In the U.S., the number of home foreclosures continues to rise, with 3 million homeowners projected to lose their primary residences this year, up from 2.3 the previous year. Banks worldwide have reacted to the crisis by significantly tightening up on credit, thus producing less risky loans but far fewer successful borrowers, which limits sector growth.

PropertyWire, a global real estate news services, recently posted a news article asserting that most markets are struggling to recover from the three-year market swoon. There are, however, some notable exceptions such as the city of London, England, which is experiencing strong growth.

In 2008, global housing statistics showed that 41 percent of the prime markets saw annual price drops. A year later, the percentage increased to 73 percent. Barbados experienced a 20 percent fall in home prices, the steepest in the Caribbean.

Through all the carnage, there are some bright spots, and St. Kitts and Nevis happens to be one of them. Global Property Guide calls the Federation an "emerging luxury property market," noting that prices have risen steadily since the early 2000's, though costs are still lower than most Caribbean islands.

According to research conducted in January, prices have remained steady, little affected by the global financial crisis. In St. Kitts, the average price for a two-bedroom condo or house is US$495,400. Three-bedroom residences go for approximately US$775,000 in St. Kitts and US$665,000 on Nevis.

Nigel Rawlins, Country Manager for Century 21 in St. Kitts and Nevis, feels that the Economic Citizenship Program has had a major positive impact on the high-end real estate market in the Federation.

"You have someone sitting in Asia or in North America or South America who wants to purchase a second home, and can do so through the program," he said. "The citizenship makes it a plus, plus."

The program has been in existence since 1984, and targets wealthy foreigners who can purchase real estate in prime Federation areas. After doing so, the individual - and his or her dependents - acquire citizenship instantly.

It takes an initial investment of US $350,000, in addition to a cash payment of US$35,000 for the head of household and US$15,000 for each additional family member. Benefits include dual citizenship, without any need to reside in St. Kitts and Nevis; visa-free travel to more than 60 countries; full residency status and the right to work in the Federation; and tax free status on foreign income, capital gains, gift, wealth and inheritance tax.

In addition, as Commonwealth citizen, preferential treatment is given for entry into the United Kingdom, in that the applicant's children can study there without the need to apply for student visas. After completing their studies, they are allowed to work in the UK for two years without procuring a work permit.

Rawlins said that his office receives a steady number of inquiries from around the world regarding the Economic Citizenship Program, from places as diverse as Russia and Pakistan.

The rental market in St. Kitts and Nevis remains strong, mainly based on the increasing number of students attending the local medical schools. The only limiting factor to this market appears to be its relatively small size, engendering an avid competition among students, visiting professors, and corporate transfers for available apartments.

Looking down the road, local housing industry experts like Rawlins are cautiously optimistic.

Noting that the conservative lending environment in the Federation has been a major factor in the continuing market stability, he said, "When the international banks come on board and start lending again, it will open things up."