Foreign and domestic investment is rising in real estate, industry leaders said on Monday, while warning that weak legislative oversight is allowing unlicensed agents to operate, posing risks to consumers and the country’s international reputation, Barbados TODAY can reveal exclusively.
President of the Barbados Estate Agents and Valuers Association (BEAVA), Chris Hassell, said that a growing, more sophisticated market brings greater responsibility, and greater responsibility calls for better oversight.
He said: “The good news is that we can get there through small, sensible improvements to legislation and process, rather than sweeping change. BEAVA, as an association, is committed to leading the conversations that will make it happen, so that Barbados’ real estate sector keeps growing with confidence, fairness, and transparency for all.”
Asked what issues he is seeing and the remedies he would suggest, the BEAVA leader replied: “Several stand out. First, unlicensed operators. With demand high and supply limited, consumers are increasingly turning to informal channels and we’re seeing unlicensed, unregulated persons practising real estate as a secondary income. They aren’t subject to the same rules as registered agents, who must comply with anti-money-laundering laws and FIU best practices.”
He noted that real estate agents are now categorised as Designated Non-Financial Business Professionals (DNFBPs) and held to a higher standard – “one we welcome, and one we want anyone legally registered as an agent to be fully abreast of”.
The industry spokesman referenced two recent incidents of people acting as agents who attempted to defraud the public:
“That poses a reputational risk we take seriously, and we’d like to see minimum standards for the practice implemented through legislation, not dissimilar to what exists in other CARICOM states. BEAVA is working in conjunction with a senior law firm on-island to present recommendations for legislation to government in this regard, so these ideas carry the weight of proper legal grounding.”
Another challenge he identified was duplicated Know Your Customer (KYC) requirements:
“Agents, lenders, and attorneys,” he added, “are each required by law to collect KYC information, so the client often completes the same disclosures three times. There’s a real opportunity for a single, centralised KYC system for a transaction – reducing duplication for the client and streamlining compliance for everyone.”
A third issue relates to the accuracy of sales data.
Hassell contended that without reliable, shared sales figures, it is difficult for agents and valuers to find good comparables.
“We’d like to see valuers given better access to sales data, which would improve the quality and timeliness of valuations and, in turn, give investors greater confidence,” he said.
He continued: “There’s an opportunity to encourage more Barbadians to secure registered title for their property. A registered title gives conclusive, state-backed proof of ownership, makes future sales far quicker, and helps avoid the family-land disputes that so often stall a property’s use. The process to register isn’t without its own hurdles, and it needs to be weighed case by case, but as a tool for estate planning and legacy building, it’s well worth considering, and it strengthens the whole market by making transactions cleaner and more certain.”
But Hassell noted that most of the challenges being seen come with a busy, healthy market, and that they differ between foreign and domestic buyers:
“For foreigners, the time it takes to close a transaction in Barbados – even under perfect conditions – remains a genuine shock compared with other markets. Traditional friction such as Central Bank foreign-currency registration, title searches, and town-planning approvals all extend the timeline, and a lack of adequate comparables make it harder to assess value with confidence.
“For Barbadians, there are two main issues. The first is supply at the lower end of the market. There has been a significant general increase in the per-square-foot cost to build, and inventory in the affordable range is limited. That leaves consumers caught: they can’t readily find what they want on the market, and building your own carries real cost uncertainty and logistical challenges.”
Hassell identified the second as inconsistency in the banking process: “Too often a buyer holds a mortgage certificate believing they qualify for a certain amount, finds their ideal home, and then — after enhanced due diligence and full disclosure — doesn’t qualify for as much, and the sale falls through. Greater consistency between the certificate stage and final approval would prevent a lot of heartbreak.
The real estate industry spokesman also addressed the overall state of the industry, particularly the level of investment by foreigners and nationals.
Hassell disclosed that the market is thriving and is a “clear” seller’s market, with limited inventory, strong demand, and increasingly multiple offers at list price.
He identified the main drivers of the real estate industry as the ongoing legacy of the Welcome Stamp programme, the country’s successful removal from various international financial watchlists, and a stable political and economic situation.
“Improved airlift from new source markets has added further value to the sector. Both foreign and local buyers are active, and each dominates a different end of the market. Foreign investment continues to drive the luxury and ultra-luxury tiers, with international buyers increasingly treating Barbados not as a vacation spot but as a long-term base for extended living, family relocation, or wealth preservation.
“Barbadians dominate the higher-volume mid-market, concentrated in standalone housing and land lots. The Welcome Stamp was a real success, and it has reshaped the market in ways that open new opportunities. It lifted rentals and improved returns for landlords, and while it has tightened supply of affordable housing, that is exactly where the opportunity now lies.”
The BEAVA head also disclosed that there’s “real” scope for developers to produce apartments in the $750 to $1 250 rental range and homes in the $250 000 to $500 000 range, meeting genuine domestic demand. “We’ve also seen encouraging growth in warehouses for commercial use and storage, a sign of a maturing, diversifying market,” he added.
Hassell described the market as a tight, rational market rather than a speculative bubble, suggesting that as long as Barbados maintains political and economic stability, he is cautiously optimistic, sensing that the island is somewhere in the middle of the cycle, settling into steady growth rather than a runaway spike.
He then focused on the main type of real estate that investors are demanding.
He disclosed that foreign investors tend to gravitate towards what they know, such that gated communities, condos, and townhouses close to the beach and amenities remain in strong demand.
“Many of these buyers,” he explained, “visit first as tourists, fall in love with the island and its people, and from there comes the idea of a second home or a business investment. Buyers are quite specific these days, favouring turnkey, low-maintenance properties within managed estates – homes they can lock up and leave, that host the family for part of the year and earn rental income the rest.”
The real estate expert contended that high-end investment is not the preserve of foreign buyers: “Barbadians are very much part of that story too. Luxury villas hold their value well through economic swings, anchored by the flagship west coast communities such as Sandy Lane Estates, Royal Westmoreland, and Apes Hill, and the newest trend is ultra-luxury on a smaller footprint.”
Hassell gave as examples intimate, boutique developments of 13 to 15 units rather than large estates, still with strong proximity to the Platinum Coast.
“We’re also seeing buyers willing to look a little further from the beach to get more for their money. Among Barbadians, demand is strongest for affordable rentals and homes in the price range I mentioned earlier, but it doesn’t stop there. Local investors are increasingly taking on renovation projects in prime locations, turning an old family home into an Airbnb or a small commercial office space.”
Hassell stressed the importance of buyers and sellers engaging BEAVA agents in their real estate transactions, noting that property is usually the largest transaction of a person’s life.
In Barbados, this involves conveyancing and, for foreign buyers, Central Bank registration and exchange control considerations.
“What matters most is confirming that you’re dealing with a qualified professional who knows the established protocols. That is really where the association comes in.”
He declined to put a figure on the amount of money that changes hands or is invested in real estate annually, but preferred to say the sector is “clearly” a substantial contributor to the economy, with wide-ranging implications across the tourism, construction and financial services sectors.
Hassell contended that it’s also a key indicator of confidence in Brand Barbados.
(EJ)
