Aqualina's costs up due to inflation

Wed, Jun 15th 2022, 08:20 AM

Real estate developer Aristo's latest Cable Beach project, the $100 million Aqualina, is three floors out of the ground with costs six to eight percent higher than expected due to global inflation, President of Aristo Jason Kinsale said yesterday, adding that the development has had to increase its prices as a result of increasing costs.

The 11-floor, 27-unit development is already 60 percent sold.

The project’s penthouse is on the market for $10 million, while lower units range in price from $3.2 to $5.8 million.

Kinsale spoke to the media after giving a tour of the Aqualina construction site to Prime Minister Philip Davis and several Cabinet members.

Kinsale said while the company has had to raise prices due to the inflation caused by COVID-19 and Russia’s war in Ukraine, he is hopeful that when the finish work begins on the project, global price increases would have begun to abate.

“There’s definitely been an impact from inflation, there’s no denying that,” said Kinsale.

“Concrete prices have increased. Fortunately we have been able to offset our price increase through an increase in prices of our products.”

He said Aqualina should be completed by December 2023.

According to Kinsale, the real estate boom in The Bahamas and Aqualina’s beachfront location mean sales have been firm. 

“We really find that there’s a tremendous desire to be located on the beach in The Bahamas,” he said.

“We all know the value of the asset that we have here. Sometimes we take it for granted but many people don’t. We’re 60 percent sold in Aqualina now, so we’re very happy with the result. We’re seeing buyers from Europe, we’re seeing buyers from Canada, from all over the world. The United States obviously. People are seeing value. They are seeing scarcity. I think this is probably the busiest time that I’ve seen in The Bahamas for real estate. If you’re looking at some of the more desirable communities, there is barely any inventory, and that’s been helping us as well.”

Davis said he is proud of what Aristo has accomplished and explained that with 60 percent of the unfinished development already sold and 100 jobs filled, the economic impact is already being felt.

“It means that we will be getting our VAT (value-added tax) on those sales,” said Davis.

“We hope to see those purchasers visiting and putting heads in beds here and shopping again.

“I know he had a lot of challenges getting it [Aqualina] off the ground, so I’m happy to see that he is where he is in the project. Sometimes seeing is believing.”

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