By Teresa Levonian Cole from FT

The two Caribbean islands are both focusing on the elite market with a series of prime housing projects f you’re here, you’re not all there,” runs the joke on the sleepy Caribbean island of Nevis, the smaller and more glamorous sibling in the Federation of St Kitts and Nevis.

The two islands were among the earliest British colonies – from the 17th century to independence in 1983 – filling Britain’s coffers through the production of sugar. There, however, similarities end, the rivalry between the islands, united since 1882, reflected in the divergent policies of their parallel administrations – not least in the field of tourism. “Here, we have always sought high-spend, low-impact tourism,” says Mark Brantley, the deputy premier of Nevis. “In St Kitts, they have opted for volume: large cruise ships and mass tourism.”

Historically, at least, this has been the case, with a concomitant effect on property development. “Nevis is essentially a villa island,” says Suzanne Gordon, owner of Sugar Mill Real Estate, “attracting artists, celebrities, and people in the know, since the 1970s.”

The appeal is the island’s low-key, unspoilt charm, so different from socialite Barbados, or glitzy St Barts, 40 miles away. Nevis is a romantic island, dominated by a verdant, mist-shrouded volcano. Wild donkeys roam the ruins of sugar estates, while vervet monkeys inhabit once-magnificent houses, abandoned by the British after the decline of the sugar industry in the 19th century. A handful of these, such as the Montpelier Plantation – where Horatio Nelson met and then married Fanny Nisbet in 1787 – have been restored and converted into boutique hotels.

Occasionally, a property of historic interest will come on to the market. Dunbar Mill, incorporating a 17th-century windmill, is one example. The unusual layout of the main house includes two bedrooms and two studies, with a guest cottage – on the foundations of a sugar factory – providing two extra one-bedroom apartments. With beautiful gardens among scattered ruins, a saltwater swimming pool and magnificent views, the property is on sale for $2.5m through Sugar Mill Real Estate.

Homes in new residential developments are more plentiful. “The arrival of the Four Seasons Resort in 1991, and the creation of their first branded residences [in 1995], put Nevis on the map,” says Gordon. “That heralded the beginning of the boom in luxury developments.” The resort has 73 villas set in 350 acres, with land for the most recent phases of development on sale from $700,000 to $2.5m. Villas available on the secondary market are among the most expensive on the island, costing from $1m to $5m for two- to six-bedroom properties. A hefty management fee ($30,000 to $90,000 per year) buys convenience and peace of mind, while, for an extra $8,000, owners have access to the resort’s facilities – including the island’s only 18-hole golf course.

Despite continuing demand for such prime property, “the market has adjusted downwards between 20 to 30 per cent since 2010, and has found a more realistic level”, says Gordon. “Properties on Nevis tend to fall within the $350,000 to $3m bracket. And whereas, historically, buyers were principally from the UK, North America and Canada, with a sprinkling of Europeans, we are now seeing interest from Russia, China and the Middle East, too.”

This can be ascribed to the country’s Citizenship by Investment Programme whereby those investing $400,000-plus in a qualifying development, may apply for citizenship. The passport also grants visa-free travel to 127 countries, including all EU members. Introduced in 1984, the scheme has been more aggressively promoted in recent years, giving rise to a series of fractional ownership developments, such as Seaside at Cliffdwellers. Here, $400,000 will buy a one-eighth ownership of a four-bedroom home by the sea, with a shared 85ft pool, through Sugar Mill Real Estate.

St Kitts and Nevis map

The $400,000 threshold for economic citizenship has been particularly influential in driving the real estate market on St Kitts. This has led to fractional ownership developments such as Koi Resort and Residences, where buyers are predominantly Chinese.

Yet St Kitts is also targeting an elite market, recently opening a new private jet terminal at its international airport.

Christophe Harbour, set within 2,500 acres on the island’s remote southern peninsula was first to take the plunge, selling plots of land in an exclusive development that will include a Tom Fazio-designed golf course, and a 300-yacht marina. A fully-furnished, four-bedroom villa is on sale here for $4.6m.

In Nevis, meanwhile, the much-anticipated Aman Resort is due to break ground next spring when 40 palatial villas will go on sale, off-plan, from $2.5m to $12m. “Nevis has always been known as the more exclusive island,” says Simon Lowe, Aman’s developer, who has owned a home there since 1996 and seen its value increase 170 per cent.

“The key thing to understand is that buying real estate in the Caribbean should not really be considered an investment,” says Suzanne Gordon. “It is a lifestyle choice. If you can cover the costs of owning a house through successful rentals, you will be doing well.”

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Buying guide

Both islands boast unspoilt nature and pristine beaches

There is no capital gains, inheritance or income tax

Citizenship can be acquired about five months after buying a property

The islands are prone to hurricanes and healthcare can be of poor quality

What you can buy for . . .

$500,000 A three-bedroom, Caribbean-style cottage with a pool

$1m A three-bedroom villa with a pool on 3.5 acres, in the hills on Nevis

$5m A substantial, five-bedroom villa in a premium development

Teresa Levonian Cole was a guest of Four Seasons Resort Nevis and the Nevis and St Kitts tourist authorities

IMAGES:

Paradise Beach on Nevis©Getty

Dunbar Mill, a 17th-century property on Nevis, $2.5m©Getty

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