WHY INVEST IN GRENADA PROPERTY?

Year-round warm weather and sunshine make Grenada a great destination during any month. Like most Caribbean islands, Grenada's summer-like climate experiences few variations. The biggest seasonal change is during the rainy season.

Grenada is covered in lush tropical vegetation and rainforests, so the little island has to maintain a warm, balmy climate to sustain its precious foliage. The average year-round temperature is 80 degrees Fahrenheit. Daily highs usually climb to 86 degrees Fahrenheit, and low temperatures, which usually occur at night, stay near 75 degrees Fahrenheit. The hottest months are from June through August. Cooler temperatures characterize the region's winter season, from November to February. Northeast trade winds provide cool, comfortable relief from sultry summer temperatures, so if you travel during the summer, you shouldn't be overwhelmed by the tropical heat.

Grenada's seasons are measured by rainfall rather than temperature. The dry season falls between January and May, when showers are few and sporadic. The rainy season is June through December, when conditions are more humid, and Grenada experiences some heavy rainfall. During the wet season, expect rainstorms accompanied by high winds. If you visit during these muggy months, bring rain gear. Rainfall varies each year, and showers show up in short bursts, so travelers shouldn't be discouraged from visiting during the summer.

Grenada lies on the edge of the hurricane belt, so the island can be affected by bad weather and storms. Hurricane season falls during the rainy season, from about June to November. Hurricane threats are usually rare, and travelers visiting the island during this time will likely not have to worry. Technology has been able to locate and predict storms forming in the waters well in advance. Before leaving for your tropical vacation, investigate current weather conditions.

Weather in Grenada varies according to altitude. The island has very remarkable topography, with several mountainous regions. Around the coastline, weather tends to be more hot and humid, but as you travel toward the interior of the island, temperatures change drastically. The rainforests of Grenada are shrouded in thick mists, and temperatures in the forests are considerably cooler than on the outer edges of the island. No matter the season, light rains often fall in the mountainous and forested areas of Grenada.

GRENADA PROPERTY – ECONOMY 

Grenada has a largely tourism-based, small, open economy. Over the past two decades, the economy has shifted from one of agriculture-dominant into that of services-dominant, with tourism serving as the leading foreign currency earning sector. The country's principal export crops are the spices nutmeg and mace (Grenada is the world’s second largest producer of nutmeg after Indonesia). Other crops for export include cocoa, citrus fruits, bananas, cloves, and cinnamon. Manufacturing industries in Grenada operate mostly on a small scale, including production of beverages and other foodstuffs, textiles, and the assembly of electronic components for export. Economic growth picked up in the late 1990s following slow growth and domestic fiscal adjustment in early years of the decade. Despite an expansionary fiscal policy, the public debt remained moderate at around 50 percent of GDP as deficits were financed partly by privatization receipts. Since 2001, economic growth declined caused by adverse shocks such as a slowdown in the global economy and natural disasters. To deal with the shocks, fiscal policy became more expansionary while privatization receipts declined. As a result, public debt increased sharply to near 110 percent of GDP in 2003. Economic conditions worsened when Hurricane Ivan hit the country in September 2004; progress in fiscal consolidation was impeded as government revenues fell and policy priority was shifted to post-hurricane relief. Although reconstruction has proceeded quickly with significant aid from the international community, tourism and agricultural activities remain weak and nearly offset the stimulus from the reconstruction boom. The country is still facing the difficult task of reconstruction and recovery, while public debt is unsustainable and the government faces large financing gaps. In the years ahead, reinvigorating growth will be a high priority, and continued efforts are needed to address vulnerabilities.   

GRENADA PROPERTY – TOURISM

Tourism has only really been going since 2005. The only reason Grenada is less developed and less tourism focused than other islands is due to its previous agricultural focus. The island is the largest producer of Nutmeg and spices but It was only in the wake of Hurricane Ivan in 2005 (the first major storm in over half a century) that the island has needed to move from spice production to tourism. The government is employing careful planning restrictions to ensure development is low rise, low density and limited in its scope, to create an upmarket holiday destination. The peak season occupancy rate in the luxury resorts is 89% (it’s an average of 65% across the board annually on the island) for this reason the government are focusing on upmarket tourism. The average nightly rate in Grenada is $500.  Currently Grenada has only around 20 hotels of a good standard with just a few being 4 or 5 star. There are a total of approx 1,700 hotel rooms on the island but aim to increase this figure to 2,700 rooms. Barbados is the roughly the same size and has approx 7,500 hotel rooms on the island!!!! Plans to develop Grenada’s tourist industry are in full flow with some new developments scheduled to complete over the next few years. These developments have been linked with very strong, internationally renowned hotel chains such as Four Seasons and Ritz Carlton which will be the first international chains on the island and will increase the profile of Grenada and better equip it to compete with its well known neighbours. Such high profile developments will increase the need for more international flight accessibility from other destinations particularly throughout the US. There are already plenty of direct flights from the US, UK and rest of Europe to the international airport and they are increasing.  American Airlines now has 7 flights per week from Miami alone (until recently there was only 1 direct flight to Grenada from the US per week!)  You can fly to Grenada from many UK airports there are direct flights with Virgin, BA and charter airline Monarch. The World Travel and Tourism Council have predicted fast tourist growth in Grenada - the travel and tourism economy is expected to grow by 4.3% per annum in real terms between 2009 and 2018.  This will make Grenada the fastest growing tourism market in the Caribbean. 

GRENADA PROPERTY – PROPERTY MARKET 

There are 5 main developments currently underway in Grenada, however due to planning restrictions there will not be any more significant developments on the island. This will ensure that the market is not over-supplied and the demand balance is sustained. By regional standards, the Grenadian market is considerably undervalued and most spectators predict annual price rises of 10% or more over the medium term. The limited supply of high quality resort properties and high level of demand for industry properties and second of holiday homes is pushing up prices and yields in this sector.  Average Price for Resort Property in the Caribbean: Grenada: $460 per square footSt Lucia: $800 per square footBarbados: $1,200 per square foot To assist with the increase in tourism, the government has wavered any taxes on Tourist projects, benefiting investors purchasing property that falls in this category. This means that there is no purchase tax, no Alien land tax and no stamp duty (which is normally 1% of the property value per year) The tri-island state remains within the British Commonwealth as an independent nation and the Governor General represents Her Majesty the Queen. There is a 13-member Senate and a House of Representatives with a Speaker and fifteen members, each representing a constituency. "The Government of Grenada recognizes that private enterprise is the driving force in the Grenada economy and has implemented an overarching policy which encourages increased new private investment. It is also recognized that foreign direct investment and local investment can provide finance, access to export markets, appropriate inputs, competitive technologies and cutting-edge managerial practices which will be of great value to the Grenadian economy.

As you will read, a new era has come to Grenada. We are now working together with a number of leading business people to stimulate an eco-friendly tourist industry.  We are not about whistle-stop tours and frantic itineraries. Grenada is for those seeking lost pleasures and unspoilt jewels. The Government of Grenada fully supports sensitive redevelopment in keeping with our distinctive heritage and remembering that we seek quality not quantity.

This obviously indicates a government committed to seeking international investment and hence making property investment in Grenada very attractive indeed. 

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