Are shell apartments an answer to the affordability crisis in Jamaica’s housing market? Kingston-based real estate firm Spark FDI (name being changed to different Capital) believes so, and will be offering the solution to clients as part of its stated plan to open up access to properties across the region.

The housing affordability challenge has left many Jamaicans feeling excluded from the promise of homeownership. And, according to different Capital Deputy CEO Gary Matalon, the finishing component of developments, which he said is up to 40 per cent, is a major reason why prices are increasingly out of reach for the average Jamaican family.

He said the ‘different’ shell model addresses this directly.

“Jamaicans have made it clear that many of the units currently on the market are priced beyond their reach. There is no one-size-fits-all development model, but affordability remains one of the biggest challenges in housing today,” Matalon told Observer Online.

“At different, we have been continuously examining the components of development costs…. land, materials, labour, financing, and margins… to determine where efficiencies can be created,” he continued, adding that “Finishes alone can account for 30–40 per cent of construction costs. Once developer mark-ups are applied, that portion can represent 40–50 per cent of the final sale price.”

He said the company’s shell model will deliver a completed exterior and structural build, while allowing purchasers to complete interior finishes, noting that this will allow buyers to: avoid paying developer margins on high-value finish items such as tile, cabinetry, plumbing fixtures and electrical fixtures; and customize their homes according to their own taste and budget.

The different deputy CEO did not disclose the number of housing solutions the company will be offering nor the size of the investment and other details.

“We currently have land targets under active pursuit and expect to provide more specific project updates in the near future,” Matalon said.

He said the company’s research shows that the shell model appeals across multiple income segments.

“Globally, we see where shell units are commonly used in affordable housing because the savings are significant. However, the higher end of the market also values customization and cost efficiency,” Matalon said. “From inception, different has focused on identifying gaps in the market and filling them thoughtfully. Our developments will vary by location and target demographic, but the objective remains the same, deliver better access to quality real estate.”

Matalon said the company is currently evaluating studio, one-bedroom and two-bedroom configurations across different locations.

“Pricing will ultimately depend on land cost and density, but the core principle is simple: by removing finish margins from the purchase price, we can materially reduce the entry point,” he said.

Clarifying the specs of a shell unit, Matalon stated that it comprises a completed structural shell; windows and external doors installed; electrical panel and wiring rough in; and plumbing infrastructure in place for kitchen and bathroom.

What remains for the homeowner, he said, are floor finishes; wall and ceiling treatments; cabinetry and closets; plumbing and electrical fixtures; and internal partition walls and interior doors (where applicable).

“It is essentially a high-quality structural canvas, ready for personalization,” Matalon said.

Asked whether the shell model will be extended outside of residential properties, he said “There is no reason why not.

“In fact, many commercial properties in Jamaica have historically been delivered as shell spaces. The principle is already understood in that segment,” Matalon added. “Our focus is not simply to add inventory. It is to solve clearly identifiable market gaps…. and if shell delivery helps do that in other asset classes, we would certainly explore it.”

The shell or “unfinished apartment” model is popular in China, where over 90 per cent of all houses purchased are reportedly unfinished.

It reportedly began as a practical workaround due to financial constraints in the East Asian country, but has transformed into a thriving lifestyle trend in which home seekers deliberately opt for the solution.

While the concept is not novel to this region, it is not a solution that has been regularly utilised as local buyers traditionally prefer turn-key solutions. However, affordability is the dominant issue in housing today, according to Matalon, which he said will stimulate demand for the shell model.

“If we genuinely want to improve access to home ownership, we must rethink how housing is delivered. Shell apartments may not be the only solution… but they can certainly be a meaningful part of it,” he said. “There is never a bad time to deliver well-located, thoughtfully designed homes at significantly lower entry prices.”