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market trend

CARIBBEAN CONSTRUCTION

REPORT 2011 market trend 4Q 2011

REPORT 2010 4Q 2009 - 1Q 2010

C O N S T R U C T I O N

T R E N D S

A C R O S S

T H E

C A R I B B E A N


2

BAHAMAS

BRITISH VIRGIN ISLANDS

JAMAICA

Shirley Street Plaza

Abbott Building

1 Oxford Terrace

P.O. Box FH 14148

P.O. Box 3160

Kingston 5,

Nassau, New Providence,

Tortola

Jamaica,

Bahamas

British Virgin Islands

West Indies

Tel: 242 393 5352

Tel: (284) 494 7144

Tel: (876) 926 2418

Fax: 242 394 7141

Fax: (284) 494 7184

Fax: (876) 929 9717

E-mail: dlavin@bcqs.com

E-mail: bbutler@bcqs.com

E-mail: bgoldson@bcqs.com

Contact: David Lavin

Contact: Ben Butler

Contact: Brian Goldson

BARBADOS

CAYMAN ISLANDS

TURKS AND CAICOS

‘Orena’

Whitehall House

The Saltmills

St. Lawrence Main Road

P.O. Box 871, GT

P.O. Box 158

Christ Church,

Grand Cayman, Cayman Islands

Providenciales,

Barbados

KY1-1103

Turks & Caicos Islands

Tel: (246) 428 8091

Tel: (345) 949 8644

Tel: (649) 946 4238

Fax: (246) 428 7820

Fax: (345) 949 7184

Fax: (649) 946 4670

E-mail: samin@bcqs.com

E-mail: ljd@bcqs.com

E-mail: staylor@bcqs.com

Contact: Sanjay Amin

Contact: Liam Day

Contact: Simon Taylor

BRAZIL

GUYANA

ST LUCIA

R. Haddock Lobo 1129/171

Lot 1,

Alfiona Plaza

Jardim America

Thorne Drive, DurbanSP., Backlands,

PO Box Choc8044

Sao Paulo, 01414-003

Georgetown, Guyana

Rodney Bay, Gros Islet, St Lucia

SP Brazil

Tel: (592) 227 1161

Tel: (758) 450 7040

Tel: (+55) 11 9390 8805

Fax: (592) 226 8277

Fax: (758) 450 7041

E-mail: jslattery@bcqs.com

E-mail: dpatterson@bcqs.com

E-mail: cdocherty@bcqs.com

Contact: James Slattery

Contact: David Patterson

Contact: Chris Docherty


BCQS

INTERNATIONAL

Bahamas

Miami, FL

INTERNATIONAL

Turks and Caicos

Cuba Haiti

Cayman Islands

Mexico

INTERNATIONAL

British Virgin Islands

Puerto Rico

INTERNATIONAL

Belize

Jamaica

USVI

Dominican Rebublic

Barbuda

Montserrat

St Kitts Dominica

INTERNATIONAL

Guatemala El Salvador

Martinique

Honduras

INTERNATIONAL

Netherlands Antilles

Nicaragua

St Lucia INTERNATIONAL

Barbados

Grenada Costa Rica

Panama

Trinidad and Tobago

Venezuela

INTERNATIONAL

Guyana Suriname

BCQS operate throughout Latin America and the Caribbean

Colombia

Ecuador

INTERNATIONAL

Brazil Peru

Bolivia

French Guiana


lished and first time developers, lending institutions, and indeed, anyone who has an interest in, or reason to follow, the construction industry in the Caribbean. The information within this report now begins to enable the reader to anal-

Foreword:

yse market trends, and to give some indication of specific as well as general cost patterns and nuances within the region.

Welcome

to

Market

Last year, we concentrated on ten jurisdictions,

Trend report for the Ca-

our

2011

consisting of those countries where BCQS have

ribbean, which follows on from our 2010 report

offices, namely, the Bahamas, Barbados, British

published last year. For this issue we now have

Virgin Islands, Cayman Islands, Jamaica, St. Lu-

the opportunity to start making real use of col-

cia and the Turks and Caicos Islands, as well as

lected data and can begin to demonstrate the

those where we had good supplementary local

developing pattern of construction costs which

knowledge, namely, St Maarten, Curacao and

affect us here in the Caribbean region.

Trinidad. In the interests of consistency, we have kept up-to-date with the same markets, which

BCQS International Ltd has been an established

we believe reflect a good cross section of the

cost and value consultancy in the Caribbean

region. Last year, we also anticipated growth in

construction and property industry for over forty

the importance of two of the larger economies

years, during which time we have built on our

within the region, namely Guyana and the Do-

reputation as the leading independent consul-

minican Republic.

tant of our kind in the region. With an ever in-

expansion of our business to now include an of-

creasing and diversifying Client base, and with

fice in Guyana. Our other major office opening

a wealth of regional in-house knowledge, this

in 2010 was in Sao Paulo, Brazil, and our Brazilian

report continues to offer a guide to construction

team has worked hard to provide up-to-date in-

costs and variances throughout the region.

formation to include in this year’s report. In order

This has coincided with the

to give some perspective to the South and Cen-

4

As discussed in last year’s report, through the diligent

tral American countries we have also included

updating of our cost database, and in our analysis

Belize, a Central American country, which shares

and presentation of these base costs, we believe

a similar heritage and relationship with the Eng-

that this report remains a valuable initial resource

lish-speaking Caribbean, while, like Guyana, be-

to fellow construction professionals, builders, estab-

ing part of a different geographical land mass.


BCQS As was true last year, this report does not attempt to comment on markets such as Puerto Rico, the French West Indies, Cuba or Haiti, which have specialised construction markets which are not necessarily reflective of the remainder of the region, be they tied directly to other markets or have a constitution otherwise not reflective of the regional market. The indices contained herein not only show escalation costs for building materials, plant and labour, which reflect market trends, but also consolidate useful information on general costs per square foot of various types of construction as well as local and regional sales and rental rates. We have also researched each jurisdiction in order to provide useful information regarding general statistics, government and GDP information, cost of living, population types as well as tourism types and numbers. We believe that this supplementary information helps to form a clearer picture of the countries involved and enables the reader (and/or would-be developer/ lender/ builder) to form an early opinion as to the viability of any chosen project. Client feedback on our report of last year was overwhelmingly positive and we are therefore delighted to present what we hope will be an equally, if not more valuable, initial source construction cost report, which aims to encourage more informed development throughout the Caribbean and Latin America and to be of benefit to those who have a stake and interest in our industry and our region.


aiming their product at individual purchasers from either North America or Europe. With the dramatic shrinking of that market, due to many people’s individual financial circumstances preventing them from continuing to make overseas investments, today’s

Market Overview:

Caribbean developer must be malleable in their approach to turning a profit out of real estate. Our research shows that generally across the region, tourism numbers are up for 2010-2011 which is encouraging developers to look at ways of selling

The downturn

a piece of the Caribbean to investors, who would experienced

generally not be in a position to purchase an entire

since 2008 has

asset. This concept of ‘Fractional Ownership’ has

continued to make itself felt region-wide. A large

been mooted for a number of new developments

number of construction projects remain on hold

as well as a disposal solution for underselling existing

while the developers and their funders continue to

developments. Only time will tell whether the market

discuss exit solutions to attempt to unlock what val-

will accept and invest in this concept, and funders

ue remains in partially built assets. Since our last re-

will be wary of such a structure until a proven sales

port, we have also experienced a growing workload

record develops.

in valuations for foreclosed upon property where charge holders have now begun to take control of

Half poured concrete columns, rusting rebar and

property, where a year ago, they would otherwise

the slow reclamation of building sites by indigenous

have continued to watch the market in the hope

flora are a constant reminder of how the Caribbean

that borrowers would soon be able to service loans.

has been impacted by world events over the past three or so years. These reminders also remain as a

6

The greatest challenge remains the profitable dis-

hard lesson to a number of developers and funders

posal of assets to the market. In recent years up until

who were caught in a rising market, where the ac-

2008, many of our jurisdictions GDP’s relied in part,

tual cost of the asset under construction up to 2008

on the sale of income producing second homes to

considerably exceeds any realisable value on the

overseas investors, which in turn would bring reve-

open market today. When this is the case, and the

nue in terms of purchasing costs and duties, ongo-

margins are great enough, those looking to invest

ing maintenance charges, bed tax etc. For the most

big money, such as pension funds, may start to take

part, the developers of these types of property were

notice if they see a long term gain. We should ex-


BCQS pect to see a number of the heavily distressed assets changing ownership at large discounts over the coming years. Whilst our research has shown that for 2011, construction costs have risen slightly overall, from 2012 we are forecasting an overall decrease in costs up to 2015. The two major components of this are firstly, an overall negative escalation prediction of commodity indexes and natural resources used in the production of materials, and secondly, the natural balancing of the market in terms of demand for new construction, which is especially true when considering that cost and value are now not the close bedfellows they were up until 2008. As owners, receivers and funders begin to realise that there is no quick route out of the current distressed market, and a return to the heady values realised in 2007- 2008 are ever further away, we may begin to see some more movement in the market as prices begin to reflect real value and while those investors with the biggest teeth and a long term plan start to take control of the best and most distressed properties. This being said, only with the coupling of more accessible finance and the willingness of individuals to take risk, can we expect to see our regional market begin to generate again. However, what is also certain is that the Caribbean remains a very desirable location and retains the charm and beauty that has historically encouraged so much investment, ensuring a positive outlook for those with long term vision meaning that now may look like a good time to invest in future profitable capitalisation. 


ture to service this requirement as well as to put money into the private sector to encourage employment. The most significant change in construction cost escalation occurs in Jamaica, which can be explained by

Summarised Findings:

changes in legislation, namely the increase in Value Added Tax and Import Duty as well as a 17% levy on unionised labour costs. It is yet to be seen whether this will be a positive change, but what it does do is raise the cost of construction in one of the hitherto lowest

This year

cost Caribbean construction environments. we continue to see a vast disparity in construction costs

Most other jurisdictions have a much shallower cost

over the region, and the conclusions made in our last

increase curve for year 2011, whilst those countries

report remain true for the most part and therefore do

which had seen large profit margins in construction up

not need to be repeated here.

to 2008 have actually seen minor overall reductions in cost, namely Barbados, TCI and The Bahamas. How-

What is most interesting this year is the forecast for de-

ever, findings show that times remain very uncertain

clining construction costs up to 2015 as both the global

and that costs are fluid, as we predict that most mar-

and regional markets take stock of the current and

kets will begin to show a reduced construction cost

forecasted economic climates. This in turn leads to

into 2012. Feedback from our individual offices how-

the reasonable prediction that the property and con-

ever demonstrates that Contractors percentage for

struction industries will be forced into taking measures

profit and tender mark up has become slightly more

to keep their markets moving and generating income.

bullish over 2011, and it remains to be seen whether

An example of regional government actively looking

savings associated with predicted reductions on ma-

to mitigate the effects of the recession can be dem-

terial prices will be passed on to the end customer.

onstrated by the reduction in stamp duty in property

Market forces will decide this.

transactions in the Turks and Caicos Islands. TCI as well

8

as many other countries are encouraged by steady

The steadiest construction environments can be de-

or increasing tourist arrival numbers and are looking

scribed as being in those countries which had not ex-

at demonstrating to the airlines a requirement for in-

perienced exponential growth from the early 2000’s.

creased airlift, which in turn will bring more foreign cur-

Established and organically growing construction en-

rency into government and private coffers. Individual

vironments have of course suffered less than those less

governments are also looking at improving infrastruc-

mature and reactive jurisdictions. However, in the latter


BCQS type of country, the established practices and construction companies which were in business pre-boom generally continue to operate on a reduced overhead meaning that the expertise remains in place. Costs can vary greatly for the same types of building in any single construction environment, which can be explained by the vast number of nuances between any number of construction projects. For this reason we have changed the format of our indicative construction costs and individual rental and sales values to demonstrate a cost or value range per building type per country. For example we can now see that construction costs for the same ‘type’ of building in the Bahamas can vary by over 50%. The Bahamas is the most extreme example, but this is perhaps demonstrative of its geographic make up, accessibility, provision of infrastructure etc. which differs island to island. Of course, there are also the factors across any building project which makes a range helpful in terms of choice of finish materials, impact of import duties, availability of local materials, artisans etc. Our figures may suggest that if the pockets are deep enough, the next few years may be a good time to build, however, now more than ever, what this also demonstrates is the importance of achieving best value. This involves the reduction of risk on any construction project through proper project planning, controlled design development and the definition and agreement of construction prices and contractual obligations. The now historic year on year increase in property value is no longer able to mitigate the risks associated with poor planning or performance.


General and Government Statistics:

COUNTRY

LOCAL CURRENCY EXCHANGE RATE TO US $1.00

LAND AREA

CAPITAL CITY

POPULATION (1)

WORKFORCE (2)

GDP (Millions), 2010 (3)

GDP/ Capita (US$), 2010

KEY INDUSTRIES (EXC. CONSTRUCTION)

BAHAMAS

BSD 1.00

10,010 Sq. KM

Nassau

342,400

184,000

8,921

28,700

Tourism, Finance, Cement

TURKS AND CAICOS*

USD 1.00

948 Sq. KM

Cockburn Town

36,605

12,000

860

26,280

Tourism, Finance

CAYMAN

KYD 0.81

264 Sq. KM

Georgetown

54,900

39,000

2,250

43,800

Tourism, Finance, Insurance

JAMAICA

JMD 85.25

10,831 Sq. KM

Kingston

2,695,589

1,317,000

23,720

8,300

Tourism, Bauxite/ Aluminium, Agro-processing

BVI

USD 1.00

151 Sq. KM

Road Town

28,882

12,700

853

38,500

Tourism, Finance

ST. MARTIN

EUR 0.70

(Fr.) 53 Sq. KM

Marigot

29,820

ST. MAARTEN

ANG 1.76

(Neth.) 34 Sq. KM

Philipsburg

43,072

See Curacao

See Curacao

See Curacao

ST. LUCIA

XCD 2.71

606 Sq. KM

Castries

172,370

79,700

1,798

11,200

Tourism, Manufacturing, Agriculture g

BARBADOS

BDS 2.00

430 Sq. KM

Bridgetown

275,344

175,000

6,227

21,800

Tourism, Sugar, Light Manufacturing

TRINIDAD & TOBAGO

TTD 6.33

5,128 Sq. KM

Port of Spain

1,310,106

631,000

26,100

21,200

Petroleum, Chemicals, Food Processing

ANG 6.40

444 Sq. KM

Willemstad

140,796

63,000

2,838

15,000

Tourism, Petroleum Refinement, Petrol’ Transhipment

CURACAO (NETH. ANTILLES)

Tourism, Light Industrial/ Manufacturing, Heavy Industry

Note: 1: Caricom mid-year population estimate 2009 -http://www.caricomstats.org/Files/Databases/Population/MP.pdf Netherlands Antilles- US Department of State: http://www.state.gov/r//pa/ei/bgn/22528.htm 2: CIA World Factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/bb.html TCI: *http://www.fptci.com/index.php?option=com_content&view=article&id=56&Itemid=11and http://www.thecommonwealth.org/YearbookInternal/140416/140431/turks_and_caicos_islands/

10


BCQS

Cost of Living Indicators:

ITEM

DESCRIPTION

UNIT

BAHAMAS

TURKS & CAICOS

CAYMAN

JAMAICA

BVI

ST. MAARTEN

ST LUCIA

B'BADOS

TRINIDAD

CURACAO

AVG

1

City Water

$/gallon

0.012

0.040

0.020

0.022

0.012

0.013

0.010

0.010

0.070

0.034

0.0243

2

Electricity

$/kwh

0.150

0.450

0.330

0.410

0.250

0.310

0.320

0.170

0.054

0.409

0.2853

3

Gasoline

$/gallon

5.100

5.040

6.520

4.510

4.100

4.220

4.500

5.600

2.864

5.120

4.7574

4

Income tax, personal

%/income

0.0%

0.0%

0.0%

33.0%

14.0%

24.0%

20.0%

25.0%

25.0%

25.0%

17.0%

5

Income tax, corporate

%/income

0.0%

0.0%

0.0%

33.0%

0.0%

25.0%

33.3%

20.0%

25.0%

34.5%

17.0%

6

Import duty on building materials/ essential

% (average)

30.0%

30.0%

22.0%

43.0%

12.5%

0.0%

16.5%

20.0%

20.0%

15.5%

21.0%

7

Import duty on luxury goods

% (average)

42.0%

35.0%

42.0%

46.0%

20.0%

0.0%

41.0%

62.5%

20.0%

32.0%

34.0%

8

Stamp duty on property transfer

%

10.0%

5.0%

7.5%

3.0%

8.0%

3.0%

0.0%

1.0%

5.5%

4.0%

5.0%

9

Real estate commission on property sale

%

8.0%

6.0%

6.0%

5.0%

7.0%

6.5%

5.0%

5.0%

4.0%

2.5%

6.0%

10

Vendors tax on property transfer

% (average)

0.0%

0.0%

0.0%

3.0%

0.0%

0.0%

1.5%

2.5%

5.0%

0.0%

1.0%

11

Lawyers fees on property sale

%

2.5%

1.0%

5.0%

3.5%

1.5%

2.0%

1.0%

1.75%

1.5%

1.5%

2.0%

Note: Indicators such as water, electricity and especially gasoline are all subject to fluctuations but are indicators of cost levels at the time of writing. Where figures vary depending on value or type of goods or services, such as import duty on building materials, or stamp duty on property transfer, then a medium average has been calculated.


Tourism:

Summarised

findings for 2010 show varying fortunes for dif-

ferent jurisdictions. The Bahamas, BVI, Trinidad and Curacao all show a negative growth, while our other jurisdictions show a positive growth, with St Lucia leading with an 11.16% growth. Interestingly, those which show positive growth in terms of overnight tourist arrivals, have not necessarily fared so well in terms of their property and construction industries. For example, where Turks and Caicos and St Lucia both show a rise in tourism figures, their property prices and rental levels have generally fallen across the board. Contrary to this is another year on year fall in tourist arrivals for the British Virgin Islands, while their property market has remained steadier and not shown the kind of price reductions experienced in other countries.

12


BCQS

The following table and charts demonstrate ‘stay over’ tourist figures for 2010 and 2011

BAHAMAS

TURKS & CAICOS~

CAYMAN

JAMAICA

BVI~

ST. MAARTEN

ST LUCIA

B’BADOS

TRINIDAD & TOBAGO

CURACAO

TOTAL

Pro rated

2010 - 2011 By Market 1

United States

No. Persons*

1,095,272

180,000

228,461

1,242,943

204,813

236,379

129,085

134,969

148,458

48,672

3,649,052

2

Canada

No. Persons*

119,230

40,000

19,499

325,191

9,910

33,498

32,154

72,351

39,020

7,600

698,453

3

Europe

No. Persons*

78,018

28,000

19,850

271,315

36,338

101,118

85,695

212,276

47,048

163,546

1,043,204

4

Other

No. Persons*

75,533

32,000

20,462

82,229

79,282

72,141

59,003

112,584 Bahamas

81,708

121,838

736,780

1,368,053

280,000

288,272

1,921,678

330,343

443,136

305,937

316,234

341,656

6,127,489

-7.30%

9.80%

8.32%

5.09%

-7.21%

2.86%

11.16%

Turks & Caicos 5.95% -7.56%

-4.22%

0.64%

Totals o/a % change

532,180

* Numbers of arrivals are pro rata’d for the entire year from available information at the time of writing, which generally covers months Jan - Sept/Oct; sources: Jamaica Various ~ Estimated figures due to insufficient current information 2010 2011 Cayman

6% 8% 6%

5% 8% 7% 5%

24

% Total Tourists 24

Total Tourists 4%

5%

%

9

6,088,517 30%

5 4%

4%

5%

%

4%

22

6,127,489

7% 5% 5% 7%

Total Tourist 5%

6,127,489 31%

22%

5%

5%

Bahamas

St Maarten

Turks & Caicos

St Lucia

Jamaica

Barbados

Cayman

Trinidad & Tobago

BVI

Curacao

%

5%

30%

31%

St Maarten St Lucia 2010

2011

12%

12%

12 Total Tourists

12 Total Tourist

Tourist Origin Barbados United States Trinidad & Tobago Europe Curacao

17%

%

6,088,517 17% 10%

10%

17% 61

%

61

%

Total Tourists 6,088,517

BVI

%

6%

Total Tourist

9%

5

6%

Tourist Destination

% 62011 2011

%

6%

6,088,517

6%

7%

% 2010 62010

%

6,127,489 17% 11%

Other

Total Tourist 6,127,489

11%

Canada 60%

60

%


Indicative Construction Costs:

ITEM

BAHAMAS

DESCRIPTION * See Page 34

TURKS & CAICOS

JAMAICA

CAYMAN

BVI

ST MAARTEN

ST LUCIA

BARBADOS

TRINIDAD & TOBAGO

CURACAO

Low

High

Low

High

Low

High

Low

High

Low

High

Low

High

Low

High

Low

High

Low

High

Low

High

1

Residential High quality

240.00

320.00

180.00

310.00

170.00

240.00

230.00

380.00

260.00

470.00

190.00

260.00

210.00

350.00

260.00

430.00

160.00

260.00

160.00

260.00

2

Residential Medium quality

210.00

280.00

130.00

220.00

110.00

160.00

130.00

220.00

190.00

330.00

150.00

200.00

130.00

210.00

140.00

230.00

120.00

200.00

100.00

160.00

3

Residential Modest quality

140.00

190.00

100.00

170.00

70.00

110.00

100.00

170.00

120.00

200.00

100.00

140.00

90.00

140.00

100.00

170.00

80.00

130.00

70.00

110.00

4

Storage or warehouse structures

60.00

100.00

50.00

90.00

60.00

80.00

60.00

100.00

80.00

140.00

70.00

120.00

70.00

110.00

60.00

100.00

50.00

80.00

60.00

100.00

5

Retail, single-storey

130.00

220.00

130.00

220.00

70.00

110.00

100.00

170.00

90.00

160.00

80.00

130.00

80.00

140.00

110.00

180.00

70.00

110.00

70.00

110.00

6

Offices, 1-3 storey, shell

130.00

180.00

120.00

200.00

60.00

90.00

120.00

200.00

120.00

200.00

70.00

120.00

90.00

140.00

120.00

200.00

110.00

180.00

60.00

100.00

7

Offices, 1-3 storey, inc. fitout

220.00

300.00

170.00

300.00

90.00

130.00

220.00

370.00

140.00

240.00

100.00

160.00

110.00

180.00

200.00

330.00

140.00

230.00

100.00

160.00

8

High rise, 4 to 8 stories, shell

150.00

200.00

150.00

250.00

70.00

110.00

180.00

300.00

170.00

290.00

130.00

220.00

80.00

140.00

120.00

200.00

120.00

200.00

70.00

110.00

9

High rise, 4 to 8 stories, inc. fitout

240.00

320.00

200.00

340.00

110.00

160.00

270.00

450.00

190.00

330.00

150.00

250.00

120.00

200.00

140.00

230.00

170.00

280.00

110.00

170.00

10

Specialist offices

220.00

390.00

220.00

370.00

120.00

180.00

280.00

470.00

190.00

330.00

100.00

160.00

140.00

230.00

220.00

360.00

140.00

230.00

70.00

120.00

11

Hotels/ Condos, Five star urban

230.00

400.00

230.00

390.00

180.00

260.00

260.00

430.00

260.00

470.00

180.00

220.00

200.00

320.00

280.00

460.00

180.00

220.00

140.00

240.00

12

Hotels/ Condos, Five star low-rise

230.00

410.00

250.00

430.00

180.00

260.00

270.00

450.00

260.00

470.00

190.00

230.00

200.00

320.00

240.00

390.00

180.00

220.00

140.00

240.00

13

Hotels/ Condos, Three star economy

170.00

300.00

160.00

280.00

120.00

170.00

140.00

240.00

150.00

270.00

150.00

190.00

120.00

200.00

140.00

230.00

140.00

180.00

100.00

160.00

All values in US$

The above indicative construction costs per square foot for a spectrum of types of properties show a low to high range for each building type. These costs have been derived both from our indicing of materials, plant and labour and our on-the ground expert opinion, and experience of the market in each jurisdiction.

14


BCQS

RESIDENTIAL : COST PER /SF’ High quality

Bahamas

RESIDENTIAL : COST PER /SF’

COMMERCIAL : COST PER /SF’

Medium quality

Turks & Caicos

Offices, 1 to 3 storey, shell

High quality Modest quality

Bahamas Jamaica

Medium quality

Turks & Caicos Cayman

Bahamas

COMMERCIAL : COST PER /SF’

Offices, 1 to 3 storey, fitout Offices, storey,shell shell High rise, 4 1toto8 3stories,

Modest quality Bahamas Turks & Caicos

Jamaica BVI

Offices, 1 to 3 storey, fitout High rise, 4 to 8 stories, fitout High rise, 4 to 8 stories, shell Specialist offices

Cayman St Maarten

Turks & Caicos Jamaica

BVI St Lucia

High rise, 4 to 8 stories, fitout Storage or warehouse structures Specialist offices Retail, single-storey

St Maarten Barbados

Storage or warehouse structures

Jamaica Cayman

St Lucia Trinidad & Tobago Barbados

Retail, single-storey Cayman BVI

Curacao Trinidad & Tobago US$ 0

100

200

300

400

500

Curacao US$ 0

100

200

300

400

BVI St Maarten

500

St Maarten St Lucia

HOTELS / CONDOS : COST PER /SF’ Five star urban

Bahamas

HOTELS / CONDOS : COST PER /SF’

Five star low-rise

Turks & Caicos

Fivestar stareconomy urban Three

Bahamas Jamaica

Five star low-rise

Turks & Caicos Cayman

Three star economy

Jamaica BVI

BVI St Lucia

US$ 0 Curacao

St Maarten Barbados

US$ 0

St Lucia Trinidad & Tobago Barbados

100

200

300

400

500

Curacao US$ 0

Barbados Trinidad & Tobago Trinidad & Tobago Curacao

Cayman St Maarten

Curacao Trinidad & US$ 0 Tobago

St Lucia Barbados

100

200

300

400

500

100

100

200

200

300

300

400

400

500

500


Average Rental and Sales Values: ITEM

BAHAMAS

DESCRIPTION * See Page 34

Low

High

TURKS & CAICOS

Low

High

JAMAICA

Low

High

CAYMAN

Low

High

BVI

Low

High

ST. MAARTEN

Low

High

ST LUCIA

Low

High

BARBADOS

Low

High

TRINIDAD

Low

High

CURACAO

Low

High

SALES - US$/SF

1

Residential High quality

400.00

750.00

340.00

640.00

180.00

340.00

360.00

680.00

440.00

830.00

400.00

750.00

360.00

680.00

500.00

940.00

320.00

600.00

300.00

560.00

2

Residential Medium quality

260.00

490.00

220.00

420.00

40.00

270.00

200.00

380.00

280.00

530.00

240.00

450.00

180.00

340.00

200.00

380.00

160.00

300.00

150.00

270.00

3

Residential Modest quality

120.00

210.00

120.00

230.00

80.00

150.00

160.00

300.00

160.00

300.00

140.00

270.00

100.00

180.00

120.00

230.00

80.00

150.00

80.00

150.00

RENTAL LEVELS - US$/SF

4

Storage or warehouse structures

20.00

30.00

10.00

20.00

10.00

10.00

20.00

40.00

20.00

30.00

20.00

40.00

10.00

20.00

10.00

20.00

10.00

20.00

20.00

20.00

5

Retail, single-storey

40.00

70.00

30.00

60.00

20.00

30.00

30.00

60.00

20.00

30.00

30.00

50.00

20.00

40.00

20.00

40.00

20.00

30.00

30.00

50.00

6

Offices, 1-3 storey, shell

30.00

60.00

20.00

40.00

10.00

20.00

40.00

60.00

20.00

30.00

20.00

40.00

20.00

40.00

20.00

30.00

20.00

30.00

20.00

40.00

7

Offices, 1-3 storey, inc. fitout

50.00

90.00

30.00

60.00

20.00

30.00

40.00

80.00

30.00

50.00

30.00

60.00

30.00

50.00

30.00

60.00

20.00

40.00

30.00

60.00

8

High rise, 4 to 8 stories, shell

40.00

60.00

20.00

40.00

10.00

20.00

40.00

60.00

20.00

40.00

30.00

50.00

20.00

40.00

20.00

40.00

20.00

30.00

20.00

40.00

9

High rise, 4 to 8 stories, inc. fitout

50.00

90.00

30.00

60.00

20.00

30.00

40.00

80.00

40.00

60.00

30.00

60.00

30.00

50.00

30.00

60.00

20.00

40.00

30.00

60.00

10

Specialist offices

40.00

70.00

40.00

60.00

20.00

40.00

40.00

80.00

40.00

70.00

40.00

80.00

40.00

60.00

40.00

60.00

20.00

40.00

40.00

60.00

11

Hotels/ Condos, Five star urban

280.00

530.00

280.00

530.00

200.00

380.00

240.00

450.00

240.00

450.00

100.00

190.00

320.00

600.00

280.00

530.00

190.00

360.00

190.00

350.00

12

Hotels/ Condos, Five star low-rise

280.00

530.00

280.00

530.00

160.00

290.00

240.00

450.00

240.00

450.00

110.00

200.00

320.00

600.00

280.00

530.00

160.00

300.00

140.00

260.00

13

Hotels/ Condos, Three star economy

80.00

150.00

120.00

230.00

60.00

110.00

120.00

230.00

120.00

230.00

90.00

170.00

90.00

170.00

80.00

150.00

80.00

150.00

70.00

120.00

RACK RATES - US$ PER NIGHT

All values in US$

16


BCQS

RESIDENTIAL : SALES PRICE /SF’ High quality

Bahamas

COMMERCIAL : RENTAL /SF’

Medium quality

RESIDENTIAL : SALES PRICE /SF’

Turks & Caicos

Modest quality High quality

Bahamas Jamaica

Offices, 1 to 3 storey, shell Bahamas

Turks & Caicos Cayman

Modest quality

Offices, 1 to 3 storey, fitout

COMMERCIAL : RENTAL /SF’

Medium quality

High rise, 4 to 8 stories, shell Offices, 1 to 3 storey, shell

Turks & Caicos Bahamas

High rise, 4 to 8 stories, fitout Offices, 1 to 3 storey, fitout

Jamaica BVI

Specialist offices High rise, 4 to 8 stories, shell

Cayman St Maarten

Jamaica Turks & Caicos

Storage or warehouse structures High rise, 4 to 8 stories, fitout Retail, single-storey Specialist offices

BVI St Lucia Cayman Jamaica

St Maarten Barbados

Storage or warehouse structures Retail, single-storey

Trinidad & St Lucia Tobago

BVI Cayman

Barbados Curacao TrinidadUS$ & 0 Tobago

200

400

600

800

St Maarten BVI

1000

Curacao

HOTELS / CONDOS : RACK RATES PER NIGHT

US$ 0

200

400

600

800

St Lucia St Maarten

1000

Five star urban

Bahamas Turks & Caicos HOTELS / CONDOS : RACK RATES PER NIGHT

Five star low-rise

Barbados St Lucia

Three star economy Five star urban

Jamaica Bahamas

Five star low-rise

Turks Cayman & Caicos

Trinidad & Tobago Barbados

Three star economy

BVI Jamaica

Trinidad & Curacao Tobago

St Maarten Cayman

US$ 0

St Lucia BVI

20

40

60

80

100

20

40

60

80

100

Curacao StBarbados Maarten US$ 0

Trinidad & St Lucia Tobago Barbados Curacao US$ Trinidad & 0 Tobago

100

200

300

400

500

600

100

200

300

400

500

600

Curacao US$ 0


Average Construction Costs by Country:

By

totallying a weighted value against materials, plant and labour, we are able to compare jurisdictions to one another, which is represented in the following graph. As per last year, by using St. Lucia as the

base (1.00), we can therefore see, that due to reducing costs in St Lucia, against rising costs in Jamaica at a factor of 0.85 (-0.15), the cost to build difference between the two countries is less pronounced than in 2010 which was by a factor of 0.67 (-0.33). Despite the economic downturn in Turks and Caicos, it remains the jurisdiction with the highest construction cost with a factor of 1.30 (+0.30), with Barbados and Cayman not far behind, both at a factor of 1.27 (+0.27). Again, geographical position is not necessarily reflective of overall construction costs.

A number of

considerations affect costs, such as economic health, affecting labour rates, duty adjustments affecting materials costs, and demand for construction, affecting both construction machinery and labour.

1.5

WEIGHTED AVERAGE 1.4 1.3 1.2 1.1 1 0.1 0.2 0.3 0.4 0.5

Bahamas

18

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao


BCQS

Bid Environment: The Bid Environment can be categorised into five scenarios as per the following table: FACTORING REDUCTIONS AND/ OR INCREASES

INDICATIVE PERCENTAGE (%) PROFIT SOUGHT

Very aggressive bid environment with multiple bidders, vendors, subcontractors and contractors (lump sum hard bids) are willing to bid work at or below cost in order to pay for leased equipment and keep critical work force employed. They have no or critically low backlog. They are operating in the red and need work.

At cost

5

2

An aggressive bid environment with coverage in all levels of contracting. Owners are able to get participation for all work. Contractors have a little backlog but are still aggressively looking for work. The workforce and equipment is not at 100% capacity and close to operating at a loss. Bidders will place a minimal profit on the work being bid.

Just above cost

10

3

This is a neutral bid environment. Owners are able to get participation in all work, but may have difficulty getting work/bids from speciality contractors. The contractor’s labour force and equipment is operating at capacity with the flexibility to complete all work on the books. Contractors have, and are not concerned about backlog.

Neutral Historical Aggressive for profit

15

4

Contractors are operating at capacity. They are having difficulty completing work on hand. The backlog is at 100% capacity. Owners will have difficulty finding bidders for some of the specialty contractors. All tier contractors will bid work at a higher than average profit margin.

Marginally Agressive above average profit

20

5

Contractors are operating above capacity. They cannot complete the work they have on hand without aggressive hiring, significant equipment procurement and/or expediting materials for projects. Contractors are pricing work with an aggressive mark up/profit. Owners are having difficulty getting participation for proposed projects.

Aggressive well above average

25

ITEM

DESCRIPTION OF MARKET CONDITIONS

1

2 1.5 1 0.5 0

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

Research suggests that the current Bid Environment in each jurisdiction can be identified as follows:

Research suggests that the current Bid Environment in each jurisdiction can be identified as follows: Turks & Caicos Bahamas Cayman Jamaica BVI St. Maarten St. Lucia Barbados Trinidad Curaçao

%

5

1.5 1

10

15

20


Forecast Escalation:

In order

In order to arrive at the following forecasts, we have considered

world markets as well as our local markets, where we have researched basic costs of materials, plant and labour as well as analysing indicative indicators. World markets have made a significant impression on our forecast escalation, which shows a general marked decrease in construction costs going into 2012, through 2013, and then steadying, albeit still in slight decline, by 2014.

This is due

in the most part, to the predicted general fall in global commodities prices over the next few years. Whether those savings are passed onto the client in the Caribbean, remains to be seen, but it should in the least give Contractors some margin in making their bids appear more competitive.

20


BCQS

BAHAMAS

TURKS & CAICOS

CAYMAN

JAMAICA

BVI

ST. MAARTEN

ST LUCIA

B’BADOS

TRINIDAD

CURACAO

AVERAGE

CONSOLIDATED LABOUR, PLANT AND MATERIAL 2012

-1.16%

-2.56%

-2.56%

-2.21%

-2.38%

-2.56%

-2.91%

-2.56%

-2.56%

-2.56%

-2.40%

2013

-2.54%

-2.72%

-2.54%

-2.19%

-2.37%

-2.54%

-2.19%

-2.54%

-2.19%

-2.19%

-2.40%

2014

-0.76%

-0.94%

-0.76%

-0.41%

-0.59%

-0.76%

-0.41%

-0.41%

-0.76%

-0.76%

-0.66%

Material • 8’’ Hollow-core Concrete Block • Ready-mix Concrete 4000 psi pump mix • Washed Concrete sand • Aggregate, 3/4 ‘’ • Cement

Plant • Dump truck -12 cy • Backhoe • D3 • Excavator, 20 tonne

• 3/4’’ rebar • 5/8’’ plywood • 30lb Roofing Felt

Labour

• 2’’ x 8’’ pressure treated rafter

• Labourer, non-skilled

• Plaster Sand

• Skilled carpenter

• 1/2’’ regular sheetrock

• Painter/ finisher

• Semi-gloss latex based white paint

• Tiler

• 16’’ x 16’’ ceramic floor tiles

• Mason (excl. helper)

• Hollow-core flush door 3’ 0’’ x 6’ 8’’

• Plumber (excl. helper)

• Copper tubing 3/8’’ diameter

• Electrician

• PVC Pipe 1 1/2” sch 40 - pressure

• Foreman/ Supervisor


Overall Market Trend: Now in our second published year, we are able to start to trend our findings, along with the forecast escalation costs, the chart below gives a good visual presentation of our findings.

20%

Bahamas

PERCENTAGE ESCALATION

Bahamas Turks & Caicos Turks & Caicos Jamaica Jamaica Cayman

10%

Cayman BVI BVI St Maarten St Maarten St Lucia St Lucia

0%

Barbados Barbados 2010

2011

2012

2013

2014

Trinidad & Tobago

2015

Trinidad & Tobago Curacao Curacao

-10%

YEAR

The marked increase in construction costs in Jamaica has been discussed elsewhere in this report, but 2011 also shows a general increase in construction costs throughout the region. Going into 2012, research suggests a shallow decrease in costs across the board over the next few years.

22


BCQS

Country Construction Cost Escalation : Residential Country Construction Cost Escalation : Residential Country Country Construction Construction Cost Cost Escalation Escalation Residential Residential The following charts are intended as visual representation by building::type. The nature of our escalation forecast modelling means that all charts follow the same shape, but remain useful on an individual level for those wishing to forecast for specific types of construction.

RESIDENTIAL : HIGH QUALITY RESIDENTIAL RESIDENTIAL: :HIGH HIGHQUALITY QUALITY

RESIDENTIAL : MEDIUM QUALITY RESIDENTIAL RESIDENTIAL: :MEDIUM MEDIUMQUALITY QUALITY

400 400 400 US$

400 400 400 US$

350 350 350

350 350 350

300 300 300

300 300 300

250 250 250

250 250 250

200 200 200

200 200 200

150 150 150

150 150 150

100 100 100

100 100 100

US$ US$

50 5050

2010 2010 2010

US$ US$

2011 2011 2011

2012 2012 2012

2013 2013 2013

2014 2014 2014

YEAR YEAR YEAR

2015 2015 2015

50 5050

Bahamas Turks & Caicos Jamaica Cayman BVI St Maarten

2010 2010 2010

2011 2011 2011

2012 2012 2012

2013 2013 2013

2014 2014 2014

YEAR YEAR YEAR

2015 2015 2015

St Lucia Barbados Trinidad & Tobago Curacao

RESIDENTIAL : MODEST QUALITY RESIDENTIAL: :MODEST MODESTQUALITY QUALITY RESIDENTIAL

400 400 400 US$

US$ US$

350 350 350 300 300 300 250 250 250 200 200 200 150 150 150 100 100 100 50 5050

2010 2010 2010

2011 2011 2011

2012 2012 2012

2013 2013 2013

2014 2014 2014

YEAR YEAR YEAR

2015 2015 2015


Country Construction Cost Escalation : Commercial Country Construction Cost Escalation : Commercial Country Construction Cost Escalation : Commercial

COMMERCIAL : OFFICES, 1 TO 3 STOREY, SHELL

COMMERCIAL : OFFICES, 1 TO 3 STOREY, FITOUT

: OFFICES, 1 TO 3 STOREY, SHELL 300 COMMERCIAL US$

: OFFICES, 1 TO 3 STOREY, FITOUT 300 COMMERCIAL US$

300

US$

300

Bahamas

US$

250

250

250

250

200

200

200

200

150

150

150

150

BVI

100

100

St Maarten

100

100

50 50

Turks & Caicos Jamaica Cayman

YEAR

2010

2011

2012

2013

2014

YEAR 2015

2010

2011

2012

2013

2014

2015

50 50

YEAR

2010

2011

2012

2013

2014

YEAR 2015

2010

2011

2012

2013

2014

2015

St Lucia Barbados Trinidad & Tobago Curacao

COMMERCIAL : RETAIL, SINGLE-STOREY

COMMERCIAL : STORAGE/WAREHOUSE

: RETAIL, SINGLE-STOREY 300 COMMERCIAL US$

: STORAGE/WAREHOUSE 300 COMMERCIAL US$

300 250

250

250

250

200

200

200

200

150

150

150

150

100

100

100

100

50

50

50

24

300

US$

YEAR

US$

50

YEAR

2010

2011

2012

2013

2014

YEAR 2015

2010

2011

2012

2013

2014

YEAR 2015

2010

2011

2012

2013

2014

2015

2010

2011

2012

2013

2014

2015


BCQS

Country Construction Cost Escalation : Hotel s and Condos Country and Condos Country Construction Construction Cost Cost Escalation Escalation :: Hotel Hotelss & Condos

HOTELS / CONDOS : FIVE STAR URBAN 400 HOTELS / CONDOS : FIVE STAR URBAN 400

US$

Bahamas

US$

350 350

Turks & Bahamas Caicos

300

Bahamas Jamaica Turks & Caicos

300

Turks & Caicos Cayman Jamaica

250 250

Jamaica

200

BVI

200

Cayman St Maarten BVI

150 150

BVI St LuciaSt Maarten

100 100 50 50

Cayman

YEAR

2010

2011

2012

2013

2014

YEAR 2015

2010

2011

2012

2013

2014

2015

St Maarten Barbados St Lucia St Lucia TrinidadBarbados & Tobago Barbados Curacao Trinidad & Tobago Trinidad & Tobago

HOTELS / CONDOS : THREE STAR ECONOMY 400 HOTELS / CONDOS : THREE STAR ECONOMY 400

Curacao Curacao

US$

US$

350 350 300 300 250 250 200 200 150 150 100 100 50 50

YEAR

2010

2011

2012

2013

2014

YEAR 2015

2010

2011

2012

2013

2014

2015


The Bahamas Government has actively sought to encourage new investment players into the Caribbean market and assisted greatly in attracting $2.5billion of new financing to Nassau’s 2,250-room Baha Mar

Caribbean Resorts... Opportunity Knocks? by Simon Taylor

Cable Beach redevelopment project, which is set to stimulate significant growth for The Bahamas. Construction is at last underway and this massive project is set to bring a huge boost to the local economy and provide thousands of new jobs. New financing for the project has been provided by Export-Import Bank of China (EXIM) and to supple-

All of us

26

in the Caribbean are acutely aware of the effects that the global economic downturn has had on resort invest-

ment the Bahamian labour available to build the re-

ment in the region – but is now the right time for in-

short-term labour from China to help complete the

vestors to get back in the water? Although we in

resort as quickly as possible.

the Caribbean have had our fair share of doom

and gloom, there have been savvy investors taking

However, local Government assistance can only go

the opportunity to step into projects that appear to

so far. Resort developers must be able to adapt to

have real value in this changing market. Some have

the changing tourism investment model in order to

snapped up distressed properties that have been

attract new backing for their projects. In particular,

over-leveraged or under-managed, some have

there appears to be a trend away from those con-

picked up deals from defaulting loans and others

cepts relying on residential components as a signifi-

have recognized the evolution in the resort invest-

cant source of financing. Residential condominium

ment market and restructured their projects to suit.

products have seen significant reductions in price

due to a lack of demand, typically to a level below

Established Caribbean resort players such as Sandals

what the replacement cost would be – therefore

were quick to spot potential and their purchase of

discouraging developers from starting or continuing

the Emerald Bay Resort in Great Exuma (formerly

with these types of resort projects. The reduction of

Four Seasons) provided them with a magnificent 500

second home real estate investment from the Carib-

acre golf resort at a knockdown price. This resort re-

bean’s key investment markets combined with fall-

opened in January 2010 and has provided a much

ing tourism arrivals and a decline in real estate based

needed boost for this Bahamian island’s economy.

project financing has also had a dramatic effect.

sort, Baha Mar has partnered with China State Construction Engineering Corporation (CSCEC) to supply


BCQS In a recessionary economy, where consumer confi-

erties. Those projects that demonstrate strength of

dence is low, there is an obvious reluctance to invest

design, revenue generating potential and value for

significant sums in second homes, particularly when

money are attracting interest from investors who rec-

property markets at home may have contracted sig-

ognize the evolution in the resort market.

nificantly. Hence the resort and condominium mar-

ket must evolve to cater for new market demands

With the return of the tourists and increasing invest-

– vacation ownership, timeshare and fractional own-

ment confidence from some of the less traditional

ership are all examples of reducing the significance

sources (BRIC countries in particular), now may be

of the investment to encourage demand.

the time for visionary developers to find new ways of

packaging the traditionally idyllic Caribbean assets

Similarly, the global financial crisis and tightening of

of sun, sea and sand.

credit guidelines has led to the failure or stalling of many resort projects under construction and has prevented many others from starting construction. With lenders focusing more on cashflow and debt service rather than real estate security, and a reluctance to finance projects relying on real estate sales, the days of the condominium resort appear numbered. Success would appear to lie in the effective operation of a property as a hotel first and a real estate ownership product second. Whilst hotel rates (ADR’s) and turnovers declined significantly in 2009, occupancies are now bouncing back and tourism arrivals typically on the rise. Thus the profitability of hotel operations should continue to improve and provide development opportunities in refurbishment of existing prime hotel stock or new resort development concepts. With the lack of support from financial institutions, private equity investors are finding themselves with liquidity in a buyers market and able to choose from a considerable array of distressed or defaulting prop-


Most of the principal banks, and investment companies now have representation in Brazil. The business and social environment is sophisticated. Brazilian property developers and contractors are experienced. In terms of construction production compared to 2010, the increase in activity according to some estimates are between 5 and

South and Central America:

7% growth for 2011. There are various Government initiatives in place which are generating growth in the construction and property sectors. This stimulation is clearly

This Year

impacting on companies within the supply chain having opened for business

and as a consequence the materials sector in Bra-

in Brazil, and with an expe-

zil is booming. Whilst this fast paced growth could

rienced team already ‘on the ground’, we look to

present significant manpower supply challenges in

index, not only Brazil, but other countries in which

other locations, Brazil is an extremely dynamic and

we gain experience. As such, we are also able to

fast moving country with a young and ambitious

present cost indices for Belize.

population. As 50% of the population have not yet

reached their mid-twenties, the rapidly increasing

The following words from James Slattery, our Di-

number of newly qualified graduates and a great-

rector in Brazil, show why we believe that BCQS

er spending power for the working population all

International has a significant role to play in the

bodes well for the property development and con-

construction sector in Brazil:-

struction industries.

28

“Brazil is a global player, with a GNP in the top five

Most major Brazilian contractors and develop-

nations of the world. With Brazil hosting the Eco-

ers are actively exploiting the new opportunities

conference in 2012, World Cup 2014, and Olympics

being created generating favourable conditions

2016 all bodes well for the construction industry.

for the future expansion in the areas of construc-

Infrastructure has to be urgently upgraded for the

tion and property development (residential, of-

World Cup and this sector is attracting high govern-

fice, business parks, retail, etc.). Brazil has a wide

ment investment. This is not the only sector driving

range of opportunities and it is clear that the fu-

the industry. The residential sector is also booming

ture prospects are very exciting for the property

especially in the low and mid income sectors.

and construction industry sectors.”


BCQS

General and Government Statistics: LOCAL CURRENCY COUNTRY

EXCHANGE RATETO US $1.00

LAND

CAPITAL

POPULATION

WORKFORCE

AREA

CITY

(1)

(2)

GDP (Millions), 2010 (3)

GDP/ Capita

KEY INDUSTRIES

(US$), 2010

(EXC. CONSTRUCTION)

BRAZIL

BRL 0.57

8,514,877 Sq. KM

Brasilia

203,429,773

103,600,000

2.172 Trillion

10,800

Agriculture, Mining, Manufacture, Services

BELIZE

BZD 0.47

22,966 Sq. KM

Belmopan

321,115

71,000

2,651

8,400

Agriculture, Forestry

Cost of Living Indicators: ITEM

DESCRIPTION

UNIT

BRAZIL

BELIZE

1

City Water

$/gal l on

0. 01

0. 03

2

E lectr icity

$/k w h

0. 16

0. 05

3

Ga solin e

$/gal l on

5. 52

5. 76

4

I n come ta x , per sonal

% /i nc om e

17. 50%

25%

5

I n come ta x , cor porat e

% /i nc om e

30. 45%

6%

6

Import duty on building materials/ essential

% ( ave r age )

7. 00%

20%

7

I mp or t du ty on lu xury goods

% ( ave r age )

20. 00%

40%

8

Stamp du ty on p ropert y transf er

%

4. 50%

5%

9

Real estate commission on property sale

%

4. 50%

10%

15. 00%

0%

7. 50%

2%

10

Ven dor s ta x on p ropert y transf er

11

Lawy er s fees on property sal e

% ( ave r age )

%


Indicative Construction Costs: ITEM

BRAZIL

DESCRIPTION

Low

ELIZE

High

Low

High

RESIDENTIAL : COST PER /SF’ Residential High quality

120.00

2

Residential Medium quality

80.00

140.00

110.00

180.00

3

Residential Modest quality

50.00

80.00

60.00

90.00

4

Storage or warehouse structures

60.00

100.00

50.00

80.00

5

Retail, single-storey

80.00

140.00

60.00

90.00

6

Offices, 1-3 storey, shell

50.00

90.00

90.00

150.00

7

Offices, 1-3 storey, inc. fitout

90.00

160.00

190.00

320.00

8

High rise, 4 to 8 stories, shell

60.00

100.00

190.00

320.00

9

High rise, 4 to 8 stories, inc. fitout

110.00

200.00

260.00

440.00

10

Specialist offices

160.00

280.00

260.00

440.00

11

Hotels/ Condos, Five star urban

1

210.00

140.00

230.00

High quality

Brazil

Medium quality Modest quality

Belize US$ 0

100

200

300

400

500

HOTELS / CONDOS : COST PER /SF’ Five star urban

Brazil

Five star low-rise Three star economy

Belize US$ 0

100

200

300

400

500

COMMERCIAL : COST PER /SF’ Offices, 1 to 3 storey, shell Offices, 1 to 3 storey, fitout

Brazil

High rise, 4 to 8 stories, shell High rise, 4 to 8 stories, fitout

180.00

310.00

260.00

440.00

12

Hotels/ Condos, Five star low-rise

130.00

220.00

220.00

380.00

13

Hotels/ Condos, Three star economy

70.00

120.00

130.00

220.00

All values in US$

30

Specialist offices

Belize

Storage or warehouse structures US$ 0

100

200

300

400

500

Retail, single-storey


BCQS

Average Rental and Sales Values: ITEM

BRAZIL

DESCRIPTION

Low

High

BELIZE

Low

High

RESIDENTIAL : SALES PRICE /SF’

SALES - MEDIAN/SF

1

Residential High quality

350.00

2

Residential Medium quality

220.00

410.00

140.00

270.00

3

Residential Modest quality

140.00

250.00

70.00

120.00

660.00

200.00

380.00

High quality

Brazil

Medium quality Modest quality

Belize US$ 0

200

400

600

800

RENTAL LEVELS -MEDIAN/SF

4

Storage or warehouse structures

20.00

30.00

10.00

20.00

5

Retail, single-storey

20.00

40.00

20.00

30.00

6

Offices, 1-3 storey, shell

30.00

50.00

20.00

30.00

7

Offices, 1-3 storey, inc. fitout

30.00

50.00

30.00

50.00

8

High rise, 4 to 8 stories, shell

40.00

70.00

20.00

40.00

9

High rise, 4 to 8 stories, inc. fitout

40.00

80.00

30.00

60.00

Specialist offices

70.00

HOTELS / CONDOS : RACK RATES PER NIGHT Five star urban

Brazil

Five star low-rise Three star economy

Belize US$ 0

10

Hotels/ Condos, Five star urban

400

600

800

1000 1200

COMMERCIAL : RENTAL /SF’ Offices, 1 to 3 storey, shell

130.00

30.00

50.00

Offices, 1 to 3 storey, fitout

Brazil

High rise, 4 to 8 stories, shell High rise, 4 to 8 stories, fitout

RACK RATES - PER NIGHT

11

200

Specialist offices

Belize 380.00

710.00

200.00

380.00

Storage or warehouse structures US$ 0

12

Hotels/ Condos, Five star low-rise

570.00

1,060.00

200.00

380.00

13

Hotels/ Condos, Three star economy

170.00

310.00

70.00

130.00

All values in US$

40

80

120

140

200

Retail, single-storey


Our Projects include prestigious residential properties, large-scale commercial buildings and offices, civic and government buildings, hotels and resorts, and apartments and condominiums. We are approved consultants for the British Government’s Foreign and Commonwealth Office,

About BCQS:

BCQS

has true multi-jurisdictional reach and is incorporated independently in the Bahamas, Barba-

dos, British Virgin Islands, Cayman Islands, Jamaica, St Lucia and the Turks and Caicos Islands as well as Brazil and Guyana. Established in 1969, we have earned a leadership position in our field and we offer a comprehensive range of services as follows, including but not restricted to:• Project Management; • Quantity Surveying; • Construction Management; • Cost Management; • Property Valuations and Appraisals; • Due Diligence Analysis; • Loan Monitoring; • Feasibility and Market Studies; • Risk Analysis; • Value Engineering; • Life Cycle Costing; • Developer Representation; • Distressed Property Solutions; • Insurance Claims Consulting/Loss Adjusting.

32

the Department for International Development (DFID), the Caribbean Development Bank, and for European Union funded projects. Our appraisal services are prepared using the Royal Institution of Chartered Surveyors (RICS) guidelines and the majority of our professional staff are members of the RICS, a 160,000 member organisation representing property interests worldwide. We are approved consultants for major banks in the region such as Scotiabank, First Caribbean International Bank, Royal Bank of Canada and Butterfield Bank, as well as other leading international institutions such as Textron Financial, Banco Popular, First Bank and Barclays Bank. We believe in the professional development and management of our clients’ property portfolios and our mission is to ensure that every client receives the greatest value for money along with unsurpassed service. If you believe that BCQS could be of service to you, we would welcome the opportunity to discuss your project requirements. Our contact details, country by country are detailed at the front of this report. We look forward to hearing from you.


BCQS


*Notes: Building types referred to in cost indicator sections are as follows:

1.00

Block and steel construction, pitched shingle roofs on sarking, cedar doors and windows, wood finish or porcelain floor tiling, solid surface countertops, electrical, hot and cold plumbing

2.00

3.00

As above but with ceramic floor tiling, fiberglass shingle

and professionally indemnified Quantity Surveyor should be sought.

BCQS

International Ltd accepts no responsibility for results of the actions of individuals acting directly through the findings of this report; Whilst we have made every effort to ensure that all rates and statistics herein

roofing, laminated plastic countertops, standard jalousie

are accurate, BCQS International Ltd accept no responsibility for the accuracy

windows, electrical hot and cold plumbing

of the sources of such rates and statistics;

Block and steel walls, sheet metal roofing, ceramic floor, aluminium jalousie windows, outside laundry tubs, cold water plumbing with electrical

Sources have been referred to where appropriate. Although extensive research has been carried out in the compilation of this report, much of it has been generated in-house, and not all references have been named. We hereby extend our thanks to those sources known to us through professional

4.00

Walled and metal sheet roofed, electrical and water

relationships, suppliers, employment brokers, plant hire companies etc.

5.00

Open plan, bathrooms, glass storefront

throughout our named jurisdictions;

6.00

Shell only partitioned, staircase, package units A/C, bathrooms, doors and aluminium windows

7.00

Fitted out partitioned, staircase, package units A/C, bathrooms, doors and aluminium windows

Neither the whole nor any part of this report or any reference to it may be included in any published document, circular or statement nor published in any way without BCQS International Ltd’s written approval of the form and context in which it may appear; BCQS International Ltd gives no warranty, representation or assurance that

8.00

As above shell only, with elevators

the statements, conclusions and opinions expressed or implied in this report are

9.00

As above fitted out, with elevators

accurate or valid. BCQS International Limited has prepared this report without

10.00 Including medical centres, laboratories, restaurants, etc. 11.00 Five-Star high rise urban 12.00 Low rise Five-Star resort with normal facilities 13.00 Low rise Three-Star economy hotel with normal facilities

34

This report is intended as a guide only. Should the reader require detailed construction advice, then the services of a professional RICS accredited

any acceptance or responsibility on their part to agents outside of the employ of BCQS International Ltd. Due to current volatile financial markets, our findings should be regarded as valid for a limited period of three months, after which they will be subject to re-examination.


BCQS

Weights and Measures: There is no regional pattern of quantification within the region in terms of metric or imperial systems. The following is intended as a guide to the conversion rates of the most common units of measurement within the construction industry in the region.

METRIC

IMPERIAL

Length

Length

l millimetre (mm) 1 centimetre (cm) 1 metre (m) 1 Kilometre (km)

10 mm 100 cm 1000 m

.0394 in .03937 in 1.0936 .6214 mile

100m2 10000 cm2 10000 m2 100 ha

.1550 in2 1.1960 yd2 2.4711 acres .3861 mile2

1000 cm3 1000 dm3 1 dm3 1000 litre

.0610 in .0353 ft3 1.3080 yd3 1.76 pt 21.997 gal

1 milligram (mg) 1 gram (g) 1 kiligram (kg)

1000 mg 1000 g

.0154 grain .0353 oz 2.2046 lb

1 tonne (t)

1000 kg

09842 ton

Area

l inch 1 foot 1 yard (yd) 1 mile

12 in 3 ft 1760 yd

2.54 cm 0.3048 m 0.9144 m 1.6093 km

144 in 9 ft2 4840 yd2

6.4516 cm2 0.0929 m2 0.8361 m2 4046.9 m2

Area

1 sq cm (cm2) 1 sq metre (m2) 1 hectare 1sq km (km2) Capacity / Volume 1 cu ccm (cm ) 1 cu decimetre (dm3) 1 cu metre (m3) 1 litre (litre) 1 hectolitre (hl)

1 sq inch (in2) 1 sq foot (ft2) 1 sq yard (yd2) 1acre

2

Capacity / Volume

3

3

Mass (weight)

1 cu inch (in3) 1 cu foot (ft3) 1 fluid ounce (fl oz) 1 pint (pt) 1 gallon (gal)

20 fl oz 8 pt

16.387 cm3 0.0283 m3 28.413 ml 0.5683 litre 4.5461 litre

437.5 grains 16 oz 14 lb 20 cwt

28.35 g 0.4536 kg 6.3503 kg 1.016 t

1728 in3

Mass (weight) 1 ounce (oz) 1 pound (lb) 1 stone 1 ton


BAHAMAS

36

BARBADOS

BRAZIL

BVI

C AY M A N I S L A N D S

G U YA N A

JAMAICA

S T. L U C I A

TRINIDAD

TURKS & CAICOS


BCQS Market Trend Report - 4Q 2011