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Caribbean Construction Market Trend Report 4Q 2011
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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
E-mail: [email protected]
Contact: Sanjay Amin
BRAZIL
R. Haddock Lobo 1129/171
Jardim America
Sao Paulo, 01414-003
SP Brazil
Tel: (+55) 11 9390 8805
E-mail: [email protected]
Contact: James Slattery
BRITISH VIRGIN ISLANDS
Abbott Building
P.O. Box 3160
Tortola
British Virgin Islands
Tel: (284) 494 7144
Fax: (284) 494 7184
E-mail: [email protected]
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
E-mail: [email protected]
Contact: Liam Day
GUYANA
Lot 1,
Thorne Drive, DurbanSP., Backlands,
Georgetown, Guyana
Tel: (592) 227 1161
Fax: (592) 226 8277
E-mail: [email protected]
Contact: David Patterson
JAMAICA
1 Oxford Terrace
Kingston 5,
Jamaica,
West Indies
Tel: (876) 926 2418
Fax: (876) 929 9717
E-mail: [email protected]
Contact: Brian Goldson
TURKS AND CAICOS
The Saltmills
P.O. Box 158
Providenciales,
Turks & Caicos Islands
Tel: (649) 946 4238
Fax: (649) 946 4670
E-mail: [email protected]
Contact: Simon Taylor
ST LUCIA
Alfiona Plaza
PO Box Choc8044
Rodney Bay, Gros Islet, St Lucia
Tel: (758) 450 7040
Fax: (758) 450 7041
E-mail: [email protected]
Contact: Chris Docherty
British Virgin Islands
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
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
I N T E R N A T I O N A L
Jamaica
BCQS
BCQS operate throughoutLatin America and the Caribbean
British Virgin Islands
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
I N T E R N A T I O N A L
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
I N T E R N A T I O N A L
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
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
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’
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
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
RESIDENTIAL : SALES PRICE /SF’
COMMERCIAL : RENTAL /SF’
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
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
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
Bahamas Turks & Caicos Jamaica Cayman BVI St Maarten St Lucia Barbados Trinidad & Tobago Curacao
1.5
1
0.5
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:
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
Country Construction Cost Escalation : Residential
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
Country Construction Cost Escalation : Residential
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
Country Construction Cost Escalation : Residential
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
24
Country Construction Cost Escalation : Commercial
Bahamas
Turks & Caicos
Jamaica
Cayman
BVI
St Maarten
St Lucia
Barbados
Trinidad & Tobago
Curacao
Country Construction Cost Escalation : Commercial
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$
Country Construction Cost Escalation : Commercial
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
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
Five star urban
Five star low-rise
Three star economy
HOTELS / CONDOS : COST PER /SF’
COMMERCIAL : COST PER /SF’
RESIDENTIAL : COST PER /SF’
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
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
Five star urban
Five star low-rise
Three star economy
HOTELS / CONDOS : RACK RATES PER NIGHT
RESIDENTIAL : SALES PRICE /SF’
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
COMMERCIAL : RENTAL /SF’
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.
BCQS
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