bcqs market trend report - 4q 2011

BCQS

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

C A R I B B E A N C O N S T R U C T I O N

4Q 2009 - 1Q 2010

market trendREPORT 2010

market trend REPORT 2011

4Q 2011

2

BAHAMAS

Shirley Street Plaza

P.O. Box FH 14148

Nassau, New Providence,

Bahamas

Tel: 242 393 5352

Fax: 242 394 7141

E-mail: [email protected]

Contact: David Lavin

BARBADOS

‘Orena’

St. Lawrence Main Road

Christ Church,

Barbados

Tel: (246) 428 8091

Fax: (246) 428 7820


Contact: Sanjay Amin

BRAZIL

R. Haddock Lobo 1129/171

Jardim America

Sao Paulo, 01414-003

SP Brazil

Tel: (+55) 11 9390 8805


Contact: James Slattery

BRITISH VIRGIN ISLANDS

Abbott Building

P.O. Box 3160

Tortola

British Virgin Islands

Tel: (284) 494 7144

Fax: (284) 494 7184


Contact: Ben Butler

CAYMAN ISLANDS

Whitehall House

P.O. Box 871, GT

Grand Cayman, Cayman Islands

KY1-1103

Tel: (345) 949 8644

Fax: (345) 949 7184


Contact: Liam Day

GUYANA

Lot 1,

Thorne Drive, DurbanSP., Backlands,

Georgetown, Guyana

Tel: (592) 227 1161

Fax: (592) 226 8277


Contact: David Patterson

JAMAICA

1 Oxford Terrace

Kingston 5,

Jamaica,

West Indies

Tel: (876) 926 2418

Fax: (876) 929 9717


Contact: Brian Goldson

TURKS AND CAICOS

The Saltmills

P.O. Box 158

Providenciales,

Turks & Caicos Islands

Tel: (649) 946 4238

Fax: (649) 946 4670


Contact: Simon Taylor

ST LUCIA

Alfiona Plaza

PO Box Choc8044

Rodney Bay, Gros Islet, St Lucia

Tel: (758) 450 7040

Fax: (758) 450 7041


Contact: Chris Docherty


I N T E R N A T I O N A L








Barbados

St Lucia

Turks and Caicos

Bahamas

Cayman Islands

Brazil

Guyana

Miami, FL

Cuba

Haiti

DominicanRebublic

Puerto Rico

VenezuelaTrinidad and TobagoPanama

Mexico

Costa Rica

Guatemala

Nicaragua

Colombia

Ecuador

Peru

El SalvadorHonduras

Belize

SurinameFrenchGuiana

St KittsBarbuda

DominicaMartinique

Grenada

NetherlandsAntilles

Montserrat

USVI

Bolivia


Jamaica

BCQS

BCQS operate throughoutLatin America and the Caribbean










Barbados

St Lucia

Turks and Caicos

Bahamas

Cayman Islands

Brazil

Guyana

Miami, FL

Cuba

Haiti

DominicanRebublic

Puerto Rico

VenezuelaTrinidad and TobagoPanama

Mexico

Costa Rica

Guatemala

Nicaragua

Colombia

Ecuador

Peru

El SalvadorHonduras

Belize

SurinameFrenchGuiana

St KittsBarbuda

DominicaMartinique

Grenada

NetherlandsAntilles

Montserrat

USVI

Bolivia


Jamaica

4

to our 2011 Market

Trend report for the Ca-

ribbean, which follows on from our 2010 report

published last year. For this issue we now have

the opportunity to start making real use of col-

lected data and can begin to demonstrate the

developing pattern of construction costs which

affect us here in the Caribbean region.

BCQS International Ltd has been an established

cost and value consultancy in the Caribbean

construction and property industry for over forty

years, during which time we have built on our

reputation as the leading independent consul-

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

creasing and diversifying Client base, and with

a wealth of regional in-house knowledge, this

report continues to offer a guide to construction

costs and variances throughout the region.

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

updating of our cost database, and in our analysis

and presentation of these base costs, we believe

that this report remains a valuable initial resource

to fellow construction professionals, builders, estab-

lished and first time developers, lending institu-

tions, and indeed, anyone who has an interest

in, or reason to follow, the construction industry

in the Caribbean. The information within this re-

port now begins to enable the reader to anal-

yse market trends, and to give some indication

of specific as well as general cost patterns and

nuances within the region.

Last year, we concentrated on ten jurisdictions,

consisting of those countries where BCQS have

offices, namely, the Bahamas, Barbados, British

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

cia and the Turks and Caicos Islands, as well as

those where we had good supplementary local

knowledge, namely, St Maarten, Curacao and

Trinidad. In the interests of consistency, we have

kept up-to-date with the same markets, which

we believe reflect a good cross section of the

region. Last year, we also anticipated growth in

the importance of two of the larger economies

within the region, namely Guyana and the Do-

minican Republic. This has coincided with the

expansion of our business to now include an of-

fice in Guyana. Our other major office opening

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

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

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

to give some perspective to the South and Cen-

tral American countries we have also included

Belize, a Central American country, which shares

a similar heritage and relationship with the Eng-

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

ing part of a different geographical land mass.

Foreword:

Welcome

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 spe-

cialised construction markets which are not neces-

sarily reflective of the remainder of the region, be

they tied directly to other markets or have a constitu-

tion otherwise not reflective of the regional market.

The indices contained herein not only show escala-

tion 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 re-

searched 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 en-

ables the reader (and/or would-be developer/ lend-

er/ builder) to form an early opinion as to the viability

of any chosen project.

Client feedback on our report of last year was over-

whelmingly 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 develop-

ment 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.

6

experienced

since 2008 has

continued to make itself felt region-wide. A large

number of construction projects remain on hold

while the developers and their funders continue to

discuss exit solutions to attempt to unlock what val-

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

port, we have also experienced a growing workload

in valuations for foreclosed upon property where

charge holders have now begun to take control of

property, where a year ago, they would otherwise

have continued to watch the market in the hope

that borrowers would soon be able to service loans.

The greatest challenge remains the profitable dis-

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

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

on the sale of income producing second homes to

overseas investors, which in turn would bring reve-

nue in terms of purchasing costs and duties, ongo-

ing maintenance charges, bed tax etc. For the most

part, the developers of these types of property were

aiming their product at individual purchasers from

either North America or Europe. With the dramatic

shrinking of that market, due to many people’s indi-

vidual financial circumstances preventing them from

continuing to make overseas investments, today’s

Caribbean developer must be malleable in their ap-

proach to turning a profit out of real estate.

Our research shows that generally across the re-

gion, tourism numbers are up for 2010-2011 which is

encouraging developers to look at ways of selling

a piece of the Caribbean to investors, who would

generally not be in a position to purchase an entire

asset. This concept of ‘Fractional Ownership’ has

been mooted for a number of new developments

as well as a disposal solution for underselling existing

developments. Only time will tell whether the market

will accept and invest in this concept, and funders

will be wary of such a structure until a proven sales

record develops.

Half poured concrete columns, rusting rebar and

the slow reclamation of building sites by indigenous

flora are a constant reminder of how the Caribbean

has been impacted by world events over the past

three or so years. These reminders also remain as a

hard lesson to a number of developers and funders

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

tual cost of the asset under construction up to 2008

considerably exceeds any realisable value on the

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

margins are great enough, those looking to invest

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

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

Market Overview:

The downturn

BCQS

pect to see a number of the heavily distressed as-

sets changing ownership at large discounts over the

coming years.

Whilst our research has shown that for 2011, construc-

tion 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 over-

all negative escalation prediction of commodity in-

dexes 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 dis-

tressed market, and a return to the heady values re-

alised 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 in-

dividuals to take risk, can we expect to see our re-

gional 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 in-

vestment, 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.

8

Summarised Findings:

we continue to see a vast

disparity in construction costs

over the region, and the conclusions made in our last

report remain true for the most part and therefore do

not need to be repeated here.

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

clining construction costs up to 2015 as both the global

and regional markets take stock of the current and

forecasted economic climates. This in turn leads to

the reasonable prediction that the property and con-

struction industries will be forced into taking measures

to keep their markets moving and generating income.

An example of regional government actively looking

to mitigate the effects of the recession can be dem-

onstrated by the reduction in stamp duty in property

transactions in the Turks and Caicos Islands. TCI as well

as many other countries are encouraged by steady

or increasing tourist arrival numbers and are looking

at demonstrating to the airlines a requirement for in-

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

rency into government and private coffers. Individual

governments are also looking at improving infrastruc-

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 esca-

lation occurs in Jamaica, which can be explained by

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

cost Caribbean construction environments.

Most other jurisdictions have a much shallower cost

increase curve for year 2011, whilst those countries

which had seen large profit margins in construction up

to 2008 have actually seen minor overall reductions in

cost, namely Barbados, TCI and The Bahamas. How-

ever, findings show that times remain very uncertain

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

kets will begin to show a reduced construction cost

into 2012. Feedback from our individual offices how-

ever demonstrates that Contractors percentage for

profit and tender mark up has become slightly more

bullish over 2011, and it remains to be seen whether

savings associated with predicted reductions on ma-

terial prices will be passed on to the end customer.

Market forces will decide this.

The steadiest construction environments can be de-

scribed as being in those countries which had not ex-

perienced exponential growth from the early 2000’s.

Established and organically growing construction en-

vironments have of course suffered less than those less

mature and reactive jurisdictions. However, in the latter

This year

BCQS

type of country, the established practices and con-

struction companies which were in business pre-boom

generally continue to operate on a reduced over-

head 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 con-

struction 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 de-

monstrative of its geographic make up, accessibility,

provision of infrastructure etc. which differs island to is-

land. 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 val-

ue. This involves the reduction of risk on any construc-

tion project through proper project planning, con-

trolled 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.

10

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/

General and Government Statistics:

COUNTRY LAND AREA CAPITAL CITYPOPULATION

(1)WORK-

FORCE (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 29,820See

CuracaoSee

CuracaoSee

CuracaoTourism, Light Industrial/ Manufacturing, Heavy Industry

ST. MAARTEN ANG 1.76 (Neth.) 34 Sq. KM Philipsburg 43,072

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

CURACAO (NETH. ANTILLES) ANG 6.40 444 Sq. KM Willemstad 140,796 63,000 2,838 15,000 Tourism, Petroleum Refinement, Petrol’ Transhipment

LOCAL CURRENCYEXCHANGE RATE

TO US $1.00

BCQS

Cost of Living Indicators:

ITEM DESCRIPTION UNIT BAHAMASTURKS & CAICOS

CAYMAN JAMAICA BVIST.

MAARTENST 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.

12

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 lead-

ing 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 construc-

tion 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 experi-

enced in other countries.

Summarised

Tourism:

BCQS

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

BAHAMASTURKS &

CAICOS~CAYMAN JAMAICA BVI~

ST.

MAARTENST LUCIA B’BADOS

TRINIDAD

& TOBAGOCURACAO TOTAL

2010 - 2011 By Market Pro rated

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 81,708 121,838 736,780

Totals 1,368,053 280,000 288,272 1,921,678 330,343 443,136 305,937 532,180 316,234 341,656 6,127,489

o/a % change -7.30% 9.80% 8.32% 5.09% -7.21% 2.86% 11.16% 5.95% -7.56% -4.22% 0.64%

* 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: Various~ Estimated figures due to insufficient current information

2010 2011

United States

Europe

Canada

Other

2010 2011

6%

6%24%

4%

30%4%

6%

7%

8%

5% Total Tourists

6,088,517

6%

5%

22%

5%

31%5%

5%

7%

9%

5%

Total Tourist

6,127,489

61%

12%

17%

10%

Total Tourists

6,088,517 60%

12%

17%

11%

Total Tourist

6,127,489

Tourist Destination

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

2010 2011

6%

6%24%

4%

30%4%

6%

7%

8%

5% Total Tourists

6,088,517

6%

5%

22%

5%

31%5%

5%

7%

9%

5%

Total Tourist

6,127,489

61%

12%

17%

10%

Total Tourists

6,088,517 60%

12%

17%

11%

Total Tourist

6,127,489

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

2010 2011 Tourist Origin

14

Indicative Construction Costs:

ITEM BAHAMASTURKS & CAICOS

JAMAICA CAYMAN BVI ST MAARTEN ST LUCIA BARBADOSTRINIDAD &

TOBAGOCURACAO

DESCRIPTION

* See Page 34Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High

1 ResidentialHigh 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 ResidentialMedium 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 ResidentialModest 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

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.

All values in US$

BCQS

Five star urban

Five star low-rise

Three star economy

HOTELS / CONDOS : COST PER /SF’

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

US$ 0 100 200 300 400 500

Offices, 1 to 3 storey, shell

Offices, 1 to 3 storey, fitout

High rise, 4 to 8 stories, shell

High rise, 4 to 8 stories, fitout

Specialist offices

Storage or warehouse structures

Retail, single-storey

COMMERCIAL : COST PER /SF’

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

US$ 0 100 200 300 400 500

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

US$ 0 100 200 300 400 500

RESIDENTIAL : COST PER /SF’

High quality

Medium quality

Modest quality

Five star urban

Five star low-rise

Three star economy


Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

US$ 0 100 200 300 400 500





Specialist offices




Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

US$ 0 100 200 300 400 500

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

US$ 0 100 200 300 400 500


High quality

Medium quality

Modest quality

16

Average Rental and Sales Values:

All values in US$

ITEM BAHAMASTURKS &

CAICOSJAMAICA CAYMAN BVI ST. MAARTEN ST LUCIA BARBADOS TRINIDAD CURACAO

DESCRIPTION

* See Page 34 Low High Low High Low High Low High Low High Low High Low High Low High Low High Low High

1 ResidentialHigh 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 ResidentialMedium 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 ResidentialModest 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

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 8stories, 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

RENTAL LEVELS - US$/SF

RACK RATES - US$ PER NIGHT

SALES - US$/SF

BCQS

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad &Tobago

Curacao

US$ 0 200 400 600 800 1000

High quality

Medium quality

Modest quality

RESIDENTIAL : SALES PRICE /SF’

COMMERCIAL : RENTAL /SF’





Specialist offices



Five star urban

Five star low-rise

Three star economy

US$ 0 100 200 300 400 500 600

HOTELS / CONDOS : RACK RATES PER NIGHT

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad &Tobago

Curacao

US$ 0 20 40 60 80 100

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad &Tobago

Curacao

US$ 0 200 400 600 800 1000

High quality

Medium quality

Modest quality







Specialist offices



Five star urban

Five star low-rise

Three star economy

US$ 0 100 200 300 400 500 600


Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad &Tobago

Curacao

US$ 0 20 40 60 80 100

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

18

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.

Average Construction Costs by Country:

By

1.5

1.4

1.3

1.2

1.1

1

0.1

0.2

0.3

0.4

0.5

Bahamas Turks & Caicos Jamaica Cayman BVI St Maarten St Lucia Barbados Trinidad & Tobago Curacao

WEIGHTED AVERAGE

BCQS

Bid Environment:

ITEM DESCRIPTION OF MARKET CONDITIONSFACTORING

REDUCTIONS AND/ OR INCREASES

INDICATIVE PERCENTAGE (%) PROFIT SOUGHT

1Very 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

2An 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

3This 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 Aggres-

sive for profit 15

4Contractors 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

5Contractors 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

average25

2

1.5

1

0.5

0

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

% 5 10 15 20

Turks & Caicos Bahamas Cayman Jamaica BVI St. Maarten St. Lucia Barbados Trinidad Curaçao


1.5

1

0.5


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

The Bid Environment can be categorised into five scenarios as per the following table:

20

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.

Forecast Escalation:

In order

BCQS

BAHAMASTURKS & CAICOS

CAYMAN JAMAICA BVIST.

MAARTENST 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

• 3/4’’ rebar

• 5/8’’ plywood

• 30lb Roofing Felt

• 2’’ x 8’’ pressure treated rafter

• Plaster Sand

• 1/2’’ regular sheetrock

• Semi-gloss latex based white paint

• 16’’ x 16’’ ceramic floor tiles

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

• Copper tubing 3/8’’ diameter

• PVC Pipe 1 1/2” sch 40 - pressure

Plant• Dump truck -12 cy

• Backhoe

• D3

• Excavator, 20 tonne

Labour• Labourer, non-skilled

• Skilled carpenter

• Painter/ finisher

• Tiler

• Mason (excl. helper)

• Plumber (excl. helper)

• Electrician

• Foreman/ Supervisor

22

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.

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

20%

10%

0%

-10%

2010 2011 2012 2013 2014 2015

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

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.

PERCENTAGE ESCALATION

YEAR

BCQS

Country Construction Cost Escalation : 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.

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao


2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR

RESIDENTIAL : MEDIUM QUALITY

RESIDENTIAL : MODEST QUALITY

2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR

RESIDENTIAL : HIGH QUALITY

2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR


2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR



2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR


2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR


2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR



2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR


2010 2011 2012 2013 2014 2015

400

350

300

250

200

150

100

50

US$

YEAR

24

Country Construction Cost Escalation : Commercial

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao


300

250

200

150

100

502010 2011 2012 2013 2014 2015

US$

YEAR

COMMERCIAL : OFFICES, 1 TO 3 STOREY, FITOUTCOMMERCIAL : OFFICES, 1 TO 3 STOREY, SHELL

300

250

200

150

100

502010 2011 2012 2013 2014 2015

US$

YEAR

300

250

200

150

100

50

2010 2011 2012 2013 2014 2015

YEAR

US$

COMMERCIAL : STORAGE/WAREHOUSE COMMERCIAL : RETAIL, SINGLE-STOREY

300

250

200

150

100

50

2010 2011 2012 2013 2014 2015

YEAR

US$


300

250

200

150

100

502010 2011 2012 2013 2014 2015

US$

YEAR

COMMERCIAL : OFFICES, 1 TO 3 STOREY, FITOUTCOMMERCIAL : OFFICES, 1 TO 3 STOREY, SHELL

300

250

200

150

100

502010 2011 2012 2013 2014 2015

US$

YEAR

300

250

200

150

100

50

2010 2011 2012 2013 2014 2015

YEAR

US$

COMMERCIAL : STORAGE/WAREHOUSE COMMERCIAL : RETAIL, SINGLE-STOREY

300

250

200

150

100

50

2010 2011 2012 2013 2014 2015

YEAR

US$

BCQS

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

Country Construction Cost Escalation : Hotels & Condos

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

Country Construction Cost Escalation : Hotel s and Condos

400

350

300

250

200

150

100

50

HOTELS / CONDOS : FIVE STAR URBAN

2010 2011 2012 2013 2014 2015

YEAR

US$

400

350

300

250

200

150

100

502010 2011 2012 2013 2014 2015

YEAR

US$

HOTELS / CONDOS : THREE STAR ECONOMY

Bahamas

Turks & Caicos

Jamaica

Cayman

BVI

St Maarten

St Lucia

Barbados

Trinidad & Tobago

Curacao

Country Construction Cost Escalation : Hotel s and Condos

400

350

300

250

200

150

100

50

HOTELS / CONDOS : FIVE STAR URBAN

2010 2011 2012 2013 2014 2015

YEAR

US$

400

350

300

250

200

150

100

502010 2011 2012 2013 2014 2015

YEAR

US$

HOTELS / CONDOS : THREE STAR ECONOMY

26

in the Caribbean are acutely aware of the effects that the

global economic downturn has had on resort invest-

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

vestors to get back in the water? Although we in

the Caribbean have had our fair share of doom

and gloom, there have been savvy investors taking

the opportunity to step into projects that appear to

have real value in this changing market. Some have

snapped up distressed properties that have been

over-leveraged or under-managed, some have

picked up deals from defaulting loans and others

have recognized the evolution in the resort invest-

ment market and restructured their projects to suit.

Established Caribbean resort players such as Sandals

were quick to spot potential and their purchase of

the Emerald Bay Resort in Great Exuma (formerly

Four Seasons) provided them with a magnificent 500

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

opened in January 2010 and has provided a much

needed boost for this Bahamian island’s economy.

All of us

Caribbean Resorts...Opportunity Knocks?

The Bahamas Government has actively sought to en-

courage 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

Cable Beach redevelopment project, which is set to

stimulate significant growth for The Bahamas.

Construction is at last underway and this mas-

sive project is set to bring a huge boost to the lo-

cal 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-

ment the Bahamian labour available to build the re-

sort, Baha Mar has partnered with China State Con-

struction Engineering Corporation (CSCEC) to supply

short-term labour from China to help complete the

resort as quickly as possible.

However, local Government assistance can only go

so far. Resort developers must be able to adapt to

the changing tourism investment model in order to

attract new backing for their projects. In particular,

there appears to be a trend away from those con-

cepts relying on residential components as a signifi-

cant source of financing. Residential condominium

products have seen significant reductions in price

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

what the replacement cost would be – therefore

discouraging developers from starting or continuing

with these types of resort projects. The reduction of

second home real estate investment from the Carib-

bean’s key investment markets combined with fall-

ing tourism arrivals and a decline in real estate based

project financing has also had a dramatic effect.

by Simon Taylor

BCQS

In a recessionary economy, where consumer confi-

dence is low, there is an obvious reluctance to invest

significant sums in second homes, particularly when

property markets at home may have contracted sig-

nificantly. Hence the resort and condominium mar-

ket must evolve to cater for new market demands

– vacation ownership, timeshare and fractional own-

ership are all examples of reducing the significance

of the investment to encourage demand.

Similarly, the global financial crisis and tightening of

credit guidelines has led to the failure or stalling of

many resort projects under construction and has pre-

vented 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 opera-

tion 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, occu-

pancies are now bouncing back and tourism arriv-

als typically on the rise. Thus the profitability of hotel

operations should continue to improve and provide

development opportunities in refurbishment of ex-

isting prime hotel stock or new resort development

concepts.

With the lack of support from financial institutions,

private equity investors are finding themselves with li-

quidity in a buyers market and able to choose from a

considerable array of distressed or defaulting prop-

erties. Those projects that demonstrate strength of

design, revenue generating potential and value for

money are attracting interest from investors who rec-

ognize the evolution in the resort market.

With the return of the tourists and increasing invest-

ment confidence from some of the less traditional

sources (BRIC countries in particular), now may be

the time for visionary developers to find new ways of

packaging the traditionally idyllic Caribbean assets

of sun, sea and sand.

28

having opened for business

in Brazil, and with an expe-

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

index, not only Brazil, but other countries in which

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

present cost indices for Belize.

The following words from James Slattery, our Di-

rector in Brazil, show why we believe that BCQS

International has a significant role to play in the

construction sector in Brazil:-

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

nations of the world. With Brazil hosting the Eco-

conference in 2012, World Cup 2014, and Olympics

2016 all bodes well for the construction industry.

Infrastructure has to be urgently upgraded for the

World Cup and this sector is attracting high govern-

ment investment. This is not the only sector driving

the industry. The residential sector is also booming

especially in the low and mid income sectors.

South and Central America:

Most of the principal banks, and investment com-

panies 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 ac-

cording to some estimates are between 5 and

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

impacting on companies within the supply chain

and as a consequence the materials sector in Bra-

zil is booming. Whilst this fast paced growth could

present significant manpower supply challenges in

other locations, Brazil is an extremely dynamic and

fast moving country with a young and ambitious

population. As 50% of the population have not yet

reached their mid-twenties, the rapidly increasing

number of newly qualified graduates and a great-

er spending power for the working population all

bodes well for the property development and con-

struction industries.

Most major Brazilian contractors and develop-

ers are actively exploiting the new opportunities

being created generating favourable conditions

for the future expansion in the areas of construc-

tion and property development (residential, of-

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

range of opportunities and it is clear that the fu-

ture prospects are very exciting for the property

and construction industry sectors.”

This Year

BCQS

General and Government Statistics:

COUNTRY

LOCAL CURRENCY

EXCHANGE RATETO

US $1.00

LAND

AREA

CAPITAL

CITY

POPULATION

(1)

WORKFORCE

(2)

GDP

(Millions),

2010 (3)

GDP/ Capita

(US$), 2010

KEY INDUSTRIES

(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

ITEM DESCRIPTION UNIT BRAZIL BELIZE

1 City Water $/gal lon 0.01 0.03

2 Electr icity $/kwh 0.16 0.05

3 Gasol ine $/gal lon 5.52 5.76

4 Income tax, personal %/income 17.50% 25%

5 Income tax, corporate %/income 30.45% 6%

6 Import duty on bui lding mater ials/ essent ial % (average) 7.00% 20%

7 Import duty on luxury goods % (average) 20.00% 40%

8 Stamp duty on property t ransfer % 4.50% 5%

9 Real estate commiss ion on property sale % 4.50% 10%

10 Vendors tax on property t ransfer % (average) 15.00% 0%

11 Lawyers fees on property sale % 7.50% 2%

Cost of Living Indicators:

30

Indicative Construction Costs:

ITEM BRAZIL ELIZE

DESCRIPTION Low High Low High

1 ResidentialHigh quality 120.00 210.00 140.00 230.00

2 ResidentialMedium quality 80.00 140.00 110.00 180.00

3 ResidentialModest 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 8stories, 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 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$

Brazil

Belize

US$ 0 100 200 300 400 500

High quality

Medium quality

Modest quality





Specialist offices



Five star urban

Five star low-rise

Three star economy




Brazil

Belize

US$ 0 100 200 300 400 500

Brazil

Belize

US$ 0 100 200 300 400 500

BCQS

Average Rental and Sales Values:

ITEM BRAZIL BELIZE

DESCRIPTION Low High Low High

1 ResidentialHigh quality 350.00 660.00 200.00 380.00

2 ResidentialMedium quality 220.00 410.00 140.00 270.00

3 ResidentialModest quality 140.00 250.00 70.00 120.00

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 8stories, inc. fitout 40.00 80.00 30.00 60.00

10 Specialist offices 70.00 130.00 30.00 50.00

11 Hotels/ Condos, Five star urban 380.00 710.00 200.00 380.00

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

RENTAL LEVELS -MEDIAN/SF

RACK RATES - PER NIGHT

SALES - MEDIAN/SF

All values in US$

High quality

Medium quality

Modest quality





Specialist offices



Five star urban

Five star low-rise

Three star economy



Brazil

Belize

US$ 0 200 400 600 800 1000 1200

Brazil

Belize

US$ 0 40 80 120 140 200

Brazil

Belize

US$ 0 200 400 600 800


32

has true multi-jurisdictional reach

and is incorporated indepen-

dently 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 of-

fer 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.

About BCQS:

BCQS

Our Projects include prestigious residential prop-

erties, large-scale commercial buildings and of-

fices, civic and government buildings, hotels and

resorts, and apartments and condominiums. We

are approved consultants for the British Gov-

ernment’s Foreign and Commonwealth Office,

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 mem-

ber organisation representing property interests

worldwide. We are approved consultants for ma-

jor banks in the region such as Scotiabank, First

Caribbean International Bank, Royal Bank of Can-

ada 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 re-

ceives 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 con-

tact details, country by country are detailed

at the front of this report. We look forward to

hearing from you.

34

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 As above but with ceramic floor tiling, fiberglass shingle

roofing, laminated plastic countertops, standard jalousie

windows, electrical hot and cold plumbing

3.00 Block and steel walls, sheet metal roofing, ceramic floor,

aluminium jalousie windows, outside laundry tubs, cold

water plumbing with electrical

4.00 Walled and metal sheet roofed, electrical and water

5.00 Open plan, bathrooms, glass storefront

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

8.00 As above shell only, with elevators

9.00 As above fitted out, with elevators

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

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

This report is intended as a guide only. Should the reader require detailed

construction advice, then the services of a professional RICS accredited

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

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

of the sources of such rates and statistics;

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

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

throughout our named jurisdictions;

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

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

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

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

IMPERIAL

Length

l inch 2.54 cm

1 foot 12 in 0.3048 m

1 yard (yd) 3 ft 0.9144 m

1 mile 1760 yd 1.6093 km

Area

1 sq inch (in2) 6.4516 cm2

1 sq foot (ft2) 144 in2 0.0929 m2

1 sq yard (yd2) 9 ft2 0.8361 m2

1acre 4840 yd2 4046.9 m2

Capacity / Volume

1 cu inch (in3) 16.387 cm3

1 cu foot (ft3) 1728 in3 0.0283 m3

1 fluid ounce (fl oz) 28.413 ml

1 pint (pt) 20 fl oz 0.5683 litre

1 gallon (gal) 8 pt 4.5461 litre

Mass (weight)

1 ounce (oz) 437.5 grains 28.35 g

1 pound (lb) 16 oz 0.4536 kg

1 stone 14 lb 6.3503 kg

1 ton 20 cwt 1.016 t

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

Length

l millimetre (mm) .0394 in

1 centimetre (cm) 10 mm .03937 in

1 metre (m) 100 cm 1.0936

1 Kilometre (km) 1000 m .6214 mile

Area

1 sq cm (cm2) 100m2 .1550 in2

1 sq metre (m2) 10000 cm2 1.1960 yd2

1 hectare 10000 m2 2.4711 acres

1sq km (km2) 100 ha .3861 mile2

Capacity / Volume

1 cu ccm (cm3) .0610 in3

1 cu decimetre (dm3) 1000 cm3 .0353 ft3

1 cu metre (m3) 1000 dm3 1.3080 yd3

1 litre (litre) 1 dm3 1.76 pt

1 hectolitre (hl) 1000 litre 21.997 gal

Mass (weight)

1 milligram (mg) .0154 grain

1 gram (g) 1000 mg .0353 oz

1 kiligram (kg) 1000 g 2.2046 lb

1 tonne (t) 1000 kg 09842 ton

36B A H A M A S B A R B A D O S B R A Z I L B V I C AY M A N I S L A N D S G U YA N A J A M A I C A S T . L U C I A T R I N I D A D T U R K S & C A I C O S

bcqs market trend report - 4q 2011

Documents

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n c o n s t r u c t

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market trend report

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market trendreport