By News Americas Business Desk

News Americas, NEW YORK, NY, Mon. June 23, 2025: Despite its postcard-perfect beaches, booming tourism market, high-priced real estate, and growing demand for housing and infrastructure, the Caribbean continues to face an uphill battle when it comes to attracting U.S. lenders and investors.

Multi-million dollar deals can languish for months or be rejected altogether. And even when financing is secured, borrowers often face steep upfront costs and premium interest rates.

Ben Mizes, Co-Founder of Clever Real Estate and a licensed real estate agent who has closely studied investor behavior in emerging markets, told News Americas that while “the Caribbean has a lot going for it — beautiful scenery, more tourists coming in, and a growing need for better housing and infrastructure,” many investors still view the region as a risky place to put their money.

“Problems like unclear land ownership, slow permitting processes, and unpredictable politics make things tricky and delay projects,” Mizes explained. “Investors usually prefer places with clear legal systems and reliable data, which is where the Caribbean falls short.”

“To make progress, we need to lower the risks at a policy level, show real returns, and work with investors who get how these markets operate,” he added. “That’s where real growth can start.”

His views are echoed by other investors working across the region. Luke Babich, Founder and CEO of List with Clever, has been leading renewable energy projects in emerging markets, including the Eastern Caribbean.

“From my experience, the biggest challenges are unclear land titling, slow permitting processes, and limited creditworthy offtakers,” Babich told NAN. “Political risk and currency volatility also deter institutional investors.”

But those aren’t the only barriers keeping lenders at bay.

Financial experts point to several underlying challenges that compound investor hesitation. Small market size, fragmented legal frameworks across island nations, and currency volatility present major hurdles. High disaster risk, limited insurance coverage, and the absence of robust credit reporting systems further undermine lender confidence.

Many Caribbean projects also lack the investor-ready packaging — complete feasibility studies, environmental clearances, and professional financial modeling — that global lenders expect, says Invest Caribbean.

“It’s rarely one structure fits all across the islands,” Babich explained. “High compliance and due diligence costs often make even small deals unappealing to institutional lenders.”

Still, both Mizes and Babich agree that positive change is on the horizon.

“When governments provide guarantees or partner with DFIs, deals become more viable,” Babich said.

Mizes points to progress in countries working to modernize land registries, speed up development approvals, and create clearer benefits for investors. “Some countries are moving towards better land records, faster development approvals, and clearer benefits for investors, which is starting to draw in some serious money,” he noted.

Babich cites a recent success story as proof of that momentum. “We closed the deal by leveraging blended finance and strong local legal support. With the right partnerships and risk mitigation, viable projects can get across the line,” he said, referencing a $25 million solar project in St. Lucia.

For Mizes, the key to unlocking the region’s investment potential lies in boosting investor confidence through transparency, reliable enforcement, and tangible returns.

Shaun Bettman, CEO and Chief Mortgage Broker of Eden Emerald Mortgages, agrees, saying the hesitation around Caribbean real estate and renewable energy projects comes down to one key issue: unpredictability without transparency.

“Investors will tolerate risk in emerging markets if it is measurable,” Bettman told NAN. “The challenge in the Caribbean is that the legal and permitting frameworks are inconsistent and rarely digitized, so even basic due diligence can turn into a manual, months-long process. That slows deal velocity and adds cost. Investors back away not because the fundamentals are weak, but because the friction compounds.”

Bettman points to land titling as a recurring deal-breaker. “In several island nations, records are handwritten or poorly maintained, and disputes over ownership can stall a project indefinitely,” he explained. “No lender will take on land that may be challenged post-acquisition. Until titling systems are formalized and reliable, even strong renewable projects will struggle to reach bankable status.”

However, Bettman emphasizes that it’s not a lack of capital holding the Caribbean back, but a lack of execution confidence.

“What would change that? Institutional co-participation,” he stated. “If DFIs like the IFC or IDB take first-loss or provide political risk wraps, others will follow. It is not capital that is lacking, it is confidence in execution. And that comes from clarity.”

Bettman highlights a recent success in Saint Lucia where a boutique resort project secured $18 million in structured equity and debt after partnering with a Canadian fund to absorb legal risk.

“They conducted six months of upfront compliance work, including title insurance and environmental clearance, before opening it to co-investors,” Bettman explained. “That proactive de-risking created a clear path to funding. It worked because the story was prepared, not just pitched.”

His advice to the region is simple: package deals like serious emerging market transactions, not exotic one-offs.

“More Caribbean deals will get funded once the region stops being treated as exotic and starts being packaged like any other mid-tier emerging market — with proper data rooms, local legal counsel baked in, and a structure that doesn’t rely on handshake timelines,” Bettman emphasized. “Investors do not need perfect markets. They need predictable entry and enforceable rights. The rest can be priced in.”

The message from investors is clear: investing in the Caribbean holds immense potential — but unlocking it requires reducing friction, standardizing processes, and building investor confidence.