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Independence brings prosperity and peril for St Barts - 6 March 2007

There is a real sense of optimism around the island of Saint-Barthelemy – it has some of the most spectacular vistas in the Caribbean, with the steep slopes sweeping down to salt marshes, coconut groves and beautiful beaches. And, unlike most of its neighbours in the region, St Barts as it is commonly known, is virtually crime-free.

Now, the residents of the eight square mile island, lured there by not only the beaches and the climate, but also by the sophisticated lifestyle, French cuisine and luxury boutiques, are seeing a huge rise in the number of properties being built for the ever-growing contingent of foreign buyers.

Although this wave of development is promising to bring further prosperity to the island and those who own and run businesses there, it is causing some concern as the breathtaking landscape is pockmarked with building sites and indigenous vegetation is devoured by the advancing machinery, reports the International Herald Tribune.

So why is the island suddenly so popular with developers? A major part of this is that St Barts gained independence from the French department of Guadeloupe in January. In the interim period, builders are coming through with new projects and getting started on works in the mild state of limbo before the presidential elections take place this summer.

Although the current mayor of the island, and presidential frontrunner, Bruno Magras, is trying to maintain green zones and limit development in order to protect the environment, it will be down to whoever is elected the first president of the island to shape the future in writing the new zoning laws. The island has a new status as one of France’s overseas divisions, and it would be easy to capitalize on this new freedom and damage the island irrevocably for the future. Magras is determined to limit the numbers of new properties built, insisting that the island’s infrastructure cannot cope with many more people than the current seasonal peak of around 14,000.

While some of the locals are horrified by the prospect of the possible increase in population, others are planning to cash in and sell up their decked and pooled villas and move on. And even better for them, estate agents on the island are having trouble predicting what will happen in the market. The volatility of the market is surprising even experienced agents, who have no idea how to value many of the properties accurately for the current market conditions. “A seller might want $1 million more than we think a property is worth and get it, yet another property we think is well-priced, with good rental potential, might never sell” said Pascale Minarro of Sotheby’s International Realty.

In this volatile market, a three-bedroom villa with a pool and a view will cost around €2 million, something like a 25 per cent increase in the past two years.

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