Monthly Blog- May 2024
Alex Law
Never in my wildest dreams did I expect to be asked to go to the Caribbean for work! The assignment was on behalf of a government client tasked with acquiring new ambassadorial residences in Barbados and Trinidad. My role was to appraise the residential real estate markets on both islands and provide a clear idea of value to assist the client’s negotiation team. In addition to negotiators, the client flew in a delegation of personnel to appraise the selected properties including an architect, interior designer, building surveyor, and security professionals.
The nine-hour flight from London to Bridgetown is thankfully a painless one. It had been 24 years since I was last in Barbados for the Millennium. Before that I spent my first ten birthdays in Barbados with my family, so this was a trip down memory lane.
The tropical island air is the first thing that hits you when you step off the plane. After dropping my bags and freshening up at the hotel I made for Oistins Fish Market, the go to place on a Friday evening in Barbados. Crowds thronged the marketplace, whilst pumping reggae music, diffused with the aroma of freshly grilled fish and plantain, filled the air. Needless to say, the ninety-minute wait standing in line to be served freshly caught fish was worth the wait.
After meeting the client’s entourage, we set about viewing a dozen shortlisted villas around Sandy Lane, Westmorland’s and Hole Town in Saint James, on the west coast of the island. For security, none of the villas were beachfront properties, which in many ways is a shame, as that’s the main allure of this pristine coastline. A sufficient amount of entertainment space, perimeter walls and disabled access were just some of the prerequisites for each of the short listed 4-5 bedroom villas.
Barbados has been developed dramatically since I was child. What used to be sleepy areas are now packed with resort hotels, condominiums and shopping malls. Sadly, Bridgetown has been left to decay, whilst the more touristy areas up the west coast have been heavily invested in. Taxis, restaurants, and the fact that most supermarket products are imported, contribute to a remarkably high cost of living. The government is working to improve tourism standards which will positively impact the luxury residential market. New government policies are currently being drafted to improve tourist accommodation right across the board. The upcoming World Cup cricket this summer will also drive-up luxury rental accommodation and prices.
Comparable sales data sourced from local agents and valuers indicate realisable values between USD 6,000 – 10,000 per square metre for the type of properties we were appraising: 4–6-bedroom villas with large gardens, pools, and necessary security. By the end of the week our client had successfully selected two villas, agreed Heads of Terms and commenced acquisition negotiations.
