We have recognized an existing market dichotomy that creates a “blue ocean” in the affordable and mid-price segments of Jamaica real estate industry.

Most real estate developers seek higher margins at the high-end of the housing market to maximize ROI. This strategy has resulted in excess supply in the smaller and more competitive luxury home segment of the industry, while a housing crisis has emerged in the affordable home segment.

There is growing and underserved demand in the affordable to middle income market segment, where 17,400 units per year is needed to fill existing demand. However, due to lower margins, the need for advance management expertise and access to early-stage real estate development financing, most developers are less interested in this segment.

Despite perceptions, the most successful developers primarily serve the affordable market segment: However, the current players in this segment can only satisfy less than 50% of the annual demand.

The construction industry is prime for digital disruption. The incumbents are slow to react at emerging technologies. However, it is our Investment Thesis that developers that leverage systems, technologies and innovative financing can achieve exponential social impact and financial returns by satisfying the demands of the majority in the affordable housing market.

At Estate Capitals we will be tracking our ESG impact using the UN SDG Indicators.