Facts & Figures: The Importance of the Villa Sector to Barbados
Barbados began developing a reputation as a luxury holiday destination with the inception of the Sandy Lane Estate in the 1960’s. This continued with the expansion in luxury residential development in the mid 1990’s. Recent research from HomeAway.co.uk survey and Savills International indicates that properties with balconies, terraces, private swimming pools, air conditioning, internet access […]
By Terry Hanton
April 18, 2012
Barbados began developing a reputation as a luxury holiday destination with the inception of the Sandy Lane Estate in the 1960’s. This continued with the expansion in luxury residential development in the mid 1990’s.
Recent research from HomeAway.co.uk survey and Savills International indicates that properties with balconies, terraces, private swimming pools, air conditioning, internet access and small private gardens are the most sought-after – many of which are found in Barbados.
In the last decade, holiday home purchases increased on a global scale, especially between 2003 and 2007. This trend has been supported by easily available credit and the rapid rise in residential values in mainstream and leisure housing markets.
In 2011, the Financial Times ranked Barbados among the Top 10 most attractive countries for foreign direct investment in the Caribbean and Central America.
According to Foreign Direct Investment’s Intelligence Division, the island ranked fourth overall on the list of Caribbean and Central American Countries of the Future 2011/2012 and fifth for Best Foreign Direct Investment Strategy.
The villa sector, at its peak in 2007, contributed over BB$l billion dollars to the economy. This Foreign Direct Investment is second only to tourism as a source of foreign exchange.
There is currently over US $800m of property targeted at the non-resident buyer available on island, creating significant impact on government tax revenues, particularly VAT and land tax.
Barbados’ source markets for second-home buyers showed steady growth, with Europe and the UK’s wealth totalling US$10.2 trillion after growing 7.2% in 2010. North America’s high net worth individuals’ wealth hit US$11.6 trillion in 2010, increasing by 9.1%.
For more than a decade, PCS, a member of the Altman Real Estate Group, has been delivering market-leading property consultancy services to an impressive portfolio of clients – from commercial banks and regional governments to corporates and developers.
Its client history points to a number of prominent Caribbean projects: Limegrove Lifestyle Centre and Sugar Hill in Barbados; Villas on the Green in St. Lucia; and Little Bay in Montserrat.
Terry Hanton is a Chartered Accountant who specialises in consultancy services to the real estate and hospitality sectors. He is also a member and accredited valuer of the Barbados Estate Agents & Valuers Association (BEAVA), and previously held the position of Vice-President of this Organisation. Terry has over 10 years of experience in conducting valuations for residential and commercial properties. From 1984 to 1996, he was the Finance Director of St. James Beach Hotels Plc., a Barbados based hotel group which was listed on the London and Barbados exchanges.
In addition to his role at Property Consultancy Services Inc., he is the Director of Sales of Altman Real Estate, which has allowed him to maintain an intimate knowledge of the real estate market.
From 1998 to 2008 he was Project Director of the Sugar Hill Development which is a resort community located in Barbados, owned by David Lloyd and a syndicate of investors. The project is a tennis community consisting of 100 homes on 52 acres. The investors are nonexecutive, and Mr. Hanton was responsible for executing the project in its entirety. He is also a past Director of Needhams Point Holdings Ltd. as well as of several property development companies.
He has conducted feasibility studies, market research projects and business valuations and has also provided project management, and property investment advice and financial and accounting services to a broad range of clients.
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