Georgetown, the capital city of Guyana, is located on the Atlantic coast of the country and is home to a diverse population. The real estate market in Georgetown has undergone significant changes in recent years, and a technical analysis can provide valuable insights into current trends and conditions.
One key factor impacting the real estate market in Georgetown is regulation. The Government announced in June 2022 that it is moving ahead to enact laws to regulate Guyana’s real estate industry that some consider to be long overdue.
This along with the increasing interest from foreign inverters lead to the formation of new Real Estate Associations with objectives to ensure that education of the stakeholders, property owners, and buyers and compliance with the soon-to-be enacted Real Estate Bill.
This year the Government has enacted the Condominium Act of 2022 to regularise condos in Guyana.
The Act allows for persons who have purchased duplexes or condominiums from the State to be able to access the titled documents for their properties, provides for the horizontal and vertical subdivision of land and buildings into units for individual ownership, and for the use and management of condominiums, paves the way for commercial banks to accept titles for the properties, and for insurance companies to issue policies to owners of condominiums.
A Major influence on the market is property prices. Over the past decade, property prices in Georgetown have generally trended upwards, driven by increasing demand for housing and commercial properties. According to data, the average price of a house in Georgetown increased by over 60% between 2010 and 2020. However, prices have begun to stabilize in recent years, with modest increases of around 5-10% per year with the average price of a house in Georgetown was GYD 22.8 million (about USD 108,000) in 2021- 2022.
Another key factor in the Georgetown real estate market is sales volumes. The number of properties sold in Georgetown has generally trended upwards in recent years, with a peak in sales volumes in 2018. However, sales volumes have fallen slightly in the past few years, likely due to the economic downturn caused by the COVID-19 pandemic. In 2021, about of 612 houses were sold in the city, representing a significant increase with is expected to be surpassed by 2022.
Rental rates in Georgetown have also increased in recent years, with the average monthly rent for a one-bedroom apartment increasing by around 15% between 2015 and 2020. However, rental rates have remained relatively stable in recent years, with modest increases of around 5% per year.
Demand for different types of properties in Georgetown varies. Single-family homes and apartments are in high demand, with occupancy rates consistently above 90%. Commercial properties, such as office and retail spaces, have seen more fluctuation in demand, with occupancy rates ranging from 60-80%.
In terms of economic indicators, Georgetown has experienced strong economic growth in recent years, with GDP growth rates averaging around 5% per year. Unemployment rates in Georgetown have also remained low, hovering around 5%.
Inflation has been a concern in Georgetown, with rates averaging around 8% per year in the past decade but this is an international issue related to the recent Covid Pandemic and the global recession. due to continued economic growth Guyana has been one of the better performing nations with a Consumer Price Index (CPI) of 136 index points. like most places as of October 2022 food inflation is 12.3% but the National Inflation rate year on year is 6.49% which is lower that the 7.1% of the United States or neighbors like Jamaica (10.3%), Suriname (49.1%) and Venezuela (156%).
Financing options for real estate purchases in Georgetown are available through banks and other financial institutions. However, the availability of financing can vary depending on the local economy's state and the borrower's overall "worthiness".
Overall, the real estate market in Georgetown is currently stable, with modest price increases and strong demand for housing and commercial properties. Even with the market subject to various economic and market forces, the Real estate forecasts for the upcoming year is extremely optimistic. More growth and investment are expected in the Country. the construction of the new bridge across the demerara river brings even more excited development to the country and it is important for buyers and investors to carefully consider these factors when making real estate decisions.
Adrian I.
One key factor impacting the real estate market in Georgetown is regulation. The Government announced in June 2022 that it is moving ahead to enact laws to regulate Guyana’s real estate industry that some consider to be long overdue.
This along with the increasing interest from foreign inverters lead to the formation of new Real Estate Associations with objectives to ensure that education of the stakeholders, property owners, and buyers and compliance with the soon-to-be enacted Real Estate Bill.
This year the Government has enacted the Condominium Act of 2022 to regularise condos in Guyana.
The Act allows for persons who have purchased duplexes or condominiums from the State to be able to access the titled documents for their properties, provides for the horizontal and vertical subdivision of land and buildings into units for individual ownership, and for the use and management of condominiums, paves the way for commercial banks to accept titles for the properties, and for insurance companies to issue policies to owners of condominiums.
A Major influence on the market is property prices. Over the past decade, property prices in Georgetown have generally trended upwards, driven by increasing demand for housing and commercial properties. According to data, the average price of a house in Georgetown increased by over 60% between 2010 and 2020. However, prices have begun to stabilize in recent years, with modest increases of around 5-10% per year with the average price of a house in Georgetown was GYD 22.8 million (about USD 108,000) in 2021- 2022.
Another key factor in the Georgetown real estate market is sales volumes. The number of properties sold in Georgetown has generally trended upwards in recent years, with a peak in sales volumes in 2018. However, sales volumes have fallen slightly in the past few years, likely due to the economic downturn caused by the COVID-19 pandemic. In 2021, about of 612 houses were sold in the city, representing a significant increase with is expected to be surpassed by 2022.
Rental rates in Georgetown have also increased in recent years, with the average monthly rent for a one-bedroom apartment increasing by around 15% between 2015 and 2020. However, rental rates have remained relatively stable in recent years, with modest increases of around 5% per year.
Demand for different types of properties in Georgetown varies. Single-family homes and apartments are in high demand, with occupancy rates consistently above 90%. Commercial properties, such as office and retail spaces, have seen more fluctuation in demand, with occupancy rates ranging from 60-80%.
In terms of economic indicators, Georgetown has experienced strong economic growth in recent years, with GDP growth rates averaging around 5% per year. Unemployment rates in Georgetown have also remained low, hovering around 5%.
Inflation has been a concern in Georgetown, with rates averaging around 8% per year in the past decade but this is an international issue related to the recent Covid Pandemic and the global recession. due to continued economic growth Guyana has been one of the better performing nations with a Consumer Price Index (CPI) of 136 index points. like most places as of October 2022 food inflation is 12.3% but the National Inflation rate year on year is 6.49% which is lower that the 7.1% of the United States or neighbors like Jamaica (10.3%), Suriname (49.1%) and Venezuela (156%).
Financing options for real estate purchases in Georgetown are available through banks and other financial institutions. However, the availability of financing can vary depending on the local economy's state and the borrower's overall "worthiness".
Overall, the real estate market in Georgetown is currently stable, with modest price increases and strong demand for housing and commercial properties. Even with the market subject to various economic and market forces, the Real estate forecasts for the upcoming year is extremely optimistic. More growth and investment are expected in the Country. the construction of the new bridge across the demerara river brings even more excited development to the country and it is important for buyers and investors to carefully consider these factors when making real estate decisions.
Adrian I.
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