The luxury real estate market is on the upswing, according to prominent realtors who say that residential land is fetching US$600,000 per acre in Montego Bay and its environs, while Discovery Bay in St Ann is now considered the 'billionaire strip'.

"The villa market is coming back," Deborah Cumming of Century 21 Heave Ho Properties explained at an Investor's Choice seminar last week at the Terra Nova Hotel in Kingston.

This exotic hideaway sits right in the heart of West End, Negril. It comes with 45 furnished rooms, restaurant, bar, pool, games room, and an office. It is situated on over five acres of land.

Her comment was corroborated by George Cumming who told the Business Observer yesterday that there has been a 30-45 per cent price appreciation on the north coast between 2006 and 2007.

"The average property price in the high-end resort market is US$1 million to US$1.5 million, but we have listings in Negril for as much as US$3.5 million. Prices have definitely hardened," he said.

Anya Levy, realtor at Valerie Levy and Associates, told this newspaper yesterday: "What people don't realise is that there are a lot of international buyers out there who are interested in Jamaica. And we still have people scouting for hotel lands, even though people think we are up to our necks in hotels."

The property offers 10 guest rooms and a two-bedroom apartment for rental, as well as the potential for future room additions. It is situated on approximately one acre of lush gardens with a boutique hotel, popular bar and restaurant with repeat clientele. It is partially roofed to welcome Negril's famous sunset each evening for happy hour. There are a total of 10 buildings on the property, complemented by sea access for swimming.

Besides the hotel interests, there are individual investors who are seeking beachfront property, especially in parishes such as Portland which, according to Levy, has a lot of potential.
"We get so many requests for Portland and we just don't have the inventory," she said.

Added Cumming, "The market for high-end resort properties is mixed, but it tends to be people who visited Jamaica and like the feel of the island. The villa market tends to look for an investment where they can also stay."

The demand for properties in Montego Bay and Portland is also evident in Negril, the realtors said.

"[There is] a lot of interest in Negril," said Cumming. "We have few hotels and land for sale and the prices have definitely hardened." He stated that Negril will be getting fairly sizable developments soon, such as Negril Peninsula Resort, which is driving demand. "That development will be huge, with villas, a marina and hotels," added Cumming. "I think all the way along that coast people are just grabbing up what they can."

Two years ago, the Business Observer had reported that the introduction of large Spanish hotels in Negril was driving small hotels out of business and many owners had opted to sell.
Yesterday, Levy offered a similar view.

"I think that when you see small hotels coming up for sale it is because it is very difficult for boutique properties to survive in Jamaica with the large hotels," she said. "The only really successful boutique hotels are the Island Outpost properties because Chris Blackwell has created a brand. Anyone else that doesn't have the marketing savvy is going to find it very challenging to survive."

Asked why people were selling now, Cumming said that it was hard to speculate on the reasons. "We do have some sellers who are simply retiring because the prices are very good," said Cumming.

In Levy's view, however, it is a great time to sell. "Property owners on the north coast will realise the best profit now more than any other time before," she said.

The realtors noted that Jamaica is priced at significant discounts to its Caribbean counterparts. "We are about 20-30 per cent cheaper than the rest of the Caribbean," said Levy. "We haven't matured as a tourist destination like The Bahamas and the Turks and Caicos, but we are getting there."

Cumming is of the belief that the reason Jamaica is still a bargain is simply because of crime. "It is absolutely true," said Cumming. "The thing that depresses our prices more than anything is crime. It is a terrible situation. I know that the Government is working on the situation, but until we fix that, our property prices will not be on par with the rest of the Caribbean."

Even so, Levy has a positive outlook for 2008. "The market for villas and other high-end properties will keep growing, especially with the expansion of the airports," she predicted. "I am very optimistic."

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