By Adrian Bishop From opp Today

The total number of Ultra High Net Worth Individuals (UHNWIs) in the Caribbean rose 2.1% last year, thanks to increasing real estate values.

The Wealth-X Caribbean Wealth & Investment Report 2015 says there are 1,155 UHNWIs with at least US$30 million in assets living in the Caribbean.

A resurgent regional economy and attractive luxury real estate property markets, which saw prices up by more than 10% in 2014, was behind the rise, says the report. As UHNWIs age and look to pass on their wealth, their need for wealth preservation will grow, increasing the demand for residency in favourable tax climates.

Wealth-X President David Friedman says, “This study shows that resurgent luxury real estate markets in the Caribbean, and specifically Barbardos, are in prime position to take advantage of long-term growth trends in global UHNW demand for real estate.”

Alistair Brown, of UNNA Luxury Resorts that is behind the prime Palazzate project on, Barbados, says the rise of inherited wealth, which is disproportionately invested in real estate, will only continue to drive these markets and the growth of real estate demand in new UHNW populations, including Russia and China, is also fuelling a globally diverse range of markets.

“The Caribbean has attracted a growing UHNW population, in part because its real estate markets present a unique value opportunity to global UHNW investors.

“Luxury real estate properties are still selling below their 2008 highs, but have grown in value over the past year, and look set to continue rising for the foreseeable future. Growth in the Caribbean economy, significant new government incentives to relocate to the region, rising tourism, and growing demand for luxury residential real estate all point to a bright future for the region.”

Within the Caribbean, Barbados, in particular offers an excellent investment opportunity, he says. “As detailed in this report, property costs for luxury residences in Barbados compare favorably to other popular exclusive resort destinations around the world. It has also seen several stunning new developments, from the recently completed Port Ferdinand Marina & Luxury Residences and the eagerly-awaited Palazzate.”

UHNWIs in China and Russia, while younger and more likely to have self-made wealth, are looking to buy luxury real estate for second homes, favouring economically and politically stable locations.

While Caribbean luxury real estate values remain 10-15% below their 2008 highs, prime residential real estate sales increased more than 10% in 2014. Worldwide, residences owned by UHNW individuals increased in value by 8% in 2014, according to the UHNW Residential Real Estate Index.

Several Caribbean nations have begun offering programmes to incentivise property buying. Barbados, for instance, introduced a special entry and residence permit in 2014 that allows foreign nationals who invest US$2million into Barbados real estate to establish residency.

More than two-thirds of the UHNWIs in the Caribbean have relocated from another country, with most coming from The United States, the United Kingdom and Canada.

Wealth-X is the global authority on wealth intelligence, providing sales, marketing, strategy and compliance solutions to clients in the financial services, luxury, not-for-profit and education sectors.

For more on this story go to: http://www.opp.today/real-estate-boosts-rising-numbers-of-caribbean-uhnwis/