T&T’s Property Pulse — Charting the Real Estate Market

February 19th, 2025

Data from the Central Bank of Trinidad and Tobago (CBTT) reveals a growth trend in the consolidated credit system, with increased lending for business and real estate mortgages supported by stable interest rates. Reflecting on this, Sally Singh, President of the Association of Real Estate Agents (AREA), indicates that the market is not only recovering from the COVID-19 pandemic but also undergoing significant, though subtle, changes.

Growth Forecast Despite Challenges

Growth in the real estate market is anticipated to continue, driven by expected increases in oil and gas production, which will positively impact policymaking and National Gross Domestic Product (GDP) growth from 2024 to 2025.

Despite that, uncertain tides in the economy have massively impacted the residential market. “The expat market, which has been vibrant for decades, has reduced drastically with the performance of the petrochemical sectors. Homeowners are now targeting the local TT dollar market with reduced monthly rents that reflect the buying power of the local market,” Singh points out. “The residential market currently shows strong demand for properties priced under TT$1 million, although supply is limited. There’s a healthy demand for properties in Trinidad between TT$1 million and TT$2 million, supported by a stamp duty exemption for first-time buyers.”

“However, in Tobago, there’s notable demand for land and houses within specific price ranges which are incongruent with financing,” Singh adds. In the sister isle, the data points to loan qualifications that tend to peak around TT$500,000 for land in desired locations at that price. She is hopeful that this can present opportunities for developers and investors.

Market Trends to Watch in 2025

Several key trends are expected to influence the residential market in 2025. Consumer preferences are shifting towards more secure, gated communities and turn-key homes, driven by concerns over security and the need for convenience. There is also a growing demand for properties that accommodate remote working, with home offices, gyms, and outdoor spaces becoming increasingly desirable. Smarter homes that use consumer-based technologies in lighting, Internet of Things (IoT) devices, entrance/exit management, and climate control are also becoming increasingly desirable.

The commercial sector, however, faces reduced demand for sales and rentals. Many companies have downsized or adopted hybrid working models, leading to lower rental rates and more available space. Landlords continue to convert commercial properties to residential or mixed-use to mitigate the impact of decreased demand.

Government Policies and Market Volatility

Economic uncertainties, such as fluctuations in energy prices and domestic hydrocarbon production, add to market volatility. Property tax, for which valuations and assessments are still being worked on, will increase ownership costs, particularly for commercial properties when it comes into effect.

Government policies and initiatives will significantly influence the real estate market in T&T. Efforts to streamline planning processes, improve land titling systems, and enhance property registration procedures are underway. The President of AREA welcomes these initiatives, pointing out that “planned new legislation includes the full proclamation of the Planning and Facilitation of Development Act 2014, which is a progressive step towards more efficient and effective real estate processes” and will result in better developments, smarter land use and enhanced profitability for all stakeholders.

There are also plans to improve the housing stock for lower-income homeowners. “Recognising the lack of buying power in a third of the workforce, the Housing and Village Improvement (HVIP) programme, with a budget of TT$100 million, aims to increase low-income housing stock. This initiative will provide approved housing plots and units, addressing the strong demand for affordable homes.” Singh points out.

Looking ahead to 2025, the real estate market in T&T is expected to see stable property prices and rental yields. Property demand is projected to remain strong, particularly in the residential sector. However, supply constraints, especially for affordable housing, will continue to pose challenges while interest in homeownership grows. AREA is also looking forward to the Proclamation of the Real Estate Agents Act, which will dramatically improve the quality of real estate services. While challenges persist, the industry’s resilience and adaptability will ensure it remains a vital component of the nation’s economic landscape.

By Kieran Andrew Khan