Signs Of Life In Barbados Property Market
Wednesday, January 20, 2010

Real estate agent Cluttons says that now is the time to buy in Barbados, with a buzz returning to the market. The firm is optimistic about 2010, with figures over the last quarter showing significant signs of improvement in property sales enquiries and actual transactions. The number of serious enquiries are up by 80% this December and January compared with the same period last year.

In his Christmas address, Prime Minister David Thompson seemed to agree that the island might be about to turn the corner, saying that: "Obviously 2009 has been a tough year. 2010, based on all the forecasts, should be the year in which there will be a reversal of that trend, but obviously it depends very much on what is happening in the United States of America and Europe, in particular, and of particular importance to Barbados, Canada.”

Now Cluttons says that the worldwide economic downturn has created some “never seen before” opportunities in the Barbados property market as some vendors and developers are forced to reduce prices to increase enquiries and reduce transaction times. This phenomenon is extremely rare in Barbados and the firm does not expect this situation to last for too much longer.

The first six months of 2009 were fairly quiet except for buyers with US$4m or more to spend. However, Barbados has an extremely strong property market and the level of offers and sales increased after July 2009.

Kieran Kelly from Cluttons Barbados says: “Now is the time to buy. The Barbados property market, like everywhere else in the world, saw the number of transactions reduce in 2009, and the number of buyers looking for discounts increase. The economic downturn created a buyers market and it took a little while for owners and developers to accept it, with an initial stalemate between the buyers and vendors expectations. We are now seeing more flexibility in vendor’s willingness to negotiate and as a result, more sales, most due to price reductions. During an economic downturn, it is always the exclusive locations that win through first. Places such as Central London and Barbados will be fine. For buyers and for good reason, there is a certain comfort level attached to securing a good deal or discount on a property in Central London or Barbados!”

There are very clear signs that the Barbados property market is extremely resilient and very capable of bouncing back quickly. Kelly feels sales within the next six months will increase considerably as buyers can achieve a discount on the purchase price and then look forward to capital appreciation as the market strengthens further.

Kelly continued: “Barbados is an extremely strong brand and clients want a safer market that can offer good potential on the upturn. If anything, this financial crisis has placed Barbados in a better position as competing and alternative destinations have faltered quite dramatically. Our homes are stunning; the people are lovely; the economy is stable; there are top end restaurants and beach bars everywhere; the pure white sandy beaches are heaven; and, the clear blue waters of the Caribbean Sea provide many with the opportunity to truly relax and escape the world’s woes.”

It is widely believed that property in Barbados is owned by only the rich and famous. Although there are many wealthy owners, over the years the market has spread and diversified with prices ranging from US$145,000 to US$40m.

It is true that the west coast has some of the highest property prices in the world. The west coast of Barbados begins on the outskirts of Bridgetown (Capital of Barbados) in the south and extends northward to Harrisons in the parish of St Lucy at the northern tip of the island. There are a number of west coast luxury beachfront developments and luxury homes such as Portico, Coral Cove, The Sands, Schooner Bay, and Waterside, to name a few, on this stretch of coast with prices ranging from US$700,000 – US$40m. Cluttons Barbados has just launched The “Weston” Residences in St James, Phase one includes 21 apartments with one to four bedrooms with prices starting at just US$145,000. There will be 45 apartments in total. Phase one will be completed in October 2011.

The south coast begins at Carlisle Bay in Bridgetown and heads in an easterly direction towards East point on the Atlantic east coast. The south coast has seen tremendous growth within the last five years. There are a number of new developments under construction and the prices are lower than on the west coast, which suit the middle market and investment purchaser very well. Higher end developments include The Palm Beach Condominiums, which are spacious and offer very good value with quality finishes. These units are 2,200 sq ft and larger and start at US$900,000. The Sapphire Beach Condominiums and White Sands Villas are two very good examples of new developments in the heart of the south coast. They both have direct beach access and start at US$700,000 for a one bedroom unit. Prices on the south coast range from US$250,000 – US$2m.