A Guide to Trinidad's Property Market

 

As of late 2011, the real estate market in Trinidad has begun to show signs of improvement after suffering a decline during the last three or four years.

 

The Association of Real Estate Agents (AREA) says it’s too early to attribute the improvement to any particular factor, but it notes that property prices have begun to rise after a 20% decline.

 

From 1991 to 2006, the real estate industry experienced boom conditions. House prices rose by over 400% as the economy benefitted from high oil prices, construction activity and foreign investment, particularly in the petrochemicals sector. Expansion of the energy sector placed extra demand on housing in south Trinidad and the northwestern peninsula, and on commercial space in Port of Spain and the Point Lisas Industrial Estate in central Trinidad.

There was a boom in private sector housing, especially townhouses and gated communities, and in government housing for lower- and middle-income earners. For residential properties, anything under TT$1.5 million for any property with two or more bedrooms – particularly in the popular northwest – was considered a steal. Luxury apartments, townhouses and larger houses with significant acreage could easily command upwards of TT$5 million – sometimes even upwards of TT$20 million – and the higher end of the property market continues to earn these prices even in a down economy, though sales may be slower.

 

But then came a sharp fall in demand. The global economic recession, the slowdown in construction as government projects were completed or halted, rising unemployment, the threat of a new property tax (under the previous government, an initiative that was scrapped by the new People's Partnership Government after their May 2010 election), the crash of the regional conglomerate CL Financial, and general public uncertainty about the country’s ability to weather the economic storm, all contributed.

 

AREA says the demand for middle-income housing has held up, though, and believes that there will be movement in sales and rentals once the price is right and potential buyers qualify for mortgages.

Residential rents for the expatriate market typically range from US$1,500 to US$15,000 per month. More reasonable rates for locals on middle incomes can range from TT$1,000 (sometimes less in smaller properties in less popular areas) to TT$10,000 for apartments and properties in gated communities.