Regency

2014 real estate market report turks and caicos islands

THE 2014 TURKS AND CAICOS ISLANDS REAL ESTATE MARKET REPORT A YEAR IN REVIEW !Welcome to our 2014 year end review of the turks and caicos islands’ real estate market. !Introduction !as with our quarterly reports, our goal is to enlighten & educate our readers about the performance of the real estate market within the turks and caicos and clearly charting trends by taking each property category and translating the data into a clear and concise format. !The basis of the information provided in this report derives from the turks and caicos real estate association’s (TCREA) multiple listing service (MLS). The MLS is a centralized database of properties actively for sale by its 15 broker members, and nearly 100 agent members, of whom constitute the majority of sales in the tci. Whilst this is an advanced method of showcasing all properties to and for the general public, it is also a valuable tool used by the association to track sales statistics. !The most valuable of all data gathered relates to properties that have actually sold, Days on the market, list to sell ratio, final sale price, etc. TCREA and its members regard this as its exclusive proprietary information, therefore only release approved data, such as total dollar volumes and percentages, will be seen throughout this report. More detailed information can be gained when a buyer or seller works directly with a Broker or Agent and constitutes their basis of expertise. !Regency, the exclusive Christie's International Real Estate affiliate for the Turks and Caicos Islands, is renowned for providing unparalleled knowledge and trusted advice to our clients. Our goal is to provide exceptional service and a complete understanding of offshore investments. We combine more than 50 years of experience in the Turks and Caicos with a global network that gives you access to top brokers around the world and opportunities to collaborate with the esteemed Christie’s auction house. We Honor people’s desire for privacy and discretion, and work directly with developers, architects, attorneys, and banks to ensure our clients have a great team behind them. When it comes to our clients, we don't believe in "island time."  !Christie’s International Real Estate is an invitation-only Affiliate network composed of the world’s most proven and qualified real estate specialists in the luxury residential sector. The company has offices in London, New York, Hong Kong, Beverly Hills, Chicago, and Palm Beach, and more than 135 global Affiliates with over 25,000 real estate professionals in 45 countries. !

The Market Report !The Real Estate Market in the Turks and Caicos Island for 2014 has again enjoyed steady growth over the previous year. !Year on Year from 2009, a period when the market experienced ill effects associated to the global economic downturn, the real Estate Sector has grown considerably. The graph to the right shows impressive gains in 2010 and 2011 compared to 2009, with 2012 showing a meteoric 276% increase in dollar volume sales. !As we experience greater global stability we see that the past three years, 2012, 2013, 2014, Have enjoyed a strong, steady, and consistent 6% (average) growth in the overall market. !Everything said to this point highlights a solid ‘recovery’ phase from a period that was undoubtedly a very difficult time for most, if not all markets around the world. However, this is only a part of the actual picture for the Turks and Caicos Islands. !The Turks and Caicos Islands maintain allure regardless of global issues. It still offers an amazing lifestyle, coupled with a wise investment for those looking to diversify their portfolios in a tax free, offshore jurisdiction with solid wealth management opportunity. The Turks and Caicos Islands are a ‘Beginning of Lifecycle destination’ remaining virgin territory for new developments across the archipelago. As such, it wouldn't be an unfair conclusion that we can expect further new development boosting the market. Coupled with the desires of the buyer demographic looking to ‘find that next new destination’ and increased airlift, we can sensibly expect a bright future. !!!

Based on the overall tcrea sales statistics that include all property categories, you will see that at the end of 2014 a strong 7% increase was seen over 2013. !The Single Family Home/Villa market almost doubled in 2014 and for a significant reason; Se ver al ultr a high value p r o p e r t i e s s o l d i n 2 0 1 4 including the years highest value propert y, A Leeward Beachfront Estate sold by r e g e n c y C h r i s t i e ’ s International Real Estate for over $12,000,000 USD. This is a significant trend of high value purchases that show a high level of confidence in

the turks and caicos islands. !The Condo Market shows a moderate increase, yet remains the market’s strongest and most significant sector. The TCI looks forward to new development and therefore new inventory that will help spur this sector ahead. It is worth noting that this report does not include sales data from the new Shore Club property, now under construction. Something that would undoubtedly increase 2014’s totals. !Undeveloped land appears to be down somewhat over 2013. Something that reflects significant sales that occurred in 2013 of Hotel/Tourism Based Land. The 2 sites that Regency Christie’s International Real Estate sold on Grace Bay Beach will ultimately facilitate sites for new developments. !!

The marketshare chart for each property sector through 2014 clearly shows both the Single Family Home/Villas and Condo sectors as being close leaders, with the next top performing sector being Undeveloped land. Commercial Properties appear at the rear of the market along with Townhomes, Duplex, Triplex, etc and are bundled together in the category named ‘Other’. !!!!!!

!!This chart shows the breakdown of inventory currently on the market as of January 1, 2014. Obviously this is a fluid number based on continued movement within the market (sales/new listings). Yet it shows a clear picture of value each sector represents across the entire market. !In this case, the picture is somewhat different with Single Family Home/Villas and Undeveloped Land at the forefront and the Condo sectors languishing a considerable distance behind. Commercial Properties represents a small yet adequate number, with the bundled properties described above at the bottom. !It is interesting to see that the Condo/Resort market only represents 17% of the overall value of the market. Something that could be attributed to a lack of new inventory and new developments reaching the market. A secondary cause is that we are unable to report historical sales for the Shore Club, something that would increase the Condo Sectors market share. !Commercial Properties have always been a slim sector of the market, something attributed to the makeup of the Jurisdiction as one that is primarily vacation homes. Along with townhomes, Duplex, Triplex and other such properties, all bundled within the other ‘sector’, this will continue to remain slim for the forceable future. !A final point that is rarely reported is Average Days on the Market, (DOM) and unless understood, can certainly and wrongly influence the decisions of both buyers and sellers. As of 2014 the overall market reports an average of 386 days on the market, and an average of 363 days on the market for the Residential Sector. This is NOT inconsistent with previous years and it should be understood that we differ greatly from a primary residential market where motivational factors differ significantly. Not something you find happening in a second, third or fourth vacation home market. !

It is clear to see that the Turks and Caicos Islands has made significant gains since 2009, the year that the TCI felt the brunt of the economic downturn, as did many others. !The growth, whilst initially substantial post 2009 through 2012, now continues at a respectable level thanks to various factors such as increased airlift, continued trust in the local market, the worldwide increase in luxury spending and the always present desire to be in the Turks and Caicos. !The islands are gearing toward a second development phase with substantial beachfront sites being purchased and plans submitted for new projects. The Government has made several moves toward this end by approving such amendments as those that will now allow the development 12 Story buildings, an increase over the 7 story model that brought us the Seven Stars. This would be a very timely change, however viewed, it will introduce new, fresh, and exciting properties into the market place. For our condo market to remain strong and avoid potential stalling, new inventory must come to the market. !The Turks and Caicos Islands has many attributes that cannot be found in other areas within the region. Primarily the Turks and Caicos Islands are a beginning of lifecycle island where opportunities are available now, and have not ‘passed by’ several decades ago. The Islands offer one of the most convenient and easily accessible locations within the Caribbean, and with the recent expansion of the international airport we can expect increased tourist/Buyer traffic. !As of writing this end of year report the islands are well within the ‘busy season’ and shows solid activity, something we will report on in our first quarterly report of 2015. !In closing, we hope that this have proven both helpful and insightful. It is our desire as one of the worlds most prestigious real estate firms to provide the highest quality information to our clients. !As such, and for a greater level of understanding of the market, your property, or your dream purchase please contact us at any time. !Kindest Regards, !!!!Robert Greenwood regency Christie’s International Real Estate

Robert Greenwood, Director, Broker, Licensed Auctioneer"robert@tcibrokers.com

Regency Christie’s  International Real Estate"TCREA PRESIDENT"Direct: 649.432.7653"

E-Fax: US 424.239.6085"Suite B202, The Regent Village, Regent St"Grace Bay, PO Box 973, Providenciales, "

Turks & Caicos Islands, BWI""

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