As property investors and people hoping to retire abroad struggle to find a safe haven in the slump, St Lucia could offer a solution.

The credit crunch has put paid to property booms around the globe, right? No, not quite. While the US, UK and European property markets are in price freefall, the Caribbean, and in particular the holiday island of St Lucia, seems to be holding its own – for the time being at least.

"Property prices have remained robust throughout the financial crisis," says Allen Chastanet, St Lucia's minister for tourism. "The key is we didn't have a boom to begin with, so building levels were at sustainable levels. Therefore, we're not having a bust.

"The only price softening that has taken place has been reflective of the pound weakening against the dollar," he adds, with reference to the fact that St Lucian property is priced in dollars. "Sellers have been willing to bend prices a bit for British buyers to reflect this currency shift."

St Lucia's profile is high at the moment, with singer Amy Winehouse pictured holidaying there. The island is small, no bigger than a medium-sized English county and with a similar population to Peterborough. It is mountainous, with dense rainforest vegetation and lots of inlets and sandy beaches. And property, while not as affordable as hotspots such as Spain or Florida, ranges in price from around $300,000 right up to $4m. Most developments tend to be gated, with on-site shops, boutiques and restaurants. Access to a beach and pool area is normally a given.

Some homes are sold as owner-occupier, perhaps to people looking to retire to a hot climate, with direct flights from the UK through Virgin and BA. However, most of the properties on the island are pitched as an investment.

Crucially, unlike other holiday-home hotspots, St Lucia hasn't suffered from the blight of poorly conducted valuations. "Generally, those assessing the value of property on the ground have been robust in the way they have gone about things, and this helps in getting a mortgage as banks can have confidence in the figures," adds Ms John.

As a result, mortgage rates have not risen as much as they have done elsewhere, with borrowers generally being charged around 2.75 per cent above US Libor – the rate at which American banks lend to each other. The maximum loan to value varies between 60 and 70 per cent, and income multiples of three to four times are also achievable. However, purchasers looking to borrow against potential earnings from letting may struggle. "If you're doing this as a buy-to-let then the banks are still going to want you to be able to make your repayments from your own income, rather than any rental money the property brings in," says Ms John.

The property-buying process is similar to in the UK, except you have to obtain the rather ominous-sounding "aliens landholding licence", arranged through a local lawyer at a cost of $1,500. If the property is part of a resort development, and the overwhelming majority are, then service charges may apply, based on square footage. If the home is rented out, expect service charges to be higher as regular cleaning has to take place.

The biggest bugbear, though for Britons looking to buy in the Caribbean or America is the collapse in the value of sterling. A year ago, the pound was worth two dollars; now it buys around one dollar forty cents, and it may sink further. Against this backdrop, Britons looking to purchase property in dollars could consider taking out what is in effect a futures option contract. Put simply, you purchase an option to buy a set amount of dollars at a specific date in the future at a set price, so insuring yourself against any adverse currency moves between making an offer on a home and having to find the cash to pay for it.

Regardless of currency fluctuations, Ms John says buying in the Caribbean is only for those with deep pockets: "This is not a cheap undertaking as it's a top-end holiday destination. But that makes it a little less sensitive to the world economic downturn."

Overseas Homes Forever have a range of well priced properties in St Lucia starting from as little as £120,000. (overseashomesforever.com/St Lucia)

Extracts from the Independent written by Julian Knight