Stability!
Although that description is rarely applied to the turbulent real estate picture of the United States, the word has found favour in New York when it comes to Barbados’ property market.
And it is being used increasingly as prices rise and fall like a soufflé in different areas of the market in the island. That’s particularly true for properties being bought or sold by foreigners for investment purposes.
“The price of homes on the Caribbean island of Barbados has never been cheap. Yet, even though the cost of land has been on the rise, especially along the coveted West Coast, foreigners seeking second homes are continuing to turn to Barbados as a stable place to invest their money,” the influential New York Times told its million-plus readers recently.
“One reason is the stimulus that the property market received during the last few years, thanks to Government and private investment in new developments” in Barbados, added Shelley Emling, a writer.
Paul Altman, managing director of Paul Altman Real Estate on Barbados’ West Coast, agreed.
“Barbados remains a stable place for real estate,” said Altman.
“We all recognize that it is seasonal for the offshore sector. At the top end of the market we are seeing continued strength. I say that because there are some major players doing homes and other things here.
“There are some extremely good deals in the middle end of the market as a result of a buildup of inventory during the past four to five years. By good deals, I am referring to discounted properties on average about 20 to 30 per cent. The middle market can be defined as anything over a million (Barbados) dollars.
The lower end of the market is going through difficulties that are somewhat similar to the middle area. Land sales for Barbadians are reasonably active. That’s where people have opportunities to buy choice home sites. That seems to be quite strong. Barbadians at home and those living abroad have the ability to keep that [land] market alive.”
Kieran Kelly, chairman of Chesterton Barbados, a division of the British real estate company Chesterton Humberts, endorsed that assessment.
He told The Times that the resilience of the Barbados property market has always been an attraction, compared with the price fluctuations of other Caribbean island, such as Mustique, St Bart’s, Anguilla, Grenada and St Lucia.
These days a beachfront property in Barbados can cost anywhere from US$2 500 to US$600 per square foot, that is between US$26 750 and US$6 420 per square metre, he pointed out.
Interestingly, Altman said that despite the impact of the global economic crisis, the property and overall financial picture of Barbados could be brighter with better management of the country’s economic affairs.
“[Barbados] has the opportunity to answer questions about stability if we had better management of the full, big picture. We have to recognize that we are in a global crisis and government tends to pay lip service to that rather than deal with it,” he argued.
“In good times you can pay lip service and get away with it. But in bad times, you have to ensure that when you say something, you press the button and it gets done.”
The real estate guru believes the vitality of the middle and lower ends of the property market often depends on what happens at the top of the scale.
“It is a trickle-down situation,” he explained. The middle and lower market is only strong if you can keep the big market alive.
“The big market is keeping hotels filled, houses sold, employing people. Doing big projects – that is what trickles down and helps the middle and lower market survive and keeps them alive.
“The big picture, you have to start by ensuring that your big thinking is not only talked about but the things are done. You talk about competing with the other destinations but you have to do it. You don’t just talk about it but you do it. People who sign the papers and create a level of efficiency must understand that it is not business as usual. It has to be dealt with.”
As the New York Times told its million-plus readers, Barbados “has long had strong appeal” for American, British, Canadian and European buyers. The reasons run the gamut from the direct flight connections from New York, London, Frankfurt, Sao Paulo and Charlotte; the presence of such celebrities as Simon Cowell, Wayne and Coleen Rooney and Sir Andrew Lloyd Webber, not to mention Rihanna in the country – and a championship golf course.
Then, there is the infrastructure which makes life better.
