Brits fuel Barbados property price growth

Country:  Caribbean

15 August 2008

Property prices in Barbados are currently appreciating at annual rate of up to 20%, fuelled in part by strong demand from Britons who are taking advantage of the UK pound's strength against the dollar, according to Cluttons Resorts.

Barbados is without question the ‘Little England’ of the Caribbean. This popular island remains incredibly British, despite having been independent for over 40 years.

Offering an abundance of gorgeous sandy beaches, sunshine and turquoise waters, this tropical island attracts a large number of British tourists each year. The country has one of the most fully developed tourism infrastructures in the Caribbean and presents one of the highest standards of living in the world.

Buoyed by a strong economy and robust tourism sector, average prices of property for sale in Barbados have never depreciated in the recorded history of property sector on the island, despite the recent sub prime mortgage problems in America.

Tim Morgan, managing director of Cluttons Barbados said: “Barbados is truly a beachfront island paradise with some of the most beautiful properties in the world. The market is currently strong, expanding and very exciting.”

Below is a snap shot of the property market on the island, provided by Cluttons Barbados:

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.

With the Four Seasons luxury residences and Hotel under construction at Pile Bay, close to Batt’s Rock on the southern end of the West coast and the Portico condominiums very close by at Prospect St. James, this has shifted the critical mass of luxury property from the centrally located Holetown area where the Sandy Lane and Royal Westmoreland properties are located. There are a number of other West Coast luxury beachfront developments on this stretch of coast with prices ranging from US$ 1m – US$ 10m. 

Royal Westmoreland and Sandy Lane are currently the premier residential golf resorts on the west coast, with two more major golf developments currently underway at Apes Hill and Banyan Tree. Barbados is very quickly becoming a major golf destination within the Caribbean and world.

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 starting around US$750,000.

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, who are also the owners 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 a multi million dollar high end luxury residential development.

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.

The two higher end developments are, “The Palm Beach Condominiums” which are spacious and offer very good value with quality finishes. These units are 2,200 square feet and larger and start at US$950,000. The Sapphire Beach Condominiums and White Sands Villas are two very good examples of new developments in the heart of the south coast. They are both directly on the beach and start at US$700,000 for a one bedroom unit.

Prices on the south coast range from US$ 350,000 – US$ 2,000,000.

With real estate values declining in some of the world’s more established and developed economies, many investors are seeking countries where property values are still climbing. Barbados offers very good property investment possibilities as the island is stable and growing and the south coast is still very much affordable, especially whilst the Pound is so strong.

The East Coast
The east coast is on the stunning Atlantic side of Barbados and there are clear indications that will soon be starting to see plans for hotels and property developments on this side of the island. Watch this space.

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 program. Full service luxury villas can be rented that include chefs, housekeepers, butlers and even a water sports boat drivers if required and most rental customers become repeat clients so the market is renewing and growing, which is positive. Flights to Barbados are cheaper than people think ranging from US$ 600 and upwards which is another fundamental reason why tourism across Barbados is growing.

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