Caribbean construction costs are likely to decline in the coming years until 2015, a research study shows, attributing the fall to a decrease in activity and predictions of commodity prices.
The BCQS Market Trend Report 2012, released last week, studied 10 jurisdictions across the region and recorded a decrease in construction costs last year for the Bahamas, the Virgin Islands and St. Lucia. While the prediction from the quantity surveying and construction management firm’s news is good for developers, others in the industry may face tough times.
“We can only foresee that the property and construction industries will be forced into measures to keep their markets moving and generating income,” the report states.
It add that across the region, property prices have “bottomed out” in some countries and there are signs of growth.
“Whilst a staggering number of construction projects still remain on hold, it would appear that banks are now initiating steps for reviewing, evaluating and offloading their liabilities, which may be just the stimulus required for the region,” the report states.
While the region’s construction costs vary markedly depending on geography, infrastructure and population, high-quality builders often are able to distinguish themselves from the competition, according to the report.
“Build quality plays a major role and is not only restricted to a change in finishing materials or local standards,” it states. “Changes in building technology and the quality of standard finishes can vary drastically between semi-skilled, skilled and professionally trained tradesmen, making an acceptable product in one jurisdiction subpar for another.”
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