We have always committed ourselves to producing newsletters that we feel offer our clients valuable information on the market place – and from the feedback we have received over the years it appears that our objectives have been achieved most of the time. This month we want to share some internal information that we feel demonstrates our confidence in the Barbados property market based on some internal initiatives that the Terra Caribbean Group has undertaken. But before we start let us think of Warren Buffet’s famous quote: “Only when the tide goes out do you discover who's been swimming naked.”
About 12 months ago some financial pundits started to talk about “green shoots” in the market. We all understand the concept of renewal so it seemed quite an apt phrase when we started to see pockets of activity that gave us hope. That hope was realized over the winter period with an increase in actual transactions. As we had predicted last year, the price corrections coupled with a strengthening Pound Sterling and stabilizing world economy worked in our favour manifesting itself in transaction volume and stabilized pricing. I am pleased to say that we were right, but now it seems we face a new challenge – Greece and oil are causing our recovery to slip!
In The Red Book 2010 Andrew Mallalieu trumpets the equilibrium that has now been reached in the Barbados foreign real estate market: “Sellers have found the point at which buyers are willing to make a decision”; and this he states has led to sales of vacation and second homes to foreign investors at full asking price. Simon Milligan, in the same publication touts the investment in real estate (in Barbados or elsewhere) as a “theoretically sound part of a wider efficient portfolio of investments”
…all signs point to a turnaround. By Randy Howard for The Trinidad Guardian THE restart of large scale projects, and the correction that has taken place as it relates to prices, has had the impact of restoring confidence, and jump starting activity in the Barbadian real estate market. Over the past 12 to 18 months this market has been seen to be somewhat turbulent when compared to previous periods, however, due to the above, things appear to be turning around, making now the perfect time to invest. As a result of the global economic downturn, which had a significant impact on the incomes of individuals in the United Kingdom, the United States, and other developed countries, capital inflows into Barbados dried up, therefore resulting in the slowdown, or halt in some cases, of large scale real estate projects on the island. However, coming onto the end of last year, it was noted that some of these projects would be resuming in the New Year, which, according to a number of Barbadian real estate practitioners, sends the message that confidence is coming back into play.
Professor Henry S. Fraser - President Emeritus, The Barbados National Trust Article from The Red Book 2010 Barbados is a prime example of a small but dynamic country with a well recognised brand image – top of the small developing country pile, well governed with a stable economy, and carefully balancing the preservation of its culture with the need to share it with curious but well-heeled visitors. It has always attracted eminent citizens of the western world – from George Washington in 1751 (he and his brother spent seven weeks here) to Presidents Reagan and Clinton; from British royalty to prime ministers – Sir Winston Churchill, Anthony Eden and Tony Blair and not to forget the fabulously wealthy uncrowned heads of Britain and North America. As a result, there is a need to balance the protection of much of the rock for the use and enjoyment of our own citizens and their descendents, while permitting the carefully controlled development of real estate for the maximum economic return that will support the very use and enjoyment of our heritage by both our own citizens and our much appreciated guests! And there’s the rub: controlling development to protect our heritage. The architectural heritage of Barbados is one of the richest in the Caribbean.
As we have done in the past we kick off the Pink Pages with our predictions for the market in the coming year. This year the challenge seems to me to be how to separate our feelings about the two segments of the residential real estate market that co-exist in Barbados but are on different paths. The local market and the foreign market. We should start by giving a definition of each market. Such definition could take into account location, amenities, design, and price point.
John Cutts - Parkridge Holdings Feature article from The Red Book 2010 Barbados has long-established itself as a hub for the international elite having always attracted a diverse mix of politicians, business leaders, sports stars and celebrities. The island’s climate is certainly a welcomed change for many; and the relaxed elegant lifestyle which can be enjoyed here offers visitors a plethora of activities such as great golf, an abundance of watersports, and fine restaurants across the island, all of which make this destination such a paradise. Many of the visitors to Barbados instantly fall for its charm and beauty and go on to acquire homes here so that they can enjoy stronger ties to the community and return time after time to enjoy its unique lifestyle. In my mind some of the factors that combine to make Barbados a popular second or third home destination, include but are not limited to the island’s fantastic international air links with Europe, the U.S.
Thompson cuts ribbon at official ceremony PRIME MINISTER David Thompson says that 54 new luxury Sapphire Condominiuns will be a boost for Barbados’ economy. Giving the feature address at the official opening ceremony of the Dover, Christ Church property, he said there would also be “a continuous flow of foreign exchange”. “The sale of these condominiums – to people mainly from the markets that we depend on for tourists and to Barbadian citizens as well, will lead to a significant injection and circulation of financial resources into the Barbadian economy. “And since many of the owners are willing to place rooms into the pool for short term rentals, there will be a continuous flow of foreign exchange into the country. Needless for me to say they will also create employment for Barbadians,” said Thompson.
Barbados Advocate - Business Monday THE Sapphire Beach Development cost approximately $50 million to build, and while they employed 300 Barbadians, sale of the units are expected to generate close to $85 million in foreign exchange. These numbers were revealed Friday night by Bjorn Bjerkhamn, one of the principals behind the project located at Dover, Christ Church. Speaking at the official opening ceremony for the 54 luxury units built on the site previously occupied by the Dover Convention Centre, Bjerkhamn said that practical completion sales have increased with the addition of over half a dozen units being sold. "This development is a strong contender in the international market," he told the ceremony attended by government officials headed by Prime Minister David Thompson, and many of those who partnered in the project. He said that they had chosen the opportunity to contribute to the local economy through the development of what was an unused facility.
Escape to Barbados - land of sun, sand and royalty. By Anna Tyzack - Telegraph.co.uk Published: 4:10PM GMT 02 Feb 2010 Some of us sit around and complain about the miserable British weather, the recession, and falling house prices. Others make their way to Gatwick and fly to Barbados.