“Everyone makes money with the exception of the developer investor.”
Condos here, condos there. Half finished, never finished condos everywhere!
by “Number 37”
The reason why condos continue to be built in Barbados has nothing whatsoever to do with the ability to sell them.
They are built because someone, largely overseas developer investors, will invest in their construction.
The real estate agents give inflated projections on sales at inflated prices, the local contractors and design consultants reinforce these mistaken projections – the developer investors see profit. The development gets built, everyone makes money with the exception of the developer investor. Some projects never even get to completion.
The problem is the caliber of developer – most are ego investors – business men made good in some other business, who listen to the siren call of the “Barbados Building Machine”. Once the beast is fed and the financial life blood drained from the investor they are discarded until the next fool steps of an airplane.
One way to stop this nonsense would be to require fully audited development business plans to be a condition of the granting of planning permission – then 25% open market sales before the construction can commence. That would identify and kill-off the unsustainable schemes.