COLDWELL BANKER JAMAICA REALTY

Tryall Villa Little Palm

Many prospective buyers and sellers are wondering if the Jamaican real estate market has gone soft. Well has it? It seems that the real estate market is uncertain at this time; people are quite tentative about buying or selling as they all want to watch the direction of the industry.

The recent failing of several investment schemes have caused the Jamaican real estate industry to plateau but not decline. Many anticipated that many properties would become available for sale and the limited buyers (reduced demand) would push the prices down. However, the truth is that the Jamaican real estate buyers are found in four categories: 1) locals, 2) returning residents, 3) foreign trade and other types of investors and 4) foreigners. The crashing of the investment schemes only reduced the foreign trade investors leaving the other three categories to maintain the high demand and keep the real estate industry afloat.

Naturally most prospective buyers are anxiously awaiting a drop in prices as we witnessed with the United States’ real estate industry. There is also the expectancy of the slowing down of the rapid real estate machinery in the island. Nonetheless, sales have remained steady and the prices have not changed and as long as the real high demand of properties exist so too will the sales and prices. You can bet your bottom dollar, there is still real demand for Jamaican real estate especially for properties under J$30,000,000.00; hence we can anticipate that real estate will remain strong.

There is a new trend where more sellers are listing their properties with the dual option to rent or sell. This presents the reality that sellers need money and buyers (who aren’t ready just yet to buy) stand the chance of getting a good deal if they lease properties with the option to buy at a later time when it’s more feasible to both parties. Here we have a win-win situation as both parties satisfy their immediate needs. Buyer gets property immediately and seller gets money immediately.

The rental properties in the high range of US$4,000.00 to US$12,000.00 are now sitting on the market but everything below that figure is moving as steadily as ever. We find that the high-end renters are now adjusting their prices to suit the falling demand. The increased urban migration in Jamaica continues to make the rental market boom.