With the US domestic market showing signs of cooling, Ricardo Cardenas, vice president and regional director of RE/MAX Caribbean and Central America, believes the Caribbean market could act as a low-risk hedge against falling US real estate prices.

"Property values are low in many areas, but they are appreciating rapidly, so a relatively small investment can yield good returns," Mr Cardenas noted, adding that there are few legal barriers to prevent Americans from buying homes in the region.

"If you plan to use a second property for short vacations, up to 30 days, typically no visa is required. Many islands have a US or British title system and there are no restrictions on full ownership. In Honduras, for example, you can purchase up to three-quarter of an acre of land in your own name without forming a corporation," he observed.

While the Caribbean is currently witnessing a boom in the building of high-end real estate developments, Mr Cardenas says that there are still many bargains to be found.

"Many people think of the Caribbean as the string of islands running from Florida all the way to Venezuela, but Central America also has a Caribbean coast and prices are generally lower there. You can find some surprisingly affordable homes in Panama, Costa Rica and the Bay Islands in Honduras," he stated.

Other growing markets cited by Cardenas include Turks & Caicos, Belize, Grenada, St. Croix, St. Kitts & Nevis, St. Vincent & the Grenadines, and the Dominican Republic.

"These areas are less travelled, and have less infrastructure, but attractive prices, ranging from $200 to $500 per square foot," he explained.

Conversely, the Cayman Islands, St. John (USVI), Puerto Rico, and Jamaica are seen as more mature markets, and therefore harder to find real estate at bargain prices.

"Tourism is well-established in these areas and you can easily find 5-star hotels and other amenities. Prices range from $500 to $1,000 per square foot," Mr Cardenas noted.

High-end properties in the Caribbean range from the high six figures to as much as $40 million.

However, multiple listing services, such as those found in the United States, are still relatively rare in the Caribbean, and according to Cardenas, potential buyers should seek out expert advice to guide them through the buying process.

"You need to use someone who is based in the immediate market you’re interested in, knows the price trends, and is well-versed in local regulations," he advised.