Property Market in Barbados: Real Estate Investment

It is often said that a man's home is his castle and from the recent media focus not only here in Barbados, but regionally and internationally, it is apparent that interest in owning a home and furthermore property overseas is a growing global phenomenon.

That Barbados is one of the favoured destinations for persons to own a luxury home is no surprise; but why is that

The obvious answers would begin with the beautiful climate experienced year round, the excellent stable political and economic climate of the country and the National Strategic Plan outlines the goals for Barbados being a developed country with excellent infrastructure by the year 2025 - a factor that must be appealing to investors.

All of these coupled with the notion that there are people who will pay the highest price to own property here in Barbados, therefore, the more people that express an interest in living on the island, the higher the cost of houses and land will be.

Every seven or eight years, a new market cycle of growth begins. It starts, not surprisingly, in the most desirable areas of Barbados: the beachfront.

At the start of a cycle, these areas will go first and that is exactly what is happening in Barbados now. Property developments are emerging daily along the West and South coasts and it is only a matter of time before the East Coast becomes the focus of the discerning investor; if their interest has not been piqued already!

Let's follow the next logical step if you desire not to invest in these "desirable" areas. The next obvious step of course would be to buy in the second most desirable areas.

We would highlight the increased interest in property further north along the West Coast into St. Peter and St. Lucy. Prospective buyers who are unable to capitalize on some beachfront property are investing in other luxury properties located near to golf courses or polo fields which still command a view of the coast even if the property is not located directly on the coast.

One great feature of the property market in Barbados is that it is quite predictable, to the extent of course that this can be done.

It is certainly far more regular and reliable than for example the shares or mutual funds markets. One reason for this is quite simple - property or housing is not optional.

Everybody, or almost everybody, needs somewhere to live. Everyone does not need to own shares; that is optional and therefore depends on the whims of the purchaser.

Further, in a telecommuting society as the one that is being developed in the twenty first century, if people no longer need to live near work, the preference, presumably, would be to live in as pleasurable an environment as possible.

While the definition of 'pleasurable environment' would obviously vary for different people, it is probably reasonable to assume that views, fresh air, beaches, entertainment venues, would be high on the list.

These are features that are quite dominant in Barbados, particularly on the West and South Coasts, where the entertainment hubs are Holetown and St. Lawrence Gap respectively.

Both commercial property prices and luxury housing prices have risen substantially for many years and although we have been able to see that the rates of increase have slowed down slightly in recent months, they are still high.

It is believed that property prices may well continue rising at a fairly high rate over the coming period, but in the slightly longer term such a rapid increase is not sustainable.

When it comes to overseas property these days it seems the world is a much smaller place with property buyers venturing further afield for a bargain investment property potential spurred on by more adventurous holiday destination options and undaunted by the trials and tribulations of the most basic of property laws.

When looking to invest in property in Barbados, you are essentially focusing on two types of property markets.

The first is residential real estate property, whichis emerging in the form of townhouses and villas in distinct luxury communities like Lion's Castle, Sandy Lane Estate, Port St. Charles and Royal Westmoreland to name a few.

This market caters to the transient expatriate workers or affluent local residents seeking accommodation.

The second type of market is the holiday or vacation home market where real estate is bought to rent out, in which case the property is viewed as a dual function in terms of both lifestyle and investment.

This new wave of buyersare entering the emerging markets of the Caribbean, like Barbados, as buy to sell or buy to let investors.

This trend has been growing as global domestic markets are competitively priced for many first time buyers and individuals are turning to property as an alternative investment to stocks and shares.

Never before have real house prices risen so fast, for so long, in so many countries. Property markets have been frothing from America, Britain and Australia to France, Spain and even China.

Rising property prices helped to prop up the world economy after the stockmarket bubble burst in 2000 but what is it that is attracting real estate purchasers to Barbados

The property market in Barbados is a dynamic and exciting one and it is easily one of the fastest growing yet most developed, best returning markets in the Caribbean.

Buyers are being attracted by the stunning and quite simply unrivalled location, and by the wealth and choice of property available to them.

Property available on the island ranges from incredibly attractively priced holiday flats and villas to well appointed and located apartments close to the beautiful West and South Coast beaches.

There are also available well constructed and located family villa homes with pools and gardens right up to stunning luxury mansions and wonderfully restored plantation houses.

Property developers in the Barbados property market understand the need to build sympathetically and to construct complimentary buildings and homes,after having seen the way that some island destinations have been spoilt in places with high-rise, low-quality apartment blocks and hotels.

Several renowned architects and designers are involved in the quality and aesthetic design of the Barbadian property market and you will be struck by the quality and design of the development work that is taking place here.

The rise of the property market in Barbados is set to continue for many years to come and the wise will invest now before they are priced out of the market.

At the end of the day, we will just have to see how the Barbados property market future unfolds but if the present trend is anything to go by - then we are in for a wonderful adventure!