The Grenada Real Estate Market continued its strong growth in 2018. The real estate sector grew from strength to strength, reaching new highs in sales volumes.

Grenada showed a continuation of strong growth in 2018. Total real estate sales for 2018 were US$63,703,562, an increase of 26% over 2017, the highest sales volume in the 10-years that we have been recording the data.

Some key drivers for the dramatic increase in sales volumes were

• Prime Commercial Properties – There was strong activity in the purchase of development sites, in particular those that can support SGU-student housing or Citizenship by Investment Projects.

• The Diaspora – The continued strength of the US, UK, and Canadian economies (and respective real estate markets) has helped to support the Grenadian Diaspora in making local real estate purchases. The diaspora remains a major part of the Grenadian real estate market.

• Strengthening Grenadian Economy + Increased Lending by Local Banks – The Grenadian economy remained strong throughout 2018. In addition, banks noted increased lending activity.

The geographic distribution of real estate sales remained consistent with previous years. Around 90% of all real estate sales volumes occurred in the parishes of St. George (71%), St. David (10%), and St Andrew (10%).

There was a total of 758 real estate sales recorded in 2018. This is an increase of 23% over 2017. The increase in the number of transactions has been ongoing since 2014, however, the growth rate accelerated significantly in 2018.

Average transaction value for 2018 was US$84,316. This was consistent with the four-year average of US$84,973. Keep in mind that average transaction value includes vacant lands and developed properties, with vacant lands making up a majority of the total transactions.

After a steep decline in 2017, Foreign Buyers returned to the market at a more traditional level. The total purchases by non-Grenadian nationals was US$15,272,466. This is a nearly six-fold increase to the US$ 2,662,860 they contributed in 2017. It is important to reiterate; these figures do not include the vast majority of sales through the Citizenship by Investment Program.

Foreign buyers contributed 24% of the total value of real estate transactions in 2018. This is in keeping with 2015 and 2016 (25% and 20% respectively) .

The most surprising change to the profile of the foreign buyer was the sharp increase in corporate buyers. Corporations owned by a majority of non-Grenadian nationals accounted for 58% (of sales value) of all foreign purchases. This is significantly higher than the 5-year average. It is in keeping with the previously noted increase in commercial investment in Grenada. With only a minor exception, all of the corporate purchases were related to SGU-student facilities or tourism accommodations.

After subtracting the purchases made by corporations, foreign buyers accounted for a mere 31 purchases, with a value of US$6,478,762. The potential for Grenada to attract foreign buyers remains massive. While there are a number of factors that contribute to Grenada’s underperformance in attracting international buyers, the single greatest deterrent is the property taxes that burden non-national real estate buyers and sellers.

Several large hospitality projects came on-stream in 2018 and will gain their operational footing in 2019. These include the Silversands Resort, The Pointe at Petite Calivigny, and Hideaway Apartments. Several other projects are in advanced stages of construction, including the Kawana Bay Resort (by Kimpton Hotels).

There are a significant number of accommodations and hospitality projects breaking ground in 2019. Most exciting is the launch of several residential condominiums offering more affordable luxury units in several prime locations.

In addition, research and interviews with local lenders indicate that the volume of distressed sales (foreclosures) will decline significantly in 2019. This bodes well for the domestic, residential housing market.

Grenada’s real estate market is strong and looks positioned to continue growing in 2019.

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