Front Elevation: Anguilla

Low-density and unique buying laws give the island its quaint charm.

text by: Brooke Cunningham and Jessica Taylor

December 1, 2007

From the air, the island of Anguilla presents itself as a flatter version of its mountainous neighbor, St. Martin, with long expanses of white-sand beach and clear, turquoise waters. The island stretches east to west with a southern coast facing St. Martin and a northern coast facing the open Atlantic Ocean. On the ground, the Caribbean isle is home to 33 sparsely populated beaches, including the celebrated Shoal Bay, Rendezvous Bay, Meads Bay and Maundays Bay. "The next thing that quickly becomes apparent," says Ira Bloom of Blue Isle Properties, an exclusive affiliate of Christie’s Great Estates, "is that while Anguilla is approximately the same in area as St. Martin [about 37 square miles], its population is about one-tenth, with only 13,500 inhabitants."

Though Anguilla is a British territory with British law in effect, the island is owned and governed by Anguillans. "This has created an atmosphere absent of resentment where foreigners are welcome, and tourists and locals mix well at the beaches, bars and restaurants," observes Bloom. Unlike Turks and Caicos, St. Barts and Grand Cayman, this Caribbean island lacks a commercial feel. Only three decades ago, the island had no public electricity and working-age men had to travel elsewhere if they wanted employment. Limited transportation re-sulted in small villages that developed their own personalities. The expansion of the island’s runway to accept larger corporate jets, coupled with the approval in 2003 to develop the St. Regis Temenos Villas—which will include a Greg Norman championship golf course and a selection of residences when it is completed next year—has brought considerable attention to the island in recent years. (Click image to enlarge)

Today, the island’s quaint villages stand alongside a growing collection of restaurants, resorts and properties. When it comes to owning a piece of Anguilla, however, buyers may find the process somewhat more personal than prior real estate transactions. To purchase property here, an Alien Land Holding License (ALHL) must be obtained. This requires potential buyers to undergo a background check and provide two character references, as well as a financial reference. Buyers must also submit to a 20-minute interview by Anguilla’s Minister of Natural Resources, during which they will be asked what they like about the island, why they want to own here, and what they will bring to the island in terms of skills and materials. They are also asked what their intentions are with the property once they do gain ownership. Essentially, on an island this small, the residents want to meet their potential neighbors before they move in.

While Anguilla is an income tax–free territory, there is a onetime 5 percent transfer tax on the sale of a property, as well as a one-time ALHL fee of 12.5 percent for foreigners to purchase land. Both fees are determined based on the value of the land. Building laws are equally stringent. In an attempt to allow for growth without becoming a "vacation factory," the government does not allow casinos, time-shares or mass-market dense complexes. Also not permitted is building on sandy beaches—which are considered public—though resorts are excluded from this rule and are allowed direct beach access. The government does, however, allow private homes to be built along the island’s rocky coastlines.

"A typical one-acre waterfront plot went from $125,000 to $600,000 between 2003 and 2005," says Bloom. "Today it is near impossible to get a plot on the water for much less than $1 million." Land with an ocean view starts at $750,000 per acre, with a half acre required to get a building permit. "Construction normally comes in at around $200 a square foot, but the problem is not the price as much as finding a contractor to do the work," adds Jackie Pascher, a local Realtor at Island Dream Properties. "Employment is very high; anyone who wants to work is already doing so."

Viceroy Anguilla will offer direct beach access when it opens in 2008. (Click image to enlarge)

Other options available are hotel-managed residences. Both the St. Regis Temenos Villas and the Viceroy Anguilla developments have had success with their presale units. Other developments slated for completion in the next three to five years include Fairmont Anguilla, which will include a Jack Nicklaus golf course, and Rendezvous Bay, which is being designed by architect Peter Marino. Also on the drawing board is Anguilla’s first luxury yacht marina, located at Altamer Resort. Several smaller developments are offering villas available for sale now, including Kamique Little Harbour, located within a private cove facing the mountains of St. Martin. "All cater to the high-end market," says Bloom, who has overseen the development of several boutique properties on the island since 2003.

Private homes, such as this one offered by Sotheby’s International Realty for $5 million, are restricted to cliffs and rocky coastlines. (Click image to enlarge)

Much of the initial development on Anguilla focuses on Mediterranean styles, with white stucco forms in basic block and round shapes. The island’s pioneer resorts, Malliouhana Hotel & Spa and Cap Juluca, established the trend for the Mediterranean whitewash style that is seen throughout the island, which has evolved to become more Greek in its aesthetic. "The history of this is really in the ease of construction," says Bloom. "Everything needs to be imported for construction, so this style has been the most efficient to build." Private homes, however, are created in a variety of designs, as some owners perfect their own ideal Caribbean vacation home—but most limit themselves to the expertise of the local builders. As channels for import and supply open up, it has allowed new developments to introduce modern styles and some, such as Kamique Little Harbour and Rendezvous Bay, are introducing modern spins on traditional West Indian architecture.

Though Anguilla remains undiscovered by the masses, the island likely has several years to go before it peaks out in the market. And as there is already an eye toward protecting it, development will probably be stopped short of the likes of Aruba.



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