Economy,
Stability and Property Values
Montserrat is a British Overseas Territory within the jurisdiction of
the British legal and financial systems with Queen ELIZABETH II as the
Chief of State, represented by a Governor. As a further boost to its
potential for investors, Montserrat recently received a BBB-positive
investing-grade rating which Thomas Peacock of the Financial Services
Commission notes “unequivocally establishes Montserrat as financially stable.”
The currency in
Montserrat is the East Caribbean dollar ($EC) and it is tied to the
US$ at EC$2.7 =
US$1.0
Real estate is
traditionally priced and settled in US dollars.
An economic
devastation occurred when Soufriere Hills, a volcano in
the southern sector of Montserrat, began
erupting on July 18, 1995. This was the first recorded eruption of the
volcano in modern times, and that eruption spread ash across the island.
The southern sector of Montserrat (the
Emerald Isle) was destroyed and because of the difficult conditions at
the time, more than two-thirds of the population left. The population
currently stands at just over 5000 declining from approximately 10,500 in
1995.
Looking at
beautiful Montserrat today, it would
appear that the eruption never happened, even though the southern
two-thirds of the island is accessible only during daytime entry periods.
However the homes and commercial buildings north of the exclusion zone are
clean of ash and debris, roads are clear, and gardens and crops have been
replanted.
In short,
Montserrat is going through a complete
resurgence. This once popular (and very proud) Caribbean tourism destination is fighting to get
back on its feet, and it appears to be winning the battle. In 2004,
preliminary data indicated that Montserrat recorded its third successive year of
economic growth. Preliminary estimates of GDP reveal a growth in GDP of
4.26% in 2004. This is an improvement to the revised 1.2 percent growth
rate achieved in 2003.
A special section
in Fortune
Magazine (November 2005) focused on the phoenix-like
resurgence of Montserrat. With a new
airport, opened in 2005, Montserrat has
again become easily accessible.
New developments
that will further foster the island’s economy and enhance its tourist
sector are well on their way: there is work in progress to establish a
town center in the Northern area of Little Bay, new adventure activities
are being developed for the tourist sector. Montserrat has always been an
upscale holiday destination, but now there is the added incentive of
extremely competitive real estate prices and tax relief for individuals
from the UK on pensions, dividends and
royalties.
Bryan and
Dyann Hollender, proprietors of
Waterworks Estate, rent exclusive, high-end villas in Montserrat, which
Mr. Hollender calls “the safest place in the Caribbean.” He envisages a return to the island’s
hey-day, when it was a playground for the rich and famous, and is
convinced that now is the time to invest in property on the island. “Space
is limited and the window of opportunity is small. Property is now a third
of the price it was. If you want to get in, now is the time. We really
think there is going to be a boom here within the next three
years.”
There are few
villas for sale at any one time. There are about 450 villas in the villa
development areas of Old Town, Olveston and Woodlands (click here to see the map); of these there are only
about ten for sale currently, and only three in the Woodlands area
(furthest North). One of these three is the property indicated on this site.
Most villas are
sold fully furnished and so you are able to move in very quickly and start
enjoying island life. Due to the abundant availability of water on
Montserrat almost all villas have
gorgeous fresh-water swimming pools and of course, all have stunning views
of the sea and mountains. The vista and ambience are free, but you can’t
take them with you; you have to be in Montserrat to enjoy them.
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