The Red Book® 2022 - Grenada by The Terra Group

2022

Grenada Beachfront

Data

Valuations

Brokerage Agricultural Lands

Retail

Advisory

Agents

Location

Price

Information

Construction

Sales

Rentals

Values

Commercial Office

Real estate

Prime locations

Economy

Parishes

Loans

THERE IS ALWAYS CERTAINTY IN UNCERTAINTY

Property Management Invest

Knowledge

Apartments

Buying

Banking

Listings

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Caribbean

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Selling

Insurance

Cap Rate

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Welcome As we embark on the latest edition of this publication, the team at Terra Caribbean continues to put together the best market data and insights into the real estate market as the world around us is literally changing day by day; one can even say hour by hour. With economic activities recovering slowly, the planned return of the students and faculty of St. George’s University, rising prices of trade and world events other than COVID-19 preparing to have significant effects on us all, we have learned a tremendous amount about the volatile nature of business, and the resilience of people. We also learned that regardless of the ups and downs, life must go on. Purchasers who planned to acquire residential property will continue with their plans once their income stability returns. Businesses with planned expansions or changes in strategy to acquire property will do so, and all decisions in this regard are expected to continue to be tempered and cautious but definitely trend back to some level of normalcy. With all the moving parts and things changing rapidly, this is where the value of current, accurate information is at its highest and where we at Terra Caribbean become most valuable to our clients. As we stay focused on our mission to ensure that our clients feel comfortable and confident to make informed decisions, our commitment to the Red Book of 2022 has remained. Though this year even the Red Book will have some changes compliments of COVID-19 and we will only publish a digital version.

The information and commentary from the experts in our market will be at its consistently high level. We will hear from thought leaders of some of the most significantly affected industries including Barry Collymore (Chairman of the Grenada Tourism Authority), Richard Strachan (Managing Director, Netherlands Insurance), Richard W. Duncan (Former President, Grenada Bankers’ Association), Dickon Mitchell (Attorney-at-Law, Mitchell & Co.), Ronald Theodore (CEO, Grenada Investment Development Corporation), as well as insights from Ariza Credit Union and Dr. Anselm La Touche (President, Creative Group of Companies). From our team of experts, insights and articles will be provided on the real estate market in general, including how the current economic climate is affecting and is expected to affect the industry in the future. It is with cautious optimism that we look forward to the remainder of 2022 and beyond, knowing that Team Terra will be the constant that guides our clients through these uncertain but interesting times. Sincerely,

Leila Maria La Touche, Managing Director

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CO N T E N TS

We Know Grenada 3

PRIME LOCATIONS

THE RED BOOK Third Edition

DEVELOPMENTS

Developments for Sale 39-45

Map of Prime Locations 5

Q & A Property Development Under The New Normal Dr. Anselm La Touche 46-48

Prime Residential Locations Contributions to Real Estate 6-7

Grenada - Your Safe Investment Location – Ronald Theodore 50

Prime Locations Properties for Sale 8-14 Buying Property Guide 15

52 LAND

Residential Land for Sale 53-56 Analysis of the Land Real Estate Market 57-58

First-Time Buyers: The Reality of Property Ownership Renee Charles 18-19

Commercial Land for Sale 59-62

Corporate Rentals 81-90 Classic Rentals 91-94 Student Rentals 95-98

Rental Market: Observations of an Agent Sherma-Ann Roberts-Joseph 99-100 Grenada Tourism Authority: Tourism Impact on the Real Estate Industry Barry Collymore 101-102 The Impact of COVID-19 Pandemic on the Real Estate Sales Market in Grenada 103-109

What Does US $750K or less Get You Around the Caribbean 16-17

CORPORATE RENTALS

Navigating Banking in a Pandemic World Richard Duncan 20-21

24 GRENADIAN CLASSICS

COMMERICAL SALES

Commercial Properties for Sale 64-67 Apartment Buildings for Sale 68-73

Grenadian Classics for Sale 25-34

The Possessory Titles Act (PTA) Dickon Mitchell 75-76

Ariza Credit Union: Helping Members Build Wealth Through Real Estate Investing 35-36

Q & A Covid Impact On The Insurance Industry Mr. Richard Strachan 77-78

Terra Caribbean is not the estate agent for all the developments and properties depicted and in some cases has compiled the information contained in this section, and other sections, from public sources. Consequently, details provided herein may not be accurate or may have changed without notice to Terra Caribbean since, and in some cases, prior to the publication of this book. None of the details contained herein are to be relied upon as a representation of fact and any intending purchaser or tenant must satisfy himself by enquiry, inspection or otherwise as to the correctness of the details given for each development or property. Terra Caribbean does not make or give any representation or warranty whatsoever in relation to any development or property shown and in particular does not warrant the correctness, completeness or quality of the information provided. In no event will Terra Caribbean accept liability for any injury, loss or damage whatsoever, including, without limitation, indirect or consequential loss or damage, arising from the use of or reliance on information provided in this publication. © 2022 Terra Caribbean. All rights reserved.

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We KNOW Grenada

GENERAL Government Head of Government Governor General Area Location Time Zone Population Towns Average Temperature Elevation

Constitutional Monarchy Dr The Right Hon. Keith Mitchell (2013 - Present) Dame Cecile La Grenade 344 sq km (133 sq. miles) Eastern Caribbean (North of Trinidad & Tobago and south-west of Barbados) EST +1 (GMT -4:00) 112,519 (2020 est.) Capital: St. George’s Others: Grenville, Sauteurs, Gouyave, Victoria, Hillsborough 24° C. Climate: Sunny Rugged slope

ATTRACTIONS Beaches Waterfalls Historical Sites Eco Sites

Grand Anse Beach, Morne Rouge (BBC) Beach, La Sagesse Beach, Anse La Roche Beach, Paradise Beach Annandale Waterfalls, Concord Waterfall, Royal Mt. Carmel Waterfalls, Seven Sisters Belmont Estate, Fort George, Fort Frederick, Fort Matthew, River Antoine Rum Distillery Grand Etang Lake, Levera National Park, Lake Antoine, Grenada Underwater Sculpture Park

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PRIME LOCATIONS

P R I M E L O C AT I O N S

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PRIME RESIDENTIAL LOCATIONS Prime residential locations continue to contribute significantly to the Grenada’s real estate market. These neighbourhoods include Westerhall Point, Calivigny Harbour, Calivigny Gardens, Fort Jeudy, New Westerhall Point, Egmont & Petit Calivigny, Lance Aux Epines, True Blue and Morne Rouge.

The area was primarily developed as single-family dwellings, however, some of the properties have transitioned to student accommodation due to the close proximity to the university. The properties sold were mainly improved residential properties and vacant lots for residential purposes.

These areas are highly sought-after residential, tourism and accommodation-based commercial developments, and are mostly located on peninsulas along the south-eastern coast of the island. Our analysis includes the total value and volume of sale transactions, and property types sold within these locations.

Egmont & Petit Calivigny recorded EC $7,656,000 with the sale of 20 properties. Egmont & Petit Calivigny are newer residential developments with a higher supply of vacant lots than other active developments. It is also one of the most active developments on the island as vacant lots continue to be sold. We have noticed a significant number of residential dwellings being constructed within the last 3 years and this trend is expected to continue.

The total volume of sale transactions within these prime locations was 54 with a value of $44,480,000 (rd). This indicates that the prime locations accounted for 27% of the overall transactions by value for 2021. Westerhall Point recorded the highest total value of sales at EC $14,392,000 with the sale of 8 properties, which were mainly improved residential properties. Westerhall Point is well established as a gated luxurious neighbourhood with waterfront and hillside properties. Lance Aux Epines recorded EC $13,034,000 with the sale of 14 properties. Lance Aux Epines is one of the more established residential locations.

The remaining prime locations recorded the following values and volume of sales: New Westerhall point recorded EC $2,872,000 with the sale of 4 properties, True Blue recorded EC $2,800,000 with the sale of 2 properties. True Blue has continued to transition and develop for student accommodation. Some of these accommodation projects were completed within the year and others continue to be planned and constructed as this neighbourhood remains one of the most sought-after locations for student accommodation investment. Fort Jeudy recorded EC $2,330,000 with the sale of 4 properties. Morne Rouge recorded EC $1,100,000 with the sale of 1 property and Calivigny Gardens recorded EC $296,000 with the sale of 1 property. We anticipate that the prime residential locations will continue to be a significant contributing factor to the total value of real estate sales in Grenada.

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PRIME RESIDENTIAL LOCATIONS LAND PRICE INDEX - 2021 The land price index for the prime residential locations shows the median prices per square foot of vacant land sold. It should be noted that the price index does not necessarily indicate the value of individual lots; however, it indicates the average price per square foot based on the total land area and the value of these sales for the noted period (2021). Land prices in these prime residential neighbourhoods usually carry a higher price per square foot than other residential neighbourhoods. These lots are generally used for investments and high-end residential purposes. It should be noted that True Blue normally has a higher price per square foot (price per sq.ft was continuously increasing each year) ; however, in 2021 the price index

for True Blue was $29.68, this is due to the limited supply of land within the prime sections of the neighborhood and the noted sales have been outside that prime area which results in lower prices per square foot. There are several factors used to determine the value/price per sq.ft. of land, which includes the land size, land features (waterfront, beachfront, views, slope), neighbourhood features, availability of amenities, access roads and highest and best use. The land price index should not be used to value properties, but rather used as an indicator for the average price for the specific area or as a macro indicator for market movement within these locations.

Kareem Adams Senior Valuation Technician at Terra Caribbean Livonne Charles Chief Operating Officer of Terra Caribbean NOTE: The data used for this analysis was taken from the local registry and dates of the transactions are the documented dates (date the conveyance was registered and not the date the transaction took place). As such there may be some variation between the actual closing date and registration of the conveyance. *All values noted are in EC Dollars and rounded to the nearest thousand

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P R I M E L O C AT I O N S

ORCHARD BAY VILLA Westerhall Point, St. David Floor Area: 6,000 sq.ft. Land Area: 43, 562 sq.ft. Price: US $2,500,000

Located within the exclusive Westerhall Point community, Orchard Bay Villa is set on the waterfront with an acre of tropically landscaped gardens, featuring a wide variety of fruit trees • The main house, which was renovated in 2009, features 3 bedrooms and 2 bathrooms on the upper level • The master bedroom is en-suite and features a large Jacuzzi with a view of the bay • The great room is on the lower level and features a fully equipped kitchen, dining room and living room, which all lead out onto the patio and pool deck with a powder room • This is a great opportunity to own a special property in one of the most sought-after neighbourhoods in Grenada • En- suite guest cottage separates from the main house

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P R I M E L O C AT I O N S

SILK COTTO N HEIGHTS Port Louis, St. George Floor Area: 3,245 sq.ft. Land Area: 13,581 sq.ft. Price : US $2,500,000

Exquisite and luxurious property located in the well-known Port Louis, that features a magnificent island and sea view

• It features 3 spacious, en-suite bedrooms that offer custom-built furniture • The master bedroom is located on the lower floor which features an entertainment area, office space and conveniently opens onto the pool deck • The open concept living, kitchen and dining room leads onto a semicircular shaped balcony that captures an enamouring view of the Marina, Carenage and other surrounding areas • The beautifully designed pool deck is perfect for relaxation or entertaining family and friends • Additionally, with the purchase of the property, the new homeowner/s will have access to some of the amenities/facilities offered by Port Louis and Mount Cinnamon

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P R I M E L O C AT I O N S

DREAM C AT C H E R The Point at Petite Calivigny, St. George Floor Area: 3,000 sq.ft. Land Area: 5,858 sq.ft. Price: US $2,500,000

The Point Private Residence Club features 4 exquisite villas, one of which is Dream Catcher which enjoys a spectacular private infinity pool and a dramatic, panoramic ocean view • This villa is split level featuring 3 bedrooms, 3 bathrooms, an open plan kitchen/living/ dining space that opens onto a pool deck with an outdoor grilling station and alfresco dining • The main, state-of-the-art kitchen enjoys Corian counter tops and Smeg appliances • Other features include a private laundry, 1 car garage and 1 outdoor parking space • The owner of this villa will have access to these onsite amenities, a gym, spa, small beach, pools and non-motorized water sports • Petite Calivigny is conveniently located approx. 15 minutes from the sub-city of Grand Anse and the town of St. George's

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P R I M E L O C AT I O N S

MAHOGANY VILLA Westerhall, St. David Floor Area: 5,590 sq.ft. Land Area: 89,730 sq.ft. Price: US $2,400,000

This residential, waterfront villa offers picturesque views of Westerhall Bay • Mahogany Villa sits at the end of a long, palm tree lined driveway on an estate that is beautifully landscaped with mahogany and tropical fruit trees • Upstairs, the master bedroom features a private patio, and the ensuite bathroom has a large his-and-hers vanity and closet space • The other 2 bedrooms and bathrooms are on the lower level, and the spacious kitchen with a large island is complemented by granite countertops • Other rooms and features include a home office, linen room, maintenance room, and a back porch perfect for entertaining, with ample space and a large bar • Mahogany Villa has modern fixtures and fittings and is equipped with 110/220V electrical outlets

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P R I M E L O C AT I O N S

AT L A N T I S HOUSE Egmont, St. George Floor Area: 5,796 sq.ft. Land Area: 37,569 sq.ft. Price: US $1,680,000

Escape to Atlantis House, a hilltop, spacious villa offering a host of possibilities limited only by your imagination • The bright, contemporary, open-plan interior awaits your vision of West Indies luxury • Host local friends for an al fresco cocktail party overlooking the sea or an informal pool party • Private quarters make it easy to entertain guests from afar with a trip of a lifetime • Spend tranquil days on the boat, explore the local culture and natural sights, or kick back and observe island life from your terrace

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P R I M E L O C AT I O N S

SAFE HARBOR VILLA

Beautiful two storey, 5-bedroom property on the water’s edge of the prime residential area of Egmont

Egmont, St. George Floor Area: 5,000 sq.ft. Land Area: 22,000 sq.ft. Price: US $1,100,000

• First floor has 3 large, tastefully designed bedrooms with open concept kitchen, living & dining room • Ground floor is a self-contained 2 bedroom, 1 bathroom apartment with a large kitchen and living space • The property enjoys a covered veranda with a charming pool overlooking a fabulous ocean view • Well-manicured lawn leads onto a jetty, where one can enjoy a relaxing evening by the waterside

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P R I M E L O C AT I O N S

KINGFISHER VILLA Lance Aux Epines, St. George Floor Area: 6,000 sq.ft. Land Area: 45,506 sq.ft. Price: US $1,950,000

Kingfisher Villa offers the opportunity to own a unique beachfront property in the prestigious neighbourhood of Lance Aux Epines • Kingfisher Villa is a statement home set on a beautiful, private, beach front lot of approx. 45,506 sq. ft. with a captivating, easterly sea view • On entering the villa, you are greeted by a spacious living room that leads onto the pool deck with an uninterrupted view of the tropical garden and sea • The villa features a fully equipped kitchen which opens onto an outdoor, covered lounge that also leads onto the pool • 4 en-suite bedrooms is connected by an outdoor walkway with private balconies that open onto the garden • On the lawn, you will find a Balinese gazebo and boat house • Tastefully finished with marble floors and purple heart wood throughout, this fully furnished property is move in ready

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BUYING PROPERTY GUIDE YOUR GUIDE TO PURCHASING PROPERTY IN GRENADA

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The process that is followed on the purchase or acquisition of property in Grenada entails: • • • • •

A written offer and acceptance (often through a real estate agent) A sales agreement prepared by the vendor’s attorney-at-law and sent to the purchaser’s attorney-at-law A deposit (customarily 10%) is paid by the purchaser on signing of said Sales Agreement A title search is then carried out by the purchaser’s attorney-at-law The deed of transfer or conveyance is then prepared by the purchaser’s attorney-at-law and executed upon satisfactory completion of any matters pertaining to good title

This process can take one to four months, depending on whether an alien landholding licence is required, or other stipulated time between the parties.

Property ownership requirements All non-Grenadian corporations and non-nationals are required by the Alien Landholding Regulation Act to apply for and obtain an Alien Landholding Licence prior to purchasing a property. This licence is reviewed by Cabinet and upon approval, the licence is issued. Ownership of property may be in the name of an individual, a corporation, a foreign company, a trust, or other entity. The Alien Landholding Licence Fee is 10% of the agreed purchase price for non-residents (only). Application forms are available from the Office of the Prime Minister or from the purchaser’s attorney-at-law. There is no additional government charge for this application. PURCHASER’S POSITION: The expenses incurred by a purchaser will be as follows:

VENDOR’S POSITION: The expenses incurred by a vendor will be as follows:

• Alien Landholding Licence Fee: 10% of purchase price for non-residents (only) • Legal Fees: Approx. 2% of the purchase price + 15% VAT • Stamp Duty: Approx. 1% of the purchase price • Land Surveyor’s Fee: Approx. 0.5% of the value of the land • Out-of-pocket Expenses: Approx. US$500

• Property Transfer Tax: 5% of the selling price for Grenadians and members of the OECS • 15% of the selling price for non-nationals (The government of Grenada allows an exemption of the first EC$20,000 on the property’s selling price before the Transfer Tax is calculated) • Legal Fees: Approx. 2% of the purchase price + 15% VAT • Real Estate Commission: Approx. 5% of the purchase price + 15% VAT • Out-of-pocket Expenses: Approx. EC$500

The Sale Process • Vendor signs listing agreement with the agent to market property • When the agent finds a purchaser and an offer is accepted by vendor, the agent prepares an Acceptance of Offer letter which all parties sign • This letter is copied to the vendor’s attorney-at-law and the purchaser’s attorney-at-law • The vendor’s attorney-at-law uses this letter to prepare a sale agreement • The sale agreement is sent to the purchaser’s attorney-at-law for perusal and once approved; it is forwarded to the purchaser for signature and payment of the non-refundable 10% deposit • The deposit is retained by the vendor’s attorney-at-law • Title search is carried out and Conveyance prepared by the purchaser’s attorney-at-law • The purchaser then makes final payment, which is sent to the vendor’s attorney-at-law • In conclusion of the sale, the vendor’s attorney-at-law pays certain selling costs on the vendors’ behalf, including paying the 5% government tax and agency commission • The new deed is registered in the registry and the vendor receives all final paperwork thereafter

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What Does US$750K or less Get You Around The Caribbean When it comes to owning a home in paradise, there’s no better place than the Caribbean. Let’s see what a budget of US$750K would get in our four markets: Trinidad, Barbados, St. Lucia and Grenada. Over the years, the prices of properties have increased as the demand to own a piece of paradise has escalated. Our market coverage in Trinidad, Barbados, St. Lucia, and Grenada affords you the luxury to acquire such a property. For this article, we looked around the region to see what a budget of US$750K would get in our four markets.

TRINIDAD & TOBAGO

Located in the capital city of Trinidad, Bayside Towers offers a three-bedroom, two-bathroom apartment measuring approximately 2,185 sq.ft., listed at US $735K. The elevated location offers unparalleled views of the sparking blue Caribbean Sea. It was recently completely refinished and interior designed to a modern, contemporary style. The master bedroom has a large walk-in closet and ensuite bathroom with double vanity, walk in shower and feature wall. The open plan living area has large, floor-to-ceiling glass doors that open onto a large balcony that wraps around the apartment. The home features a newly finished kitchen, laundry room and a built-in surround sound entertainment centre.

GRENADA

With numerous options around Grenada to choose from, this stunning waterfront property offered at US $750k, located at the end of Fort Jeudy’s peninsula stands out with its uninterrupted easterly facing ocean view and cool sea breezes. Fort Jeudy is wonder for nature lovers with dramatic rocky cliffs, 2 beaches and a natural blow hole. Architecturally designed, this single-storey home features 3 bedrooms, 3 bathrooms and a powder room. There is a private indoor garden that leads into the open plan living/dining/kitchen area that opens onto the spacious pool deck, pool and covered lounge. Added features include a single car garage, laundry and storage rooms. Ocean views are captured from each room in the house. Fort Jeudy is conveniently located approximately 20 minutes from the sub-city of Grand Anse and the capital city of St. George.

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ST.LUCIA

With a price point of US $699,000 one can experience glorious sunsets from the hillside home of Villa Chloesa. Designed to capture panoramic views of Rodney Bay, Pigeon Island and the Caribbean Sea, Villa Chloesa sits on nearly 14,000 sq.ft. of land in the quiet area of Belle Vue, Gros Islet. This contemporary two-storey residence comprises approximately 2,800 sq.ft. of living space with an impressive infinity pool, making it the perfect entertainer's space. The ground floor features a sunken/split level living and dining room and a billiard table. The upstairs floor has three spacious ensuite bedrooms, each with its own veranda. The master bedroom has a walk-in closet and the ensuite bathroom has both a shower and tub. What makes Villa Chloesa a wonderful investment is the possibility to rent it on a short-or long-term basis.

BARBADOS

The Palisades is a new private community located in a quiet cul-de-sac in Atlantic Shores in the south of the island with close proximity to many amenities, including golf, restaurants and night life. Offered at exactly US $750K, this elegant townhouse comprises 3 ensuite bedrooms and features a plunge pool, Italian kitchen with a General Electric appliance package, porcelain and marble tiles, and a modern lighting and audio system. The Taino Beach Club is located on the cliff opposite the Palisades and offers facilities for the residents and their guests. This beach facility offers a sun deck, kitchen, bar and barbeque area along with washrooms, semi-private showers and dedicated storage lockers. Access to the beach is only minutes away.

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FIRST-TIME BUYERS THE REALITY OF PROPERTY OWNERSHIP Buying property is typically the single largest purchase you will ever make, so above all else you should be prepared. The journey to property ownership is an exciting one, but it is not something that you want to enter into with blindfolds on. As most people who are experienced in the subject will tell you, buying property for the first time can be an emotional, intimidating and often times, quite a lengthy process. Therefore, it is important to understand the various steps involved in the process, all of the requirements needed and the realistic timeframe it takes. Understanding these components will really help to curb the anxiety and emotions involved, because you’ll know what you’re getting into. Don’t underestimate the cost, timeframe and work involved. Working with experienced real estate agents who will guide you through the steps and who can answer all of your questions can be an asset, so lean on their shoulders.

Establishing your property goals Before beginning your journey to property ownership, ask yourself what your long-term goals are. Buying property is better in the long term so it’s good to ensure that the property fits in with your long-term goals. How long do I plan on living in Grenada? Am I buying this property for my family and me to live in or as an investment to develop and/or resell later on? If my family expands, would I need to move right away? If I got an opportunity to work overseas, can I easily rent or sell this property? Questions such as these can aid in directing you to the type of property that is best suited to you. During this brainstorming stage, it is important to analyse the potential risks of property ownership and understand how property values can change. There is a common misconception that we experience in Grenada. Many people believe that property in itself appreciates, but more often than not, this is not true. The appreciation of a property heavily depends on its location. Remember that buildings depreciate, so if, for example, you own a home or building for 20 years and you choose to sell it, you cannot always sell for more than you spent to build it, even if you have been doing regular maintenance over the 20-year period. A house is essentially a depreciating asset. Additionally, with property ownership comes the risk of decreasing property value, i.e., if a recession or pandemic hit, the property may end up being worth less than you owe on it. Also consider the risk of discovering major unforeseen repairs.

Renée Charles Senior Real Estate Agent After analysing the risks and establishing what your long-term goals are, put on your money hat and be prepared to have a long and hard, but necessary conversation with yourself about your finances. It’s recommended that you do your own financial audit and calculate your debt-to-income ratio before moving on to the next step of meeting with your banker. Don’t let the bank tell you what you can afford without also running the numbers yourself. Once you’ve run these numbers, you’ll be better prepared for your meeting with the bank. During this meeting, you want to establish the answer to two important questions: 1. How much can I comfortably afford to spend on property? 2. What are ALL of the costs involved? Most banks and credit unions often require that you have a 10 – 20% down payment in order to qualify for a mortgage, but sometimes they offer deals of 100% financing. However, always keep in mind that the higher your down payment, the lower your monthly mortgage payments will be. In addition to determining your required down payment amount, you should establish the exact amount of your monthly mortgage payments and ALL of the closing costs involved. The closing costs are where many people get blindsided, so it’s best to understand these and budget for them before beginning the buying process. Closing costs include the following: 1. Valuation 2. Land re-surveyor 3. Home inspection/structural survey 4. Stamp Duty 5. Legal fees for preparation of mortgage 6. Legal fees for Title searches and preparation of Conveyance 7. Life Insurance (if you don’t already have a policy) 8. Property Insurance (if buying a building)

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It should be noted that not all of these costs are required, but all are recommended. Home inspection and surveys are not required so these costs can be eliminated at the buyer’s discretion; however, they are highly recommended as they may save you from unexpected, costly repairs later. In addition, if you are a cash buyer, then a valuation and life insurance policy are not needed and the legal fees for preparation of a mortgage would not apply.

Additionally, keep in mind that if the neighbourhood that you buy in has a covenant, it is likely that there is a residents’ association. If there is a residents’ association, then your building plans will not only have to follow the rules set forth by the covenant but they will need to be approved by the residents’ association, in addition to Grenada’s Physical Planning Department before construction can start. This also holds true for renovations to an existing structure.

Tips to note

Making an offer

Finding the right property

The process is over and you are now a property owner. Congratulations! But now what? Is there anything else that you need to know? As life would have it, if you have bought a house or other building, the costs continue. So be prepared for these at the beginning of the journey. Here is a list of ongoing costs to budget for as a property owner:

1. The down payment required by your bank is different to the typical 10% deposit required on signing of a Sales Agreement. 2. All property buyers are required to have legal representation when purchasing. Often times, your bank or credit union would suggest that you use the same lawyer that they are using. Before accepting their suggestion, know that their lawyer is responsible for preparation of the mortgage and will represent them, the bank or credit union, should any issues arise. Your lawyer is responsible for the Title searches and preparation of the Conveyance, an entirely different job from mortgage preparation. Therefore, though you are welcome to use the same lawyer that the bank is using, it is not necessary, and one can argue that it is not recommended, as it is best to have separate representation should an issue arise during the process.

Once you have clarified your down payment amount, mortgage repayments, closing costs and budgeted for such, you can begin the fun that is property hunting. Something to keep in mind as you begin this part of the journey is that finding a suitable property can take longer than most people anticipate. Since properties in Grenada are anything but cookie cutter and the terrain of land varies from road to road, finding what you like can often take some time, but remember that the right property is out there for you. So keep the faith and work with a good, reputable agent who will help. Added to this, be sure to answer these questions before jumping in a car to search for property. - Do I want to buy or build? - What is my intended use of the property? Some neighbourhoods restrict certain activities. - What size property (whether land or house) will best fit my needs?

Now you’re at the stage where you’ve found your dream property and you are ready to buy it, so you take the leap and make an offer. Though the excitement is building, the work is not yet over. The time from when your offer is accepted to the close of the sale transaction can take anywhere from 3 to 6 months once no major issues are encountered during the purchase process. If you are cash buying, this timeframe is significantly less. During this period, the most important advice that can be offered is to communicate! Remain in constant communication with your bank/credit union, your lawyer and your agent until the transaction is complete. Communication can make all the difference in shortening this timeframe. It will help to speed up the process and ensure that the transaction runs smoothly.

Property Insurance Annual Property Tax Gardening Maintenance Utilities Home Owners Association Fees (if applicable)

Often times, new property owners may have plans to renovate. Be sure to consider the possible re-sale value of your property before making any major changes. Though the process can seem daunting, it is manageable with the right professional advice and support by your side. The end result is rewarding and the sense of accomplishment makes it all worthwhile.

When you have located a suitable property and are ready to make that purchase offer, ensure that you are aware and knowledgeable of any and all covenants attached to the property.

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NAVIGATING BANKING IN A PANDEMIC WORLD By Richard W. Duncan, President, Grenada Bankers’ Association Published Date: April, 2021

Choppy and somewhat uncharted waters lay ahead for commercial banks and their customers. However, there are great reasons to be confident about the future of commercial banking and the support of our banks for the clients we serve. Given the country’s economic dependence on stay-over visitors, SGU on-island student population, cruise passengers, yachting and marinas, any sustained appreciable resurgence in economic and commercial activities is contingent on a complete and unrestricted reopening of our borders and an end to curfews. Therefore, it stands to reason that herd immunity from COVID-19 in source markets and on the national level is a precondition that must first be achieved. According to Grey (2021) in an article published in Healthline, some experts 1 currently estimate that to achieve herd immunity, 70 – 90% of the population may need to be immune . My own estimate is that this herd immunity in source markets and on the national level will be attained by late 2022, thus laying the basis for a return to pre-pandemic levels of economic activity starting with the winter tourist season in October 2023. Against that background, here are some credible ways to navigate banking in this pandemic, and some reasons we are optimistic about the future of those whom we serve and who drive our success – our valued customers. By their policy stances, proactive responses, promotion of technology and client engagement banks have boosted customers’ confidence that ‘we are in this together’ and shall emerge better and stronger. On the other hand, customers have a crucial role to play in fully embracing the new technologies and, most importantly, keeping in close contact with their bankers, providing them with timely and accurate financial and non-financial information about their business and personal circumstances.

Prudent Policy Stance of Banks in These Uncertain Times The willingness of member banks to grant residential and commercial mortgages has not changed. We are open for business. Our decisions to lend continue to be based on sound risk management principles, such as the customers’ ability to service the loan (cash flows), acceptable collateral and job stability. Specific to the real estate market, Table I paints a mixed but positive picture of decline followed by a modest and sustained recovery in the commercial real estate market. It also shows substantial growth in the residential real estate market since the onset of the pandemic in the first quarter of 2020. Table I – Percentage of Real Estate Loan to Total Loans (by Dollar Value)

GRENADA – REAL ESTATE MARKET Dec. 2019

Mar. 2020

Jun. 2020 Sep. 2020

Residential Real Estate Loans to Total Gross Loans

28.68

39.12

37.71

37.74

Commercial Real Estate Loans to Total Gross Loans

2.22

17.71

17.87

18.09

Source: ECCB Statistics ‘Financial Soundness Indicators’ 1Grey, H. (2021, March 1). Here’s when we may have enough COVID -19 vaccine for herd immunity. Healthline. https://www.healthline.com/health-news/heres -when -we -may -have-enough -covid-19vaccine-for -herd -immunity

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Cogent and Timely Response from Banks and Regulator If ever there is a time when clients want their bankers to ‘work with them’ – it is now. Indeed, the Eastern Caribbean Central Bank (ECCB) as regulator, and the Eastern Caribbean Bankers’ Association as industry representative understood this from the onset of the COVID-19 pandemic. They collaborated to set up a special arrangement. Under this arrangement, for eighteen (18) months from March 2020 – September 2021, banks have granted, and continue to grant loan deferral arrangements to their clients. In fact, as at November 30th 2020 some 4,069 loans were under moratorium, which accounted for 43.2% total loans (by dollar value) in the banking system in Grenada . As a 2 result of this response, customers have the ability to cope with diminished cash flows in the immediate to short term.

Alternative Channels – Increasing Availability and Utilization The response to the COVID-19 pandemic has pushed banks and customers to accelerate the adoption of alternative banking channels. All member banks have worked assiduously to make banking easier, lower-cost, more convenient, and safer. The use of online banking, electronic channels for wire transfers, electronic funds transfers (EFTs), payroll processing, account opening, credit applications, use of night depository, and credit and debit cards have all been boosted. And by the end of the third quarter 2021, the digital EC dollar (DXCD) will be in ‘circulation’ as the most technologically advanced, easy-to-use, low cost and convenient payment option. There is still a long way to go, therefore customers can expect a bigger and stronger push in the months and years ahead from member banks to utilize more of these convenient alternative channels. The banks acted quickly in response to the effects of the COVID-19 crisis, but customers also must come to the party. Here is how:

Strong Banker Engagement and Knowledge of Your Business In this current period banks want, more than ever, a good grasp of the circumstances of their customers. This requires clients to provide up-to-date financial and non-financial information and, above all, a pragmatic reading of their short-to-medium term plans and prospects. 2

Eastern Caribbean Central Bank (ECCB) Statistics

It is a fact that clients know or ought to know more about their affairs than their bankers. Should your

circumstances change for the better or worse, it is vital that you promptly inform your banker and adjust your arrangements in place to suit the new or looming circumstances. Going into a loan moratorium or loan deferral arrangement is easy, but coming out is not as easy. Member banks continue to insist that a loan moratorium or loan deferral arrangement will only be granted if it is right for the client, in the first instance. An assessment must be done to determine the type (principal, interest or both principal and interest) of deferral. Finally, there must be an upfront understanding or agreement on what will happen at the end of the moratorium or deferral period. It is safe to conclude that with 43.2% of the aggregate loans of member banks under moratorium, any client for whom a moratorium was right to date, has received one.

Pragmatism Must Prevail It is important to bear in mind that all moratoria granted as of September 2021 are under an ECCB-backed arrangement. Transitioning out of the ECCB-backed moratorium after September 2021 may prove tricky. Member banks can, on their own, grant further moratoria after September 2021. However, this will require clients to make an even more compelling case than before, regarding their cash flows and loan servicing abilities. Also, because of the possibility of higher debts due to interest capitalization, combined with reduced cash inflows, banks and clients must work closely to ensure that new debt service arrangements are comfortably affordable. Moreover, the new arrangements should be flexible enough to allow renegotiations, at minimal costs, should circumstances change for better or worse. To this end, customers must engage their accountants, financial planners, and advisors to prepare financial projections and analyses, thus allowing for constructive and balanced negotiations with their bankers.

Conclusion Navigating through unprecedented and difficult times requires a collective mindset and approach steeped in realism and prudence. As customers, your responsibility is to remain up-to-date on new developments impacting your business and personal financial affairs. Moreover, keeping your banker close, informed and updated will always pay dividends. As long as banks maintain a customer-centred focus, we are highly likely to get through these difficult and unprecedented times together and be better and stronger for it. It is undoubtedly in the best interest of clients and banks alike to preempt a surge in delinquency and foreclosures. As such, a repeat of the 2009 – 2012 experience of elevated loan delinquency and sale of properties must not be a fait accompli – nor should it be on the cards.

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GRENADIAN CLASSICS

ROCKAWAY ESCAPE Close Rock, St. David Floor Area: 2,976 sq.ft. Land Area: 7,100 sq.ft. Price: US $368,067

This charming, spacious house features 2 self-contained apartments with private patios looking towards a distant sea view of Westerhall Bay • This property is fully furnished with 6 bedrooms, 4 bathrooms • There are two separate private driveways for each apartment with additional parking for 2 or more vehicles • It is located in Close Rock Westerhall, St. David, a quiet residential neighbourhood • It is in close proximity to a gas station, supermarkets and a beach

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GRENADIAN CLASSICS

ESCAPE TO FIJI Mt. Moritz, St.George Floor Area: 2,976 sq.ft. Land Area: 12,626 sq.ft. Price: US $495,000

Beautiful 4 bed, 3 bath home located in a lovely neighborhood with an infinity pool and amazing view • The home features an infinity pool, that has unparalleled views of the crystal waters of the Grand Mal Bay and surrounding areas • The ground floor has an open plan concept, which features the main living area, as well as the kitchen and dining room, a large patio area, pantry, 3 bedrooms and 2 bathrooms • The lower level has a one-bedroom suit, perfect for visitors • This property also has a 2-car garage port that is detached from the property • The house is approximately 13 minutes from the town of St. George, and roughly 25 minutes to the Maurice Bishop International Airport

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GRENADIAN CLASSICS

AZURE MANOR H i l l To p C a l i v i n g y, S t . G e o r g e Floor Area: 1,989 sq.ft. Land Area: 12,313 sq.ft. Price: US $331,260

Modern, recently built, 3 bedroom, 2 bathroom home with open-plan kitchen, dining and living area sitting on approximately 12,313 sq.ft. of land • This stunning architecturally designed, 3 bedroom, 2 bathroom house commands a spectacular view of Marian and Calivigny, as it sits on approximately 12,313 sq.ft. of steeply sloping land • It is nestled in the quiet emerging development of Hill Top Calivigny which is just off the Calivigny main road • The house is designed and decorated with comfort in mind with amenities that include high ceilings, walk in closet in the master bedroom, modern appliances, and an additional office space • Ideally located 20 minutes from the airport, St, George's, shopping, restaurants, and Grand Anse Beach

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GRENADIAN CLASSICS

C H O C O L AT E S U N D A E Confer, St.George Floor Area: 2,429 sq. ft. Land Area: 7,905 sq. ft. Price: US $ 552,100

This stunning architecturally designed, newly built spacious house is fully equipped with new appliances and furniture, nestled in the quiet, emerging development of Confer • This property features 3 bedrooms, 2 bathrooms on the top floor and 2 bedrooms, 1 bathroom on the ground floor which has an inland view of surrounding neighbourhoods • The house is designed and decorated with luxury and comfort in mind with amenities that include modern appliances and a security system • It is conveniently located 3 minutes from a supermarket and 20 minutes from the airport, St, George's, restaurants and the beach

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GRENADIAN CLASSICS

IVORY Welcome Road, Woburn, St. George Floor Area: 3,450 sq.ft Land Area: 16,874 sq.ft. Price: US $682,763

Multifamily residence with a great investment opportunity for revenue stream • The upper level has 4 bedrooms and 3 bathrooms which includes an en-suite master bedroom; 3 of the rooms has a small patio • The master bedroom has a large bathroom and generous closet space • The lower level of this property has 3 apartments; two 1-bedroom apartments and one 2-bedroom apartment all with its own utilities • The property is surrounded by a chain link fence and gate to the entrance • There is an incomplete building to the front of the property which can be completed to accommodate additional rental space. The property looks on to a distant view of Calivigny Island

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GRENADIAN CLASSICS

TOFT RESIDENCE Clarks Cour t Bay, St. George Floor Area: 5,000 sq. ft. Land Area: 32,672 sq.ft. Price: US $809,746

Grand residence built in 2009 on approximately 3/4 acres of land in the neighbourhood known as Clarks Court Bay • The property is a duplex comprising of a main house and a 1bedroom, 1bath room self-contained apartment on the left side of the structure • The main house features 2 storeys; the master suite, powder room, laundry room and open plan living, kitchen and dining room occupy the ground floor • The master suite exudes grandeur with a private sitting room, his and hers walk-in closets as well as a jacuzzi forming part of the en-suite bathroom • The top floor also enjoys a spacious veranda where one can enjoy cool breezes and a view of Woburn Bay

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GRENADIAN CLASSICS

THE TWIN HOUSE Belle Isle, St.David Floor Area: 6,101 sq.ft. Land Area: 15,422 sq.ft. Price: US $581,545

Beautifully designed, fully furnished, spacious, 4 bedroom, 3 1/2-bathroom home with open-plan dining and living area • This house offers 2 full master suites on the first floor, both with their own kitchenettes • Both master suites feature walk-in closets and private balconies which capture gorgeous views of the eastern coastline • The ground floor houses a modern kitchen, library, 2 bedrooms, a shared bath and a powder room • An outside patio at the back of the house allows for relaxing in the cool evening breeze that waft in off the Atlantic Ocean • There are small beaches and other amenities in close proximity

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GRENADIAN CLASSICS

SEA HOLLEY Merlton, St. George Floor Area: : 3,750 sq.ft. Land Area: 11,000 sq.ft. Price: US $371,994

Charming 2-storey home tucked away in a cul-de-sac within the neighbourhood of St. Paul's • This property enjoys cool breezes and a gorgeous view of the lush mountains • The top floor comprises of 2 bedrooms, 2 bathrooms, an open plan living and dining room, kitchen and a front and back patio • The back patio features a built-in pond surrounded by tropical plants, while the front patio enjoys the beautiful mountain view • The ground floor comprises a 1 bedroom, 1 bathroom self contained apartment as well as a garage/workshop with storage space and a laundry room

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GRENADIAN CLASSICS

SILENT DOVE Golf Course, St.George Floor Area: : 2,200 sq.ft. Land Area: 25,932 sq.ft. Price: US $730,000

Move-in ready home a with magnificent sea view and breezy rooms • This property features 3 bedrooms, 2 bathrooms that offers an amazing view of the world-famous Grand Anse Beach and immediate surroundings • The master room is en-suite and set away from the other bedrooms • The securely enclosed and fully covered porch provides the perfect vantage point from which to enjoy the mesmerizing blues of the calm Caribbean Sea • This property sits right on the doorsteps of the island's only golf course, a mere 3 minutes from the Grand Anse beach and main shopping areas • It is approximately 6 minutes away from the Maurice Bishop International Airport

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GRENADIAN CLASSICS

BROADWAY HOUSE Morne Delice, St.David Floor Area: : 3,121 sq.ft. Land Area: 11,115 sq.ft. Price: US $318,378

Two-storey residential/commercial property located in Morne Delice, St.David • The ground floor has a 1 bedroom, 1 bathroom self-contained apartment • The garage can easily be converted to an additional apartment or office space • The top floor consists of an en-suite master bedroom, living room, kitchen, dining room, 2 bedrooms, a bathroom and veranda that is currently used for residential purposes • The property is conveniently located 15 minutes from the Town of St. George, banks, credit unions, supermarkets, shopping outlets, schools, restaurants and much more

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ARIZA CREDIT UNION HELPING MEMBERS BUILD WEALTH THROUGH REAL ESTATE INVESTING Ariza Credit Union, formerly known as the Grenada Public Service Co-operative Credit Union, was established in 1947 and is considered “the pioneer of the credit union movement” in Grenada. At Ariza Credit Union, our focus is on building brighter futures for members and by so doing, helping them along their path to financial freedom. We assist members in creating and safeguarding intergenerational wealth through the provision of financial counselling and advice, as well as relevant products and services.

Why invest in real estate? Real estate investing provides an avenue for long term capital accumulation and asset growth. It builds wealth by providing an opportunity for property acquisition and the security of homeownership. Investment in property is a recommended part of the investment portfolio of any family or individual and should be pursued at a reasonably early age to benefit from appreciation in value and the availability of “free” cash flows. In 2020, COVID-19 brought some unexpected challenges locally, regionally, and globally. It also provided some unique opportunities for real estate investing in Grenada. The market in Grenada remains vibrant although the pandemic has seen an increase in foreclosures due to job losses and other related factors.

How do you build wealth by investing in real estate? Choosing to invest in real estate is an important decision that requires consideration of your income, expenses, and personal needs. The property you eventually choose will be based on your consideration of the location, size, and the purpose for which it is intended. It all depends on your goals, how much risk you are willing to take with your earnings and your savings and whether you are ready to take the next step to becoming financially free. 1

Real estate investing builds wealth when the equity in the property increases. One school of thought argues that borrowing in effect means that the individual is acquiring debt and would be spending on property taxes and maintenance rather than on building wealth. Others consider a mortgage as synonymous to forced savings, in that you must make the payment, so it becomes a mandatory part of your monthly budget. Additionally, unlike purchasing a car, which starts depreciating once you start driving, real estate usually appreciates in value. Acquiring property is the most often used and possibly the best form of investing in real estate. Here are five strategies for wealth building through real estate investing:

1. Home Ownership - The most commonly used strategy as it simply involves buying a house to live in and renovating it with time. If you choose to hold the property, the asset increases your worth as your debt reduces and the equity rises. The difference between your property’s current market value and the balance you owe on your mortgage loan 1

2. Purchase to Rent - Purchasing a property for rental purposes is usually a long-term strategy for wealth building. In this case, once purchased, you can hold the property for an extended period and collect rents from the tenants who occupy it. 3. Property Flipping - Targeting properties that need renovation and are for sale is another strategy that people pursue when investing in real estate. Properties are acquired as fixer-uppers in need of renovation, after which the value of the property increases, and it is then rented or sold at a profit. 4. Partnerships – Deciding to purchase property as a group with partners is another strategy used. People come together to purchase a property, which reduces their risk and exposure as their investment contribution to the purchase of the property will be smaller than if they were to purchase individually. 5. Foreclosures - Purchasing a distressed property or foreclosure is swiftly becoming a popular method of wealth building. You build wealth not by selling the property but by purchasing it from a seller who wants money right away. The seller will sell at lower than market price in order to get the money.

How can Ariza Credit Union help? At Ariza Credit Union, we aspire to help our members achieve financial independence. Our mission is simply “to improve the quality of life of all our members with financial solutions that have been tailored to their needs.” We provide our members with access to financing for home ownership, help them through the process and provide feedback and information on alternative options, if necessary, based on their needs.

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Ariza offers three unique opportunities for building wealth through real estate. 1. Home ownership in Ridgeway Residences development To simplify your home ownership goal, a landmark residential community is being developed at Morne Jaloux, St. George. At Ridgeway Residences, members can acquire a “turnkey” package of house and land from among our modern house designs. Our rates are competitive and our staff is eager and ready to take care of you. The steps to homeownership in our premiere development are easy: • Become a member of Ariza • Prequalify for Ariza’s low interest rate Home Ownership loan • Select your preferred lot from our 48 lots • Choose your preferred house model from our four modern designs • Customize as required • Sign purchase/sale agreement • You are now on your way to home ownership!

2. Other properties on sale throughout the island If you are interested in acquiring real estate in different locations across Grenada, Carriacou and Petite Martinique, there are many options available on our website. 3. Homeownership loans Purchase and build anywhere throughout Grenada, Carriacou and Petite Martinique through our reduced interest rate on homeownership and land loans, from as low as 4.99%. The road to financial freedom is often paved with the earnest of intentions but making sound financial decisions is key to achieving that goal. Investing in real estate could be your next step in wealth building. “The Ariza experience” is not one to be missed. We aspire “to make you smile” each day by finding the best solution personalized to your needs. We invite you to come in and speak with one of our ambassadors and together we can work towards building your wealth plan… your financial freedom…. your future.

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DEVELOPMENTS

D E V E L O P M E N T S

T H E P O I N T AT P E T I T E C A L I V I G N Y Petite Calivigny, St. George The Point at Petite Calivigny is a Luxury Boutique Private Residence Club with over 7 acres of continuous development land sloping down to the waterfront giving access to the deep-water marine facility

Land Area: 7.88 Acres Price: Available on Request

• The resort is situated on the spectacular south-eastern coast of the Woburn Marine Sanctuary overlooking Calivigny Island and is located in the parish of St. George, Grenada • It's accessed via boat or through the residential neighbourhood of Egmont • This offering is an excellent opportunity to gain freehold ownership of over 7 acres of development land featuring approximately 300 feet of beach frontage and over 1,000 feet of water frontage • Additionally, there are 3 two-bedroom, two-bathroom condominiums and 2 three-bedroom, three-bathroom villas in the existing project • Further, there is infrastructure including roads, underground services and fibreoptic data services in place • This property features 2 swimming pools, a gym and a security booth

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D E V E L O P M E N T S

WHITE ISLAND Carriacou Amazingly beautiful island just off the Southern coast of Carriacou • This amazingly stunning island has 2, breathtaking beaches, colourful reefs, lustrous vegetation and safe anchorage for yachts offering a perfect place for snorkelling and swimming • Pristine, turquoise waters and sparkling, white sand speak volumes for total relaxation and enjoyment • The island faces the Grenadines to the north where there are several exclusive hotel islands, such as Palm Island, Petit St. Vincent, Young Island, Mustique and the Tobago Cays • This island can be purchased for private use or as a tourism project....the possibilities are endless!

Land Area: 10 Acres Price: US $5,000,000

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D E V E L O P M E N T S

C H A L L E N O R E S T AT E Bogles, Carriacou Large lot with over 400 ft. of waterfront for sale on our lovely sister isle of Carriacou in the village of Bogles

Land Area: 5.34 Acres Price: US $560,000

• Great investment opportunity, perfect for constructing a holiday home or a guest house • A mere 10-minute drive north from the town of Hillsborough • This property also enjoys access to a secluded, white sand beach • Basic utilities are already laid

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D E V E L O P M E N T S

FIJI BEACH L’ E s t e r r e , C a r r i a c o u Stunning beach front site on Fiji Beach, Carriacou • This stunning beach front property is located on the island of Carriacou • It encompasses 2.89 acres on Fiji Beach and is perfect for a boutique hotel or a residential luxury villa • It boasts 185 feet of prime white sand beach front. Improvements include paved access road to beach, security gate and boundary fencing, drainage engineering, installation of all utilities and re-sanding of beach • Carriacou can be reached by a 15-minute plane ride or 2-hour ferry ride from the main island of Grenada • There are development approvals and other benefits in place that enhance the property as a site for investment purposes

Land Area: 2.89 Acres Price: US $995,000

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D E V E L O P M E N T S

SH O R E PA R A D I SE Morne Rouge Beach, St.George Breathtaking beachfront land along the calming waters of Morne Rouge, which features a pristine white sand beach known as BBC Beach

Land Area: 3.025 Acres Price: US $5,270,760

• It is located in close proximity to the Kalinago Beach Resort and the La Luna Estate • This lot can be used for both residential and commercial purposes • Utilities and various other amenities can be easily accessed • The lot has a waterfrontage of 130 ft.

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D E V E L O P M E N T S

C A R I B B E A N D R E A MS D E V E LO P M E N T Petit Trou, St.David Great real estate opportunity along Grenada’s eastern coastline. This 50-acre parcel enjoys extensive water & beach frontage

Land Area: 50.3 Acres Price: US $7,500,000

• Stunningly beautiful, rare real estate opportunity that boasts a protected harbour, 2 high ridges and a secluded beach nestled within • Extraordinary views and ocean breezes are captured throughout • Roads and drainage have been cut, allowing vehicular access to several points

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D E V E L O P M E N T S

THE GLADE Point Saline, St.George Large lot of land which presents a great investment opportunity for development of a residential/tourism project

Land Area: 8.75 Acres Price: US $6,000,000

• Gently sloping land for sale in the prime residential and commercial area of Point Salines • This lot fronts onto the white sand beach known as Dr. Grooms Beach and boasts a waterfrontage of 420 ft. and a panoramic view of the Caribbean Sea • The property is conveniently located less than 5 minutes from the Maurice Bishop International Airport, the hotel belt of Grenada, and the sub-city of Grand Anse which comprises retail banks, shopping centers and several other amenities

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PROPERTY DEVELOPMENT UNDER THE NEW NORMAL Published Date: May, 2021

In this Q&A with Dr. Anselm La Touche, President of Creative Group of Companies, we get an insight into how the Creative Group has fared during the COVID-19 pandemic. Additionally, Dr. La Touche shares advice for fellow homeowners, service professionals and business owners. 1. How have you been coping within the market during the pandemic as a business owner & investor? Let us first define the market. In our business, there is construction, cooling, real estate and the retail store. The market has since changed because of COVID-19. Though there were signs of panic buying there were no improvements from last year’s sales. The consumers’ behaviour was more for essential products. This then gave us a benchmark of projections going forward. During the pandemic and lockdown, every business suffered loss of revenue but we ensured that our employees were still employed as we are a team. Immediately after shut down, we were worried, and after a time, it got worse. However, we kept pushing forward. We started framing plans for reopening with new projections to accommodate less business. In some businesses we had to reduce staff, provide rotation plans, and there were layoffs in some cases. This was indeed a difficult time. From a construction stand point, construction took longer to resume due to the number of protocols that needed to be in place prior to commencing work. To say the least, this has been a challenging time which we had to respond to on a daily basis because of the changes. All in all, despite the fact that in construction some of the investors went on hold indefinitely, some projects were completed just before. Additionally, we noticed a small flurry of residential projects that homeowners had already planned, while large projects are still paused.

Dr. Anslem La Touche President of the Creative Group of Companies At this time, as the effects of the pandemic extend, I always predicted that the effects will be felt in 2021 as the spending that had been reduced due to the employment situation has not been resolved. With the large downturn in the industry, we are hoping that with the new vaccinations being provided, the tourism sector and university will return to normalcy to a point where we will see a moving of the needle. 2. In terms of cooling as a service, how are you coping during this pandemic? On the cooling side, where customer interaction is more present, we created strategies with an aim to bring comfort to the client by implementing our own sanitization protection measures during that period. This definitely worked for us. We also introduced a clean start sanitization project where we imported steaming machines and special chemicals in order to sanitize customers’ air conditioners in order to provide a different level of cleaning. This new method of cleaning air conditioning units provides a more thorough clean and is a more productive way of cleaning. As a result, productivity was increased by 100%. Additionally, as an environmentally conscious company, we have been doing environmental projects for some time. During this time, our aim was to ensure our

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customers understood the importance of maintaining their units by not only buying cheap, but buying right and knowing the buzz words ‘low global warming potential refrigerant’. This system was introduced at the end of 2019, and is one that we continue to pursue. We also now provide the service of purchasing on hire purchase. The feedback from this has been tremendous. Further, to ensure our customers’ needs were met, we provided complimentary servicing as we understood the period and its effects on most people. It is important to note that we were afforded the opportunity in January 2020 to participate in an incubation project from the United Nations through an arm called Base, which introduced ‘Cooling as a Service’ to the world. Cooling Tech was one of 8 companies out of 149 worldwide applicants to participate in this project that aimed to develop a method of selling cooling as a service in the Caribbean. Though this will not apply to small projects, as it will be better suited for capital intensive projects.

3. What energy saving tips would you offer to homeowners? In terms of energy saving, one should spend one’s capital cost on everything high efficiency. Once this is done, the demand for electricity is reduced. In essence, your demand for electricity can be reduced based on what is bought. With it being mandatory for equipment to be labelled, these labels help you determine how much electricity you would consume. In relation to solar systems, review your electricity bills before purchasing. Look at the capital costs to determine whether the capital investment you will be making in solar and the period of time you will pay for it to determine if the decision is necessary. Let us not forget to turn off appliances that are not in use. Be mindful of how you use your appliances and ensure you are maximizing their use.

4. How has COVID-19 impacted the building and construction industry in terms of the supply of materials in Grenada? At this point, construction has a high level of inflation. Immediately after the lockdown was lifted, there was a reasonable amount of inventory in Grenada for the construction industry. Freight was increased by over 100% during this time. Lead time for delivery also changed – what may have been delivered in 3 months, now takes 5 months on some items. Generally, proactive buying is definitely advised.

5. Has the demand for construction increased or decreased? Unfortunately, the demand decreased with COVID-19 being the main reason for investors putting a hold on pipeline projects. At the same time, there are industries where investors bring in their own contractors. All in all, this is a spiral effect with several dynamics within the market. 6. How long do you think it’s going to take for the economy to return to normalcy and for investors to return? I believe that Grenada is becoming more attractive due to how we managed the pandemic. Despite the pause with investors, I believe that they are still interested in returning and working with us in the future. Though the return may not happen immediately, I am confident they will return in late 2021 into 2022. 7. As an investor/business owner yourself, would you say it is a good time to liquidate all assets or ride out the turmoil. This, as we know, is a buyers’ market. Liquidating assets should be circumstantial, and well thought out. In a buyers’ market, liquidating assets isn’t advised unless you are heavily leveraged and in needs of funds to settle.

8. Has your business been affected by any of the following factors during and post the COVID-19 pandemic? Travel restrictions? Increased demand? Decreased demand? Yes, our business has been affected by lower demand which now means we are more prudent. In addition, with competition being a major factor, adjusting prices to create volume is necessary. On the retail side of things, travel restrictions have been a major business interruption; however, with the world evolving from the traditional methods of purchasing with improved websites and businesses presenting their products online, physically inspecting the product is no longer necessary. Vendors are now even prepared to send samples which assists with buying decisions.

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9. Has there been an increase in demand for air condition for residential purposes since more people are at home? At this point, it is difficult to tell. What we have noticed is emotional buying from consumers, forgetting efficiency and focusing more on price points. Some consumers save on the capital costs, but spend on the operational cost which is not advised.

13. What advice would you offer to service professionals? Service today is a wide spectrum. The first thing that should be done is to ensure the service you are providing to your customers is exceptional. If not, work towards betterment. Be timely and ensure you are providing value for money and be mindful of your quality of service. It is a great time to now benchmark yourself and have audits done.

10. Generally, investors are putting a pause on investing at this point, however, you are still pushing forward. Tell us about this. Over the period, we have learnt what our niche in the market is. We are positive that things will return to normalcy. As such, it is believed that this is the opportune time to prepare for the return. Additionally, this period is one where vendors are generally open to negotiations which is always a plus. It all starts today. Remember, whatever you invest today will determine what your business will be tomorrow.

11. What advice would you give to property owners? As a property owner, focus on ownership of your property. Focus on keeping up on mortgage payments with the end goal of complete property ownership. Moreover, ensure property maintenance is being conducted regularly enough as it will help with the overall value of the property. If you have tenants, be sure to maintain a good relationship with them. Be open to compromising as this continues to generate revenue for you.

12. What advice would you offer to business owners? Keep focused, have confidence in the future and stay in the race. Focus on today and plan for tomorrow to ensure you are ready to take advantage of all opportunities.

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GRENADA – YOUR SAFE INVESTMENT LOCATION By Ronald Theodore, Chief Executive Officer of Grenada Investment Development Corporation Published Date: March, 2022

There is no denying that economies worldwide have been impacted by COVID-19, and as the world begins to recover from the pandemic, GIDC wishes to assure investors that Grenada remains open and ready for investment. The Investment Promotion Agency remained committed to facilitating projects across the island as interest in Grenada soared during the pandemic and several projects were given the green light. Investors can benefit from a stable democratic style of government; an equally stable economy, developed infrastructure inclusive of telecommunication and electricity, reliable investment support services, an attractive citizenship by investment program, low crime rate and good quality of life. There are minimum entry requirements, no restriction on foreign ownership nor on foreign currency transactions, easy movement of capital, profit and dividends and attractive fiscal incentives. Additionally, foreign investors are given equal treatment to domestic investors. Investment opportunities can be found across a wide range of sectors, including tourism (boutique hotels, villas, condominiums, attractions, and other tourism

auxiliary support services), agribusiness and agro – processing, information communications technology (incoming call centres, business process outsourcing), health services (assisted living facilities, hospitals, health clinics and medical facilities), educational services, and energy development. The Grenada Investment Development Corporation provides a “One Stop Investment Facilitation” service for all investors. The services offered by the Corporation include business and investment advice on doing business in Grenada; processing applications for fiscal incentives; assisting investors in securing all required approvals, certificates, work permits, land for projects’ realisation, and such other support and assistance that investors may require to establish and to operate their projects. Business support services including technical assistance for business diagnostics and the preparation of business plans and access to affordable factory space. Through the GIDC, investment incentives are available to investors. Such incentives include income tax relief, customs duty exemption, tax credits, and property transfer tax waivers. Detailed information on doing business & investing in Grenada can be obtained from: gidc.gd or investingrenada.gd or e: pureinvestment@gidc.gd

RESIDENTIAL LAND

EG M O N T LOT N O 6 6 Egmont, St. George Beautiful, sloping, corner lot which is part of the highly sough after, developing neighbourhood of Egmont • This lot captures a breathtaking sea view overlooking Egmont Harbour • It enjoys a paved access road with electricity & water available at its boundaries • This lot is subject to the Egmont Development Covenants • Egmont is conveniently located approximately 15 minutes drive from both the capital city of St. George's and the sub-city of Grand Anse

Land Area: 17,335 sq.ft. Price: US $159,511

I SL A N D V I E W LOT 2 Welcome, St. George Lovely, flat to gently sloping lot ideal for building a home with a magnificent view of the south western seacoast and Hog Island • This parcel offers a serene and tranquil place for good living and relaxation • All utilities are close by, with water being readily available • Welcome is located approximately 8 minutes from the Grand Anse shopping area and the Maurice Bishop International Airport • It is about 15 minutes from the Town of St. George

Land Area: 25,701 sq.ft. Price: US $189,930

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RESIDENTIAL LAND

EGMONT HARBOUR VIEW Egmont, St. George Beautiful lot in the desirable neighbourhood of Egmont with a fantastic view which takes in the Egmont channel and Harbour • Large gently sloping lot located in a quiet residential neighborhood • A perfect place for relaxing at evenings after a hard day's work, or just rising with the sun to face a new day • All amenities are in very close proximity • Egmont is approximately 10-15 minutes from the Grand Anse Beach and shopping areas and about 18 minutes from the Maurice Bishop International Airport

Land Area: 19,853 sq.ft. Price: US $182,681

B E L L E I SL E LOT 8 6 K A Belle Isle, St. David Lovely lot located in the upscale residential development of Belle Isle • This lot forms part of the Belle Isle residential development that houses middle-high income homes • The lot has a gentle slope and an amazing view of the south-eastern seaboard • The neighbourhood is tranquil perfect for a family home • All roads are concrete throughout with proper drainage • All utilities are readily available and there are churches, beaches and other amenities in close proximity

Land Area: 15,000 sq.ft. Price: US $77,294

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RESIDENTIAL LAND

G A L BY B E ACH F R O N T LOT Marlmount, St. David This flat beachfront lot, measuring approximately 41,798 sq ft, is located along the secluded Galby Beach

Land Area: 41,798 sq.ft. Price: US $417,980

• This beautiful mixed coral and volcanic sand beach measures approximately 300 yards and is great for swimming and water sports • The land faces south east and boasts breathtaking views of the morning sunrise and infamous Galby Window • Galby is approximately 40 minutes from St. George's and approximately 35 minutes from Grand Anse

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RESIDENTIAL LAND

EAGLES’ NEST M o n t To u t , S t . G e o r g e Vacant lot with magnificent 360-degree view located on a ridge in Mont Tout, St. George • This virgin, mid-sized lot sits at the very top of a hill in Petite Bouc, Mont Tout, with a magnificent bird's eye view of the southern coastline and surrounding areas • It is a perfect spot for the view-seeker.... you will not be disappointed as there will be spectacular view from almost any room in your home • It is located approximately 3-5 minutes from the Grand Anse Beach, the main Grand Anse shopping area and approximately 8 minutes from the Maurice Bishop International Airport

Land Area: 7,135 sq.ft. Price: US $52,523

C A LY P S O S U N S E T Welcome, St. George Large, gently-sloping lot with magnificent sea views located in Welcome, St .George • The lot features a view of Calivigny and Hog Island and the south-western coastline, including the Clarks Court Bay Marina • This lot is perfect for a home, whether starter or otherwise, providing the perfect place from which to enjoy the glistening waters of the ocean and the setting sun as it cruises toward the horizon • The lot is bordered on two sides by access roads, one of which is paved, making it easily accessable • The lot is approximately 15 minutes from the Grand Anse sub city, where all major amenities are available, including access to two of the top beaches on the island

Land Area: 38,877 sq.ft Price: US $257,570

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ANALYSIS OF THE LAND REAL ESTATE MARKET Land sales continue to be the dominant sales in terms volume in the Grenada real estate market. There were increases in both volume and value in 2021 when compared to 2020, which is not surprising because of variable factors related to the effects and impact of the pandemic and the recovery stage of the market. The volume of land sales registered in 2021 was 82% of the total sales (figure 1) and 45% for total value of sales (figure 2).

TOTAL

EC$163,706, 000

715

SALES

Figure 1

KEY

Figure 2

Land Distribution

These three parishes combined accounted for 14% of the total volume of sales and only 7% of the total value of sales. St. John had an average price per sq.ft was EC $1.87 per sq.ft. St. Mark had an average price per sq.ft. at EC $0.57 per sq.ft. and St. Patrick had an average price per sq.ft. at EC $3.28 per sq.ft. Carriacou & Petite Martinique is traditionally known for family sales or properties being transferred between relatives; however, over the past four years there has been an increase in regular land sales in both volume and value. Carriacou & Petite Martinique had 6% of the total volume of land sales and 6% of the total value of sales. The average price per sq.ft. was EC $8.40 per sq.ft. Due to the improvements in infrastructure and new developments, the volume and value of sales is expected to increase.

In the distribution of land sales by parish, St. George (which includes the capital and sub-city) continued to be the dominant force with 40% of the total volume of sales and 54% of the total value of sales. This parish had the highest average price per sq.ft. at EC $12.41 per sq.ft. and contributed on record all commercial land sales and 51% of the total value of residential land sales. St. Andrew recorded 23% of the total volume of land sales and 14% of the total value of sales. The average price per sq.ft. was EC $2.56 per sq.ft. This is mainly due to the high number of agriculture sales within this parish, which accounted for 47% of the total number of agricultural sales. It should be noted that there has been a trend of several small residential developments (both vacant land and improved properties) within this parish over the last 4 years.

Figure 3

St. David recorded 17% of the total volume of land sales and 19% of the value of land sales. The average price per sq.ft. was EC $5.05 per sq.ft. Although St. David has a lower volume of sales than St. Andrew, it had a higher contributing value and price per sq.ft. mainly because the land sales were predominantly used for residential purposes, some of which are high-end developments. St. David normally has a higher price per sq.ft.; however, in the latter part of 2020 and 2021 there was a decrease in price per sq.ft. even in good quality locations. St. John, St. Mark and St. Patrick continue to show little real estate activities when compared to the other parishes.

Figure 4

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When the total value of outlier sales is added to the regular land sales (as mentioned previously), then the total value of land sales in Grenada for 2021 is EC $108,827,000. This indicates that outlier sales contributed 32% to the overall value of land sales.

Figure 5

Land Classification Land sales were sorted into three property classifications: residential, agricultural and commercial. As expected, the volume of residential land sales contributed 93% of the total land sales, followed by agricultural with 5% and commercial with 2%. The value of residential land sales contributed 89% of the total value of sales, agricultural contributed 3% and commercial 8%. Although commercial land had the lowest volume, the price points for commercial lots are usually significantly higher than agricultural and residential lots. Volume & Value of Land Transactions by Classifications Type

Residential

Agricultural

Commercial

Volume

545

584

Percentage

93%

100%

Value

$ 66,311,000.00

Percentage

89%

2,251,000.00 3%

5,893,000.00 8%

Total

$ 74,455,000.00 100%

Figure 6

Figure 7

Conclusion Land sales in 2021, as well as previous years, continue to lead the real estate market in terms of volume of sales. As it relates to the distribution, St. George will continue to be the top performing parish as it features the central business districts. It is expected that St. David and St. Andrew will have an upward sales trend; however, St. David will progress at a faster rate. Carriacou is also expected to have an upward sales trend. Residential land classification is expected to have a higher volume and value of sales than the other classifications. It is important to note the significance of the outlier land sales as they continue to contribute high value to the overall total, mainly due to the current investment programmes.

Outliers Consideration Nine land transactions (outliers) were isolated from the analysis above; however, these sales were still reviewed and analysed. The total value of these land sales was EC $34,372,000. These sales were predominantly Citizenship by Investment (CBI) sales and large development sites for CBI/hospitality purposes.

Kareem Adams Senior Valuation Technician at Terra Caribbean Livonne Charles Chief Operating Officer of Terra Caribbean

NOTE: The data used for this analysis was taken from the local registry and dates of the transactions are the documented dates (date the conveyance was registered and not the date the transaction took place). As such there may be some variation between the actual closing date and registration of the conveyance. *All values noted are in EC Dollars and rounded to the nearest thousand

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COMMERCIAL LAND

CO M M E R CI A L L A N D

M E LV I L L E S T R E E T L O T 1 A Melville Street, St. George’s This lot of land provides an excellent opportunity for commercial development in the heart of St.George’s

Land Area: 6,561 sq.ft. Price: US $920,166

• This lot features an uninterrupted view of the sea and cruise ship terminal • The bus terminus, cruise ship terminal, grocery stores, banks, shops and restaurants are all in close vicinity • All utilities are in place and is approximately 20 minutes away from the Maurice Bishop International Airport

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CO M M E R CI A L L A N D

S COTT ST R E E T PA R K I N G LOT Scott Street, St. George’s Rare opportunity to own a vacant commercial lot in the heart of St. George's

Land Area: 6,620 sq.ft. Price: US $241,223

• This lot is gently sloping located along Scott Street • The properties along the street are mostly commercial • Scott Street benefits from high vehicular traffic and is close to the many amenities of the capital of St. George's • Basic services including cable, electricity, telephone and municipal water are available onsite

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CO M M E R CI A L L A N D

CCC LOT Calliste, St. George Investment opportunity, commercial land located along the Point Salines main road

Land Area: 15,000 sq.ft. Price: US $248,445

• Majority of the lot is flat having been already excavated. • It features a road frontage of approximately 104 feet with all utilities available • This lot is in an excellent location being within proximity to the St. George's University, the sub-city of Grand Anse, the Maurice Bishop International Airport and the world famous Grand Anse Beach

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COMMERCIAL SALES

CO M M E R CI A L SA L ES

CABLE & WIRELES BUILDING Floor Area: 16,366 sq.ft. Land Area: 12,929 sq.ft. Price: US $2,592,593

Carenage, St. George’s Two storey, steel frame building located on the Carenage with a view of the Harbor • The ground floor comprises of two sections • The western section comprises of several rooms/office spaces, a 1/2 bath and internal stairwell • The eastern section on the ground floor comprises of office spaces, bathroom facilities, kitchenette areas and other rooms • The first floor of the subject comprises of private offices, open office spaces, utility rooms, kitchen, and bathroom facilities • There is ample covered parking

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CO M M E R CI A L SA L ES

B A I CO B U I L D I N G Yo un g S tr e e t , S t . G e o r ge ’ s Floor Area: 23,005 sq.ft. Land Area: 12,087sq.ft Price: US $3,826,714

Colonial, architecturally designed commercial building located in the heart of St.George’s • First floor is subdivided into three areas, all with connecting access if required as a single space • Features an internal staircase, access from multiple locations, adequate restroom facilities and conference rooms • Location provides for a constant flow of pedestrian and vehicular traffic

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CO M M E R CI A L SA L ES

SPICE BASKET Beaulieu, St. George Floor Area: 39,000 sq.ft. Land Area: 3.47 Acres Price: Price on request

Architecturally designed within the cultural and entertaining village of Beaulieu, St. George • The neighbourhood of Beaulieu is in close proximity to local attractions such as the Grand Etang Lake, Rain Forest, Annandale Waterfalls, The National Stadium and the capital city of St. George’s • Though the property is mainly used in the entertainment industry, it has great potential for other commercial purposes • There is room for expansion to suit the needs of the purchaser • Rare opportunity to own this type of development

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CO M M E R CI A L SA L ES

GREEN LIGHT Lucas Street, St. George’s Floor Area: 2,107 sq.ft. Land Area: 1,755 sq.ft. Price: US $294,453

Newly renovated investment opportunity located on Lucas Street in the town of St.George’s • The upper floor of the building is accessible from Lucas Street, while the H.A. Blaize Street serves as the access to the lower level • Both levels can be used as an office space to accommodate a small business • It is approximately 10-15 minutes away from the Maurice Bishop International Airport and the Grand Anse shopping areas

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APARTMENT BUILDING SALES

A PA RT M E N T B U I L D I N G SA L ES

I SL A N D STY L E A PA RT M E N T B U I L D I N G Morne Rouge, St. George Conveniently located, 4 storey residential/commercial building in the sub-city of Grand Anse, St. George • The ground floor comprises of 3 commercial units which has been rented for many years • The first floor comprises of two 2 bedrooms, 2 bathrooms apartments as well as two 1bedroom/1bathroom apartments • The second floor comprises of two 2 bedrooms, 2 bathrooms apartments and two 1bedroom/1bathroom apartments • The third floor comprise two 3 bedrooms, 3 bathrooms apartments • The first and second floor each have their own laundry/storage room • Some of the apartments enjoy balconies overlooking Grand Anse and a distant view of the Grand Anse Bay • Ideal location for St.George’s University student rentals • Parking is available around the perimeter of the building • The building is entirely fenced and gated

Floor Area: 15,800 sq.ft. Land Area: 11,569 sq.ft. Price: US $2,250,000

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A PA RT M E N T B U I L D I N G SA L ES

B A I CO B u i l d i n g Yo un g S tr e e t , S t . G e o r ge ’ s Floor Area: 23,005 sq.ft. Land Area: 12,087sq.ft Price: US $ 3,826,714

G AT E W A Y A P A R T M E N T Lance Aux Epines, St. George Investment opportunity available in the sought-after neighbourhood of Lance Aux Epines • This building is very conveniently located near the St. George's University, Maurice Bishop International Airport, Grand Anse Beach and Spiceland Mall • The 2-story building sits on approximately 14,365 sq. ft of flat land which is entirely fenced and gated with an electronic gate • The ground floor is home to two studio apartments, two 2 bedrooms, 1 bathroom apartments, shared laundry room and electrical room • The top floor contains, two studio apartments, one of which has a loft and two 2 bedrooms, 1 bathroom apartments • All of the apartments are furnished, self-contained with full kitchens and enjoy private living rooms and balconies • There are water tanks and a pump that services the building and ample parking is available

Floor Area: 7,954 sq.ft. Land Area: 14,365 sq.ft. Price: US $1,048,990

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A PA RT M E N T B U I L D I N G SA L ES

H I L L T O P C H AT E A U Calliste, St. George Excellent investment opportunity to own a 12-unit apartment building located in the quiet area in Calliste with lovely sea and inland views • This complex comprises a four-storey main building which houses 11 units, a two-floor/ two-unit cottage and a reception/office unit • All of the apartments are self-contained, with some of the bedroom’s housing two beds each • The building sits on approximately 17,400 sq. ft. of land and is fully fenced, with security cameras and a top floor patio with a magnificent bird's eye view • The building has solar water heating and back up water tanks • These apartments have been used by SGU students and visitors alike • The SGU campus and the Maurice Bishop International Airport are both less than 5 minutes away

Floor Area: 8,449 sq.ft. Land Area: 17,400 sq.ft. Price: US $1,693,106

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A PA RT M E N T B U I L D I N G SA L ES

P A L M G A R D E N R E T R E AT Calliste, St. George Fully furnished, three-floor apartment building located in Calliste, St. George • The two top floors are complete, each with two, 2 bedroom, 2 bathroom, self-contained apartments • The ground floor is incomplete but is mapped out to contain two studios/1-bedroom apartments • The property offers great potential for income generation • The apartments are spacious, tastefully furnished and fully equipped • It is within walking distance to an SGU bus route and parking is also available

Floor Area: 2,882 sq.ft. Land Area: 4,000 sq.ft. Price: US $425,000

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A PA RT M E N T B U I L D I N G SA L ES

VILLA HILL CREST True Blue, St. George A beautifully decorated, Moroccan style, concrete roofed, home located on Hill Crest Drive in the most sought-after neighbourhood of True Blue, St. George • The top floor is split with the kitchen, living, laundry, powder room & master bedroom, while the lower level features a lounge as well as a 2nd and 3rd bedroom • All bedrooms are en-suite and both levels open onto balconies • The ground floor of the building is a 2 bedroom, 2 bathroom fully self-con tained apartment which provides an excellent source of rental income • The neighbourhood of True Blue is home to the St. George's University and is just 5 minutes from the Maurice Bishop International Airport and 10 minutes from the world famous Grand Anse Beach

Floor Area:3,000 sq.ft. Land Area: 6,900 sq.ft. Price: US $ 799,000

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THE POSSESSORY TITLES ACT (PTA) By Dickon Mitchell

Published Date: January, 2021

Congratulations to Terra Caribbean on the publication of another edition of the Red Book, which has become a highly anticipated feature of the real estate landscape in Grenada! Thank you for the opportunity given to Mitchell & Co. to contribute to this fantastic publication. In this brief article, we highlight some of the changes that have taken place in the legal industry relating to the real estate market in Grenada. We mainly focus on, and discuss, the Possessory Titles Act, but also highlight (i) a change to the time period one needs to prove title to property in Grenada; and (ii) improvements made to the Deeds and Land Registry and the support infrastructure for searching title to land in Grenada. For a non-lawyer, these topics are by no means sexy, but the changes are important and are welcome improvements to the legal landscape which aid in the development of the real estate market in Grenada.

The Possessory Titles Act (PTA) The PTA was enacted into law on 17th August 2016. As its name suggests, the purpose of the PTA is to provide a process by which a person, who has been in actual and long possession of land, but who has no title to the land, may apply to the High Court to get possessory title to the land. The PTA, however, does not apply to Crown Lands, or what is commonly called ‘Government Lands’. A key feature of the PTA is that the actual and long possession must amount, in law, to what is called ‘adverse possession’. The PTA defines adverse possession as “factual possession of an exclusive and undisturbed nature of a piece or parcel of land in Grenada for a continuous period not less than twelve years immediately preceding the claim, accompanied by the requisite intention to possess the said land as owner thereof.” This is a mouthful, but in simple terms, it means: • A person must have actual possession of the land. • During the period of actual possession, a person must intend to possess the land as owner of the land and not in any other capacity. • A person must be on the land without the permission of the person who has title to the land or who may have a better title claim to the land. • A person must be in actual possession of the land for a continuous period of at least twelve years before he presents his application to the High Court.

It is therefore not all possession of land that will qualify for a successful application of a possessory title under the PTA. So, where a person is given permission by another person to occupy his land, or where there is a licence given to occupy land, then in such circumstances, the concept of adverse possession of land does not arise.

Why the need for the PTA? The history of land ownership in significant areas of Grenada is fragmented. Given Grenada’s historical agrarian background, many families simply occupied land, lived on and farmed same without ever having had title to the land. In other instances, where a valid title once existed, ignorance or failure to properly administer estates of deceased landowners simply meant that generations of persons remained in possession of land, without the necessary legal documentation to give efficacy to their ownership of the land. The PTA now provides a relatively simple, efficient, and cost-effective means for such persons to regularize their possession and to give them title to such lands.

Procedure to obtain a Possessory Title The PTA requires the person who claims to be in adverse possession of land to make an application to the High Court. The form of the application is set out in the PTA and it is to be accompanied by an affidavit of the applicant and supporting affidavits of two persons, who must not be family members of the applicant, with knowledge of the applicant’s long adverse possession of the land. The applicant is also required to give public notice of the application by publishing a prescribed notice in the Government Gazette, two local newspapers, at the Registry and the Magistrate Court in the district in which the land is located. The applicant must also serve persons who may have an interest in the land with notice of his application and, if necessary, affix a notice of his application on the land itself. The purpose of the notice requirement is to ensure that persons who may have an interest in the land or who may wish to object or take part in the proceedings are given an opportunity to do so, given the fact that the applicant, if successful, would be vested with title to real property, which in some instances may be quite valuable.

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Ultimately, the application is heard by a judge of the High Court, who, if satisfied that the applicant has proven his claim, may grant the applicant an order vesting a possessory title in the applicant to the land in question, thus vesting the applicant with a secure freehold title.

Effect of the PTA Our research indicates that many people have taken advantage of the PTA and have applied for, and successfully obtained, possessory titles to land thus allowing them to sell, transfer, or mortgage property, which prior to the PTA they would not have been able to. The PTA therefore has led, and will continue to lead, to more people securing title to property. This, in turn, will allow more people to take part in the real estate market, whether in the form of buyer, seller, or mortgagor.

30 Years to Prove Title Along with the advent of the PTA, another important change has been the reduction of the time that a person selling property is required to prove his title to the property. Historically, a person in Grenada, if selling property, was required to prove that he had a good root of title for a period of at least 60 years up to the date of the intended sale. The 60 years was cut in half to 30 years (unless the buyer and seller agree otherwise) by an amendment to the Conveyancing and Law of Property Act, which came into effect on 1st May 2019. The effect of the amendment is that (i) a seller now only needs to prove title for a period of at least 30 years; and (ii) possessory title to property obtained under the PTA is treated as the commencement of that person’s title, notwithstanding that it is obviously less than 30 years. In practical terms, it means that less time is required to search title as the period has been cut in half. This should make it easier, or at any rate, quicker, for attorneys to certify that a person has a good title to any given property, thus reducing the time it takes to close transactions. In the case of possessory titles, given that the PTA was only enacted in 2016, even less time will be spent verifying a possessory title.

Improvements to Deeds and Land Registry In recent times, there have been some improvements to the physical space at the Deeds and Lands Registry, coupled with a move to digitize the records. While the digitization process is still very much incomplete and in need of vast improvement, it is a much welcomed initiative, nonetheless. Some records are now accessible electronically, which improves the efficiency and efficacy of the title verification process. Given the disruptions and risks posed by COVID-19, having virtual access to the records at the Deeds and Land Registry becomes even more vitally important. Virtual access to the records at the Deeds and Land Registry allows for the minimization of disruptions and the continuation of real property transactions in the real estate market, all while reducing in-person physical interactions and the attendant risks posed by COVID-19. In concluding, the opportunities now available to people who qualify under the PTA to successfully apply to the High Court for declarations of possessory title to land; the amendment to the Conveyancing and Law of Property Act which has reduced the time for proving title to land by fifty percent; and the commendable, and ongoing, efforts of the Deeds and Land Registry in computerizing its records and modernizing its processes generally, are all positive and welcome changes for the real estate industry in Grenada. A continued focus on improving the operations at the Deeds and Land Registry will undoubtedly help to improve the ease of doing real estate transactions in Grenada as there are other areas that also need attention; for example, the disjunctive operations of the Deeds and Land Registry and the Inland Revenue Department (particularly, the valuation department and the tax administration department) – but this is a topic for another article! Finally, to the reader, this article does not purport to give legal advice, nor should it be treated as legal advice. Please consult with a licensed legal practitioner, in good standing, for legal advice about any property transaction you may wish to enter.

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COVID IMPACT ON THE INSURANCE INDUSTRY Q&A with Mr. Richard Strachan Managing Director, Netherlands Insurance

3. Has there been an increase or decrease in terms of home insurance?

Published Date: April, 2021

Home insurance has always been stable in terms of growth.

Like many countries around the world, the COVID-19 crisis impacted business operations across all sectors of Grenada’s economy. Amidst restrictions on movement and physical distancing measures, many businesses adopted innovative strategies that allowed them to continue meeting their customers’ needs. We spoke with Mr. Richard Strachan, Managing Director of Netherlands Insurance, to find out how his company navigated doing business during the pandemic and get advice about insurance coverage during times of uncertainty. 1. What is the impact of the COVID-19 pandemic relating to motor and home insurance? In terms of the demand for getting home or motor insurance, that demand is there and continues to be there. We have noticed that because the pandemic has had an impact on the economy, and with tourism being everybody’s business – when tourism is down, consumption is down. So, while we may continue to have renewals, some may reduce their insurable values in an effort to cut costs. Also, in any recession, you’ll find customers shopping around or looking to have rates reduced. But being insured is still a priority, leaving the same volume of business constant.

2. How has your team dealt with the need for technological advancements due to COVID-19? Were any of the changes permanent? Fortunately, we had a plan for remote operations. We never stopped. We were connected to each other and our network. We had full access to our database of policies and we had 99.9% access to our clients who were connected on the grid whether it was by computer or phone. Customers were still calling and doing business to the point where the police agreed to accept electronic certificates for motor vehicles in the interim. We also automatically renewed policy holders who were due within 30 days from the 25th March, 2020, ensuring they remained covered. Additionally, we have since expanded our banking to all ECCB banks registered in Grenada. Currently, we are working on the credit union side to make that an option for our customers as well.

4. With everyone searching for lower rates, what are some determinants for this decision? For the most part, that will be a pure business decision based on existing relationships and the condition of the property. Insurance rates are generally based on the risk, for example, whether you have burglar bars, whether your roof is pinned to the ring beam or you have an alarm installed, etc. Since original rates are already based on these things, these factors aren’t taken into consideration. 5. Do renovations to a property affect premiums? Renovations to your properties do not affect premiums unless there are improvements that lead to an increase on value. A homeowner is expected to upkeep the property. COPE – Construction, Occupancy, Protection and Exposure – is taken into consideration in this scenario. Construction: What it is made of. Occupancy: What it is being used for. Protection: What is in place to protect against perils. Exposure: The location of the property and its proximity to natural or man-made hazards. 6. How well has your insurance company adapted to changed working practices and what are some of these practices? Netherlands has adapted very well as we had a plan in place. Since then, we have done the following in an effort to keep our employees and customers safe: • • • • • • • •

Arranging increased banking opportunities Reducing human interface Implementing social distancing Setting up sanitizing stations Installing electronic check in Retrofitting screens on meeting desks Fumigating the office with bacteria spray Implementing internal policy changes

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7. Do you think that the technological advancements will be a permanent change or will they eventually revert? This is an interesting question. I believe that these changes have already reverted. Having said that, the Licensing Authority is very open to change and to the use of technology. They have already said that the one-stop vehicle licensing process they experimented with during lockdown is likely to remain as a legacy benefit. The challenge remains strengthening the electronic or digital insurance certificate against being manipulated.

8. What types of professionals are offered Professional Indemnity? We offer Professional Indemnity to all professionals except medical.

12. With mortgage insurance, is it necessary to insure both your house and the contents? With mortgage insurance, you do not necessarily need to insure the contents. In most cases, only the building is used as security.

13. With people being stuck all over the world because of the pandemic, what effects did this have on property owners? Inevitably, properties were vacant. As such, the unoccupancy clause is one that should be known by all homeowners. In essence, if your home is unoccupied for more than 120 consecutive days, there are two perils that are automatically not covered. These are burglary and burst pipes as we have no control of this. As an insurance company, we will not cover this, but we remind our property owners of the importance of property management services for vacant properties to avert the triggering of the unoccupancy clause.

9. In terms of insurance for rental loss during the pandemic, how is this being dealt with? As far as I know, no claim in this area has been responded to. Insurance is to insure you against certain perils such as hurricanes, earthquakes, volcanic eruptions and fires. Business interruption is only triggered by a covered peril. A pandemic is not one of them.

10. What advice would you give to property owners? It is very important to be insured. Moreover, ensure that your property is not underinsured as your home is likely your single largest investment.

11. What advice would you give to business owners? Be fully insured. Include professional indemnity even if it may not be required by law, as well as an appropriate business interruption policy. Insurance premiums are tax deductible. Basically, if you own an asset you should insure it.

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CORPO RATE RENTALS

C O R P O R AT E R E N T A L S

F R A N G I PA N I LOT 5 Lance Aux Epines, St. George Floor Area: 2,110 sq.ft. Price: US $3,500 per month

Beautifully furnished bungalow conveniently located in Lance Aux Epines, walking distance from a beach, playing field and several restaurants • Architecturally designed Mediterranean styled villa nestled in a gated community located in the prime residential neighborhood of Lance Aux Epines • This 3 bed / 2 1/2 bath open plan designed villa features high ceilings, solid counter tops in kitchen and bathrooms, en-suite master bedroom with walk-in closets, two car garage, laundry room, and plunge pool • The kitchen and living room lead onto a semi covered patio • Proximity to airport, shopping, restaurants, and beaches

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C O R P O R AT E R E N T A L S

WINDY TRACE For t Jeudy, St. George Floor Area: 5,500 sq.ft. Price: US $3,500 per month

Spacious, hillside home facing East enjoying constant cool breezes. Located in the sought-after neighborhood of Ft. Jeudy • This uniquely designed 4-bedroom, 5.5-bathroom villa faces East enjoying captivating ocean view from both levels • The upper level of the property is an open entertainment space with several lounge areas, kitchenette, bathroom and jacuzzi • Just off the entertainment area is one of the master bedrooms with an en-suite bathroom and walk in closet • An indoor staircase leads you down to the main level which enjoys an open plan design • The property is fully furnished and equipped with quality appliances. The landlord maintains the garden and the pool

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C O R P O R AT E R E N T A L S

MODERN ESCAPE Westerhall Point, St. David Floor Area: 4,000 sq.ft. Price: US $4,200 per month

Fully furnished, beautifully decorated 4-bedroom, 5-bathroom home in the prestigious Westerhall Point Development • This modern, architecturally designed home features a well-equipped kitchen with state-of-the-art appliances, formal living and dining areas, a powder room, den with private balcony, a swimmer's pool with an outdoor kitchen and bath • There is also a spacious patio, an en-suite master bedroom with a walk-in closet and his and her sinks in the bathrooms • The house features a 2-car garage and a spacious laundry room

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C O R P O R AT E R E N T A L S

CHRYSANTHEMUM Egmont, St. George Floor Area: 1,900 sq.ft. Price: US $2,400 per month

Beautifully designed bungalow located within the up-and-coming residential neighbourhood of Egmont • Facing east, this lot is situated on approximately 16,188 sq. ft. of flat land • This bungalow features 3 bedrooms, 2 bathrooms as well as an open plan living/kitchen/dining and a gazebo for relaxation • The property also enjoys a separate laundry room, is entirely fenced, and has a security system • Egmont is approximately a 15-minute drive from the capital city of St.George's and from the Grand Anse shopping area as well as the world famous Grand Anse Beach

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C O R P O R AT E R E N T A L S

VILLA PELICAN For t Jeudy, St. George Floor Area: 3,800 sq.ft. Price: US $3,500 per month

4 bedroom, 3 bathroom spacious open-plan house in excellent condition located in a sought-after neighbourhood • This property enjoys a spacious, open-plan living/kitchen/dining room as well as a family room that all open onto a verandah which overlooks a magnificent, westerly facing sea view • The master bedroom features a private balcony, walk-in-closet and en-suite bathroom with shower and Jacuzzi • The outdoor pool and Jacuzzi enjoy a relaxing atmosphere created by the tropical garden surrounding the villa and the captivating sea view • The ground floor of the villa has a self-contained studio apartment with a private entrance • Other notable features of this property include a covered car port, laundry room, utility room and a half bathroom

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C O R P O R AT E R E N T A L S

VUE SUR LA BAIE Egmont, St. George Floor Area: 3,000 sq.ft. Price: US $2,500 per month

Charming 3 storey home located in the well sought-after neighbourhood of Egmont, St. George • 3 storey, 4 bedroom, 3.5-bathroom home with a pool located in the first phase of the Egmont Development • The top floor features an en-suite guest bedroom, lounge area and balcony • The middle floor includes the master bedroom and two additional bedrooms which share a bathroom • The master bedroom enjoys a walk-through closet, tub and shower • The open plan kitchen, dining room and living room are on the ground floor of the house and lead onto a spacious pool deck • There is a fantastic ocean view of Egmont Harbour which is captured from every level of the house

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C O R P O R AT E R E N T A L S

ROSE QUARTZ Petite Calivigny, St. George Floor Area: 1,450 sq.ft. Price: US $4,600 per month

Condominium for rent within The Point at Petite Calivigny, a luxury boutique Private Residence Club and Resort situated on the spectacular southern coast of Grenada • Rose Quartz is a 2bed/2bath condominium within The Point at Petite Calivigny (The Point) • The Point is a luxury boutique Private Residence Club and Resort situated on the spectacular southern coast of Grenada just 15-20 minutes’ drive from the Maurice Bishop International Airport • It features a Chefs Kitchen with SMEG Appliances, electric range & convection oven, microwave convection oven, dishwasher, refrigerator, washer & dryer, and Corian solid surface countertops • Other features include an en-suite master bedroom with SP Porcelanosa fixtures, porcelain floor tiles throughout and bespoke furniture

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C O R P O R AT E R E N T A L S

Y E L LOW PA R A K E E T Egmont, St. George Floor Area: 1,225 sq.ft. Price: US $2,000 per month

Tastefully designed home for rent in the peaceful neighborhood of Egmont, St. George • Available from the 1st of April 2022. Spacious, fully furnished 2 beds, 2 baths single family house located in Egmont, St. George • This house is modern and stylish and features a magnificent sea view • Egmont is conveniently located approximately 15-minute drive from the capital city of St. George's and from the world famous Grand Anse Beach

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C O R P O R AT E R E N T A L S

WHITE ORCHID For t Jeudy, St. George Floor Area: 2,524 sq.ft. Price: US $3,500 per month

Lovely, spacious, four-bedroom, three-bathroom, split level home • Two floors offer the most in design, splitting bedroom accommodation for the homeowners' guests to be a part of, but have their own privacy and comfort. The top floor has the master and a second bedroom, both with en-suites, while the ground floor houses the other two bedrooms and a shared bathroom and a huge storage area • The grounds are well-kept with soft, night lights. There is a two-car carport, and the property is fully covered with security cameras for 24/7 monitoring. Front door access uses a keypad and key for added security • Fort Jeudy is a mere 15 minutes from the Grand Anse shopping area, the Grand Anse beach and Maurice Bishop International Airport. All amenities are in very close proximity

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C O R P O R AT E R E N T A L S

C H O C O L AT E T R U F F L E Egmont, St. George Floor Area: ,3400 sq.ft. Price: US $3,000 per month

Ultra-spacious, modern, two-floor apartment with wonderful sea view • This ultra-spacious, modern, two-floor apartment consists of 4-bedrooms, 3 bathrooms, and is fully furnished, with open-plan kitchen, dining and living • The master bedroom is extremely spacious, with an en-suite and huge walk-in closet. It has ceramic tiled floors, a tv room and is also fully fenced with 360-degree security cameras for added security • Situated a stone's throw away from the Le Phare Bleu Marina, this apartment enjoys a spectacular view of the southern seacoast, marina and Calivigny Island

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CLASSIC RENTALS

CL A SSI C R E N TA L S

THE LAUREL VIEW For t Jeudy, St. George Spacious and tastefully designed 2-bedroom ground floor apartment in Seaside Circle, Fort Jeudy • Spacious, nicely furnished 2 bedrooms, 1 1/2-bathroom, ground floor apartment in the sought-after neighbourhood of Fort Jeudy • This apartment features verandas off both the sitting room and master bedroom, air conditioning in both bedrooms, beautifully manicured grounds and parking • Perfect for a couple or small family, this apartment is cool and conveniently located with your comfort and safety in mind • All major amenities are in close proximity

Floor Area: 850 sq.ft. Price: US $847 per month

PA N O R A M I C V I E W A PA RT M E N T Harbour View Drive, For t Jeudy, St. George Tastefully finished, bright, airy & spacious ground floor apartment available for immediate long-term rental. • The apartment is extra spacious, airy, and bright with glass doors lining the entire front of the apartment. All the doors open on to the wrap around patio where a captivating, uninterrupted panoramic view is captured. • It features a large, equipped kitchen, open plan dining/living room, powder room, laundry room with washing machine and a master suite with walk-in-closet and bathroom. • The apartment is nestled into the hillside of a cul de sac within the quiet & private, residential neighborhood of Ft. Jeudy.

Floor Area: 1,420 sq.ft. Price: US $1,000 per month 92

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CL A SSI C R E N TA L S

BROWNIE Belmont, St. George Charming, contemporary, spacious one bedroom apartment located in Belmont, St. George, features a private patio and stunning ocean view • Available from Mid-March 2022 • Charming, contemporary, and spacious one bedroom apartment located in Belmont, St. George, features a private patio and stunning ocean view • Fully furnished apartment including washing machine • Rental rate includes water • Conveniently located five minutes away from to Grand Anse beach and two minutes from St. George's

Floor Area: 712 sq.ft. Price: US $850 per month

PEACHES N CREAM Confer, St. George Comfortable 3-bedroom apartment located in the neighbourhood of Confer. • Spacious top-floor apartment with 3 bedrooms, 2 bathrooms and open-plan living area • The master bedroom has a walk-in closet and a spacious en-suite bathroom with linen closet • The apartment is furnished with modern appliances/furniture and a patio at the back provides a great place for barbecues and entertaining, while an enclosed back veranda offers full privacy for more intimate occasions • Confer is a mere 10 minutes from the Grand Anse Beach and shopping area and the Town of St. George's and about 15 minutes from the Maurice Bishop International Airport

Floor Area: 2,000 sq.ft. Price: US $1,400 per month

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CL A SSI C R E N TA L S

CARAMEL VILLA NO. 1 Africa, St. George Modern home located in a peaceful neighborhood perfect for a small family or young professional couple • Spacious, tastefully furnished 1 bedroom, 1 bathroom ground floor apartment located in the residential neighbourhood of, St. Paul's • This apartment enjoys cool evening breezes with a stunning view of the sunset • It is located approximately 25 minutes from the airport and a mere 10 minutes from the town of St. George's

Floor Area: 800 sq.ft. Price: US $900 per month

CASA DE DIOS Mt.Parnassus, St. George Beautiful apartment complex in a quiet residential neighbourhood • Each apartment offers comfort and convenience with spectacular views of the valleys below • The apartments are large and airy with all the conveniences including a fully equipped kitchen, large bathroom, breezy bedroom and relaxing balcony • It is conveniently located just minutes from the town of St. George's and 25 minutes from the airport

Floor Area: 800 sq.ft. Price: US $552 per month

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STUDENT RENTALS

ST U D E N T R E N TA L S

LEMONGRASS Lance Aux Epines, St. George Brand new, pet friendly apartments conveniently located along an SGU bus route • Each of the 2 bedroom, ground floor apartments enjoy a private dog run • Amenities included in the rental rate are internet, water, cooking gas, pest control, shared parking, shared laundry room and maintenance of the grounds • The apartment complex is fully fenced with an electronic gate and an on-site security guard • Several restaurants, hotels, a beach, a playing field and a marina are all within walking distance • Lance Aux Epines is located approximately 5 minutes drive to the St. George's University and famous Grand Anse Beach

Floor Area: 600 sq.ft. Price: US $2,100 per month

T H E A R B O R A P T. D Lance Aux Epines, St. George Newly renovated, 2 bedroom apartment for rent in Lance Aux Epines, St. George • Modern apartment located directly on the SGU bus route • This 2 bedroom, 1 bathroom apartment has all the amenities to make it comfortable and secure • Amenities include parking, air conditioning, washer and dryer, tastefully decorated with modern fixtures and brand-new furniture • The spacious veranda looks out onto a beautiful garden • Several restaurants, bars, hotels, a beach, a playing field and a marina are all within walking distance

Floor Area: 1,183 sq.ft. Price: US $1,500 per month

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ST U D E N T R E N TA L S

GRAMILLIONS WAY NO 3 Lance Aux Epines, St. George Very spacious top floor apartment perfect for a large family or group of 4 persons willing to share • 4-bedroom, 3-bathroom upstairs apartment • Amenities include a large open plan living room, kitchen, dining room, laundry room with a washer and dryer • The property is completely fenced making it pet-friendly • Two of the bedrooms are en-suite while the other two share a bathroom • Three of the bedrooms have private balconies and there is a main veranda to the front • The apartment is walking distance to two an SGU bus stops

Floor Area: 2,500 sq.ft. Price: US $2,600 per month

V I L L A M A R A B LO CK Lance Aux Epines, St. George Spacious studio apartments within the Villamar Apartment Complex conveniently located approximately 1 minute walk from an SGU bus stop • Fully furnished, self-contained, studio style apartments in Lance Aux Epines • All A Block units are studio style with en-suite bathrooms • Rent includes internet, basic cable, water, and laundry facilities • There is a central pool facility for all tenants and a shared car park • Pet are allowed

Floor Area: 576 sq.ft. Price: US $1,045 per month

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ST U D E N T R E N TA L S

SKY L I N E S U I T ES Grand Anse, St. George Studio apartments located in the Grand Anse area, near all amenities • Fully furnished, state-of-the-art, comfortable apartments strategically located on the Grand Anse Main Road • All bedrooms contain en-suites for full privacy and each apartment has its own washer and dryer • The view from the top floors of the tower is an amazing experience and an added bonus • Skyline Suites is 3 minutes walking distance from the world famous Grand Anse Beach and about 5 minutes from the Maurice Bishop International Airport

Floor Area: 900 sq.ft. Price: US $2,400 per month

THE BOUCAN Mt.Hartman, St. George This ultra modern 1 Bedroom, 1 Bathroom eco-friendly apartment is located at the entrance of Lance Aux Epines • The fully furnished air-conditioned unit features a 2 in 1 washer & dryer, security surveillance system and a pool facility • All utilities expect electricity are included • This property is 5 minutes from the St. George's University • Various restaurants, bars, grocery stores, entertainment facilities and banks are all in close proximity to the Apartment Building

Floor Area: 500 sq.ft. Price: US $1,400 per month

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RENTAL MARKET Observations of an Agent This article looks at the rental landscape in Grenada through the eyes of a real estate agent. It highlights changes noticed over the past three – four years and focuses on emerging demands that will help both landlords and tenants realise better value for money. The rental market in Grenada is diverse and also unique, in that while there are rental properties in every parish, the bulk of the offerings are concentrated around the nightlife and entertainment area or within the ‘tourist belt’ as it is popularly known, specifically from Grand Anse in the south to Westerhall on the south-eastern corridor of the island. Rentals in Grenada, at least those presented to real estate companies, consist largely of fully furnished accommodation units, and far fewer un-furnished offerings.

Background Rental offerings have been steadily evolving from being more traditional, with a plethora of walls and partitions; bulky, wooden furniture; and neutral colours, to a mixture of traditional and modern with open-plan kitchen/living areas, to mostly modern, with the furniture, fixtures and décor following a similar pattern. Architecture, fittings, and amenities, as well as interior and exterior colours have started to take on a more modern hue, with cleaner lines and fresher, brighter colours evident everywhere as landlords attempt to maintain a competitive advantage. There are landlords who have maintained their properties as is over the decades, whereas, those who have taken a more quantum leap to fully modernise in keeping with changing demands and out-manoeuvre their competitors. There are also landlords that specifically target the SGU market, which is divided broadly into the student and faculty markets. These two target groups require different kinds of accommodation, with students settling simpler, less expensive units based on availability. Faculty members on the other hand, would gravitate towards more top-of-the-line, stand-alone housing with pools, spacious rooms, and elaborate décor.

Changing Demands Recently, potential tenants, from the local and foreign markets, no longer settle for less-expensive, regular, run-of-the mill properties. They are seeking more modern, tastefully decorated and very well-maintained properties with corresponding modern furniture and a wide range of facilities. Most are willing to pay higher rental prices. Tenants either break the tenancy or not renew a lease if the conditions (including the landlord/tenant relationship) are less than desirable.

Sherma-Ann Roberts - Joseph Real Estate Agent

The SGU student market has also evolved and students now demand the more upscale, higher-priced accommodation that previously was a fit for ex-patriates and other young, working professionals. Resultantly, we have seen the erection of new, massive, ultra-modern apartment complexes and other rental properties that specifically target the SGU student market, as landlords and businesspeople who have been paying attention to jump ahead of the competition and meet the new demands of this very ‘captive’ market in their bid to earn top dollars. During the latter part of 2019 and throughout 2020, there was an increase in queries for unfurnished properties (both stand-alone house & apartments), but finding such properties is difficult in the current rental landscape.

Pricing Rental prices have been on a steady increase for some time. Except for the SGU markets, this has influenced the rate at which some properties are rented. As potential tenants express that the rental prices of some properties are high, most renters to seek to negotiate a price that is more ‘reasonable’ or manageable for them. Some locals are challenged with high prices. Therefore, they seek more affordable prices and locations.

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However, there is a class of tenants who are prepared to pay higher rates for properties that are modern, spacious and offer the best and most amenities. These are generally ex-patriates and other non-local renters who are seeking temporary accommodation for shorter periods and who receive housing allowances. For well over a decade, within the SGU markets, prices have been steadily driven upwards. This changed in 2020 with the onset of COVID-19 restrictions, and some of the higher-priced establishments were forced to reduce prices to attract alternative tenants and keep some sort of income stream. Some have resorted to providing accommodation for visitors and persons in quarantine, vacationing or working remotely.

Location Most locals and visitors all seem to have a preference for living in the south of the island; specifically the high-demand areas of Grand Anse, Lance Aux Epines, True Blue and to a lesser extent Calliste and Point Salines. Most are quite unwilling to venture out beyond a 5-minute drive from the Grand Anse area, even though some properties beyond this radius usually provide more value for money in terms of the number of rooms, spaciousness, surroundings, and ambience as some prices are generally less than those quoted in high-demand areas.

The Future Tenants have become increasingly adept at choosing the property that best suits their needs. Tenants are also needing unfurnished properties as people seek to amass their own furnishings in preparation for building their homes. They gravitate towards the apartment or house that offers more in terms of the following: • Overall size • At least two or more bathrooms (for units having a minimum of two bedrooms) • Good, sturdy beds and proper mattresses (not covered foam) • Well-designed and maintained building and grounds • Many amenities • Nice décor; pleasing internal wall colours and floor tiles/coverings • Properly working, modern equipment • Location (this remains a key factor, with the southern corridor still winning for now) • Adequate storage, nicely designed cabinetry; and • Reasonable/affordable pricing!

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This trend is expected to continue for the next two – three years, as tenants try to maximise value received for their dollars spent. Vendors will do well to heed the emerging demands and current world circumstance to tailor their offerings accordingly to remain current and to realise adequate returns on their investments. Vendors can utilize the expertise of knowledgeable, trusted, real estate agents to keep abreast of the demands and requirements of tenants, especially when deciding on renovations and/or erecting new units. Holding conversations with such agents prior to decision-making can greatly assist vendors in tailoring offerings to demands and create a win-win situation for all players. Pricing needs to be reviewed especially for the properties that cater to the local market. This will contribute to the steady growth of this market. COVID-19 has played a part in shaping the current landscape of the rental market in Grenada. The past uncertainty created by SGU’s closure of on-campus activities is now becoming history and room-stock is being gobbled up, it appears, even faster than before. The demand for modern décor and comfort continues to increase, and the greater portion of prospective tenants are showing that they choose to rent an apartment with modern furnishings and design at a higher cost, than to accept an outdated unit at a much lower cost. The need for isolation and social distancing has also created a sub-market of individuals who work remotely. Many have chosen to escape the crowded metropolitan cities to do so in Grenada and other similar places where the negative effect of COVID-19 and the associated death rate is almost nil. This trend is expected to continue into the next two years at least, since there is no negative cost associated with working from a lovely, comfortable apartment that just happens to be in paradise! It is therefore worthwhile for landlords to target these clients who work remotely. This can be achieved if our prices and offerings are made more affordable and attractive enough to entice this new niche market to take the plunge and to also bring along their families.

Technology Technology plays a very important part in shaping the way properties are viewed. Overseas clients are now requesting virtual viewings using Apps such as WhatsApp, FaceTime, and Skype to assist in their decision-making. This allows the decision-making process to move at a faster pace, since seeing in real time via a live camera is as good as being present on site to assess what is offered.

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TOURISM IMPACT ON THE REAL ESTATE INDUSTRY Q&A with Barry Collymore Chairman, Grenada Tourism Authority Published Date: March, 2021

In November 2020, the Grenada Tourism Authority appointed Barry Collymore as the new Chairman. Barry has been involved in the developer side of tourism for many years, working on various hotel and other hospitality projects. He has led or acted in a supporting consultancy role on many of Grenada’s ground breaking projects including: Mount Cinnamon Hotel; Port Louis Marina; Royalton Resort Grenada; Coral Cove Development and Silver Sands’ new luxury properties. However, he is most proud of his latest project, the West Indies School of Hospitality (WISH) which, through collaboration with eCornell and the patronage of tourism industry leaders, will provide thousands of scholarships every year in the field of hospitality. WISH aims to improve the level of service and competitiveness of the local workforce. Terra has worked with Barry and his companies on many of his tourism projects and has been impressed with his vision for Grenada. Terra has provided broker services, valuations and other consulting services and we are proud to see how these projects have come to life. Recently, Barry visited our Grenada office for a meeting and we took the opportunity to sit with him to chat about Grenada and tourism. 1. As the new chairman, what is your vision for the GTA? The GTA has to take more responsibility for its own existence. The only reason the GTA exists is to market Grenada and to develop the product. The GTA needs to be more strategic in setting realistic growth targets for tourism and meeting those targets. We can no longer operate in an environment where it is assumed that Government funds are available regardless of how the product performs. The GTA has to take more responsibility for the growth of our tourism numbers and tourism revenue. When compared with our competitors we have not been nearly as successful in this regard. The GTA has to become a marketing juggernaut that flies the Grenada flag 24/7.

The marketing programs have to be result-oriented with targets and measurable returns. It makes no sense doing the same things year after year with little or no yield. The GTA must also be an advocate for the hospitality sector. The GTA must advocate for the policies that will make tourism here more successful. Some of these issues include service quality management, responsible and sustainable tourism, and strong community linkages to tourism entrepreneurship. One of our key areas of advocacy will be for the lowering of electricity rates and green energy for the hospitality sector. Compared with other destinations, the cost of energy in Grenada has a disproportionately high impact on room rates. This makes Grenada less competitive and more price inelastic. In addition, we cannot be Pure Grenada and continue to generate our energy through inefficient, polluting diesel engines. We have an opportunity now to use much more green energy. The renewable sector has the potential to attract more “green tourists” who are increasingly more concerned about the carbon footprint being left by tourism. This should also enable Government to access more green climate funding which can lead to investment in major capital projects that impact tourism. Lastly, the GTA must be able to generate a portion of its own income through grants and other reward programmes. 2. What do you see as the biggest challenge facing the tourism sector in a world where travel and tourism, as well as other sectors of the orange economy are significantly negatively impacted? The biggest challenge will be successfully and safely restarting tourism. Tourism planners have to walk a tightrope between tourism enjoyment as we know it, and safety protocols. In some cases, that tightrope is so thin that it will break every time. This then puts the health and safety of travellers at risk. Therefore, the challenge will be how do you open safely.

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The big challenge for Grenada and other parts of the region is the age of our traditional tourist. Most of our tourists are over the age of 60. This puts them in the highest risk group for developing adverse symptoms to COVID-19. This is a huge threat and risk to our traditional tourism market and a signal to tourism planners across the region that they cannot assume business is as usual. In a post-vaccine world, the market should rebound better. However, perhaps the greatest of all challenges is regaining the confidence, desire, and exciting potential travellers to journey out again. We cannot assume that cabin fever will be a strong enough factor to reignite the market. Instilling confidence in travel will perhaps be the more important factor.

3. The UK, USA and Canada are traditional international source markets; which jurisdiction can you see emerging as source markets in 2021 and beyond? We need to fight much harder with the UK, Canada and USA markets. These are our natural markets and we have to continue to depend on these markets to drive our tourism. There is no other market which we will be able to depend on like these markets. The Caribbean is still an unknown to a greater part of these markets and we have to fight harder to take more market share from places like Mexico that have made tremendous gains. In this regard Grenada has an advantage that no other Caribbean islands have. We have thousands of SGU alumni and family of alumni and students who we must make feel like Grenada is their home away from home. This is an important market segment in our source markets that remains untapped. We must do whatever we can to have them vacation here regularly. The other market with real potential where I believe there should be more focus on is Germany. Germany also provides a gateway to more European countries. We already have good airlift and we have to maximize this. Outside of this if we could get a direct flight from São Paulo, this could be a real game changer for us. We would have to ensure that we have the necessary amenities for this market, but this is a market we should look at and have a plan.

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This is also an opportunity for Caribbean joint marketing, and a common immigration point that allows travel to set destinations within the bubble. 4. CARICOM, in particularly Trinidad and Tobago, is a major source market in the region. Which islands within CARICOM do you believe Grenada should target as a source market? The Caribbean’s greatest tragedy is the lack of emphasis on intra-regional travel. We have decimated intra-regional travel by destroying LIAT and not having a plan for what comes next. Therefore, intra-regional travel is now in free fall and probably will not recover unless tourism planners change course. It is just too expensive and too difficult to travel the region. We need an intra-regional Caribbean bubble where once you clear immigration in one place you are able to travel to other destinations without clearing again. We need cheaper and more reliable intra-regional airlift and we need more cross-Caribbean marketing and coordination. Our lack of intra-regional cooperation on tourism has been one of our saddest tourism stories.

5. In your opinion, how would the reduction of tourism impact the real estate industry? First things first, let’s be very clear that the tourism decline in the Caribbean has been the greatest disaster that these islands have faced in decades. It has wreaked havoc on us all. However, out of disaster is always some form of opportunity. The repositioning of the industry could lead to the rise of a different kind of tourist. A reduction of leisure travellers may be a result, but on the flip side, there will be an increase in digital nomads, people needing a sabbatical and relocation travellers. This could lead to a rise in second home buyers and renters. In Grenada for example, we could see a large number of doctors who were SGU students taking sabbaticals here after the stress of dealing with COVID-19. I believe this is already happening in places like Barbados who have marketed their digital nomad programme extremely well. We need to do the same here.

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THE IMPACT OF THE COVID-19 PANDEMIC ON THE REAL ESTATE SALES MARKET IN GRENADA ANALYSIS OF SALES 2020/2021 We have broken down the real estate sales market in Grenada 2021 and 2020 to examine the impact of the pandemic by looking at the total volume and value of sale transactions, performance by parish and by property type. We have also reviewed and analysed sales by classification, price range and unusual (outlier) sales.

2021 Volume & Value of Transactions for 2021 The total volume of sale transactions in Grenada for 2021 was 715 at a value of approximately EC $163,706,000. • • • •

Q1 registered 163 sales at a value of EC $39,259,000 Q2 registered 172 sales at a value of EC $39,446,000 Q3 registered 173 sales at a value of EC $43,039,000 Q4 registered 207 sales at a value of EC $41,962,000

On a parish-by-parish basis in Grenada, the top performing parishes (St. George, St. Andrew and St. David) have been consistent for several years. St. George accounted for the highest volume of sales at 42% and a value of 55% of the total value of sales. The price points for properties within this parish were higher; it registered 63% of the total land sold above EC $200K and 60% of the total improved properties sold above EC $500K. St. Andrew held the second spot for the total volume of sales, which is similar to previous years. It registered 21% of the total volume of sales and 12% of the total value of sales. These sales were predominantly a mixture of residential and agricultural sales. St. Andrew recorded 47% of the total volume and 60% of the total value of agricultural sales. St. David accounted for 17% of the total volume of sales and 20% of the total value of sales. It registered 19% of the total land sold above EC $200K and 19% of the total improved properties sold above EC $500K. It is expected that St. David will have higher volume and value of sales mainly due to the construction of new accommodation developments/CBI projects, and a constant supply of properties within residential developments.

Figure 1

The other parishes accounted for the total volume and value of sales as follows:

Figure 2

Location by Parish The location of a property is one of the most imperative factors that influences the achievable sale price (value) and the marketing period required to achieve such price.

St. Patrick 8% of the total volume of sales and 5% of the total value of sales. St. John 5% of the total volume of sales and 3% of the total value of sales. St. Mark 2% of the total volume of sales and 1% of the total value of sales. Carriacou & Petite Martinique 5% of the total volume of sales and 4% of the total value of sales.

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Transactions by Classification Residential, Commercial & Agricultural Sale transactions were classified based on property use into three categories, namely residential, commercial and agricultural. Residential properties accounted for the highest volume of sales at 93% and 84% of the total value of sales. Commercial properties accounted for a volume of sales at 3% and 15% of the total value of sales. Agricultural properties accounted for a volume of sales at 4% and 1% of the total value of sales. These sales were distributed throughout all parishes; however, St. George registered the highest total of residential and commercial sales, whereas St. Andrew registered the highest total of agricultural sales. Commercial properties only make up 3% of the total volume of sales; however, it contributes a larger share to the total value of sales at 15%. This is expected as the price point for commercial sales is usually higher than both residential and agricultural sales.

Figure 3

Figure 4

Total Volume & Value of Sales (by Property Type)

Land sales are the dominant sales transactions by volume with 82% of the total sales registered; however, as it relates to sales transactions by value, improved property sales account for 55%.

TOTAL

Land & Improved Properties

EC$163,706, 000

715

SALES

Figure 6

SALES

KEY

Figure 7

Sales Price Range

(by Land & Improved Properties) Price is one of the most defining factors in the sale and marketing period of a property.

Figure 5

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Land prices, as depicted in figure 8 & 9, were classified into agricultural, residential and commercial properties. Agricultural and residential lands were placed into the following three categories: </= $200K, $201K - $600K, and >$601K whereas, commercial land which usually carries a higher price point were placed into the following three price categories: </= $400K, $401K - $800K, and >$801K

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Figure 8

Figure 11

NOTE: It should be noted that the total value of the CBI unit sales was those sales conveyed to unit owners and registered by the Deeds and Lands Registry. This also includes the transfer of a large villa type property between related entities.

Figure 9

Improved properties prices, as depicted in figure 10, were classified into residential and commercial properties and then placed into the following three price categories: </= $500K, $501K - $1M, and >$1M.

2020 Volume & Value of Transactions for 2020 The total volume of sale transactions in Grenada for 2020 was 611 at a value of approximately EC $156,131,000. • • • •

Q1 registered 159 sales at a value of EC $41,424,000 Q2 registered 87 sales at a value of EC $34,693,000 Q3 registered 152 sales at a value of EC $35,625,000 Q4 registered 213 sales at a value of EC $44,389,000

Figure 10

Outlier Consideration – The CBI Effect Some property transactions were isolated from the previous analysis for regular sales as they were deemed outliers given their ultra-price range, and terms and conditions of the transactions. These sales were still reviewed and analysed as they have a significant impact on the Grenada real estate market.

Figure 1

A total of 43 outlier sales were registered for 2021, which contributed 29% to the total value of sales for that year.

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Figure 2 Figure 4

Location by Parish St. George accounted for the highest volume of sales at 44% and a value of 61% of the total value of sales.

Total Volume & Value of Sales (by Property Type)

St. Andrew registered 20% of the total volume of sales and 11% of the total value of sales.

Land & Improved Properties

St. David accounted for 15% of the total volume of sales and 14% of the total value of sales.

Land sales are the dominant sales transactions by volume with 81% of the total sales registered; however, as it relates to sales transactions by value, improved property sales account for 50%.

St. Patrick 8% of the total volume of sales and 6% of the total value of sales. St. Mark 2% of the total volume of sales and 1% of the total value of sales. St. John 4% of the total volume of sales and 1% of the total value of sales. Carriacou & Petite Martinique 7% of the total volume of sales and 6% of the total value of sales.

Figure 5

Transactions by Classification Residential, Commercial & Agricultural Figure 3

Residential properties accounted for the highest volume of sales at 88% and 65% of the total value of sales. Commercial properties accounted for a volume of sales at 6% and 33% of the total value of sales. Agricultural properties accounted for a volume of sales at 6% and 2% of the total value of sales.

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Outlier Consideration – The CBI Effect A total of 23 outlier sales were registered for 2020, which contributed 43% to the total value of sales for that year. These sales were predominantly Citizenship by Investment (CBI) sales and large development sites for CBI/hospitality purposes.

TOTAL

EC$163,706, 000

715

SALES

Figure 6

KEY

Figure 7

Sales Price Range

(by Land & Improved Properties) Land prices, as depicted in figure 8, were divided into three price categories: </= $200K, $201K - $600K, and >$601K.

Figure 10

Figure 8

Improved properties prices, as depicted in figure 9, were further classified into residential and commercial properties and then placed into the following three price categories: </= $500K, $501K - $1M, and >$1M.

Comparative Analysis 2018, 2019, 2020, 2021 In the comparative analysis, 2 years (2018 and 2019) which are pre-covid and 2 years (2020 and 2021) throughout covid, were reviewed to see the impact of the pandemic on the real estate sales market. As depicted in figure 1, the volume of sales was constant from 2018 to 2019 at 718 sales each year; however, in 2020 there was a decrease of 15% in the total volume of sales. In 2021 the volume of sales returned to pre covid numbers at 715 sales.

Figure 9

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Figure 1

The total value of sales comparison had more variations, 2019 increased by 27% from 2018, however, in 2020 sale value decreased by 26% when compared to 2019. In 2021 the total value of sales had increase of 5% when compared 2020.

Figure 4

It should be noted that the data compared above only included regular sales; however, the impact of outlier sales is significant and should not be overlooked. In 2018, the outlier value of sales contributed 1% to the total value of sales for that year. In 2019, the outlier value of sales contributed 42% for that year. In 2020, the outlier value of sales contributed 43% for that year. And in 2021, the outlier value of sales contributed 29% to the total value of sales for that year.

Conclusion Figure 2

The trend for sale transactions by volume by property type is very similar throughout the years, with land sales dominating improved property sales; however, as it relates to sales transactions by value, improved property sales are usually equal to or marginally greater than the value of land sales.

This analysis was an overview of the real estate market for 2021 & 2020, and comparison to previous years. It should be noted that the pandemic delayed the speed of transactions completion; as per the data analysed and presented, there were decreases in the volume and value of sale for period 2020 and 2021. It must be noted that despite the decreases in comparison to pre-covid years, they performed better than previously expected. Furthermore, analysis for 2021 indicated a positive trend when compared to 2020. We have also noted the significant impact of Citizenship by Investment (CBI) transactions and large development investments by foreign investors to the real estate market. The analysis provides insights on the real estate market to assist buyers, investors, financial institutions, market participants in making informed decisions. Kareem Adams Senior Valuation Technician at Terra Caribbean Livonne Charles Chief Operating Officer of Terra Caribbean

Figure 3

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Figure 5 shows a comparative analysis of each parish by volume and value of sales from 2018 to 2021, and a total analysis of each year.

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