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MARKET RESEARCH: CARIBBEAN’S BUILDING SECTOR

Why the Caribbean building and construction industry is booming?

  • The Caribbean’s economy improved throughout 2015 and the outlook for 2016 is excellent with GDP up from 2.5% (2015) to 3% (2016).
  • The region witnessed a 5% increase in tourist arrivals in 2015, after 2014 saw its best year ever. A record 26.3 million visitors came to the Caribbean in 2014, spending a record US$29.2 billion. Caribbean destination tourism is rising at 4.7%, the fastest growth region in the world.
  • Tourism is driving invest in infrastructure such as airports, roads, marinas and ports, as countries seek to guarantee a competitive position
  • The Caribbean had 44 hotels with 9,382 rooms under contract. Of those, 14 hotels with 4,240 rooms were under construction. The need for top class building and construction expertise and materials is exponential.

The Caribbean offers a grand panorama of real opportunities ranging from luxury to social housing

  • Investment in retail real estate is offering many new possibilities to brands and develops. This is a knock on effect caused by growth in overseas visitor arrivals, high tourist spend and the opening of shopping malls
  • Real estate property growth is predicted in 2016 due to the fact that international property buyers continue to be drawn to the region’s consistent offer of year-round sun, coupled with security uncertainties in other parts of the word, making the Caribbean a safe investment destination.
  • Approximately US$1.8 billion would be needed to end poor housing conditions currently endured by 1 million residents in The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago, The IDB has provided over US$700 million in long-term financing to support urban programmes in the Caribbean since 1968.

Major funding in place to finance upgrading the Caribbean’s infrastructure

  • US $35 billion has been set aside as part of the China–Community of Latin American and Caribbean States (China-CELAC) Fund, which has recently been made available to the group’s member states
  • A UK-backed Caribbean infrastructure investment scheme became operational in 2016, offering £300m worth of grants for infrastructure across the region until March 2020

A snapshot of major construction projects taking place in the Caribbean now

Anguilla

  • Anguilla Community College Development: $5 million USD

Antigua & Barbuda

  • The Royalton Antigua Resort: $400 million USD
  • Beaches Resort – $150 million USD
  • Barbuda K Club – $250 million USD
  • New terminal at V.C. Bird International Airport. $100 USD
  • New 500-room Royalton resort adjacent to the Royal Antiguan hotel
  • New hotel to replace Halycon Cove Hotel
  • Guiana Island two five-star hotels; 1,300 residential units; a casino and conference centre; a golf course and a marina: $740 million USD
  • New cruise ship terminal and facility in St. John: $200 million USD
  • Labahia Hotel Resort and Condominiums – $52 million USD

Bahamas

  • Possible opening of the Baha Mar Resort Development: $3.5 billion USD

Barbados

  • Plasma Gasification Waste to Energy Plant: $240 million USD
  • Reconstruction Casuarina Beach Hotel $100 million
  • Construction of Hyatt Hotel in Bridgetown
  • Construction of Wyndham Family Resort – $200 million USD

Belize

  • Development of private cruise development: $50 million USD
  • Construction of new Belize City Centre – $32 million USD

Bermuda

  • LF Wade International Airport New Terminal project: $249 million USD
  • New hotels, Bermudiana Beach Resort,
  • Redevelopment of Ariel Sands – $85 million USD
  • Development of hotel in St Georges – $120 million USD
  • Development of Morgan’s Point – $400 million

Cayman Islands

  • Expansion of Camana Bay Resort – $300 million USD
  • North Sound Luxury Condo Development – $200 million USD
  • Ironwood development- $360 million USD
  • New hotels development: Kimpton Hotel
  • Renovation of Cayman Islands airport – $120 million USD

Cuba

  • House building increased from 12,000 units in 2014 to 17,000 units in 2015
  • Expansion of terminal 3 at Jose Marti Airport
  • Potential new airport at the cost of $200 million USD
  • Modern Cruise terminal at Cienfugos
  • New Special Development Zone at Mariel
  • 600-650 room Hemingway Hotel in Havana – $150 million USD
  • Carbonera Resort, Varadero – $500 million USD
  • Starwood Hotel signed an agreement to manage 3 hotels in Cuba and invest in their renovation

Dominica

  • Development of luxury hotel, Cabrits Resort and Spa by Moroccan investors
  • Plans for new airport financed and built by Chinese investors
  • New geothermal project in construction
  • After hurricane, funds have been made available for infrastructure such as roads, ports and bridges

Dominican Republic

  • Fastest growing economy in the region boosted by tourism and mineral discoveries, growth forecasted to be over 5% in 2016.
  • 3000 hotel rooms are currently planned
  • New investment projects valued at $1.6 billion under construction
  • Current figures put the industry value at $2.3 billion, though this is expected to continue growing in 2016
  • Government planned to build 40,000 new homes under Public Private Partnerships as well as new schools

Grenada

  • Solar Energy project $10 million USD
  • Levera Resort Development $60 million USD
  • Grenada Resort Complex Project $2 billion USD
  • Chinese government building 1000 housing units

Haiti

  • Construction projects proposed are over $3 billion USD, which are to build roads, ports and airports after the earthquake
  • The projects include the village of Cotes-de-Fer, where a 5,680-acre, $266 million USD development including four hotels and an 18-hole golf course is planned, and the southern Haitian island of Ile-a-Vache, where the government has launched work on development featuring 2,500 rooms and an international airport
  • Chinese government building 1000 housing units
  • Haiti is planning a $70 million cruise ship pier and facility on Tortuga Island

Jamaica

  • Economy is growing with GDP rising to 2% in 2016
  • Government is planning a $30.5 billion fund to build bridges, road and houses
  • Runway at Manley International Airport is being refurbished at the cost of $70 million USD
  • 2000 new hotel rooms are planned with an investment of over $2.5 billion USD

Martinique

  • Aimé Cesare airport is currently being modernised

Panama

  • GDP Growth is expected to be 6% in 2016
  • Completion of 6 billion USD expansion in 2016
  • Infrastructure upgrade on Colon City will start
  • 5000 new public buildings in Atos
  • 2500 new homes to be built (Esperanza Project)

Puerto Rico

  • 5000 new hotel rooms planned by 2020
  • New road project: Roosevelt Roads – $3 billion USD

St Kitts & Nevis

  • Currently constructing new hotels to raise hotel rooms from 1400 – 2000 plus

St. Lucia

  • Reconstruction of Smugglers hotel estimated at $100 million  USD

St Vincent

  • Possible launch of new international airport: $240 million USD

Trinidad & Tobago

  • Average GDP growth of 1.5 % is predicted between 2016 – 2019
  • Construction sector grew by 7.4% in 2014 and is generally growing at this rate
  • Trinidad & Tobago will soon experience a housing boom through the Housing Development Corporation (HDC). Through a public/private housing partnership initiative will create employment for all classes of workers.
  • $100 million wastewater treatment plant is underway at the St. Fernando complex
  • Solomon Hochoy Highway extension expected to be completed this year – $1 billion USD
  • Distribution Centre in Freeport – 60 million USD

Turks & Caicos

  • GDP Growth positive, estimated at over 2.5% up to 2017
  • Plans to expand South Caicos Airport terminal
  • New $165 million USD resort at Governors’ Beach

US Virgin Islands

New golf course resort planned at $275 million USD