REAL ESTATE DEVELOPMENT

(Editorial item contributed to 2008/2009 BUSINESSMAN'S GUIDE TO GRENADA)

Much has been happening in the Grenada real estate field of late and the island is increasingly in the news as a new favourite destination for residential and resort development. Long time resident of Grenada John Albanie whose company Caribbean Enterprises has been in the real estate business here for 22 years lists the key features of this emerging market.


State of the Market

The real estate outlook was favourably impacted in recent months by news and announcements of medium-sized luxury developments targeted at the upper sector of the market.

The Four Seasons development on Mount Hartman Bay and Hog Island will consist of luxury residences, a signature 18-hole golf course and associated facilities. In Prickly Bay, within the high-end residential area of L'Anse aux Epines, an ultra-modern yachting and residential complex is emerging on the site of the old Boatyard consisting of luxury high-tech water-fronted houses and apartments. In the capital, across the harbour from Fort George, work is taking place on the Port Louis Marina and Creole Village , a scenic water-front development surrounded by a high-end marina - the product of an association between the Peter de Savary Group and Camper & Nicholsons. The Mount Cinnamon resort/residential development on Grand Anse beach, also developed by the de Savary Group,  caters for hassle-free beachfront villa and apartment ownership offering all-inclusive property management and supervision. Other developments are under construction in the south of the island. In the uniquely attractive parish of St Patrick's in the north a 60-villas high-end "eco-resort" is planned around the scenic Levera Lake with supporting villa/spa facilities in two near-by private islands.

Residential Sales

Brand-new "turn-key" furnished properties in the all-inclusive high-end resorts with built-in property management, rental and related services can be priced at up to US$ 1,200 per square foot. Existing prime properties of the "standard" specification (3/4 bedrooms, pool, entertainment areas) in desirable locations such as Westerhall Point, L'Anse aux Epines and True Blue command the highest prices in this category. For residential land in exceptional locations, asking prices of up to US$ 30 per sq ft have been quoted. Building costs for good quality homes built by reputable contracting companies can be budgeted at upwards of US$ 200 per sq ft but this figure can be strongly challenged by increased competition in the building trade resulting in residences being built for as low as US$ 110 psf.

Land for Resort and Residential Development

Medium to large parcels of land suitable for resort or residential development are available in various parts of the island. Interest in such parcels in the south of the island has been stimulated by the projects outlined above and has resulted in substantial appreciation in their value. The area between Westerhall Point (the prime residential development on the island) and La Sagesse Nature Reserve in St David's parish is the principal focus of attention at present but parcels are also available in other areas.

Businesses for sale

There are  a number of general and tourism-based businesses on the market that are on the look-out for direct growth-intended investment or outright sale. They range from retailing operations targeted at the yachting or visitor markets to small resorts ready for further expansion.


Formalities

Formalities for direct investment are no more complicated or onerous than they are in other countries.  Projects directed at the all important tourism and agriculture industries (and soon the oil and energy markets too) are given special emphasis by the authorities as they directly impact on the employment and income generated for the island. A series of  what are known as "concessions" (better described as an  exchange of benefits  between the developer and the authorities) can be negotiated with the Grenada Industrial Development Corporation, either directly or through the services of local contacts who can be expected to be  in the know, in tune and up-to-date  on the subject.