Monthly Blog- September 2024
James Whitmee
I am in Majuro the capital of the Marshall Islands this week reviewing the residential property market.
There are significant geographic and economic constraints. Land availability is slim, and construction costs are steep, leaving most investors to focus on other sectors such as shipping, fishing and leisure. Nearly all new residential development is directed at accommodating government employees, who receive housing subsidies that are capped at around $750 per month.
Most housing is aimed at the local market, with a major absence of high-end options. The expatriate population here, which mainly consists of individuals working in education, construction (often on short-term infrastructure projects), and various aid agencies, doesn’t demand a luxury product either. Average rents are around $1,000 per month for foreigners.
There are no real estate agents in Majuro, no listings boards nor advertising. I met with the largest landlords in Majuro. At the time of visiting there was only a handful of properties available with waiting lists for most property types.
Ownership is complicated and tricky for the following reasons:
Foreign entities and persons cannot own property in the Marshall Islands – only leasing is permitted.
99% of land is not freehold but has three layers of local/traditional “ownership”, all of those “owners” having a potential say in what happens on the land.
Even for Marshall Island businesses and entities, purchase of land is risky as a purchase often triggers claims from third parties, based on historical and family connections which can be difficult to verify.
Registration of title is voluntary.
I am flying from here back to the UK through Hawaii, and the West Coast of the States. I will be crossing the international date line so effectively gaining a day – 21 hours of flights, so a bit of a marathon.
