In a few months time Barbados should have its first multi-storey multi-purpose high rise complex. “Somerley” will be located in Worthing on Barbados’ South Coast and will combine commercial businesses with residences. Terra Caribbean, a Barbadian based real estate company with over 50 years of experience in the local market will headquarter its operation in this state-of-the-art building. Terra’s managing director Andrew Mallalieu said the concept was a first of its kind in Barbados. “No building has been done like this before,” he said.
One does not need to look very far to find predictions of falling prices for Barbados real estate. The predictors of this dire trouble point to the fall out from the crisis in the sub-prime market and the fall of property prices in the USA. Personally I think that the Barbados property market is quite disconnected from this crisis. I am neither an economist nor a central banker, but then again it was probably just this group that should have been avoiding this problem and since they did not, I won’t trust them to tell me the cause or get us out of it!
When placing a property on the market for sale or rent, most clients often ask the question “How will my property be promoted?”. The answer to this question has everything to do with the agent’s depth of knowledge and how well they understand the product on offer and the market for that property. Executing a plan that utilizes the correct marketing channels is key, realizing that the market for property in Barbados comprises three broad groups – local, regional and international buyers. Some of the marketing vehicles will reach all three groups; others will be quite specific to a particular geographical area.
In an unscientific poll of the leading real estate agents on the island the expectations for a record sales season are projected. In some quarters expectations for growth in unit sales are as high as 100% over last year (the best year ever). Early sales results seem to be providing empirical evidence for these expectations. Going into the 2007/08 Winter season there are more properties available for sale than in at any other time in the past. Looking at the multi-unit developments selling from plan or in the process of construction, at the start of the season you will find 784 units available for sale out of a total of 1503.
In recent months the subject of valuing agricultural land has occupied many cocktail parties and boardroom discussions. It seems that everyone has an opinion on how it should be done, but from our observations the opinions generally are very subjective and not necessarily supported by valuation theory. Perhaps a discussion on valuation theory would be helpful to our readers to better assess how to reach an opinion of value for a parcel of agricultural land.
As part of the ongoing development of our knowledge-base, we continue to track occupancy levels within the office and retail sectors of the market. This month we elected to provide an update on the supply of A-Class office accommodation within the Barbados market.
Expansion at Warrens is happening at an increasing rate! The area has been a focus of much attention in recent months, and is often referred to as the most rapidly developing commercial centre on the island. This is probably true and with the projects now in planning stages and other potential projects on the horizon the description could be accurate for years to come. Warrens is physically located between the south coast and west coast residential and tourist areas, making it ideally suited for retail and commercial development.
Earlier in the year we were invited by the Barbados Town and Country Planning Society to present our views on this issue to the Commonwealth Association of Planners at their Regional Conference entitled “Re-shaping the Planning Agenda: Experiences of Small Island States”. We’d like to share our thoughts with you in this month’s newsletter.
With numerous real estate projects being developed across Barbados, there are many opportunities for investors to purchase either a condominium or a villa within these complexes. (For ease of reference, we will use the term “villa” for remainder of this article.)