Grenada

Residential Sales

Grenada is in the news and the outlook for its residential real estate market is upbeat. There is a “fresh new look” about the place after the devastation caused by Hurricane Ivan in September 2004. Peripheral headline-catching news have also contributed to the island’s public awareness. Such matters as the Chelsea Flower Show in which the island holds a pre-eminent place (five Golds in the last six years) and the award of the first Victoria Cross in decades to a Grenadian soldier serving in the British Army in Iraq (Private Johnson Beharry, VC) have kept the island in the public eye. The other sisters had better watch out : Cinderella is coming to the ball. Additionally, the over-saturation of development land in nearby high-priced islands works to Grenada’s advantage.

Additionally, the over-saturation of development land in nearby high-priced islands works to Grenada’s advantage. Unlike some of its coral-based - ie flat - neighbours, Grenada is a volcanic island. It therefore has more than sun, sea and sand - this is not a Caribbean Costa. It has mountains, rainforests, waterfalls and among the most fertile of soils to be found in the tropics, with a vital agricultural sector based on nutmeg and mace, cinnamon, ginger, clove, cocoa, high-grade tropical fruit for the organic market and cut flowers. Hence its name : The Spice Isle.

Newcomers to Grenada generally live in established residential developments in stunning waterfront locations. The principal residential areas are in Westerhall Point, L’Anse aux Epines, True Blue, Fort Jeudy and Egmont Harbour. A common feature of all such developments is the easterly breeze. In the tropics the real estate mantra of ‘Location Location Location’ should be prefaced by ‘Breeze Breeze Breeze’. You cannot get enough of it. You do not decide on a property after visiting it at nine o clock in the morning - you try it out at two or three in the afternoon and you work out how you can channel the breeze to its fullest advantage.

For those with sea water in their veins who remember Grenada’s position as the prime yachting centre for the southern Caribbean in the ‘70s, Grenada’s back. The island’s location makes it an ideal launching base for cruises to the Mecca of sailing in this part of the world : the glittering island chain of the Grenadines. Spectacular high-end developments targeted at the super-yachties in Prickly Bay (www.pricklybay.com), Mount Hartman Bay and The Lagoon facing Fort George (www.portgeorge.com) in the capital St George’s are all on track to restore Grenada to its former pole position.

Until recently, suitable quality residences in good locations have been priced from a minimum of around US$ 400,000 and high-end homes have gone for upwards of US$ 2m. The advent of the above developments and other pivotal projects such as the proposed Four Seasons complex on Mount Hartman Bay linked by a causeway to Hog Island will place the residential market on a new plane.

Buying Property

Foreigners are allowed to own property in Grenada upon payment of an Aliens’ Landholding Tax (currently 10% of the selling price). Formalities are minimal but can take up to three months to process and lead to the securing of an Aliens’ Landholding Permit.

The island has a sizeable and growing population of foreign permanent or part-time residents. They mostly originate from the UK, the US and Canada though there is an increasing number of continental Europeans (Germans, Italians, Dutch, Scandinavians) who have chosen to live here.

With a couple of exceptions, the local quality of workmanship is not as fussy as might be expected in North America or Europe, although the standard of renovation is acceptable. For this reason, foreigners tend to favour purchasing an existing property in a first class location and modifying and renovating it to their own requirements (which sometimes means entrusting it to the gentle ministrations of a sensitive bulldozer driver). The design of residences in the tropics need not be elaborate - a large verandah is where residents do most of their living and entertaining - and simplicity of construction and ease of maintenance are advisable building criteria.

Prices of up to US$ 30 per sq ft are currently quoted for residential plots in key areas. Building costs of between US$ 125 and 150 psf should be budgeted for good quality residences. For shameless self-indulgent luxury you could easily spend upwards of US$ 200 per sq ft. In other words if you are budgeting for a good quality residence of say 3,000 sq ft built at say US$ 140 per sq ft on an average half acre plot bought

for say US$ 20 psf, you’re facing a bill of US$ 435,600 for the land and US$ 420,000 for the construction ie around US$ 850,000. A 6,000 sq ft palatial pad built to maharajah standard in a stunning and exclusive location will set you back much more than that but, at that level, who’s counting? And, let’s face it, what’s a decimal point between maharajahs?

A resident of St Paul’s, John Albanie spent most of his working days at Reuters news agency before moving to Grenada in 1986 to form Caribbean Enterprises, a real estate company specialising in the residential and tourism development sectors.

We recommend you obtain a copy of the Turks & Caicos Real Estate Magazine and speak with local residents – you will be looking for someone with a solid background in the community, extensive client base and a wide portfolio of listings.

Prices

Finally, what should you realistically expect to pay:

Building your own home

While price is largely dependent on area, and view, you can expect to pay a minimum of U $75,000 an acre for a decent lot on Provo – the better the view, the higher the price. Ocean front land, when you can find it, is commanding a minimum of US$600,000 per acre with at most 150’ frontage, without a beach …

for actual beach front you would be looking at the Long Bay Beach at US$1M and up for 150’ of frontage with 2 acres – or better yet, look to the sister islands; the further afield, the better the price. If the ultimate goal is to build your dream home on the lot, current construction prices hover around US$150.00 per square foot on Provo, a little higher on the sister islands, and considerably more on any of the Cays. If an existing residence makes. most sense to you, you will find that asking prices are upward of US$350,000 … and I do mean upward! The fact is; houses in the U $300,000 - US$400,000 range are in the highest demand, and are rarely on the market for more than 2-3 weeks. If this is to be a winter home, you may want to consider a duplex or property with a guest house – the second accommodation will afford an annual income, and provide a presence in your absence.

Condo-Hotels

Condo-Hotels offer the owner an income producing, low maintenance vacation retreat in one of the world’s fastest growing tourism destinations. Our condo developments provide every conceivable comfort, and come in every size – from studio suites to 4 & 5 bedroom penthouses and on yet, to developments that include family size ocean front villas. In this scenario, the complex has a professional management and rental team. The management provides maintenance for buildings, suites, amenities and grounds – guaranteeing a first- class facility to be enjoyed by owners and visitors alike.

Assuming the owners place their condos in the rental pool, the rental team and front desk book the suites on a rotating basis. There is a strata (condo) fee associated with every condo development. In addition, if the owner elects to place the unit in the rental program, the rental management fee is a percentage of the rental revenue. There are several new developments in the pre-construction stage – a purchase at this point offers significant savings, a phased purchase schedule, and may offer the opportunity to ‘personalize your suite’.

Legal and tax issues

To address any concerns in regard to real estate dealings: the Turks and Caicos Islands are a British Crown Colony, clear title is provided and protected by the Crown and all real estate transactions are based on a Registered Land System. The Land Registry, located in Grand Turk, ensures a legal land transfer process and provides a central system where deals of ownership, title, mortgages and other interest in property must be recorded in a public register. It is worthwhile to note that as an incentive to encourage inward investment, Government charges a lower rate of Stamp Duty on transfers of property on some of the less developed islands. For the bargain hunter, lower property prices on Grand Turk, Salt Cay, South Caicos, Middle and North Caicos, coupled with lower Stamp Duty represents a significant saving. Weather We’ve got the sun all year round! The ‘winter’ months (for the northern climes) are as sweet and refreshing here, as spring (79-84 deg.)

When it’s spring and fall in the higher latitudes, we experience a short-lived rainy season (82-86 deg.), and summer is hot, hot, hot, (86-100 deg.) tempered by the cool airs carried across the Atlantic by the Trade Winds. Currency

Our proximity to the United States makes them our natural Trading Post and our lifeline to terra firma. Therefore, our currency is the U.S. Dollar. We have several international banks that handle currency exchange and provide access to ATM machines; all our hotels, dining facilities, water sports operators and most of the stores accept credit cards.

How to get here:

American Airlines are our principle carrier, well versed in how to find us and offering several flights daily. International and Charter flights from New York, Boston, Charlotte, Atlanta, Toronto and Montreal arrive all week long; British Airways makes a turn around from London every Sunday. Providenciales has a well-equipped International Airport (PLS), and is on every Travel Agent’s ‘must see’ list. Just ask any of them … we’d love to see you here …