LOCAL REAL ESTATE BOOM CONTINUTES IN 2008
Article taken from Jamaica Tourist: Issue 8 – Spring 2008 www.jamaicatourist.net.

Celebrities like Ralph Lauren, Lennox Lewis, Naomi Campbell, Keith Richards and Jane Seymour all own houses on this sunny island, making a veritable comeback on the global real estate scene. New developments with world-class luxury lifestyle residences on the North Coast are fuelling growth, targeting foreign second home buyers who are viewing the island with increased interest. Selling at prices up to 40% lower than other Caribbean islands, local real estate continues continues to be undervalued compared to regional averages, a fact that is not going by unnoticed.

Seasoned realtor Valerie Levy confirms that although supply was limited in 2007, demand for housing remains vibrant, resulting in an increase in prices and a real estate market driven by demand, commonly referred to as a ‘sellers market’. A licensed Real Estate Broker in Florida since 1977, Levy is the president of Kingston based Valerie Levy and Associates Limited, a company specializing in real estate brokerage and property sales.



 

One of the islands most experienced specialists in the sector; Levy has more than 30 years under her belt selling real estate internationally and is a previous president of the Realtors Association of Jamaica. Says Levy; “The North Coast, and in particular Montego Bay and its environs, have exploded with a development momentum never before experienced in Jamaica. Demand for second homes and investment properties has increased steadily over the years , and Jamaica, with its international appeal for reggae music, warm and friendly people and exotic foods has emerged as the number one destination to satisfy these requirements.”


According to Levy, Jamaican real estate is still undervalued in comparison to that of neighbouring islands. “Local resort properties are priced in the region of 20% to 30% below similar properties in other Caribbean islands. The Cayman Islands and Turks and Caicos have emerged as sought after destinations with price tags 20% to 40% above prices in Jamaica.” Levy describes the island’s unique culture and beauty as the reason people should consider a local real estate purchase. “Few islands can compare in natural beauty to Jamaica with its glorious mountain peaks, flowing rivers and its renowned blues Caribbean Sea.”

Says Levy; - “As we move into 2008, demand for property remains strong and a true ‘sellers market’ prevails”. The property expert confirms that re-sales are attracting multiple offers and new developments are being pre-sold before construction commences. “The strong demand coupled with an inadequate existing inventory and insufficient housing, should lead to a further price increase and I predict that is trend will continue well into 2008.
 


Advises Levy: “International investors would be well advised to take a closer look at what is happening in Jamaica.” A certified International Property Specialist and an international Section Member of the National Association of Realtors-Washington D.C – Levy and her team are always on-hand to guide potential buyers through the Jamaican market place.

Levy’s market analysis is mirrored by that of Deborah Cumming Managing Director of Century 21 realtors. Says Cumming: “In 2007 pre-construction sales boomed in all sectors and it was very much a sellers’ market, with many island properties selling in excess of the asking price”
 

According to Cumming, the down-turn in the US market has had very little effect on the Jamaican real estate market. “The current US recession is impacting the middle of the market rather, than the higher-priced properties. Although the US dollar is weakening against major international currencies, it has continued to strengthen against the Jamaican Dollar, making the market more attractive to investors” UK buyers, in particular are in a unique position to purchase property at close to “half price”, benefiting from the strong GB£’s exchange rate.

Cumming anticipates that the market will continue to be strong in all sectors during 2008, and that prices will continue to increase. “Based on future hotel bookings, Century 21 is expecting a busy tourist season that will bring many potential buyers form both traditional and non traditional markets” Pointing to the relatively low prices as an important driver for the interest in local real estate, Cumming explains that the current price gap between Jamaica and some of the other islands is closing. “Demand for waterfront properties continues to be high on the North Coast, attracting premium prices, but despite island real estate prices increasing substantially, they have not yet reached the price levels of the Caymans, Barbados or the Dominican Republic. Similar properties on other islands still sell for much higher prices than in Jamaica,” says the Managing Director of Century 21.

 


Part of one of the world’s largest real estate group, Cumming says that Century 21 has seen an increased number of enquiries from Jamaicans overseas, many of whom left in the 1970s and now want to come home to retire in the warm climate. “High-end developments such as The Palmyra, Golden Eye and Half Moon are attracting a clientele looking for more privacy and luxury. Demand remains strong for quality properties.” The Century 21 realtor predicts that more competitive mortgage interest rates will provide an added boost to the market. Cumming credits the continued development of the North Coast for the boom in activity taking place in the area’s commercial sector, where banks, supermarkets, restaurants and stores are popping up. Says Cumming; -“The commercial market in Kingston and Montego Bay remains very buoyant. However, the vacant land more readily available on the North Coast, the Montego Bay area saw more commercial development than Kingston over the past year.”

Finishes Cumming; “Jamaica offers good real estate value, fantastic weather, close proximity to the US and great business opportunities.”