Is Jamaica’s property market finally bottoming? Are the obviously outrageous prices that were seemingly the norm for the past five years on their way down? This may very well be the case. The downturn in global economies and likewise with Jamaica’s economy seems to be impacting Jamaican real estate developers in 2009.
Here’s what’s been happening lately:
- These days, houses and other properties on the market are being sold at a painfully slow pace. Individuals seemingly no longer have the disposable income or deep pockets to secure properties, and the market has thus slowed down considerably.
- Many real estate developers have been force to stall or shelve development plans.
- Some real estate developers have been left with dozens and sometimes hundreds of unsold units, as the market just doesn’t seem to be there any more.
- The cost of raw materials has sky-rocketed; likewise there has been a spike in domestic interest rates. Both have combined to have a devastating impact on Jamaica’s real-estate business.
- The high end (properties valued at over J$20 million) of Jamaica’s real estate market in particular seems to be contracting. For properties under J$15 million however, there does seem to be good strong demand still.
There is no doubt that a slow-down is happening. Several local companies have confirmed such – Geon Group, which builds high-end homes, has had to put some projects on hold. Kemtek Development and Construction Limited has complained that units that would normally have been sold in a flash are still sitting there on the market for almost a year now.
As with other global markets, consumers (buyers) are feeling the pinch and are holding on to every dollar that they can. They are not making real estate investments like they would before. What’s next? Stay tuned to propertiesjamaica.com for updates.
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