Beachfront property is the most popular and a number of hotel companies have also discovered Jamaica and are making substantial investments.
At Harmony Cove near Falmouth a vast new resort is planned with golf courses, multi-million dollar villas, four hotels and casinos.
Some parts of the island, including Montego Bay on the northwest coast have seen prices rise to US $600,000 an acre. A bit farther to the east, Discover Bay has become the place for the rich and famous who want a bit of paradise.
Over the past two years prices on the north coast have appreciated anywhere from 30 to 45%. 'The average property price in the high-end resort market is US$1 million to US$1.5 million, but we have listings in Negril for as much as US$3.5 million. Prices have definitely hardened,' said real estate agent George Cumming.
In exclusive properties, such as gated communities at Montego Bay, prices are high but the rest of the island is still relatively affordable, he added.
And in comparison to other Caribbean islands Jamaica is about 20 to 20% cheaper, according to real estate agent Anya Levy.
'Jamaica hasn't matured as a tourist destination like The Bahamas and the Turks and Caicos, but we are getting there. There is enormous potential,' she said.
The country has to battle a negative image connected with crime and drugs so it is not necessarily a safe bet. Kingston has one of the highest murder rates in the world and tourists are recommended to avoid certain areas at night.
But according to the tourism board there are a lot of positives including stunning scenery, well priced plots of land, English speaking and a growing demand rental sector with yields of up to 10%.
A spokeswoman said many advantages such as the Blue Mountains where a well known coffee is grown, inland rivers and streams with pools and waterfalls and opportunities for rafting and hiking are often overlooked.
