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MARKET REPORT RESIDENTIAL SALES FIRST HALF 2026 - BARBADOS

MARKET REPORT RESIDENTIAL SALES FIRST HALF 2026 - BARBADOS SUMMARY Terra Caribbean's first half (H1) 2026 results point to a strong Barbados residential market. While fewer sales closed in the first half of 2026 than in the same period a year earlier, a significantly higher number of sales have been agreed and are expected to close in the months ahead. Terra Caribbean recorded a 24% decline in the number of residential properties successfully closed in H1 2026, compared with the same period in 2025. This follows an unusually strong first half of 2025, driven by the completion of Allure on Brighton Beach which had fully sold out during the construction phase given high demand in this emerging West Coast area. This decline in closed sales is more than offset by an exceptionally strong pipeline of pending sales (properties where a sale has been agreed but has not yet legally closed). As at July 1st, 2026, these pending sales were up 36% in value and 54%

in number compared with a year earlier; the strongest pending sales position in recent years. This growth reflects several factors, including sales agreed at new projects still under construction, as well as extended closing timelines caused by ongoing land tax revaluations. The average price achieved over the period was slightly lower, down 5.3%, a result of fewer high-value transactions in the mix during H1 2026, rather than a broad decline in property values.

While fewer sales closed in the first half of 2026 than in the same period a year earlier, a significantly higher number of sales have been agreed and are expected to close in the months ahead.

At 78% market share, sales below $1 million remained the most popular segment, attracting a mix of local and foreign buyers. Houses and land continued to be the most popular property types, with Christ Church and St. James the two busiest parishes. The luxury segment (over $4 million) remained resilient, led primarily by foreign buyers purchasing standalone homes, with St. James retaining its position as the leading parish for these sales. Prices remained firm, with the average discount from list price at 2.7%, slightly below 2025's five-year low. New sale enquiries rose 9%, suggesting a period of stabilisation following the accelerated growth seen in 2025. Barbados enters the second half of 2026 on strong footing. The island recorded record tourism arrivals in 2025, with more than 729,000 long-stay visitors, a 3.3% increase yearover-year, and that momen- tum has carried into 2026, with first-quarter arrivals up a further 1.2%. Combined with continued investment across the hotel and residential sectors, from West Coast developments to land- mark projects such as The Pierhead in Bridgetown, the island is shaping up for a strong 2026/2027 high season. The pending sales pipeline supports this outlook. Growth was broadbased across price bands, but strongest in the upper-mid market and luxury segments, pointing to healthy demand across all buyer segments.

New sale enquiries rose 9%, suggesting a period of stabilisation following the accelerated growth seen in 2025. A significant amount of new residential supply is in the pipeline across all market segments, from luxury projects meeting continued foreign buyer demand to developments below $1 million targeting the island's core market.

THE DETAILS SALES PRICE RANGE FOR RESIDENTIAL INCLUDING LAND

DECREASE

RESIDENTIAL SALES YEAR

5.3%

MIN

MAX

AVERAGE

H1 2025

$70,000

$33,000,000

$1,176,356

H1 2026

$90,000

$22,500,000

$1,114,562

in average sale price.

achieved price fell 5.3% to $1,114,562, reflecting a shift in the mix of properties sold rather • Average than a decline in property values. was primariliy driven by a decline in $2M–$2.5M sales, which reduced the share of higher-value • This transactions in the overall mix.

TRANSACTIONS BY PRICE RANGE & PARISH +$6M 2025

2026

$4M<$6M

$2M<$4M

$1M<$2M

$500,000<$1M UNDER $500,000

Caribbean recorded a 24% decline in the number of residential properties successfully closed in H1 • Terra 2026, compared with the same period in 2025. decline in closed sales is more than offset by an exceptionally strong pipeline of pending transactions, • This with 54% more properties under offer but not yet closed as at July 1st, 2026 than on the same date a year earlier (see Pending Sales section for detail).

• • • • • • •

earlier (see Pending Sales section for detail). The decline in transactions was concentrated in two bands: sales between $2M-$2.5M, and to a lesser extent, sales below $500,000. While there were fewer sales under $500,000 this segment continues to dominate the market, accounting for 40% of achieved sales in H1 2026. Sales achieved in the $500,000-$1M segment remained steady commanding 38% of the market share. The $1M-$2M segment held steady at 14% market share. The $2M-$4M range dipped considerably in H1 2026, after more than doubling in 2025. This was driven largely by the $2M-$2.5M band, which had been significantly bolstered in H1 2025 by the completion of Allure on Brighton Beach, which fully sold out during the construction phase given high demand in this emerging West Coast area. With no comparable handover in H1 2026, this band cooled, though sister development Aspire (17 apartments sold, just 2 remaining) is expected to lift this segment again once it completes later this year. The luxury segment (+$4M) also held steady, matching last year's sales count after 45% growth in 2025, and remains foreign-buyer-driven, dominated by standalone home purchases. Standalone homes comprised 77% of properties purchased above $4M in both H1 2025 and H1 2026, reflecting a continued trend of foreign buyers seeking longer stays with space to accommodate friends and extended family.

VOLUME OF TRANSACTIONS BY PARISH 2025 - 2026

2025

Christ Church

St. George

St. James

St. John

St. Joseph

St. Michael

St. Peter

2026

St. Philip

St. Thomas

Church remains the core market, driven by mid-range housing and land sales, and accounted • Christ for 54% of transactions in H1 2026. Popular developments such as The Villages at Coverley and Atlantic Breeze continue to bolster the number of sales in the parish.

James returned to one of its usual top positions, ranking as the second most popular parish this • St. period and seeing the biggest increase, with 33% more properties sold. St. James continues to

• •

dominate the luxury segment. The most significant declines were in St. Michael, St. Thomas, and St. George as a result of popular developments like Allure, Sunset Views, and The Estates having sold out in 2025. Activity in other parishes remained relatively stable.

RESIDENTIAL SALES BY PROPERTY TYPE

2026

10%

2025

16%

10%

58%

26%

33%

45%

20%

30%

Apartment

40%

50%

Apartment Building

60%

House

70%

Townhouse

80%

90%

100%

Land

• House sales grew to 58% of transactions in H1 2026, up from 45% in H1 2025. • Land sales declined to 26%, down from 33%, likely reflecting low availability of attractively located and priced plots rather than a shift in buyer preference. • Apartment sales eased to 10% of the market, down from 16%, consistent with the completed-inventory gap following Allure's sell-out ahead of Aspire's delivery later this year (see Section 2). • Townhouse and Apartment Building activity remained broadly stable, at 4% and 2% respectively. Both types are impacted by low supply of attractive inventory. The recently completed Sorrento and under construction Ayana townhouse developments attracted high demand with both fully sold out pre-completion.

DISCOUNT FROM LISTED SALE PRICE RANGE FOR RESIDENTIAL PROPERTIES ACHIEVED SALE PRICE YEAR

AVERAGE DISCOUNT FROM LIST PRICE

% OF SALES AGREED AT FULL LIST PRICE

H1 2026

2.7%

46%

H1 2025

2.7%

55%

• The average discount between listed and agreed sale prices held at 2.7%. This is just below 2025's annual average of 3.1%, the lowest level in five years. • The share of sales agreed at full list price decreased to 46%, from 55% in H1 2025. Combined with the steady average discount, this suggests list prices remain broadly realistic.

LEAD VOLUME & PENDING SALES **

36%

54%

New sale enquiries rose 9% in H1 2026, indicating some levelling after 2025's accelerated 32% growth.

Pending sales as at July 1st were up 36% in value.

Pending Sales were up 54% in transaction count year-on-year, reflecting one of the firms' strongest pipelines of agreed-but incomplete transactions.

** Pending sales measures the value of sales agreed and awaiting settlement as at July 1st.

% INCREASE IN NUMBER OF PENDING SALES BY PRICE RANGE 300%

267%

250%

200%

200% 150% 100% 50%

76%

100%

$2M - $4M

$4M - $6M

$6M +

48%

0% UNDER $500K

$500K - $1M

$1M - $1.5M

$1.5M - $2M

was broad-based across price bands, but strongest in the upper-mid market. The $1M-$1.5M • Growth and $1.5M-$2M bands saw the sharpest increases, up 267% and 200% respectively, while sub-

• • •

$500k transactions rose 48%, in line with the overall pipeline growth rate. Luxury transactions (+$2M) also grew uniformly, with each band above $2M up 100%, pointing to increased demand from foreign buyers heading into H2. This pipeline growth reflects several factors, including a greater number of sales secured on projects still under construction, as well as extended closing timeframes this year due to ongoing land tax revaluations. Overall, market conditions appear stable based on steady enquiry growth paired with a strong pipeline.

SOURCE OF BUSINESS

•Direct clients and referrals remained Terra's strongest source of Sales & Rentals leads, accounting for 50% of enquiries, a reflection of the trusted relationships built by the Brokerage team.

50%

Direct Clients & Referrals

30% External Agents

•Websites, social media, & signage are the second strongest lead source (30%). With Websites & Social Media accounting for 29% underscoring the importance of digital channels.

20%

Website, Social Media & Signage

•Collaboration with other agencies accounts for 20% of leads, also playing a significant role and highlighting valuable partnerships in the sector.

ABOUT THE AUTHOR With over 25 years of experience in Barbados’ real estate industry, Betty Cathrow offers a rare combination of financial insight, market expertise, and deep local knowledge. Her well-rounded career spans advisory services, project management, sales, and rentals - earning her a reputation as one of the island’s most respected professionals. BETTY CATHROW

Terra Luxury Real Estate Agent

THE DATA IN THIS REPORT IS SOLELY FROM THE TRANSACTIONS COMPLETED AND STATISTICS RECORDED BY TERRA CARIBBEAN. THIS REPORT FOCUSES ON RESIDENTIAL PROPERTY SALES All prices are quoted in BBD$.