The Barbadian real estate market is on the upward trajectory after being hit hard by the global recession. Today, Chris and Simon Parravicino and Allison Gill of the Realtors Limited team discuss the wide variety of services their firm offers, including rentals that range from high-luxury villas to mid-range condos and property management, as well as properties for sale. They note new offerings such as kite surfing and ecolodges as attractive to German visitors and expect to see more rentals and sales with direct flights from German being re-introduced

The real estate market struggled for about a decade after the financial crisis, but seems to be finally recovering. What is your assessment of the real estate sector in recent years and the opportunities today?

Christopher Parravicino: The real estate market was depressed due to the global downturn, but it has been picking back up since 2019. The global financial situation has improved, and here in Barbados, our change in government has created a lot more confidence in the economy. We are seeing new buyers enter the market and existing homeowners upgrading their properties, for example, from a condo to a villa. It is still a buyer’s market, so if you are considering purchasing a property in Barbados, now is the right time. Most of the buyers we are currently seeing are British and Canadian and we’d like to expand those demographics.

Barbados is seeing demand for luxury properties recovering more quickly, predominantly properties over $1million.Why is Barbados a destination of choice for wealthy visitors and investors?

Simon Parravicino: There are a number of reasons why Barbados is an attractive destination for tourism and investment. We are an English-speaking country and are harmonized with British and Canadian laws. We have strong infrastructure in terms of high-speed internet, excellent drinkable water, reliable electricity, and a current government that is making it easier to invest. None of these things are a given in our region. Currently, it takes six months to go through the investment process here in Barbados, and we are looking to close that timeframe to six weeks.

Christopher Parravicino: Barbados also has excellent healthcare; it is considered one of the best places in the Caribbean for healthcare. Our ports of entry are getting easier to process passengers through the implementation of technological solutions, and we have an increase in direct flights from several key cities throughout Europe, Frankfurt being a prime example, and the USA, Canada, UK and Panama. These all provide us gateways into the key global markets.  

Allison Gill: We also have a reputation for safety. Barbados is not a Caribbean island where you have to stay in the resort the entire time. We have people who return to Barbados for 40+ years and we attribute it to the warm, safe, and welcoming environment.

Simon Parravicino: One of the most common comments we receive back in our feedback surveys is that Barbados’ biggest draws are the people, safety, and that infrastructure works well.

Celebrities are buying houses on the island as well. Why do you think its an attractive destination for celebrities?

Simon Parravicino: Barbados has always attracted a certain set of people since tourism picked up in the 1950’s. Royalty, famous American actresses from the golden age of Hollywood, all came to Barbados and the island’s reputation grew from there.

The country launched We Gatherin’ 2020, a special year that celebrates all Bajans and their culture. What is the strategy behind the initiative?

Simon Parravicino: A lot of Barbadians emigrated in the 30’s, 40’s and 50’s. We now have a second and third generation of diaspora populations across the globe that may have not returned to the island in their lifetime. The We Gatherin’ strategy is to bring people back who have not returned for a long time or people with Barbadian roots who want to come and set up a business here. It’s a way of connecting and reconnecting with Barbadian culture for the economic and cultural benefit of the island and our communities.

Barbados has specific incentives programs for high net worth individuals. What are the benefits and incentives related to purchasing property for investors that fall in this category?

Christopher Parravicino: If you are a property owner you get a nine-month visitor visa rather than a six-month visa. This is designed for people who want to be based here more for a longer period than the short-stay visitor. Most investors will still want to go home but they don’t want to have to go home because of visa restrictions every six months. The nine-month visa allows them to live here more or less full time and head home for the summer months.

Simon Parravicino: Barbados boasts a corporate tax that is one of the lowest in the world today, 5.5 percent and lower. Anyone setting up a Barbados-registered business or purchasing a business property here benefits from that low tax regime.

Traditional markets like the USA, UK and Canada already play an important role in the real estate market in Barbados. Germany is the European economic powerhouse. What is the potential for real estate investment coming from the German market?

Christopher Parravicino: Historically, German exposure to Barbados was strong, but we interestingly saw a downturn in German tourists following the unification of East and West Germany. We think it’s time to revive our ties with German tourists and we have many new offerings. Water sports is an area that is attractive to German tourists, we have excellent year-round wind and kite surfing and there are many Germans who have already found their way to Barbados for that very reason. I think Barbados is already quite well known in the German market however over the years as flight routes were cancelled and tour operators went out of business, arrivals waned. With the new Lufthansa Eurowings direct flights, we expect the number of visitors from Germany to increase.

Beyond water sports, what other offerings are available to German visitors?

Christopher Parravicino: Ecotourism is an area we are developing that we know is of interest. The government is trying to reach carbon neutral by 2030. We recently banned single use plastics as well.   

Simon Parravicino: Farm-to-table restaurants are popping up here in Barbados. We also have ecolodges and other eco-friendly restaurants that are gaining popularity.

What is the current composition of the German market in terms or rentals and sales?

Christopher Parravicino: We are seeing more in property rentals than sales at the moment. For the next two to three years we will be reintroducing Barbados to the German market, and then maybe down the line they will consider buying. It’s still a buyer’s market right now and I think it will get better for the sellers over the next five years so there is still a window to get a vacation or rental property in the next few years. Germans get a lot of vacation compared to our US and Canadian visitors. This is good in general because they’re not just coming to stay on the beach for five days, they’re adventuring and taking in what the island has to offer, the things that make Barbados unique.

How can you answer German demand for high-end and varied services?

Allison Gill: Our portfolio is primarily the higher end of the market and our villas are fully staffed including cleaner, chef, laundry, etc. These are fully serviced villas. Often times guests may not even go out for dinner because of the caliber of meals prepared for them in the villas is so high and as good as or better than a restaurant. Many of the reviews on our properties are of the staff and what a great service they provided. The level of service depends on the budget you’re looking for. We have the full-service villas but we also have apartments and condos which are also of a very high standard but are priced lower. They have weekly housekeeping service versus the full amenities, and small condos versus larger houses and villas. We try to offer a wide variety of sizes and price ranges for our clients.

Do you have a last word for German readers?

Simon Parravicino: If you’ve been to Barbados before and haven’t been here in a while, we welcome you back. If you haven’t been before we guarantee you will love it here. We have people who have been returning to Barbados each year for 40+ years, and some who have handed down their villas through three generations.