BASSETERRE, St. Kitts – GLOOMY investment outlook indices entering 2010 have not dampened the hope of real estate experts in the Federation, who are predicting a rebound in the sector within the next six months.
The real estate sector survived the brunt of the global economic and financial crisis with an 83 financial performance index but staggered to a discouraging outlook index score of sub-70 for the period September 2009 to February 2010. This is according to the latest Barbados and OECS Corporate Performance and Outlook Report published by the Department of Management Studies at the University of the West Indies, Cave Hill.
In a recent interview with SKNVibes, local real estate expert and the General Manager of SKN Homes, Faron Lawrence, acknowledged that the sector did experience a slowdown with stoppages in some cases during 2009.
“We found that people became very reluctant to spend money in the international community for different fears—when people lost serious money on the stock market or they were just unsure about their job. We saw some increases in shipping costs that affected the pricing of housing materials and those were the main challenges for 2009,” he said.
As expected, however, the nation’s real estate sector was spared in great measure by the six to 12 month lag between events in international markets and trickle down effects in smaller economies.
This, according to Lawrence, has been one of the major elements in keeping the industry afloat, although he cautioned that work must begin to pick up or the sector may face worsened fears.
“A number of projects were underway already and so we could have afforded a period of no new starts in home construction without really feeling any serious impact. Generally, people during that period in this industry just try to take it day by day, and that’s the mode that we have been in because the new business was dried up considerably. Unfortunately, I think we are now getting beyond that point and we have to get new starts going or else we are going to be feeling it,” he added.
Lawrence, who has invested the last 12 years of his life in developing the quality of real estate offered in the Federation, projects that improvements in major source markets would help abate any severe difficulties in the sector.
“The next six months depend on what happens in the US and UK markets. Based on...property values, economic growth and unemployment figures, I am somewhat optimistic that things will settle down to the point where people can get back their confidence to start spending,” he projected.
In another corner of real estate development is Nigel Rawlins, Country Manager for Century 21 Island Realty, an internationally-known real estate company. Although the company’s presence has only been felt in the Federation for about one year, Rawlins said that the real estate sector in St. Kitts has not only survived, but has blossomed during the crisis thanks to the work of the government.
“St. Kitts-Nevis has really never been that affected by the crisis, partly because of the government’s vision. So, the jitters from the past crisis really do not apply to us here. In St. Kitts, we are a step ahead of most of the Caribbean. We have been able to keep the market going as a result for the government’s vision,” Rawlins told this media house.
The Century 21 representative praised the government’s Citizenship by Investment programme, which he said has brought with it “no gloom and doom, but realistic optimism”.
Rawlins said Marriott Residences, a project for which Century 21 is the exclusive sales agent, has just launched its sales office and construction of the new upscale real estate properties is expected to begin within two months.
When asked about the next six months for the industry, Rawlins simply stated that the Federation is “now poised to do much better”.
