Caribbean Real Estate Agents

How Brexit affects Caribbean Real Estate Property Market

Micha Landers

On 23rd June 2016, the Britishers will be deciding whether they want to stay in the European Union (EU) or not. If they vote to leave, they may unwittingly change the specific status that the UK’s Overseas Territories in the Caribbean have with Europe. There are chances of the UK's vote for the EU exit. Bitterly titled as “Brexit” which was recognized by the 'International Monetary Fund' (IMF) in its newly released World Economic Outlook Update Report as a major risk to the global economy.

The United Kingdom is a major root of travelers' arrival for many Caribbean countries. According to the Caribbean Tourism Organisation’s State of the Industry Report, near around 1.1 million UK tourists visited the Caribbean in 2015.

For those tourism-dependent nations in the Caribbean, the UK is one and the only source market. Their economic fortunes are attached to the health of the UK economy and quality of Sterling. This was clearly explained by the slowdown several tourism-dependent economies in the region experienced. Whereas, the US and the UK economies were in the recession during the global economic and financial change.

Affect Of Brexit on the UK Economy

The research output of Brexit on the UK economy is expected as uncertain and range the gamut from constructive to destructive. Nevertheless, the IMF position is clear as seen in its most recent WEO Update Report where, it cuts it's growth predictions for the UK from 2.2% to 1.9% in 2016, representing a projected slowdown from the 2.3% growth the UK economy realized in 2015.

In Barbados, British nationals are also an important source of real estate FDI. It was recently announced by local real estate agents in a news broadcast that the softening in the value of the Great Britain Pound has discouraged the demand for Barbadian lavish real estate by the British second home purchasers and hit the slight recovery the island’s second home market was enduring.

Affect Of Brexit To EU Property Owners

  • The European Unit could expect the UK's citizen to apply for a visa to visit a country in the EU, which for holiday home owners would mean more nosy questions about how long you were going to visit, your income and health cover.

  • An individual who has lived in an EU state for more than 5 years is eligible for long-term resident status under the EU law. But for that, it is necessary that your status should be more limited than your present one. As an EU citizen, you will be able to speak your host nation’s language.

  • The UK citizens are liable to stay allowed to claim property in the EU, as whatever other nationality seems to be. For instance, in France, numerous US nationals own property without confinements.

Apart From This, Other Affects Of Brexit are-

  • Sales expected to fall up to 10% nationally and up to 20% in London

  • Decay in house prices expected to follow, with a 5% fall in the second half of this year predicted

  • Bank of England governor Mark Carney states 'additional measures' will be used, if needed

View Count 2,917