Contrary to popular belief that Jamaicans are increasingly choosing to live in gated communities and apartment complexes, the Realtors Association of Jamaica (RAJ) has said that the country’s residential property market is being driven not by changing buyer preferences, but by a chronic shortage of standalone homes.

While built-up developments continue to account for the majority of residential transactions, particularly in the corporate area, the association said this largely reflects an undersupply of standalone homes and not necessarily a shift in buyer demand.

Speaking with the Jamaica Observer this week, RAJ’s 2nd vice-president and chairman of its Multiple Listing Service (MLS) Committee Roger Allen said detached homes remain among the most sought-after properties on the market.

“The demand for standalone houses is tremendous,”Allen told Sunday Finance.

“The reality is that when a house comes on the market in desirable communities, it attracts multiple qualified offers almost immediately. That tells you buyers still want their own homes with yard space,” he noted.

He said apartments have come to dominate the market largely because developers have focused on higher-density projects, especially in St Andrew, where soaring land prices have made detached housing increasingly difficult to deliver at affordable price points.

“People are buying apartments because that’s what’s available and, in many cases, what’s within reach financially. It’s fundamentally a supply-and-demand issue,” he said.

According to MLS data, Jamaica recorded approximately $100 billion in property sales during 2025, with St Andrew, St Ann and St Catherine accounting for $99.3 billion of that total. Compiled from transaction reports submitted by approximately 2,000 registered realtors, the figures exclude direct developer sales and other private transactions.

Based on the data, the three parishes that continue to dominate the market are being driven by strong urban demand, tourism-related investments and sustained purchases by members of the Jamaican Diaspora.

While St Andrew recorded the highest transaction volumes, St Ann achieved the highest average residential selling prices, reflecting robust demand along the island’s tourism corridor. Residential developments which dominated the construction landscape, also accounted for about 80 to 85 per cent of all development activity.

Even as apartments continue to head-up listings in the Corporate Area, Allen cautioned that this should not be interpreted as a changing consumer preference.

“From what we have seen, people would much rather have their own standalone homes…The challenge, however, is that there simply aren’t enough of them coming to market,” he stated.

He noted that detached homes priced around $50 million routinely attract multiple offers and often sell above the asking price in certain upper St Andrew communities such as Mona, Havendale and Meadowbrook — underscoring the strength of the demand.

In contrast, many buyers are entering gated developments because apartments priced between $30 million and the mid-$40 million range remain more attainable than detached homes, whose prices have climbed sharply in recent years.

Allen warned, however, that the cost of owning property in a gated community extends well beyond mortgage repayments.

“In every gated community, there is a second monthly obligation — maintenance. For many households already stretched thin to repay their mortgage, maintenance charges of $20,000 per month or more becomes a significant financial burden,” he noted, citing concerns surrounding strata management, homeowners’ association governance and construction quality among other factors that make standalone homes the preferred option whenever they become available.

In light of these realities, Allen believes the market’s biggest unmet need continues to be that for affordable housing targeted at middle- and lower-income earners.

“What the market needs is affordable standalone housing and properly planned housing schemes,” he said, arguing that private developers have little incentive to build homes at price points accessible to the average working Jamaican.

Developers, Allen explained, are purchasing increasingly expensive land, particularly in urban centres, and must recover those costs, often resulting in apartments selling for $45 million to $50 million — almost double the prices at which comparable government-supported housing units may be offered.

“Developers are in business to make a profit so without meaningful incentives and government involvement, affordable housing at scale will remain difficult for the private sector to deliver,” he said.

As such, he maintained that government intervention in providing affordable housing should continue to play a critical role, particularly through agencies such as the National Housing Trust (NHT). This, coupled with investments in road infrastructure, he believes will also open up new areas for residential development.

Improved connectivity, especially along the upgraded St Thomas corridor, Allen said is already stimulating greater interest in communities once considered too remote for daily commuting.

As travel times reduce, the attractiveness of these locations are also becoming more visible, particularly among overseas Jamaicans, which RAJ estimates said now accounts for roughly about 70 per cent of buyers in many of the country’s largest residential developments.

“The diaspora continues to be one of the strongest drivers of the market. Many are purchasing homes with the intention of returning to Jamaica or maintaining a long-term investment here,” Allen said.

Further speaking to the influx of apartment developments, particularly in Kingston and St Andrew, Allen said this has also created an oversupply of rental units which has overtime placed downward pressure on rental rates as landlords compete for tenants.

In 2025 MLS data shows that the rental market generated approximately $772 million in revenue, with St Andrew, St Catherine, and St Ann similarly accounting for the largest share of activity. Westmoreland, on the other hand, recorded the fastest growth — reflecting rising demand in resort and second-home markets.

With the real estate market expected to witness further growth this year, Allen said he expects government investment in affordable housing and infrastructure to improve housing accessibility while supporting further expansion across the sector.

“We expect the market to continue trending positively. Jamaica’s expanding road network, stronger infrastructure, and continued Diaspora interest are already creating opportunities for growth, but affordable housing remains the biggest challenge that still needs to be addressed,” he stated.

ALLEN…the demand for standalone houses is tremendous. The reality is that when a house comes on the market in desirable communities, it attracts multiple qualified offers almost immediately. That tells you buyers still want their own homes with yard space.