U.S. Buyers Drive Barbados Second-Home Market Boom, Surpassing British Purchasers

A New Era for Barbados' Second-Home Market

Barbados is currently undergoing a notable real estate renaissance, marked by a significant shift in its international buyer demographic. For the first time in over 30 years, purchasers from the United States have surpassed British buyers to become the largest group acquiring second homes on the island. This trend underscores Barbados' growing appeal as a premier Caribbean investment destination.

The surge in U.S. interest is closely linked to a substantial increase in American visitors. Between January and September of last year, Barbados welcomed over 175,000 Americans, a record that not only boosted tourism but also contributed to a 25% spike in luxury real estate sales in 2024. Industry data indicates that the average sale price for properties rose by approximately 25% over the past year, with year-over-year price growth reaching about 6.9% in early 2025.

Key Factors Attracting American Investors

Several compelling factors are drawing U.S. buyers to the Barbadian property market. The island offers a politically stable environment with a legal system rooted in British law, providing a secure framework for investment. Financial incentives play a crucial role, including:

• No capital gains or inheritance taxes, simplifying estate and investment planning.
• Double taxation treaties, including one with the United States.
• Opportunities for favorable tax residency for individuals spending over 183 days per year on the island.

Furthermore, Barbados provides clear pathways to residency through its Special Entry Permit (SEP) program, available for property investments starting at US $300,000. Beyond financial considerations, the island's lifestyle appeal, characterized by year-round sunshine, world-class amenities, gourmet dining, and direct flights from major U.S. cities like New York, Miami, and Washington, D.C., makes it an attractive choice for those seeking a 'lifestyle upgrade.' Richie Quintyne, CEO of NVEST Estates, noted that 'These buyers want more than just a second home — they want peace of mind, security, and a lifestyle upgrade.'

Luxury Hotspots and Emerging Developments

The demand for luxury properties is particularly strong along Barbados' renowned Platinum Coast (West Coast), which continues to be a prime location for high-end villas and beachfront condominiums. Areas such as Holetown, St. James, and Sandy Lane Estate remain highly sought after. New developments are also contributing to the market's vibrancy, with projects like Pendry Residences Barbados on the Platinum Coast setting new benchmarks for modern luxury living. This development features 46 branded residences, with entry prices starting around US $2.9 million.

The Barbadian real estate market also benefits from a policy of no restrictions on foreign ownership, making the acquisition process straightforward for international buyers. This openness, combined with a stable economy and robust infrastructure, positions Barbados as a leading destination for long-term property investment in the Caribbean.