Super-rich, middle-income have big appetite for piece of the rock

By Emmanuel Joseph

Barbados is set to enjoy its biggest luxury building boom in some 14 years, top real estate executives declared as they predicted shortages of labour and materials this year.

A rise in construction costs is also in the forecast.

But while middle-income home-building is likely to put pressure on the construction of villas, the appetite for a piece of the Barbadian rock among the super-rich shows no signs of tapering off, with homes at the very top end of the market fetching record prices, said leading realtors in interviews with Barbados TODAY.

One luxury homes specialist has identified globe-trotting Prime Minister Mia Mottley as a key selling factor for would-be villa buyers.

Hayden Hutton, Chief Operating Officer of the Terra Group of Companies, said: “My sense is that [in 2024], the construction industry is going to be so busy that the demand for labour, supplies, materials, etcetera, is going to be exceedingly high. So, one needs to think about the cost.

“There are a lot of development projects going on in Barbados and new ones to start. I would give you the example of Alora on Brighton Beach, which is an off-plan project. I think we have 24 units there, and 75 per cent of those are all sold off-plan…not finished yet… We have not had off-plan sales with the general residential market going back to the 2007-2009 boom market. So, once you see that level returning, it says the market is definitely on a very, very strong trajectory.” 

The luxury property market specialist suggested that a raft of middle-income developments is driving up competition for the resources to build high-end homes. 

“For example, the supply of materials, competent contractors, tradesmen, electricians, joiners, carpenters, landscapers, you name it. I think [2024] is going to be increasingly difficult with all of that activity going on, to get access to those trades,” Hutton said.

The luxury property market here is in the middle of a boom time, according to the Terra boss who reported that villa sales are going through the roof.

“The market has been exceedingly strong,” he said. “The high-end of the market has been the strongest from over the period of COVID until now…. [It is] the strongest it has been in history, without any question and by any standard. There have been record-breaking sales.”

Hutton said almost all the residential markets globally coming out of COVID, had tremendous bumps.

Real estate mogul Sir Paul Altman.

“What most people were saying for the calendar year 2022 – best year on record,” he declared. “That was a very common sentiment for many markets globally – the region to the US market. The residential markets heated up and went bananas. Barbados was the same.”

He identified a notable stand-out in the “very” high-end of the market as the “trophy” sales for properties above US$25 million (BDS$50 million).

“We have had more sales in that segment of the market than we have had in the history of Barbados in the last couple years,” said Hutton. “And with all the development going on up at Apes Hill, there is a lot more supply to come on.”  

The chief operating officer also underscored the high strength of the island’s selling proposition in the Caribbean.

He said: “When clients who are thinking of coming here and think of other destinations in the Caribbean and indeed around the world, whether it’s St Barts, whether it’s south of France, Monaco, our experience with our partners out of the UK is that the Barbados proposition remains very, very, very strong.”

Prime Minister Mottley’s global brand is one of the primary factors luring investors to buy homes in Barbados, the head of the real estate grouping suggested to Barbados TODAY.

“The prime minister’s presence and brand, and the way she is putting the Barbados brand on the world stage…that is one of the great component parts, the degree of comfort that it gives people to come and invest in the island. No question about it,” Hutton said.

Long-time leader in the luxury property business, Sir Paul Altman of Altman Real Estate Group also reported strong sales.

Sales, Rentals and Marketing Manager at Barbados Sotheby’s International Realty Muffin Stollmeyer.

“Of course, it is always stronger during the winter season because high-end is mainly being sold to non-nationals,” he told Barbados TODAY. “We are preparing for a very good winter season. We have new wonderful properties that are available for sale.”

Sir Paul disclosed that most of the property investors come from the United Kingdom, followed by Canada and the United States.

He said the upscale property business continues to grow and construction is “quite” busy.

Barbados Sotheby’s International Realty, another major player in the luxury property business, also painted a bright picture for purchases of high-end residences.

Sales, Rentals and Marketing Manager Muffin Stollmeyer told Barbados TODAY: “[2024] is looking quite healthy. So, we are hoping that those people who come in would be looking at purchasing.” 

She also indicated the outlook for the construction of new developments next year is positive.

“We have seen some developments coming onboard,” she said. “There are a few developments that have been under construction, and we are still seeing a lot of construction in developments like Royal Westmoreland and Apes Hill. So, that’s positive.”

The senior real estate official also listed Britain and Canada as the leading source markets for her company’s property sales and pointed out the areas of Barbados where the prospects target: “These would be second and third holiday homes mainly on the west coast, beachfront or gated communities like Royal Westmoreland, Sugar Hill, Apes Hill and then the beachfront condominium complexes.”

She said that people who come on holiday for the Christmas and New Year period tend to remain in the island longer.

“So, those are the people who are looking to stay. They come on their holiday here from wherever in the world, and then they tend to stay longer and longer throughout the winter months, and the longer their stay, they even look at potentially purchasing property. We have had people extend their stay, and purchase properties as well,” Stollmeyer said.

emmanueljoseph@barbadostoday.bb