RENTAL & SALES MARKET REVIEW Q1 2021
RENTAL MARKET REVIEW Q1 2021
CONTRIBUTORS: Emma Hutson & Betty Cathrow
ACHIEVED RENT METRICS Q1 2021 Avg. Achieved Rent Metrics Q1 2020 and 2021 45,000 Achieved Rent (BDS)
40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0
1 Bed
2 Beds
3 Beds
4 Beds
2020
2021
5 Beds
6+ Beds
• Demand for medium term rentals which typically command higher rental rates continued to be strong leading to higher average rental rates across the board. • The largest increases were evident in the luxury segments for 4-6 bedroom properties: • Rates for 4 bedroom properties increasing by more than double. • While rates for 5 bedroom properties more than tripled. There was one rental of a 6 bedroom property at $40,000/ month. • While the number of 1 bedroom rentals remained steady, this segment also saw an impressive 64% increase in achieved rates.
RESIDENTIAL RENTAL RATE RANGE
RESIDENTIAL RENTALS FOR Q1 YEAR
MIN
MAX
AVERAGE
2020
$1,000
$11,750
$4,556
2021
$1,300
$60,000
$7,168
• The average rental rate increased by 57% (+$2,612) • The maximum rental rate in Q1 2021 was more than five times higher than Q1 2020. • Despite elevated incidences of COVID during the period, demand from Welcome Stamp clientele continued to be strong. • There was also an increase in interest for higher end rentals from corporate rental clients.
Q1 RENTALS BY NO. OF BEDROOMS
60
• Demand is highest for two and three bedroom properties accounting for 76% of transactions. • Furnished rental properties continue to be in highest demand accounting for 88% of our achieved rentals over the quarter which accounted for 72 rentals. This has been driven by the "Welcome stamp" enquiries as an unfurnished property is not practical for stays of 12 months or less.
No. of Rentals
50 40 30 20 10 0
1 Bed
2 Beds
3 Beds
4 Beds
2020
2021
5 Beds
6+ Beds
Q1 RENTALS BY PROPERTY TYPE
2020
49%
2021 0%
36%
26%
59% 10%
20%
30%
Apartment
15%
40%
50%
House
60%
70%
16% 80%
90%
100%
• For the first time since the market was impacted by COVID in Q2 2020, we saw an increase in demand for apartments and a shift away from houses. • This was driven by demand for 1 and 2 bedroom properties which were typically apartments rather than homes. • Demand for townhouses remained steady.
Townhouse
YOY TRANSACTION %VAR
RENTAL LOCATIONS
Increase in # of transactions
34% • We rented an impressive 34% more properties despite prolonged lockdown periods. • Lockdown which limited our ability to show property and interact with clients on a face to face basis ran from February to mid March in 2021, while in Q1 2020 it began at the end of March until the start of June. • Video tours have become an essential tool for successfully marketing our properties. • While we rented the same number of commercial properties in Q1 2020 and Q1 2021 there was a shift from retail toward warehouse space.
Residential Commercial
Speightstown
Holetown
Bridgetown
Oistins
Key Observations The residential rentals continue to be concentrated along the South and West Coast of Barbados. We have seen a slight increase in inland locations as we welcome the new influx of corporate rentals to the island.
YTD STATS AT A GLANCE Transactions 34%
Rental Revenue 111%
Average Rental Rate 57%
Lead Volume 62%
SALES MARKET REVIEW Q1 2021
CONTRIBUTORS: Emma Hutson & Betty Cathrow
SALES PRICE RANGE FOR RESIDENTIAL AND COMMERCIAL
ACHIEVED SALE METRICS Q1 2021
Average Achieved Sale Price by Parish Q1 4,500,000 Achieved Sales (BDS)
4,000,000
RESIDENTIAL SALES FOR Q1
3,500,000 3,000,000 2,500,000 2,000,000
YEAR
MIN
MAX
AVERAGE
2020
$89,000
$9,500,000
$1,627,259
2021
$116,000
$4,950,000
$923,724
1,500,000 1,000,000 500,000 0
Christ Church
Saint James
Saint George
Saint Michael
2020
Saint Peter
Saint Philip
2021
• Average achieved prices for residential property were below Q1 2020 due to sales in different categories. In 2020 demand was bolstered by the sale of 4 luxury villas and 1 development site priced between $5 mil and $9.95 mil. Sales in this bracket were absent in 2021 but activity between $1 mil and $4.95 mil was very strong with 16 sales in 2021 vs just 6 in 2020.
• Overall activity strengthened with 34% more sales
transcations in 2021. • St. James was the most popular parish with transactions increasing from just 4 in 2020 to 17 in 2021. • The minimum sales price was higher by 24% in 2021, while the maximum sales price was 43% lower.
Q1 RESIDENTIAL SALES BY PROPERTY TYPE
2020
18%
46%
4%
32%
• Land and Apartments share of the market both decreased by 2%, whilst the number of transcations slightly increased. • Demand for townhouses quadrupled in Q1 2021 compared to
2021
38%
16%
0%
10%
20%
30%
30%
40%
50%
60%
70%
2020 which was driven by demand in prime locations.
16% 80%
90%
100%
• Whilst there was a 17% decrease in the market share, the number for houses sold remained the same Q1 2021 to 2020.
Apartment
House
Land
Townhouse
DISCOUNT TO SALE RANGE FOR RESIDENTIAL AND COMMERCIAL
SALES LOCATIONS
ACHIEVED SALE PRICE FOR Q1
Residential Commercial
Speightstown
YEAR
MIN
MAX
AVERAGE
2020
-6%
21%
6%
2021
0%
39%
11%
Holetown
Bridgetown
• The average discount increased from 5% to 11%
Oistins
in Q1 2021. • The average achieved sales price for townhouses
• The majority of the sales were located on the West
increased by 63%. • The average achieved sales price for houses
coast of Barbados. • The remainder of the residential sales were located
decreased by 56%. • The average achieved sales price for apartments was very similar in Q1 2020 & 2021.
on the South Coast & East Coast. One agricultural sale • was in St. Joseph & one commercial sale was in Bridgetown.
YTD STATS AT A GLANCE Transactions 34%
Sales Revenue 27%
Average Sales Rate -0.6%
Lead Volume 126%
CONTRIBUTORS:
Emma Hutson
Betty Cathrow
The data in this report is solely from the transactions completed and statistics recorded by Terra Caribbean.
A COMPLETE LOOK AT 2020
Rental & Sales Market Review
Rental & Sales Market Review
Q1 2020
Q2 2020
Rental & Sales Market Review
Rental & Sales Market Review
Q3 2020
Q4 2020
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