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2011: the Fast Burning Recovery in Caribbean Property?
January 26, 2011Article by Ray Withers
There are the grumblings that 2011 could well be the year that the slow burning recovery in Caribbean property takes on wings and pulls the market back to somewhere near the pre-boom levels.
Some believe this beyond a shadow, and there are certainly plenty of glimmers of hope in places, but unfortunately there are an equal number of signs that the status quo still reigns supreme.
According to the Global Property Guide, Antigua and Barbuda are looking forward to a strong 2011, due to a massive IMF grant and a big tourism initiative.
To celebrate the 30th year of independence the government is holding a big celebration and going all out to lure Antiguans and Barbudans living and working around the world to come back to their homeland, thereby boosting tourism massively.
Antigua and Barbuda is the Caribbean’s most tourism dependent market, with tourist revenues accounting for over 70% of GDP, and tourism completely crashed during the bust, so one has to say that they certainly need a run on tourism.
In June last year the IMF agreed to loan Antigua and Barbuda $117.8 million, on the prediction that the economy will grow 3.1% this year. Global Property Guide believes that this will be spent on the infrastructure in 2011, which would provide a boost to the economy. A further loan of $45 million from China will be used to build a new airport terminal.
However, looking around we can see that bargains are still in abundance in the Caribbean property market, which would seem to indicate that sales are still hard to come by.
Property Frontiers are currently marketing quality apartments near the beach in Grenada from £26,700. This could be looked upon as a sign of a sluggish market.
“Yes, there are still some bargains around, but we are just coming back through the slow part of the year,” said David Cox, Property Frontiers director.
“When you look back to the spring of 2010, this is when we saw sales starting to pick up in the Caribbean, and even in 2009. We are expecting an even bigger push this year, if not from Brits from the Eastern Europeans who are increasing in number,” he said.
“Whether it will be an all out recovery or not I don’t know, but it should be enough to clear the backlogs and start pushing prices north again,” he added.
The development mentioned is the Bacolet Residences, a low-budget development located near the award winning Bacolet Bay development.