30 Nov 2011Blog

History of Real Estate in Barbados over the last 10 years

by Monique

BarbadosRummaging through my old documents from previous jobs, I found this article on the ‘HISTORY OF REAL ESTATE IN BARBADOS OVER LAST TEN YEARS’ which was written in 2005. Info was gathered from many sources including professionals within the construction industry, property developers, colleagues and real estate professionals.

How different some things are now! Have a read and leave your feedback in the comment section below this article…

Barbados is a small Island in the Eastern Caribbean of 166 square miles in area (21 m x 14 m). The Island has a population of 270,000 of which 104,000 reside in the capital Bridgetown. In 1966, Barbados was granted independence from the U.K. and since then has been a Member of the Commonwealth, with the Queen represented by the Governor General.

Barbados enjoys a stable, democratically elected Government with an infrastructure recognized as one of the best in the Region and, the legal and Banking Institutions have been well developed to serve in domestic and expanding international business communities including a thriving Offshore Financial Sector.

Barbados traditionally has strong business and social links with the U.K. and Canada along with the USA and CARICOM nations of the Region. The domestic, business and tourist sector, are well served by an international Airport, currently undergoing a USD$100M upgrading in its facilities.

The economy of Barbados is recognized as being sound, with the traditional Sugar Industry being replaced in its importance by the expanding Tourism Industry, Light manufacturing and the Offshore Financial Sector. The currency of Barbados is the Barbados Dollar and is directly linked to the USD at a rate of 2:1.

In recent years, the Government has actively encouraged overseas investment by incentives in Hotels and Real Estate and consequently the Island has seen a boom in the Construction industry as developers have been quick to recognize that the Island offers all the economic conditions to deliver the returns required to attract investment in this sector, along with the obvious benefits of an idyllic tropical climate with an excellent infrastructure and high quality restaurants, golf courses and a wide range of leisure activities.

The West Coast of Barbados in particular has seen perhaps the biggest areas of investment in recent years. The Sandy Lane Hotel and Golf Complex, Port St. Charles, Royal Westmoreland and Sugar Hill are examples, along with many magnificent homes have all been built in the last 10 years.
Statistics from the Central Bank of Barbados show that overall on the Island, property values have increased by 20%, however, on the West Coast during this period the price of property has increased by well over 100% where the property has beach frontage.

Currently there are several beachfront projects in progress on the West Coast, with several more due to commence construction in the next year or so to meet the demands that is currently being demonstrated.

Prospective purchases are being offered attractive rental returns to supplement the capital appreciation of the property, should they wish to maximize their return on the investment.

To the non-resident, there are no restrictions on purchasing property in Barbados nor punitive purchase taxes.

Mortgage facilities from International Banks on the Island are available for prospective purchasers of Real Estate.

As stated earlier, the Government of Barbados attaches great importance in the growth of the Tourist Industry in tenders with encouraging overseas business to invest in Barbados. It is anticipated that the hosting of the World Cup of Cricket in Barbados in 2007 will certainly focus the attention of the World Media in visiting Barbados in this period, and many construction projects are being developed to be ready for this event.

In conclusion, Barbados offers the prospective investor an idyllic tropical climate governed by a stable democracy that actively encourages overseas investment in Real Estate. The construction industry on the Island is already booming and the economic conditions in Barbados promise excellent returns to the Real Estate Investor in Barbados for future years.