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Caribbean Real Estate Prices To Increase 10% This Year
April 1, 2010Article by Ray Withers
Caribbean real estate prices are likely to grow by up to 10% this year international property investment consultancy Property Frontiers has announced. The firm says that the rise in demand since the second half of 2009 has intensified into 2010 and will most likely lead to price increases as early as May.
A spokesman for the firm said:
“While the reasons for rising demand for Caribbean real estate can and are debated, the fact that demand has risen is less debated, and the same can be said of whether or not demand will continue to rise throughout 2010. According to reports last week a Barbados developer sold a first phase in 3 days, with zero advertising.
“Because of this massive growth in demand, what is being bought and by whom, which is predominantly prime properties by wealthy individuals increases in price are widely regarded as becoming inevitable.”
He continued: “In 2009, price was thought as being one of the potential hindrances on demand, but the fact that demand has been increasing since fears started to ease show that it was predominantly fear and not affordability that was crippling demand. Now that people are buying again with next to or no concern over pricing, increases in price are most definitely on the horizon and could come as early as May.”
The firm has previously suggested the likelihood of price increases in the Caribbean real estate sector, but this is the first time they have given any figures or dates on when this is expected to become a reality.
Property Frontiers are currently marketing the Bacolet Bay development in Grenada and winner of several prestigious industry awards. Bacolet Bay is a 5 star luxury resort development, set in 41 acres of tropical beach-front Grenadian gardens.
70% LTV is available, and buyers need only pay a 15% deposit in order to reserve, before paying nothing else until completion. What’s more buyers receive a 10% annual rental guarantee for the first three years, but which is paid up-front upon completion, making it effectually a 30% cash-back offer. Buyers receive 30 days free usage per year, and a yield of more than 10% is expected after year 3, when buyers receive a 50% share of net rental income. During the first 3 years maintenance fees are also paid, as well as mortgage fees.
The development offers studio cottages from £333,333, 2 bedroom apartments from £399,999, 1 bedroom villas from £442,424, and 2 bedroom villas from £645,454.
For more information contact Property Frontiers on +44 (0) 1865 202700.