By Shamar Meusa
PRICES for the rental of properties, particularly in Georgetown, have in some cases increased by as much as 300 per cent in recent years and Chairman of the Private Sector Commission, Paul Cheong, explained that the increases can be attributed to the increased demand in the country.

A number of citizens of late have taken to social media to highlight the issue, particular in and around Georgetown.
When asked about the matter, Cheong told the Guyana Chronicle that there is currently a boom in the economy, and as such, many persons are coming into the country looking for properties to buy, and as a result, prices have been on the increase.

“In the country many people are coming looking for properties to buy, so the demand is up and so the prices will go up. That happens, you can’t really regulate property prices; you’re operating in a free market,” he said.

He further explained that as a result of this increased demand and low supply, persons may feel inclined to list properties at higher prices. Cheong noted that if persons were not coming to rent the properties at the prices listed, persons will be forced to reduce those prices.

“Because of the economy and many more people coming looking to do business… so its demand and supply that’s a general principle. If the foreigners are not coming in to rent properties, definitely the prices will go down,” he said.

Meanwhile, with that, one local entrepreneur and realtor mid last year took to social media to decry what he called “crazy prices” set for some properties. The realtor, Dave Lall, in his post stated that the prices for those properties do not cater for persons earning the average salary in Guyana.

STEADY RISE
In an invited comment, he stated that a number of landlords are trying to appeal to international clients and not locals. As such, he recalled that property prices most notably in Georgetown and its environs have been on a steady rise since 2019 with the emergence of the oil-and-gas sector.

He also noted that with the increase in costs for building materials due to a slowdown in the global supply chain, some contractors are taking advantage of property owners and charging high prices for building homes. As such, he added that these property owners are then forced to set the prices for rental of the property higher than necessary.

Lall is advising persons who are aiming to build their homes and list it for rental should compare costs from multiple contractors before making a decision.

Because of the high price, one renter told this publication that he decided to settle on the East Coast of Demerara. Though he noted that he is paying a lower-than-expected cost in rent, there are additional costs for transportation and more.

DECIDING FACTORS
There are a number of things that should be considered before prices can be set for properties, according to licensed real estate agent, Avinash Balac.

Balac during a telephone interview with the Guyana Chronicle, stated that when persons are deciding to rent their homes, they must first consider the value of the area as this is one of the main deciding factors. The value of the area, he said, depends on accessibility to certain amenities including supermarkets, parks and even public transportation.

In addition to this, he revealed that security is also one of the contributing factors in this regard, as property owners must also look at whether the area is one with a low or high crime rate. “In terms of an apartment or whether you’re looking to buy or sell a property, the main factor is location,” he said.

The issue of security, Balac said, may be one of the reasons that prices in the Georgetown market go up and down. He noted that persons interested in renting are mostly looking for an area where they feel safe and would not be worried about certain things.

The real estate agent went on to say that the addition of certain amenities in the property also determines the price that is set for rental or sale. He gave an example as the addition of backup generators, air condition units and more. These, he said, are some of the amenities that foreigners who come to rent in Guyana look for.

“That sort of thing determines the price, it’s not directly a case where the factors of price are [sic] rising because of the oil and gas sector but it has played a role,” Balac stated.
Meanwhile, Cheong stated that as there is increased supply to match the demand for properties, the prices will be reduced. He noted that as more persons get into this type of business and as it is profitable, it will drive the supply up.

“When more people are making big profits on rental, I mean many more players will come into the market and once that happens, the supply will increase and when the supply increases the prices will go,” the PSC chairman said.

The boom in Guyana’s economy and demand happened very suddenly, he added, and noted that with that sudden surge the quantity of rental properties is not available to match the number of persons coming into the country.