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In the current environment of low money market interest rates, rising property prices and weak stock returns, real estate investments continue to be attractive. Long a favourite destination among property buyers, the Caribbean paradise of Jamaica is a real estate hotbed as far as realtors are concerned. |
In the capital city of Kingston, a diligent investor can still buy property for relatively cheap prices. The demand is always high for quiet, middle class residential areas especially when they are close to beaches, rivers and hotels. Crime is almost non-existent
The present trend is to invest in property in rural sectors or adjacent to outlying resorts. The parishes of St. Ann and the coastal area of St. Mary are equally popular among real estate developers and buyers. Within St. Ann, the fastest growing areas are Discovery Bay, Browns Town and Bengal. In St. Mary, there are Tower Isle, Boscobel Heights, Huddersfield and Rio Nuevo. These two areas are just 25 minutes away from Ocho Rios and 40 minutes from Montego Bay.
The locality of Negril is also gradually becoming popular among those who want the best of both worlds – a retreat for themselves and a source of income when they are away. And people now are being increasingly drawn to the internet to purchase their dream home in Jamaica. Similarly the rental market is also thriving. American tenants usually descend on Jamaica only with their suitcases and so the landlord usually provides the amenities and utilities. Local property managers charge on an average 17.5 percent in addition to general consumption tax of the monthly rental income.
The commercial sector is witnessing an acute shortage of space, especially in New Kingston where there are few vacant spaces. Outside of New Kingston, there are scores of opportunities for developers to build office spaces. As a result of the heavy influx of tourists, shops and boutiques are mushrooming across Jamaica, particularly in St. James. The development of Rosehall in St. James aims to take the tourist shopping experience out of the city centre. It is the first of its kind in the world in that all the in-bond merchants will be equity holders.
