Saint Barts' Real Estate Market Trends 2007-2008
Before the season began, there was some concern as to how the real estate market in Saint Barts would fare, given the number of uncertainties which presently affect global markets.
This concern is clearly justified by factors such as the sub-prime financial crisis, the weakness of the US Dollar in comparison to the Euro, and the economic hardship felt in parts of Europe and most notably, across the United States.
In reality, for Saint Barts, the analysis is very positive.
The island's position as a particularly unique market has only been reaffirmed. It remains limited in size and thus in development opportunities and its patrons have proven to be less affected by the factors cited above.
North American clients, who continue to show emotional attachment to the island, and who find themselves so conveniently located geographically, are able to invest in a strong and secure market and to diversify their investments in a dominant currency.
Europeans, who are less troubled by our currency, are more and more present in our high-end market, which remains reasonable in comparison to other affluent markets, where such clients are frequent investors as well.
This being said, one can safely affirm that our market is experiencing neither a rise, nor a fall, but rather a consolidation of justified pricing. Because, on the contrary, the overestimation of certain properties, which has been observed in the past two years, no longer allows for finding a buyer. Regarding the high-end spectrum of the market, there is considerable demand for such products, with significant prices being offered on exceptional properties. In this respect, the situation in Saint Barts is comparable to those markets which attract a similar clientele, such as The Hamptons, Aspen and the more desirable neighborhoods of London.
As an agency historically and intimately linked to the creation and development of the real estate market in Saint Barts, Sibarth Real Estate has consistently positioned itself as a “market regulator,” advocating the preservation of the market’s stability over time. We have never participated in the thoughtless inflation of prices or sought to simply market the “Saint-Barth Effect.” It is our mission to sell properties in St Barts for their intrinsic qualities , and certainly not to sell them to the detriment of the island, capitalizing solely on its popularity, with no respect for appropriate counter values. Our conservative appraisals support a long-term vision, anticipating the present consolidation of our market.
