Barbados Real Estate

About Barbadoshouse their staff. Overseas developers need to
Barbados was discovered by Portuguese explorerobtain permission from the authorities, although
Pedro Campos in 1536, when he named the islandthis is fairly straight forward without any major
Os Barbados ("The Bearded Ones") which wasissues.
subsequently shortened to Barbados. The Island isWhy Invest in Barbados
located just off the coast of South America, withBarbados offers a number of incentives for
Venezuela the nearest major neighbour. The islandoverseas property investors, mainly the quality of
of Barbados is situated in a group of islands whichthe properties, active market place and presence
include the tourist havens of Saint Lucia, Saintof a westernised culture (heavily influenced by the
Vincent, Trinidad and Tobago. Barbados itself isBritish). While the island does not operate a full
part of the Lesser Antilles, with a land area of"free market" economy (with some areas of
430 square kilometres (23 kilometres wide and 34industry still working to a set fee structure) there
kilometres long at the widest points). It offers aare plans to change this in due course.
relatively flat landscape, which rises slightly in theThe government have shown in the past that
centre of the island - offering beautiful views ofthey are willing to take difficult and sometimes
the beaches.unpopular decisions in order to retain the long
While the island has a tropical climate, which isterm improvement in the economy. The beautiful
very attractive to the tourist industry, there is alandscape, excellent infrastructure and relaxed life
rainy season from June to October, althoughstyle of the locals adds to the overall attractions
thankfully the country is situated just outside ofof the country, demonstrated in a very buoyant
the infamous hurricane belt. Barbados itself hastourist industry.
one of the highest literacy rates in the developingAs with a number of smaller island in the West
world, not to mention one of the highestIndies, they hold great attraction for many of the
standards of living. The make-up and culture ofworlds rich and famous, with the area constantly
the island is heavily influenced by the British whoin the news. Barbados property is currently in
have had a presence there for some time -vogue as the country gets ready to host the
indeed it has become a holiday paradise for many2007 Cricket World Cup, which has resulted in the
well known British entrepreneurs.redevelopment of the famous Kensington Oval,
The capital of Barbados is Bridgetown, which is aand improvement in the islands infrastructure.
thriving area of immense tourist activity, and alsoOn the downside, due to the fact that not all
has the main airport on the island. The overalltrade has been opened up to the "free market"
population of the island is only 279,000 and whilephilosophy, the legal charges and taxes related to
the majority of the islanders are nativeproperty transactions are higher than you might
Barbadians, there are a small number of foreignexpect. While this has not dented the strength of
residents. Under heavy British influence, the mainthe property market in Barbados in any way, it is
sport of the island is cricket with Barbadosbetter to be aware of such detail prior to
introducing a number of famous cricketers to theconsidering the area.
world, including Garfield Sobers and Frank Worrell.Outlook
Property MarketThe run up to the 2007 Cricket World Cup is
Due to the size of the island and nature of thecausing a major stir in Barbados, evidenced by
country's economy, demand has been historicallythe increase in development. While normally the
high for property in Barbados. Fuelled by aeffect of such events would be localised, due to
massive increase in tourism activity over the lastthe size of the country there will be an impact on
decade, prices have been pushed higher andthe overall economy. The country is already
higher. While there have been a number ofseeing a significant increase in interest from
localised "property bubbles" over the years, thesetourists, which increases the island's profile above
tend to be only short term situations.and beyond 2007.
The government of Barbados take a fairly handsThe considered approach taken by the local
on approach to controlling and ensuring that areasgovernment is a breath of fresh air, for an area
such as the general property market are notwhich has often been subject to loose economic
pushed artificially high, and do not "over heat".controls. When you also consider the relatively low
While interest rates have remained fairly steadylevel of interest rates, and inflation, and increased
for sometime, with very few short term spikes,spending on local amenities, you have the makings
the authorities are quick to take action (normallyof a strong long term economy. This type of
by increasing interest rates) where appropriate.stable environment is ideal when trying to
As you would expect of a country which dependsforecast potential returns for the future.
to a large extent on tourism, situations such asWhile the millionaire properties receive the
the terrorist attacks of 9/11 can have a majormajority of the limelight, the effect is starting to
short term impact. While the economy wasripple through the whole island, as people attempt
effected in the aftermath of 9/11, the Barbadosto spot the next lucrative opening. As demand
property market remained fairly resilient on thecontinues to far outweigh supply, there will always
whole.be a strong backbone to property market, which
Activity in the Barbados property market is visibleis further strengthened by the demand for local
all over the island, although there is particularrented accommodation for overseas workers.
interest in areas such as Bridgetown, where manyThe government have also shown a willingness to
multi-national companies have added theirreinvest into the islands facilities ensuring plenty of
presence. This has pushed the demand for rentedattractions for overseas investors.
property to new highs, as new companies look to