The buzz returns to Barbados property market
The buzz is returning to Barbados and activity is picking up. Cluttons Barbados 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.
Home buyers are attracted by the potential to negotiate a discounted price with high expectations of rental and capital growth. This is based on the stability of the economy, currency exchange rates, location and the quality of properties that Barbados has to offer.
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 Cluttons 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. Those buying now will do well, as Barbados has an exciting future ahead.
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.
The west coast has some of the highest property prices in the world and now the south coast is seeing extreme expansion, development and growth due to fantastic beaches, amenities and lower prices.
The “Platinum” or West Coast
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.
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.
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. .
Royal Westmoreland, Sandy Lane and Apes Hill are currently the premier residential golf resorts on the west coast. Barbados is very quickly becoming a major golf destination within the Caribbean and world. The Apes Hill development is located in an extremely beautiful part of the island that overlooks the west coast and in some parts, the east coast as well. One can purchase a one-third acre plot of land for about US$500,000 and then have a villa designed and built for you. Royal Westmoreland is an extremely well established prestigious golf resort with a host of wealthy and famous owners. The prices at Royal Westmoreland start at around US$520,000. In Sandy Lane, known as the most exclusive area in Barbados, you can purchase homes from approximately $3m and upwards.
Heading northward along the west coast, there are numerous townhouse and condominium developments in the Mullins, St Peter area, most of which are not directly on the beach but within easy walking distance to the beach with prices starting around US$350,000.
Port St Charles is a luxury residential marina development located just north of the historical Speightstown. One could purchase a resale villa directly on the beach for US$4m, however one bedroom apartments do start from around US$1m.
There are a number of new projects breaking ground on the Platinum west coast including Beachlands, a luxury US$200m development being planned by The Lewis Trust, which is also the owner of the River Island retail chain. In addition, it has been reported that Bruce Ritchie and Nick Leslau have teamed up and purchased a beachfront site to build multi million dollar homes.
The market is currently strong and exciting on the prestigious west coast of Barbados.
The South Coast
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.
Investors are seeking countries where property values are safer and set to increase. Barbados offers very good property investment possibilities as the island is stable and growing and the south coast is still very much affordable.
The East Coast
The east coast is on the stunning Atlantic side of Barbados and there are clear indications that hotels and property developments are planned for this side of the island.
The rental market for villas and condominiums is expanding and generating a good rate of return for homeowners. A conservative net return of 8 – 15% is achievable through a good marketing strategy and solid property management programme. Full service luxury villas can be rented including chefs, housekeepers, butlers, and even a water sports boat driver if required. Most rental customers become repeat clients so the market is renewing and growing, which is positive.
Barbados continues to become more diversified with world class restaurants and a host of activities including sailing, golf, sports fishing, tennis, polo and surfing and visitor numbers continue to grow steadily. The island is loved for its friendly people, laid back lifestyle and warm, Caribbean flavour. There are even home comforts in Barbados with supermarkets stocking Waitrose and Marks and Spencer products. In fact, Barbados is known as “Little England” as there are a number of similarities and an obvious English influence.
For more information, visit cluttonsbarbados.com.
