Jamaica

Jamaica’s economy is showing signs of recovery, but its housing market has yet to reflect this. Property sales are more or less at a standstill, while the number of domestic rentals has soared. Jamaica’s real estate market has struggled for the last few years, thanks to weak economic growth, high inflation, and high crime rates. In 2009, property prices fell as foreign demand weakened and many overpriced properties underwent a price correction. Sales volumes dropped as well. “The Jamaican housing market has been flat or in decline in the upper end of the market for 2010 relative to 2009,” says Edwin Wint, President of the Realtors Association of Jamaica. “The lower middle income market segment is still active, but the rate of increase is diminishing.”

But hopes are high that the market will rebound in 2011. The government has taken measures to slow down inflation and lower the country’s massive debt-to-GDP ratio to sustainable levels. The launch of the Jamaica Debt Exchange Offer (JDX) in early 2010 has been seen as a positive step in the right direction, and the appreciation of the Jamaican dollar since it hit a low of J$89.73 in February 2010 has been slight but steady. Jamaica still has its work cut out, with inflation at 14% as of May 2010. However, the government believes it is on track to achieving an inflation decrease to 7.5%-9.5% this fiscal year.

The number of rentals has increased by as much as 40% in 2009 and Q1 2010 as property owners reduced rental rates to attract more tenants. But the increase in the number of renters does not reflect the general property market but is primarily centered on certain upper-end and luxury residential market areas.

Earlier this year the Overseas Security Advisory Council released a Crime and Safety Report on Jamaica that indicated a rise in violent crimes in urban areas in 2009, though the Jamaica Observer recently reported a significant decrease for 2010. Furthermore, since much of the criminality occurs in Kingston, many of the resort areas such as Montego Bay and Negril have not been affected as much as experts feared. The major resorts also have strict security measures in place to protect their patrons.

To shore up tourism in the region at the start of the summer holiday season, Jamaican Minister of Tourism Edmund Bartlett is currently in talks with other leaders in the Caribbean Community and Common Market (CARICOM) to plan a new regional tourism strategy of "multi-destination marketing" with the aviation industry which will ensure greater flexibility and cooperation among the different Caribbean nations to encourage visitor travel to multiple destinations.

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