RENTAL MARKET REVIEW Q3 2021
CONTRIBUTORS: Emma Hutson & Betty Cathrow
ACHIEVED RENT METRICS Q3 2021 Avg. Achieved Rent Metrics Q3 2020 and 2021 14%
40,000 Achieved Rent (BDS)
35,000 30,000 25,000 20,000 15,000 10,000 5,000
19%
16%
-10%
29%
-59%
0
1 Bed
3 Beds
2 Beds
5 Beds
4 Beds 2020
6+ Beds
2021
• Our review of the data that The Terra Group has collected shows
that average rental rates continue to increase for 1, 2, 3 & 6 bedroom properties. Increases in these segments ranged from an impressive 14 - 29%. • There was a 10% decline in average rates for 4 bedroom properties and a significant decline of 59% in the 5 bed segment. • The 6 bedroom rentals were all based in St. James in prestigious neighbourhoods such as Sandy Lane, Sugar Hill & Royal Westmoreland. • Most of the rental demand is for furnished properties with this category accounting for 86% of transactions in Q3 2021. There was however a 5% increase in the market share of unfurnished or appliances only rental transactions due to the return of corporate expats and local rentals.
RESIDENTIAL RENTAL RATE RANGE • Although the maximum rental price achieved was BDS$16,000 higher RESIDENTIAL RENTALS FOR Q3 YEAR
MIN
MAX
AVERAGE
2020
$1,400
$24,000
$6,405
2021
$1,500
$40,000
$6,292
in Q3 2021 than Q3 2020, there was a 4% reduction in the average rental rate achieved. • The decrease in average overall rental rate is a result of fewer 4-plus bedroom rentals this quarter. In Q3 2020 4 plus bedroom rentals were 26% of all transactions, while this quarter they represented just 10%. • The minimum rental rate for Q3 in both 2020 & 2021 was similar. We have also seen an increase in corporate rentals demanding unfurnished homes as Embassies etc. begin to transfer employees and their families to Barbados again.
Q3 RENTALS BY PROPERTY TYPE
Q3 RENTALS BY NO. OF BEDROOMS
% SHARE OF RENTAL TRANSACTIONS Q3 2020 VS Q2 2021
50
70% No. of Rentals
60%
60%
38
50%
25
50%
40% 13
30% 20%
0
1 Bed
2 Beds
3 Beds
4 Beds
5 Beds
6+ Beds
35%
30%
16%
10%
10%
0%
2020
2021
Apartment
• Two bedroom properties were the only sector in Q3 2021 to
have an increase in demand compared to that of Q3 2020. • We rented thirty-six 2 bedroom properties in Q3 2021 vs 22 in Q3 2020. • It is worth noting that the supply of 4-plus bedroom luxury rental properties is very low as a result of the uptick of the tourism sector which is expected to be very busy with short stay visitors for the upcoming season so this would have negatively impacted rental transactions. • The overall decline in transactions is due to a combination of factors including: The sudden surge we saw last year with families coming to Barbados during the height of the COVID pandemic when the Welcome Stamp was first introduced; continued strict protocols and low vaccination rates in Barbados which inhibit some arrivals; and the reopening of many countries allowing greater freedom in home countries.
House
Townhouse
• In Q3 2021 we rented 20 more apartments than we did in
Q3 2020 leading to a 25% increase in market share of rental transactions. • While the number of townhouses and houses rented both decreased by 44% leading to declines in the market share. • The average rental rate for apartments and townhouses increased while that for houses declined.
RENTAL LOCATIONS
Residential Commercial
Speightstown
Q3 YOY TRANSACTION % VAR Holetown
Bridgetown
Decrease in # of transactions
-9%
Oistins
Key Observations • West and South Coast remain popular locations for residential
rentals. • Commercial rentals focused around commercial districts on the South Coast and one in the new hub of Six Roads. We have seen an increase in demand for certain developments such as Coverley with ROSS students and Vuemont with Welcome Stampers.
THE DATA IN THIS REPORT IS SOLELY FROM THE TRANSACTIONS COMPLETED AND STATISTICS RECORDED BY TERRA CARIBBEAN.
YTD STATS AT A GLANCE Transactions 40%
Rental Revenue 58%
Average Rental Rate 13%
Lead Volume 5%