Is real estate a good investment in Jamaica?
Jamaican real estate investments may provide over 60% annual returns during a five-year holding period. The recent rise in Jamaican property values makes this sum very clear. In light of this, investing in Jamaican real estate may yield excellent returns over the long run.
Jamaica's thriving tourism sector, contributing 12% to the country's GDP in 2020, creates a high demand for rental properties and vacation homes. With millions of tourists drawn to the island's natural beauty and warm hospitality, investing in Jamaican real estate for tourism purposes is a lucrative option.
Real estate is likely one of the best investments you'll ever make. As an asset, they appreciate over time and so, in comparison to other investment options such as stocks, which are commonly volatile, buying a home is a safer financial venture.
1. Montego Bay. With its postcard-perfect white sand beaches, crystal clear turquoise waters, stunning luxury resorts and world-class golf courses, Montego Bay on Jamaica's stunning northern coast is undeniably the island's premier destination for tourism and real estate investment.
The Residential Real Estate market market in Jamaica is projected to reach a value of US$76.73bn by 2024. It is expected to grow at an annual growth rate (CAGR 2024-2028) of 4.19%, resulting in a market volume of US$90.42bn by 2028.
Usually when you finance a home, you must have at least 10% of its value or purchase price (after closing costs) as a down payment. If you have less than 25% to put down, you will have to obtain a Scotiabank High Ratio Mortgage (see Step #4). Of course you can put more money down if you have it.
There are no legal or other restrictions on the purchase of land in Jamaica by foreign concerns. The requirement is that the permission of the Exchange Control Department of the Bank of Jamaica be obtained, especially when such purchase involves the remittance of foreign exchange to Jamaica.
The industries which recorded the strongest growth during the fiscal year were Hotels & Restaurants (up 125.0%); Other Services (up 14.5%); Agriculture (up 11.2%); Wholesale & Retail Trade; Repair & Installation of Machinery & Equipment (up 10.9%), and Transport, Storage & Communication (up 10.1%).
Jamaica's economy relies heavily on tourism, which has become one of the country's largest sources of foreign exchange.
The cheapest Caribbean islands for real estate investments are St Vincent and the Grenadines and the Dominican Republic. The best islands to obtain citizenship through your Caribbean real estate investments are Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia.
What is the safest area in Jamaica to live?
Negril: Negril is known for its beautiful beaches and is considered one of the safest cities in Jamaica [2]. Ocho Rios: Ocho Rios is a popular tourist destination and generally considered safe for residents [2]. Falmouth: Falmouth is a historic town with a low crime rate, making it a safe place to live [2].
Many British and American expats tend to live in the outskirts of Montego Bay in areas like the small fishing village of Hopewell, which lies just a 20-minute drive outside of town. There, they can escape the hectic lifestyle of Montego Bay, while still enjoying having the amenities and infrastructure available nearby.
- Deed and ownership history.
- Property taxes are paid up to date.
- Existing zoning and any potential zoning issues.
- Physical characteristics (hillside/flood prone/etc) of the parcel are appropriate (visit the site).
The cost to build a house in Jamaica is greatly reduced saving the new homeowner money that can be used to but better tiles, furniture etc.
Purchasing property in Jamaica is, therefore, one of the most profitable long-term investment options,” Kirlew said. Jamaica is conducive to growth and in 2014 was named the number one Caribbean country to do business and to invest by Forbes.
People who retire in Jamaica have a seemingly endless choice of sports and activities to enjoy. Along the coast, there is sailing, windsurfing, kayaking, fishing, snorkeling, diving and other water sports. The interior regions offer opportunities for hiking, bird watching, rafting, canoeing, bicycling and more.
Financing the Construction
JN Bank offers a Home Construction Loan, which will assist you to build the home you dreamed about. This loan product will give you up to 40 years to repay, depending on your age. There is also joint financing with the National Housing Trust (NHT), if you are a contributor.
The cost to build a house in Jamaica can vary widely depending on several factors, such as the location, size, quality of materials, and level of finishes. As a rough estimate, the cost of construction can range from around JMD 12,000 to JMD 20,000 per square foot.
While it is relatively straightforward to buy and sell property in Jamaica, there is still a complex series of steps that an experienced attorney can help streamline. Once the property has been identified, an offer is made to the seller and if accepted, the seller's attorney prepares an Agreement for Sale.
Residency & Citizenship
Individuals looking to stay longer than 3 months in Jamaica can apply to the Jamaican Passport, Immigration and Citizenship Agency (PICA) for an extension which may allow an extension up to 6 to 12 months.
Why is real estate so expensive in Jamaica?
Due to their popularity with both foreign buyers and tourists, properties located in well-known tourist areas like Montego Bay, Negril, and Ocho Rios often attract higher prices. Foreign Investment: Foreign investors have expressed interest in Jamaican real estate, particularly those from North America and Europe.
| Conversion rates US Dollar / Jamaican Dollar | |
|---|---|
| 100 USD | 15,335.50000 JMD |
| 250 USD | 38,338.75000 JMD |
| 500 USD | 76,677.50000 JMD |
| 1000 USD | 153,355.00000 JMD |
| Company | Last Price | Market Cap |
|---|---|---|
| NCBFG NCB Financial Group | JA$66.50 | JA$159.3b |
| SJ Sagicor Group Jamaica | JA$41.25 | JA$157.9b |
| SGJ Scotia Group Jamaica | JA$47.15 | JA$143.1b |
| BIL Barita Investments | JA$70.04 | JA$84.0b |
Economic Recovery
Jamaica's real GDP is estimated to have expanded by 2.9 percent in the first half of 2023, reaching its pre-crisis level. Growth was driven by net exports from an expansion in tourism and mining, whilst agriculture declined due to an extended drought.
Sagicor Group Jamaica is the largest company on the JSE for the second year in a row.
