As the 10th Biennial Jamaica Diaspora Conference approaches, seasoned real estate professional Dean Jones, Realtor Associate and Founder of Jamaica Homes, is encouraging Jamaicans living abroad to invest in the local real estate market.
Despite the recent uptick in mortgage rates, Jones asserts that now remains a great time to purchase property in Jamaica, citing key factors that make the market attractive to investors.
Strong Return on Investment
Investing in Jamaican real estate can be highly lucrative, offering significant returns relative to the initial investment. Jones highlighted that properties in sought-after areas have experienced remarkable capital appreciation. For instance, a brand-new three-bedroom home in Marina Villas, Drax Hall, St. Mary, was on the market for about USD $350,000 in 2020/21. Today, the same property is selling for approximately USD $850,000, representing a price increase of over 140%.
“This level of appreciation isn’t seen everywhere in the country, but if you invest in the right area, you will reap the rewards,” Jones emphasized. “Real estate in Jamaica remains one of the safest and most lucrative investments available.”
Stability and Growth
Jamaica's stable political and economic landscape offers a secure environment for investors. Stability in governance, coupled with controlled inflation, fosters an atmosphere where property values can grow predictably. According to the Bank of Jamaica, maintaining low and stable inflation supports sustainable economic growth and reduces public debt burdens, further enhancing the investment potential.
Competitive Property Prices
Jamaican real estate prices remain competitive when compared to other Caribbean nations, making it an appealing option for investors looking to maximize value.
“There’s something for everyone,” Jones noted. “If you want a peaceful retreat, you can look at Portland or St. Mary. If you prefer a vibrant city lifestyle, Kingston or Montego Bay offers great options.”
Thriving Short-Term Rental Market
Jamaica's short-term rental market, fueled by platforms like Airbnb, continues to thrive. Jones pointed out that many investors have leveraged equity from their first homes to finance additional properties. Minister of Tourism Edmund Bartlett revealed that in 2023, 31% of visitors to Jamaica opted for Airbnb or similar accommodations, highlighting the growing demand for alternative lodging options.
Steps to Investing in Jamaican Real Estate
For Jamaicans living overseas, Jones recommends careful planning and preparation to navigate the investment process effectively. He outlined key steps:
- Save for Upfront Costs – Investors should set aside at least 25% of the property's cost for expenses like deposits, legal fees, and valuation fees.
- Get Pre-approved – Mortgage pre-approval requires proof of income, an overseas and local credit report, and a Tax Registration Number (TRN).
- Begin Property Search – Working with a licensed Realtor Associate, such as those affiliated with Jamaica Homes, can streamline the process and connect buyers to suitable properties and developers.
The Time to Invest is Now
Jones maintains that the Jamaican real estate market presents a wealth of opportunities for Jamaicans abroad. As discussions around investment continue, the upcoming Biennial Jamaica Diaspora Conference, scheduled for June 16–19 at the Montego Bay Convention Centre, will provide further insights and resources for prospective buyers.
For those considering investing in Jamaica, now is the time to take action and explore the promising opportunities within the local real estate market.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Please note: Jamaica Homes is not authorized to offer financial advice. The information provided is not financial advice and should not be relied upon for financial decisions. Consult a regulated mortgage adviser for guidance.