Rental prices ‘soaring’
The local rental market has seen a surge in prices driven by the influx of expatriates on the Welcome Stamp visa and other non-nationals, according to industry professionals.
Long-term rental properties, particularly in parishes like Christ Church, St James and parts of St Michael, have seen significant price hikes as expatriates pay premiums far exceeding local market norms.
“Expatriates on the Welcome Stamp often pay premiums because they find Barbados’ rents comparatively affordable, even at higher price points,” explained Junior Sparks of Global Estate Agency Inc. “They’re used to paying significantly more in places like New York, South Africa or parts of Europe, making local rents an easy decision for them.”
Sparks noted that expatriates’ familiarity with paying higher housing costs abroad created a new dynamic in Barbados’ rental market. With these newcomers willing to pay higher rents, local residents might face challenges in securing affordable housing.
“This trend is particularly evident in parishes like Christ Church and St James, which are hot spots for premium properties,” Sparks added.
Art Ramsay of Ramsay Real Estate said the rental market was also influenced by expatriates using properties as part-time residences or investment opportunities, further reducing available housing stock.
“Many look to use properties for part of the year while renting them out through Airbnb or executive rental markets when they’re not on the island. This dual-purpose use has created additional demand for properties, particularly in central locations such as Warrens, St Michael and Christ Church,” he said.
Sparks explained that while rental properties were in high demand, the mid-range sale market – homes priced between $250 000 and $450 000 – also faced intense competition.
“This price range is popular among local buyers, but the inventory is limited, leaving many potential homeowners unable to find suitable options,” he said.
Ramsay added that the lack of stock was compounded by a growing preference for newer developments.
“People love the idea of moving into brand new homes that require little to no renovation,” he said, adding those developments were often snapped up quickly, leaving buyers to compete for limited options on the open market.
The conveyancing process was also identified as a bottleneck for buyers and developers. Ramsay explained that transactions often took six months to a year to complete due to legal and administrative delays.
“There’s strong interest in developments, but the timeline between offer, acceptance and receiving keys is stretching longer than most would like,” he said.
Sparks echoed this sentiment, emphasising the importance of having all documentation in place before listing properties to avoid delays.
Ramsay, past president of the Barbados Estate Agents and Valuers Association, elaborated on the geographical preferences of buyers and renters, noting that rural areas like St John, St Philip and St Lucy were less popular, often serving as a last resort for those seeking quieter, more rural settings or properties for agricultural use.
The inclusion of covenants in new developments also influenced buyer decisions. Both Sparks and Ramsay agreed that while covenants were generally seen as a positive feature, they could sometimes deter buyers with specific plans.
“Covenants typically cover general standards like maintaining a clean environment or adhering to certain building styles. For most buyers, they enhance the neighbourhood’s appeal, but they may limit options for those with unique requirements, like building timber homes in areas requiring concrete structures,” Sparks said.
“The demand is strong across all sectors of the market, from long-term rentals to investment properties and new developments,” he added.
Ramsay concurred: “Whether it’s for Airbnb rentals, executive properties, or permanent residences, Barbados continues to offer excellent opportunities for buyers and renters. The challenge is ensuring there’s enough inventory to meet this demand.” (CLM)
The post Rental prices ‘soaring’ appeared first on nationnews.com.