Living in Paradise
With so much to offer in this cosmopolitan destination, St. Maarten/St. Martin is an excellent investment choice.
Written by Harrison Drouin-Reed
The real estate sector in St. Maarten/St. Martin has been witnessing a remarkable surge in demand from individuals seeking to invest, viewing the island as a promising and lucrative investment opportunity for the future. This heightened interest is evident given the increase in transactions throughout the various neighborhoods of the island.
As interest rates continue to rise in North America and Europe, savvy investors are redirecting their attention toward St. Maarten/St. Martin. This growing interest has fueled a significant wave of construction activity on the island over the past several years, encompassing new residential projects, renovations, and the development of fresh commercial ventures on both sides. A new development worth mentioning is Vie L’Ven Resort and Residences in Indigo Bay. Set on pristine beachfront land, the resort experience will indulge its guests in both ambience and experiences. Inspired by the quality of life, amenities will include three pools, boat access, gourmet restaurants, beachfront watersports, a world-class thermal spa, and a 24-hour concierge. Sales for Vie L’Ven Resort and Residences will begin in 2024.
Moreover, the island’s robust infrastructure enhances its appeal to potential homebuyers. With its excellent regional and international air connectivity, daily direct or one-stop flights connect St. Maarten/St. Martin to destinations worldwide. The island also boasts efficient shipping services for both air and ocean freight, in addition to telecommunications infrastructure, enabling remote work and cross-border business activities. The real estate offerings are diverse and enticing, ranging from cozy one-bedroom pieds-à-terre to spacious family vacation villas. These unique attributes are not easily found in other Caribbean islands, making St. Maarten/St. Martin a preferred destination for investors seeking a balanced destination.
The thriving vacation rental industry adds another layer of appeal for potential homebuyers. Those who choose to invest can tap into a mature market, allowing them to immediately profit from their investment when they are away from the island. This presents a sustainable option for maintaining a property’s value over the long term, especially since secondary homes are often utilized for only a few months each year. While long-term rentals are possible, they restrict the property’s use by the owner, making short-term rentals the ideal solution to generate revenue when the property is not in use. Partnering with the right property management company is crucial for maximizing revenue and safeguarding the property.
The pandemic has, surprisingly, benefited the local real estate market. During the pandemic’s travel restrictions, St. Maarten/St. Martin was one of the few islands that continued to receive visitors. Many of these travelers, who experienced the island’s beauty during those challenging times, are now returning as investors. This influx of new investors further propels the island’s real estate market.
Both sides of the island offer unique advantages for investors, providing homebuyers with numerous options. Purchasing property on the French side offers benefits akin to those in France, while those looking to leverage tax incentives may opt for the Dutch side of the island. The Dutch side imposes no real estate taxes; however, rental income is subject to taxation. Additionally, there are no capital gains taxes when selling property as an individual. On both sides of the island, a neutral notary ensures a straightforward and secure sales process for buyers and sellers.
With its cosmopolitan allure and diverse opportunities, St. Maarten/St. Martin stands as an exceptional investment choice; and the time to invest in this flourishing real estate market is now.
Harrison Drouin-Reed is the managing director and owner of St. Martin Sotheby’s International Realty. He has been in the real estate industry from a young age, as his mother, Lesley Reed, started the business in 1999. Both have guided discerning investors in the search for the perfect property, and they also provide full-scale services through their property management and vacation rental
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