There is no doubt that we are the safe harbour for real estate investing in the Caribbean but we need the investment activity to continue.
This is the latest assessment given by Andrew Mallalieu, Managing Director one of the largest real estate firms in Barbados, Terra Caribbean. He contends that confidence to make investment decisions is what we need in Barbados now.
Looking the issues surrounding the largest stalled development project in Barbados currently, the Terra boss says, “The problems at the Paradise Beach project have had widespread press coverage. That negative coverage has worked against us and the continued pronouncements by the new chairman of the development project that have not been followed by real action have exasperated the situation.”
Moreover Mallalieu further contends that the failures at the Black Bess development and the numerous non-performing real estate loans in the Kaupthing Singer Freidlander bank portfolio are also a drag on Barbados market confidence.
The real estate boss also looks at the catastrophic oil spill in the Gulf of Mexico, he remarks, “…to add a further blow to confidence is the grave concern that we all feel for the environmental catastrophe occurring in the Gulf of Mexico. While it is unlikely that Barbados’ shores will have any direct impact from the oil spill we also are reminded of how fragile an environment we share with the other creatures of this earth. We do not need this further uncertainty at this difficult time in the world financial recovery.
But there are still positive signs within the market. He highlights, “On a very positive note we have seen further investment from well capitalized developers like LTG Real Estate at Beachlands, and Gary Morse at St. Peter’s Bay, and the Williams /Barton group at Apes Hill, and the developers at the Sands, who are setting the pace for other developers to follow.”
A luxury project which Mallalieu fails to mention in his analysis of the sector is that Ocean Two. The project has continued its development at a time when some other projects have stalled, or not started as scheduled. The developers of the luxury condo-hotel which sits on the pristine beach at Dover on the South Coast is now well on its way to completion and investors of the 72 unit property are eager step into their one or two bedroom units.
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