You don't have to live in Barbados for a long time to notice that major sporting events contribute to the development of tourism and the real estate market. Unsurprisingly, a year before the Cricket World Cup, Barbados is very lively and on the rise.
The sports marathon will start in March. As part of the world Championship, four qualifying games, six quarterfinal games and, of course, the grand final, which is already being talked about a lot, will be held first. To imagine what this event means for a small country, let's give a few figures. The population of Barbados is about 270,000 people, and about 2 million guests are expected to arrive during the tournament. The games will be watched by about 2.2 billion TV viewers worldwide, and the most passionate cricket fans will be in the stands of the state-of-the-art Kensington Oval Stadium, located in the capital Bridgetown.
The status of the host of the tournament should bring considerable dividends to the country. "After the Olympic Games in Sydney and Barcelona, there was a significant increase in the number of tourists," says Serge Cowan from Unique Living. "Moreover, these events have also affected the real estate markets." Approximately the same effect is expected in Barbados.
Tenants are waiting for a profit
Barbados once suspended the development of its sugar industry and rum production in order to make tourism a major part of its economy. Now it is quite a prosperous region, whose holiday home market successfully competes with Florida and even with the UAE.
The undoubted advantage of buying a home in Barbados is a high rate of growth in the value of real estate, a stable political situation and developed infrastructure. "The value of real estate has been growing by 15% per year for 5 years," says Chris Parra of Caribbean Luxury Property. – And the current recovery is also due to the weakening of the dollar. The fact is that the local currency, the Barbados dollar, has a rate associated with the American dollar. It is not surprising that for European buyers, real estate in Barbados has become more attractive. At the moment, 80% of property buyers are British."
The real estate offer is currently very large. "Take a ride along the west coast and you will see about 250 condominiums under construction, and the same number are being designed on the south coast," says Richard Eames of Island Villas. "At the same time, the situation has developed favorable for buyers: supply exceeds demand." But soon the island should be seized by a "cricket fever", thanks to which the demand for buying real estate should grow.
But the greatest growth in demand is expected for rental housing. Due to the absence of large hotel complexes on the island, a significant number of tourists are forced to rent apartments and villas. "A huge number of visitors to the championship will order accommodation online," explains real estate consultant Simon Ellis. – And we, like many other real estate owners, will assign a high, but quite lifting rent for housing. It is more important for us to develop long-term business relationships and conclude repeat transactions with our customers."
The choice is great
Numerous small development projects have earned the favor of the authorities, with the filing of which the construction of holiday housing is underway, designed to replace uneconomical hotels and allow you to place more real estate in a small area. "Condominiums are usually designed for no more than 20 apartments," says Serge Kovan, "and the maximum height of houses does not exceed 5 floors in coastal areas and 3 floors on the seashore."
But buyers should be on their guard when choosing offers from small development companies. They usually have limited financial resources, and a slight decline in sales can turn into a serious problem for them and a significant risk for buyers who invested money at an early stage.
An example of a successful project can be considered the Beacon Hill complex on the east coast, which was sold out within a few weeks from the moment it entered the market. This complex is characterized by luxurious multi-level apartments, it has a shared solarium, swimming pool and Jacuzzi.
Another attractive project is The Palm at Beacon Hill resort complex, where Island Villas sells apartments with two bedrooms, two bathrooms, magnificent views of Mullins Beach and private parking. Their cost is $795,000.
Nearby, in a quiet area, there is a small complex Porter's Gate, consisting of 11 townhouses with two bedrooms and 20 townhouses with three bedrooms. Their distinctive features are open-plan living rooms, spacious enclosed terraces, as well as Internet, satellite TV and air conditioning as standard options. Two-bedroom townhouses are being sold by Caribbean Luxury Property for $450,000.
A little further along the coast is the Summerland Villas complex, consisting of two-bedroom apartments and penthouses with three and four bedrooms, a swimming pool and a roof garden. An important advantage of this complex is its proximity to the beach. Minimum prices for apartments range from $825,000, and the cost of penthouses reaches $1.4 million.
Journey deep into the island
The inland areas of the island, remote from the sea, attract tourists to a lesser extent, but they have become a favorite vacation spot for connoisseurs enjoying the unspoiled beauty of the local nature. Colonial-style houses in need of renovation are popular here, but they are also relatively inexpensive. So, in the catalogs of the Unique Living company, you can find a house in a traditional Barbadian style, with six bedrooms, an enclosed terrace and a small pond, for only $ 706,000.
Apes Hill is also a huge resort complex under construction in St. Thomas County with the support of the Prime Minister of Barbados, Owen Arthur. The project is led by the Landmark Land Company, one of the world leaders in the design of golf resorts, and the investor is Sir Charles Williams, a local construction magnate. The complex will consist of 200 villas and 150 semi-detached cottages with plots of land ranging from 1300 to 5800 sq. m. A developed infrastructure will be created, including a fitness center and a spa center, but the main highlight will be a polo field. For an additional fee, owners will be able to get a membership in the golf club, and those who make a purchase during the pre-sale period are given the opportunity to become members of the golf club for just $ 25,000. Prices range from $292,500 to $500,000 depending on the size of the plot.
In the footsteps of Bohemia
The Royal Westmoreland Resort Complex offers villas both for rent and for sale. For the duration of the World Cup finals, everything is already booked here, and the guest list resembles a short reference book "Who's Who in the world of sports, business and Bohemia". The area of the complex is 194 hectares, and the owners very rarely sell their property. Therefore, the 4-bedroom villa Cucooland, which is being sold by Altman for $3.5 million, is the exception rather than the rule. The construction of a new stage of the complex - 54 small Gardenia villas – is a great opportunity to buy real estate here. These villas have three bedrooms and are located around a communal pool, prices at the construction stage are from $1.569 million.
In the Sugar Hill neighborhood, the construction of the David Lloyd Resort Community is being completed, where one- and two-bedroom apartments and townhouses are offered to buyers. The area of the complex, located on a sloping hill, is 20 hectares. It includes a world-class tennis center, a club, as well as a bistro. A special program has been developed for buyers to further lease their property. In addition, owners receive the right to play golf at the nearby 18-hole Colin Montgomerie course. The minimum price of the apartment is $420 000.
Colonial motifs
Speightstown is the second largest city in Barbados, it is located on the northwest coast of the island. This is one of the most popular areas of new construction. Thanks to the active financial support of the government, the improvement of the city is in full swing: its appearance is improving, infrastructure is developing, new technologies are being developed to protect the coast from erosion. In addition, property taxes are being reduced, and as a result, the local market in Speightstown is now experiencing a small boom.
The Schooner Bay residential complex in Speightstown is a kind of mix of colonial style and ultramodern trends. This complex, consisting of only 30 apartments, is located on a small but very well-groomed beach, which is given a special charm by beautiful coral reefs. Unique Living and Altman companies offer one-bedroom apartments for $606,000 and luxury three-bedroom penthouses with magnificent sea views for $2.25 million.
Modest south
In order to dispel stereotypes about the exceptionally high cost of real estate in Barbados, we recommend visiting the southern coast of the island. The same wonderful views will open to the eye: the clear turquoise waters of the Atlantic Ocean, the white sand of the beaches. Of course, the echo of the World Golf Championship has reached these places, but real estate prices remain a third lower than on the west coast.
The Reef at White Sands complex is located near White Sands Beach in Dover,consisting of 19 apartments in a modern Caribbean style with beautiful sea views. The complex is for sale by White Sands Properties, the apartments cost from $ 400,000.
In a picturesque rocky area, next to the Merricks Hotel, in St. Philip County, there is a Spa and Residence resort complex. It has a very good location – just 500 m from the sea and at the same time very close to the airport, 15 min. ride. The complex consists of apartments with one, two and three bedrooms, townhouses and villas. Construction will be completed in 2008. When renting out apartments, profitability is projected from 6.8% to 8.5%. The complex is being sold by Property Frontiers. The price range is quite wide - from $235,000 for a studio to $659,000 for a three-bedroom villa.
Many experts believe that in connection with the Cricket World Cup, some difficulties may arise for the inhabitants of the island, but this is a short-term phenomenon. But the impetus that the championship will give to the development of tourism and the real estate market will have a long-term effect.
"Barbados has a powerful potential," Serge Kovan puts an end to it. "The relaxed appearance of the island is deceptive, it hides great opportunities for investors – and next year is just the beginning."
