Construction & Real Estate
From The Report: Trinidad & Tobago 2020
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Following a period of subdued activity, a steady flow of projects in 2019 has seen Trinidad and Tobago’s construction industry return to healthier growth. Construction activity still remains confined to a small number of projects, which are largely driven by public sector spending. Nevertheless, major developments such as the TAB airport extension, road network upgrades and housing construction initiatives should help the sector to recover, particularly with a slightly higher state budget in 2020. There are signs of recovery in the real estate market, particularly as the need for long-term, affordable housing continues to drive the lower end of the property market. In order for the residential segment to see healthy growth in the years ahead, both the public and private sector will need to ensure that this demand is adequately met. This chapter contains interviews with Jean-Paul de Meillac, CEO, Terra Caribbean; and Emile Elias, Chairman, NH.

Articles from this Chapter

Overview

Steady support: The sector is expected to recover on the back of large-scale, state-funded infrastructure projects
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Following a period of subdued activity, a steady flow of projects in 2019 have seen Trinidad and Tobago’s construction industry experience healthier growth in recent years. However, obtaining private sector funding remains a challenge, due to a decline in banks’ lending activity. Nevertheless, in November 2019 Glenn Mahabirsingh, president of the T&T Contractors Association, told local media that the flow of projects in the industry was “reasonable”, largely as a result of public spending…

Interview

Modern market: Jean-Paul de Meillac, CEO, Terra Caribbean, on shifting demand, the need for data and foreign ownership
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Interview:Jean-Paul de Meillac How has the nature of property sales evolved as Trinidad and Tobago returns to growth? JEAN-PAUL DE MEILLAC: Trinbagonians have done exceptionally well over the years thanks to the strong oil and gas sector, which has injected a vast amount of liquidity into the financial system. As a result, stakeholders have been able to keep properties in their investment portfolios. However, as we enter the fourth year of economic downturn, sellers are now realising that…

Analysis

Unlocking potential: The country is looking to public-private partnerships to address its infrastructure deficit
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While public-private partnerships (PPPs) have been used to finance projects in Trinidad and Tobago since the 1990s, the model formally gained institutional backing in 2011 with the creation of a specific policy unit, known as the PPP Unit, which operates within the Investments Division of the Ministry of Finance. Despite this, unlike other Caribbean countries such as Jamaica, T&T’s PPP framework is relatively underdeveloped and had been largely limited to utilities projects. Although the model…

Overview

Foundations to build on: Government projects seek to tackle the affordable housing deficit, while new developments help to revive the commercial segment
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Trinidad and Tobago’s housing market has fluctuated over recent decades in line with international oil prices and the overall health of the global economy. The sector grew rapidly between 1991 and 2006, with the most notable development occurring in the capital, Port of Spain, and the areas close to Point Lisas, the centre of the country’s petrochemicals industry. However, since the 2007/08 global financial crisis the market has posted uneven growth. Although it recovered towards the end of 2014…

Overview

Modelling the future: New data-driven technologies to revolutionise the construction sectors of emerging countries worldwide
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Around 55% of the world’s population – or 4.2bn people – lived in urban areas in 2018, up from 47% in 2000, according to the UN. Because of the rapid rate of urbanisation, this figure is expected to reach 68% by 2050, with growth concentrated in Latin America, the Middle East and North Africa (MENA), sub-Saharan Africa and Asia. The shift towards the cities put the onus on the construction sector to respond to the burgeoning demand for housing, transport and supporting infrastructure. New Technology The global construction sector is forecast to expand by 2% in 2020 and 5% in 2021, with emerging markets leading the sustained growth. Technology…