South Bank luxury development in Providenciales (pictured above)
Luxury market booms as high-end properties drive a surge in sales. The real estate market in Turks and Caicos Islands (TCI) has seen unprecedented growth in the years following the pandemic, with sales volumes more than doubling compared to the pre-COVID period.
A new report by Joe Zahm, President of TCI Sotheby’s International Realty, highlights a remarkable transformation in the island’s property sector, one that has turned TCI into a premier destination for luxury real estate.
Between 2017 and 2020, the market averaged $282 million in total sales annually. However, from 2021 through 2024, this figure soared to an astounding $710 million, marking a 151% increase. This leap underscores the growing appeal of TCI as a luxury haven for both investors and homeowners, with demand far outpacing expectations.
A 75% jump in average property prices
In addition to the growth in sales volume, the average price of properties has also seen a dramatic increase. Over the same four-year period, the average price of real estate jumped from approximately $824,000 to $1.44 million — a surge of 75%. Zahm attributes this upward trajectory to the growing demand for high-quality luxury homes and the increasing influx of affluent buyers from around the world.
“These numbers reflect the steady emergence of TCI as a true luxury destination,” Zahm said in the report. “The demand for quality properties, alongside TCI’s unparalleled natural beauty and stability, have made it an ideal location for discerning buyers.”
Single-family homes lead the way, but condominiums are on the rise
The report highlights an important shift in the market. While single-family homes (SFH) have traditionally dominated the residential sector, recent years have seen a surge in condominium sales. Between 2021 and 2024, single-family homes averaged $360 million in sales annually, significantly outpacing condominiums, which averaged $178 million. Notably, single-family homes also commanded a higher average price of $2.59 million compared to the $1.36 million average for condominiums.
However, Zahm noted that the trend is starting to reverse, with a new wave of next-generation condominium projects driving much of the current market activity. “The pendulum is swinging,” Zahm observed. “What we’re seeing now is a transformation, with high-end, pre-construction condos leading the charge. Properties like The Point by Grace Bay Resorts, ARC Sky Villas at South Bank, and Andaz Turks & Caicos are setting new benchmarks in demand.”
The booming condo market
The rise of pre-construction condominiums has been particularly notable, with $363 million in pending sales, of which $240 million is attributed to next-generation condo projects. This marks a complete turnaround from past trends, with condos now making up 66% of residential sales, compared to only 33% in earlier years.
“The skyline is changing. These luxury condo developments are much more visible, with striking designs that can be seen from air, sea, and land,” Zahm said. “In contrast, the major villa developments of the past were often more secluded, tucked away from view.”
With these major projects in the pipeline, Zahm expects the market to continue evolving, offering potential buyers a wider range of luxurious properties to choose from. “The future of the luxury condo market here is incredibly bright,” he added.
A steady rise in ultra-luxury sales
The luxury segment of the market has also experienced impressive growth. Sales of properties over $10 million have steadily increased, with a significant expansion in the $20 million-plus market. The report notes that the first $20 million sale in TCI occurred in 2016 on Parrot Cay, and since then, the high-end market has flourished.
Most notably, the ultra-luxury market — defined by transactions exceeding $30 million — has seen consistent growth. Zahm points out that since 2023, properties in this price range have been sold on an annual basis. He further predicts that the next frontier will see $50 million sales becoming more common, with $100 million transactions possible within the next decade.
Looking to the future: Continued growth expected
Zahm’s outlook for 2025 is optimistic, citing the expansion of luxury estates and the development of new, high-demand properties as key drivers for continued growth. “With the volume of significant estates in development, it’s only a matter of time before we see $50 million-plus sales become routine, and $100 million deals are likely to happen within the next decade,” he said.
The market is showing no signs of slowing down, and Zahm is confident that the Turks and Caicos Islands will remain one of the top destinations for luxury investors and homeowners worldwide. “TCI is solidifying its position as a global leader in luxury real estate,” he concluded.
Key highlights from the report:
• Remarkable Growth: Since 2020, TCI’s real estate market has experienced a 151% increase in sales volume and a 75% rise in average property prices, demonstrating its long-term appeal and sustainability.
• Shifting market dynamics: Pending sales show a shift from single-family homes to condominiums, with next-generation projects leading the way in market share.
• Luxury market strength: The ultra-luxury segment continues to expand, with $30 million-plus sales becoming an annual occurrence and the likelihood of $50 million deals within the next few years.
• A bright future: As new developments and estates continue to enter the market, TCI’s luxury real estate sector is poised for sustained growth in 2025 and beyond.
Zahm’s report paints a picture of a flourishing real estate market in TCI, driven by both a boom in luxury properties and a shift in the types of properties that are gaining traction. The transition from traditional villas to high-end condominiums and the steady rise in ultra-luxury transactions indicate a market that is both resilient and evolving to meet the demands of an affluent global clientele. As the islands continue to attract international buyers, it seems clear that TCI’s real estate market will remain a shining star in the Caribbean.
Source: The Sun Turks and Caicos