroom suite, priced from $450,000 (ROI is projected at 8% by the developer).

Nonsuch Bay apartments (new) – from $500,000.