Dominica / Real Estate

By Stephen Thorpe

Things are finally stirring in the Dominica real estate sector after half a century of inertia. Whether this is due to saturation in markets elsewhere, the high prices in Barbados, or that potential investors are finally awakening to the very obvious merits of Dominica is hard to quantify, but it’s probably a function of both.

Certainly a vast improvement in the road system in recent years has been a major boon for resident, developer and investor alike and it’s worth bearing in mind that some parts of the country were still without electricity less than twenty years ago. Major progress has been made on various fronts in a relatively short period of time and these have proved a catalyst for growth and overseas financial interest.

The north and north-east with its dramatic coastline and ribbons of white sand and sheltered bathing has traditionally been a favoured area, nor will that change with an expat community and slightly higher premiums, but the west coast and Portsmouth sub-region half an hour’s drive to the west is also experiencing growth in the rental sector, as a result of the Ross University Medical School which now has a mature student element.

Prices have remained stable overall with no dramatic increase over the past year. Wotten Waven in the Roseau Valley, despite an ongoing road improvement project, has been revitalised through its hot spring inspired small business developments, while well-established residential areas north of the capital Roseau like Canefield, Morne Daniel and Belfast, Castle Comfort and Wall House to the south are still popular.

The rugged east coast is opening up slowly, while the Rosalie Bay Nature Resort is the country’s biggest ever tourism investment, a top notch wind and solar energy, fully sustainable project costing US$100million which could well act as the seeding agent for a new area of choice. It’s relatively remote, granted, and there are limited ancillary services in nearby villages but it’s cheaper than the west coast, the landscapes are magnificent and the inland valley area around Newfoundland already has subdivision interest.

Further south at the Taberi River outfall on the coast near La Plaine, is another innovative approach to sustainable tourism in the form of quasi glamourous camping or ’glamping’ as it’s being billed, a new trend in travel and accommodation for the discerning investor and eco nomad - basically a West Indian take on the popular African safari experience of style and comfort under canvas. On 20 acres of riverside land at Citrus Creek Plantation, Frenchman Herve Nizard’s vision, is to erect seven ‘pure vida’ earthquake resistant canvas cottages on hardwood decks, with integrated bathroom, furniture and solar powered water and lighting systems. Additionally, land for investment in the valley is being offered at US$1 per square foot.

Dominica has always had a ready market in North America for those seeking the ultimate escape from metropolitan living but this has slowed significantly with the global recession and difficulty in selling their prime residence. Returnees from the UK remain a strong element, with land back home actually regarded as a safer investment than having money in a bank in England. There are also spin-offs from social issues in other parts of the Caribbean like Jamaica, Trinidad and St Lucia, with retirees opting for a quieter, appreciably safer life in the nature isle. It’s a sensible destination for the liberal minded, independent person, while those reliant on shopping malls, creature comforts and all round super efficiency are probably best advised to look elsewhere! It generally remains a very good investment from every perspective as annual property taxes are low and there are no damaging capital gains levies or death duties.

Land in Roseau is the most expensive at US$111 per square foot, with Calibishie and Picard on the west coast at around US$6; it’s possible to pick up a bargain anywhere in Dominica if you have the time to search (Safe Haven Real Estate can lighten the burden here) with an acre of rough land often selling for between US$15-19k though the planning authority has become increasingly stringent on agricultural subdivisions.

Property transfer fees are 10.5% of the higher of the valuation and the purchase price of the property, derived from 4% stamp duty, 2.5% judicial fee, 3% legal fees and 1% assurance fund. All non-Organisation of Eastern Caribbean States (OECS) citizens also have to pay an additional 10% Alien Land Holding Licence fee regardless of whether or not a Licence is required - a Licence is needed to buy more than one acre for residential and three for business purposes. A surveyor’s fee on a sliding scale must be paid for plan preparation and valuation for registration.