VI's real estate market plummets! ‘Where have the buyers gone?’— Skelton-Cline
The statistics of the status quo were laid bare by outspoken social commentator and former government consultant Pastor Claude O. Skelton-Cline in a sobering analysis of the industry during his April 1, 2025, radio broadcast of Honesty Speaking on ZBVI 780 AM.
Oil Nut Bay Estate Transaction!
"Overall, real estate market activity in the BVI slowed in 2023 and 2024. The total volume of transactions, measured by dollar value, fell by more than half," Skelton-Cline cited data from a recent analysis.
"From $156 million in 2022 to $69 million in 2024; That is the dollar value of the total volume of real estate transactions. This is an indicator, a trend of what's happening in the Virgin Islands."
Compounding the situation, Skelton-Cline pointed out that even this alarming figure was distorted by a single high-value sale in 2022.
According to the man of the cloth, "...the record high figure in 2022 was skewed by one land sale of $45 million in Oil Nut Bay Estate”
Excluding this transaction, the market actually peaked in 2021, according to Skelton-Cline, as he provided analyses of the precariousness of the sector’s financial health.
Locals & Foreign Investors Pulling Back
Additionally, Skelton-Cline was adamant the situation also appears bleak for both belongers and non-belongers alike, reminding that the government’s 2020 Stamp Duty Waiver Programme initially bolstered local homeownership, driving sales to belongers to $83 million in 2021; however, by 2024, that figure had shrunk to a mere $38 million.
Adumbrating his point further, he noted that “In 2021, it was $83 million in value. In 2024, it was cut to $38 million."
The contraction among foreign investors was even more dramatic, as outlined by Skelton-Cline, who observed that sales to non-belongers—which peaked at $116 million in 2022—nosedived to just $30 million in 2024.
The number of transactions fell to 22—the lowest in over a decade, and as such, he posits,"...this is a major telltale sign; People with means and money aren’t purchasing at the rate they used to. What are they waiting for? Why are they holding back?"
Affordability for Locals?
Turning his attention to government-backed housing projects, he disclosed for the listening audience that homes built under the Social Security programme had also failed to generate the expected local interest.
Instead, these high-priced units are now being leased to medical school students, "...a project that was designed to increase the uptick of locals being able to purchase homes—half a million dollar homes—are not affordable by locals and so now, instead of locals gaining ownership and building wealth, these homes are being leased to students."
To this end, he openly questioned, "Why is there, at least to my knowledge, no meaningful push—no one advocating for the creditworthiness of individuals and affordability for locals to purchase these homes? Why is that not a top priority for us?"
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61 Responses to “VI's real estate market plummets! ‘Where have the buyers gone?’— Skelton-Cline”
It should be a national embarrassment that it takes so long - they process them in numerous other parts of the Caribbean in less than 3 months.
No wonder persons are buying there rather than here.
We do not hate outsiders; we dislike the mindset of outsiders who do not respect that the BVI belongs to the descendants of the Africans that were enslaved here. This is not a free for all. We are global citizens but there are legal boundaries concerning ownership. We know too much of our history and world history to sit back and be outran and overthrown by outsiders. The majority of the non-belongers that resides and will reside in the BVI are here as guests and should only reside here for a limited time. The BVI is too small to be giving it away freely and leaving nothing for the generations behind us.
Continually calling us xenophobic will not make it true. The talk about who born here will die down once the government create laws to protect the interests of BVIslanders. Until then we will continue to make our voices heard. Imagine we nearly sold Wickhams Cay!
No reason it should be so difficult and long.
Speeding these approvals up will have an immediate positive effect on the economy as the new owners will get contractors in to do their renovations.
Speed up the NBLH process and we can fix our roads and schools!
Otherwise, I agree with everything else you said (well we cannot sue the government, but we can hold them accountable).
The requirements of letters attesting to a buyer's good character and financial wherewithall are absurd. As I told my lawyer while the process dragged on, "tell these idiots in the government that there's this new thing called "the internet," and I heaer that it's going to be really big; they could run me through Interpol and in 48 hours, learn all they could possibly need to know about me, and obviate this idiotic process." Then add to that the innumerable "ministers" and "junior ministers" and their "assistants" or "secretaries who are reviewing them couldn't even purchase a car on their own, never mind pass judgment on a real estate transaction, and it's just another example of "make work" that keeps a bloated and inefficient government rolling along, while providing no real value, given the resources it consumes for a transaction like a NBLHL.
There's a lot more that I could add, such as no form of deed, so each one has to be drafted "from scratch" and then the Attorney General has to review it and approve it, and if rejected, one has to start all over again with a new submission that can take weeks to review. When people wonder why this Territory's economy is not a vibrant one, this process is one of many examples that illustrate the reason(s) for that.
How much land is the government sitting on that they purchased with the main purpose of making it available for locals to purchase at a reduced rate? Why are we not hearing about that. Why is the opposition silent on these types of issues. Acres on acres just sitting and being controlled by one district rep as if his/her district bought the land. Yet all in the HOA silent on the issue until its photo-op time to show someone receiving a giant key to some house gov built back.
Speak on thing that can help people. Who can afford to will purchase the land no matter its cost.
Firstly, is the real estate people who drive up the cost to astronomical levels with no basis of real value. They walk around the house looks at the outside walls and formulate a price. I see this happen for a bank appraisal. having no clue that almost every room in the house leaks, The plumbing is shot, the floor tiles are crumbling and need replacement the kitchen counter are rotting but a house that was built 15 years ago for $150, 000 and now worth $400, 000 is suddenly appraised for $900, 000. This is not unique to the BVI, just a more exaggerated. But in the real estate business there is no reality between, cost vale and peicing. It is just based on whims and fancy.
Secondly the BANKS. There are very few houses in the BVI now on the market for under a million$. That mortgage will be $7-8 thousand monthly with insurance. The banks require an income of 3 times that amount to even consider you. How many locals have an income of over $20, 000 monthly. Even if you have that income the inordinate amount of time the Bank takes to process and approve the loan is astounding. You will be very lucky if it takes 9months,
For non-Belonger it is even worst it is going to take 1 to 2 years for a non-belonger license, if approved.
Lastly we may nto want to accept it but real or imaginary, the BVI has earned a reputation of being hostile to foreigners and foreign investors, so foreigners are very reluctant to invest in this high price market. Therefore, very few locals can afford to buy real-estate in the BVI and you can see that it is only the few that can afford it are garnering the real estate market. Likewise very few foreigners are likely to invest such time and money in a high-priced unfriendly market.
Haven't anyone ever played Sim City?!
There are always examples and lessons from other countries and islands like Antigua and Costa Rica that might inspire thoughtful, locally-rooted strategies for Tortola.
Antigua has a Controlled Citizenship and Development. They have a Citizenship by Investment Program (CIP) where they offer citizenship in exchange for investment in real estate or business. But they’ve created limitations, including requirements to build or invest in approved developments (like hotels or infrastructure that supports the community). Tourism with Local Employment Quotas where new resorts are sometimes required to employ a certain percentage of locals, and to support small community-based tourism programs. Economic growth programs need strong legal protections for local interests — and must be co-created with the community. Communal land systems can protect generational wealth and prevent complete displacement.
Costa Rica, which we also love and look at for retirement living has focused on Ecotourism, Land Use Control, and Environmental Taxes, which may make good sense for Tortola, considering damage from Irma and reefs around the islands. Ecotourism can be used as a Central Economic Driver. Rather than overdevelop, Costa Rica promotes low-impact tourism — small lodges, national parks, and green experiences. Locals are deeply involved in the delivery of these services. Niche marketing concepts like this attract people who care about a place and we have met many people over the years that care deeply for Tortola, the people and its progress. Strict Zoning Laws in Costa Rica enable foreigners to buy land, but there are tighter controls around coastal areas and forests. Payment for Environmental Services (PES): Landowners are paid by the government to maintain forested land — which both prevents overdevelopment and rewards stewardship. Costa Rica has been very successful in tying economy to ecology keeps both tourism and development in check. Incentivizing landowners to preserve land rather than sell it encourages sustainable income and helps locals stay on their land. Zoning for local land use and permanent homes (not vacation homes) could keep neighborhoods and prices lower and more accessible.
There are also ways to create Diaspora Investment Programs, allowing people of Tortolan heritage (even those living abroad) special investment access or tax breaks for building homes, not vacation rentals. Get creative and get some people with foresight in there who can actually make mountains move for Tortola.