Barbados continues to attract international buyers, returning nationals, and regional investors who see the island as a stable, rewarding market. But not every property makes a good investment. Whether you’re considering a holiday rental villa, a long-term rental apartment, or commercial space, here are the key factors to evaluate before you buy.

1. Location, Location, Location

In Barbados, location is the single biggest driver of property value.

• West Coast: Luxury villas, high-end rentals, strong appreciation. Properties across the street or walking distance to the beach have become very popular and are significantly cheaper than beachfront.
• South Coast: Popular with younger visitors, active rental market, good ROI potential.
• Inland Parishes: Larger lots at lower prices, increasing demand from locals and returning nationals.
• East Coast: Untapped beauty, lower costs, niche eco-tourism potential.

Consider your target audience — tourists, expats, or locals — when choosing location.

2. Rental Potential & Demand

If your investment strategy includes income, review:

• Proximity to beaches, restaurants, and amenities.
• Pool, views, and modern features (these drive occupancy).
• Short-term rental regulations under the Barbados Tourism Act 2025 (licensing now required for holiday rentals).
• In 2025 we are seeing a demand for long-term rentals in main Parishes with very limited inventory available. This is due to increase in short-term rentals, Welcome stamp visitors and medical students.
• Year-round appeal — some properties only perform well in peak season, while others attract steady business.

3. Property Type & Maintenance Costs

• Condos & Apartments: Easier entry price, lower maintenance, often managed in complexes.
• Villas: Higher nightly rates, but more upkeep (gardens, pools, staff).
• Land: Strong appreciation potential, but requires capital to build before generating returns.
• Commercial/Office: Growing interest in Bridgetown, Warrens, and South Coast business hubs.

Factor in insurance, staff wages, utilities, and hurricane preparedness when calculating ROI.

4. Legal & Tax Considerations

• Ensure clear title and due diligence through a local attorney.
• Factor in stamp duty, property transfer tax, and legal fees when budgeting.
• Be aware of the Tourism Levy for short-term rentals, and VAT obligations depending on structure.

5. Financing & Affordability

• Non-residents can obtain local mortgages, but higher deposits (30–40%) are often required.
• Compare cost of financing with projected rental yields and appreciation rates.
• Always keep a contingency budget for upgrades or unexpected repairs.

6. Exit Strategy

A good investment is also about your ability to resell.

• Choose properties in high-demand areas with proven resale markets.
• Properties with ocean views, modern design, and proximity to amenities tend to hold value best.

Final Thoughts

An investment property in Barbados should align with your goals — whether that’s income, lifestyle, or long-term capital growth. By carefully considering location, rental demand, maintenance, and legal obligations, you’ll be well positioned to make a profitable and enjoyable purchase.

At Coombes & Co., we specialize in guiding investors through every step — from property search to management. Get in touch to discuss your investment strategy today.