Recently published data reveals that Jamaica’s real estate sector has enjoyed steady growth over the last few years.
Jamaica Real Estate Grew by 3.68% in 2018
According to data published by the Statistical Institute of Jamaica (STATIN), the contribution of the “Real Estate, Renting & Business Activities” sector of the economy has steadily grown by approximately 3.5% to 5% per year since fiscal year 2013.
During the most recent year for which data is available – 2018 – the real estate sector contributed a total of $173,900,000 to the island nation’s Gross Domestic Product (GDP), up from $167,726,000 during the previous fiscal year. This represents an increase of 3.68%.
Significant Cumulative Growth
The cumulative growth over a 5 year period amounts to over 20% growth in the Jamaica real estate sector.
Growth of Real Estate Sector Due to Various Factors
The growth in the real estate sector is due to various factors including a strong pipeline of new developments, increased domestic demand in locations such as Kingston, increased loan limits, more attractive mortgage rates and the success of Airbnb in Jamaica, enhancing the ability of owners of homes in Jamaica to market them to the increasing number of overseas visitors on the short-term rental market.
Real Estate Growth Contributing to Overall GDP Growth
This steady growth has contributed to the overall growth of Jamaica’s economy.
Data released by STATIN just last week indicates that Jamaica’s economy expanded by 1.8% between July and September of last year when compared to the same period of the previous year, thanks in part due to an increase in the contribution of the real estate sector among others.