All of us in Jamaica, especially those of us in the real estate industry are very well aware of the international financial crisis. This, as you may recall, began in the United States in their real estate industry with the collapse of the sub-prime mortgages and then spread like wildfire to the economies of Europe and South East Asia. We in Jamaica did not emerge unscathed.
In the developed countries that were affected, their governments took immediate and bold actions by supporting many of their failed banks and industries with massive injections of state cash.
Here in Jamaica to show how we were affected, the real estate industry contracted because of high interest rates to a level that produced in activity both in the housing and construction markets. Regrettably our government, not having the vast backative resources of the developed world, was not able to use the cash injection prescription for financial recovery.
What we in the real estate industry now see as a vital nationwide remedy is not simple and is not a ‘band-aid’ solution such as what was attempted recently by the reduction in transfer and stamp duty, but a total rethink of a national economic recovery plan bringing together the problems and strengths of all sectors in the economy.
We now recommend a possible approach to the problem which will begin with the creation of employment which traditionally has been led by the real estate and construction industries. Also of importance is the prohibitive interest rate that is stifling our industry both from a purchaser’s perspective and also from the developers’ stance. A reduction in the rate would be a needed kick-start for both these sectors.
We do not pretend to hold the solutions to our economic problems, but we offer the above as a start and possibly the offering of Government incentives to our sector to ‘prime the pump’ of economic recovery.
- Contributed
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