During the first half of 2020 the vibrancy of construction in the real estate sector continues, especially in the major urban areas. Kingston 5,6,8,10 and 20 along with the outskirts of Montego Bay, Mandeville, Spanish Town and Ocho Rios.

Projects sponsored/promoted by government agencies – National Housing Trust and Housing Agency of Jamaica for middle income persons are in greatest demand since that sector encompasses the majority of the “working class.”

Construction continues apace for two and three bedroom townhouse units in gated communities and apartments in middle and upper-middle income communities. Most of these units will be completed in the second half of 2020 and early 2021. Our information suggests a significant proportion of these units were pre-sold and it is believed the others will be taken up by the market in 2021.

During the past two weeks the World Bank and UNDP have reported that COVID-19 and the subsequent curtailment of economic activities, especially the tourism sector, is likely to cause a contraction in Jamaica’s GDP by 9 – 11 percent in 2020. Both entities suggested that economic recovery will rebound in the second half of 2021. It is possible the recovery may start earlier than mid-2021 based on queries we have received during the past month from persons seeking to rent commercial and “middle-income” residential properties in Montego Bay and a lesser extent Negril. Location and price are the critical determinant.

News reports have stated more than twenty percent of the 13,000 persons who were laid off from the Business Process Outsourcing sector were re-employed during the second half of June. If this trend continues, demand for BPO facilities should rebound by the first half of 2021 and again push demand for office spaces over 5,000 sq ft. Demand is also likely to be increased by the need for “physical distancing” (work space increased from four feet to six feet and the surveys that illustrate the temporary “work from home” option is appx. 40 percent less efficient in the local BPO industry.

Warehousing spaces for the distributive and retail trades continue to be in demand and several facilities are being constructed in the industrial belt stretching from Three Miles in Kingston to Spanish Town.

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July 2, 2020