Property & Development Consultants

Photo: Saba Rock, BVI Local Knowledge, Global Experience

CARIBBEAN & LATIN AMERICA CONSTRUCTION

MARKET TREND REPORT

2022-2023 // PREPARED BY BCQS International
Photos: Rock House, Turks and Caicos Islands

Table of Contents
Caribbean
Foreword 3
Market Overview 4
General & Government Statistics 6
Cost of Living Indicators 7
Tourism 8
Country Escalation 10
Indicative Construction Costs 11
Average Rental and Sales Values 14
Bid Environment 17
Overall Market Trend 18

Latin America
Market Overview 19
General & Government Statistics 20
Brazil – Typical Building Costs 21
Colombia – Typical Building Costs 22
Brazil – Regional Construction Cost Differences 23
Colombia – Regional Construction Cost Differences 24
Brazil & Colombia Map: Location Cost Fluctuations 25

General
Weights and Measures 26
Notes, Terms and Sources 27
 Foreword
BCQS International is pleased to present the 2022
Edition of our Market Trend Report. In our Eighth
issue, we continue to observe trends throughout the
Caribbean region and review a selection of LatAm
markets.
Since 2010, BCQS has published a Market Trend Report to help our
clients and potential clients better understand construction costs
throughout the region.
This report's indices provide escalation/de-escalation costs for building
materials, plant and labour to reflect market trends, which are then used to
drive the general square foot or per square meter budget costs on various
building types. Similarly, our report also provides guidance in local and
regional sales and rental values.
The BCQS Market Trend Report leverages data from our expanding and
diverse client base, unique and challenging commissions, and an
abundance of regional in-house expertise. This report highlights the BCQS
team's comprehensive expertise, local knowledge, and dedication to our
clients.

To our clients, thank you for your continued partnerships and the
This year, our report continues to provide a highly sought-after informative,
opportunity to work with you and support the successful delivery of your
accurate and concise presentation of construction cost data and market
projects. We hope this report will be a valued resource to all readers.
trends, which will allow clients and potential clients the convenience of
making educated decisions at the feasibility stage of their projects.
It is important to note that this report is generic in nature and for general
guide purposes only.
To give the reader a fuller understanding of the Caribbean marketplace
and add depth to the construction and property data, we have collated
Given current global market volatility, possible unique site conditions
helpful information relating to government statistics, cost of living factors,
and/or specifications of individual projects, we encourage you to reach out
and tourism. This data should greatly assist developers/ lenders/ builders
to your local BCQS contact for more up-to-date and customised cost data
in assessing the initial viability of any chosen project.
relating to each project location.
Continuing from our previous report, we remain focused on sixteen key
jurisdictions. These include Anguilla, Aruba, The Bahamas, Barbados,
British Virgin Islands, Cayman Islands, Curacao, Guyana, Jamaica, Saint
Lucia, Saint Barthélemy, St. Maarten, Trinidad & Tobago, Turks & Caicos
Islands, and once again, with respect to LatAm, we have covered Brazil
and Colombia.

3 BCQS Market Trend Report – Caribbean & Latin America 2022 Photo: Breathless Montego Bay Resort & Spa, Jamaica
Caribbean
Market Overview
The global economy is experiencing several
turbulent challenges. Inflation higher than seen in
decades, tightening financial conditions in most
regions, Russia’s invasion of Ukraine, and the
lingering COVID-19 pandemic all weigh heavily on
the outlook.
Normalization of monetary and fiscal policies that delivered
unprecedented support during the pandemic is cooling demand
as policymakers aim to lower inflation back to a target. But a
growing number of economies are in growth slowdown or outright
contraction. The global economy’s future health rests critically on
the successful calibration of monetary policy, the course of the
war in Ukraine and the possibility of further pandemic-related
supply-side disruptions, for example, in China.
Recent reports by the International Monetary Fund and the World
Bank project that the slowdown experienced in global economies
in 2022 will continue through 2023.
According to the IMF’s October 2022 World Economic Outlook
Update, global growth is projected to slow from 6.0 percent in
2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the
weakest growth profile since 2001 except for the global financial
crisis and the acute phase of the COVID-19 pandemic and
reflects significant slowdowns for the largest economies:
• A US GDP contraction in the first half of 2022
• A euro contraction in the second half of 2022
• Prolonged COVID-19 outbreaks and lockdowns in China with
a growing property sector crisis
4 BCQS Market Trend Report – Caribbean & Latin America 2022
About a third of the world economy faces two consecutive
quarters of negative growth. Global inflation was forecast to rise
to 8.8 percent in 2022 and then decline to 6.5 percent in 2023.
Upside inflation surprises have been more widespread among
advanced economies, with greater variability in emerging
markets and developing economies.
Risks to the outlook remain unusually large and to the downside.
Monetary policy could miscalculate the correct stance to reduce
inflation. Policy paths in the largest economies could continue to
diverge, leading to further US dollar appreciation and cross-
border tensions. More energy and food price shocks may cause
inflation to persist for longer and global tightening in financial
conditions could trigger widespread emerging market debt
distress. Halting gas supplies by Russia could depress output in
Europe. A resurgence of COVID-19 or a new global health scare
might further stunt growth. A worsening of China’s property crisis
could spill over to the domestic banking sector and weigh heavily
on the country’s growth, with negative cross-border effects and
geopolitical fragmentation may impede trade and capital flows,
further hindering climate policy cooperation. The balance of risks
is tilted firmly to the downside, with about a 25 percent chance of
one-year-ahead global growth falling below 2.0 percent.
Warding off these risks starts with monetary policy staying the
course to restore price stability. Front-loaded and aggressive
monetary tightening is critical to avoid inflation de-anchoring as a
result of households and businesses basing their wage and price
expectations on their recent inflation experience. Fiscal policy
priority is the protection of vulnerable groups through targeted
near-term support to alleviate the burden of the cost of living
crisis felt across the globe. But its overall stance should be to
remain sufficiently tight to keep monetary policy on target.
The World Bank’s 2022 report entitled “Global Economic
Prospects” reported that growth in LatAm and the Caribbean
(LAC) rebounded to an estimated 6.7 percent in 2021, boosted
by supportive external conditions, and, in the second half of the
year, a rapid progress on COVID-19 vaccination and a sharp
decline in new cases. Regional growth was projected to slow to
2.6 percent in 2022 and 2.7 percent in 2023, reflecting sluggish
labour market improvement, tighter macroeconomic policy, softer
external demand, and a fading boost from the recent increases in
commodity prices. Growth in the forecast horizon will not be
sufficiently robust to reverse the region’s longstanding decline in
per capita income relative to advanced economies. Downside
risks to the forecast include renewed surges in COVID-19 cases;
financial stress; disruption due to natural disasters, including
weather events linked to climate change; and, in the longer term,
failure to implement productivity-enhancing and other needed
reforms.
Economic conditions in LAC have continued to improve since mid
2021 as the pandemic eased and external conditions remained
supportive. COVID-19 vaccination has progressed rapidly, whilst
new cases and deaths have also declined rapidly. Strong growth
in key export destinations (The United States and China), high
commodity prices and continued strong remittance inflows to
LatAm countries supported growth in 2022. In most cases,
inflation has risen across the region, above central banks’
targets. The increase reflects firming demand associated with the
economic reopening, coupled with rising global food and energy
prices.
bcqs.com I © BCQS International
Caribbean

Market Overview
Photo: Wymara Villas, Turks and Caicos Islands

Looking specifically at the Caribbean, growth of 7.3 percent was margins of 15%, 15% and 17.5%, respectively. The remaining ten
projected for 2022 and 5.9 percent for 2023. This growth reflects jurisdictions reported margins of between 10 and 12%. The
a significant contribution from Guyana, where offshore oil overall average profit margin for the fourteen jurisdictions
production has been a major contributor and the return of tourism surveyed is 11.36%.
to those jurisdictions reopening their borders early, such as the
Dominican Republic, where stay-over arrivals have already In conclusion, whilst the Caribbean region continues to deal with
surpassed pre-pandemic levels. Growth should continue in the the aftermath of the COVID-19 global pandemic, increasing
years ahead as the entire region reopens for stay-over tourism interest rates and high inflation, the outlook is not all doom and
and the cruise industry returns to full capacity, taking advantage gloom. Travel and tourism, the largest single contributor to GDP
of the pent up demand from the historically strong North in the region, has rebounded strongly from the lows of 2020, with
American feeder markets. the three KPI’s, Occupancy, Average Daily Rate and Revenue
per Available Room all posting unprecedented year-on-year
Our research shows an average increase in construction costs of growth in 2021 and 2022 and are close to surpassing the highs of
19.22% for the fourteen jurisdictions surveyed, for the two years 2019.
that have elapsed since our last market study in 2020, with a
range of +13.10% to +29.99%. The most significant increase Liam Day, Managing Director, BCQS International
occurred in Anguilla, reflecting the 13% Goods and Services Tax
(GST) introduced in July 2022 and the amount of ongoing Sources: BCQS Cost Database, The World Bank, International Monetary Fund (IMF)
construction activity in that jurisdiction. The average increase of
19.22% clearly shows the unprecedented cost increases
experienced since the onset of the COVID-19 pandemic in both
material and shipping costs. Shipping costs have always been a
significant contributor to construction costs in the Caribbean due
to the number of imported materials. Whilst labour has increased
slightly in a number of jurisdictions, most of the escalation has
resulted from increases in imported material costs and shipping.
Whilst we acknowledge that some material costs have reduced in
the second half of 2022, we do not foresee costs reducing to pre-
pandemic levels.

While generally remaining reasonably aggressive and

competitive, profit margins have increased in three jurisdictions,
remained static in ten jurisdictions, and decreased in one
jurisdiction. Aruba reported a single digit margin of 7.5%, while
Anguilla, the Bahamas and St. Lucia led the way with reported

5 BCQS Market Trend Report – Caribbean & Latin America 2022

Caribbean

General and Government Statistics

Local Currency Land GDP Real GDP
Exchange Rate Area Labor (Purchasing Per Capita
Country to US $1.00 (Sq. Km) Capital City Population force Power Parity) (US$) Key Industries (Exc. Construction)

15,701 6,049 $175.4 million $12,200

Anguilla XCD 2.70 91 The Valley Tourism, boat building, and offshore financial services
(2021 est.) (2001) (2009 est.) (2008 est.)

122,320 51,610 $4.158 billion $37,500

Aruba AWG 1.80 180 Oranjestad Tourism, petroleum transshipment facilities, banking
(2022 est.) (2007 est.) (2017 est.) (2017 est.)

355,608 196,900 $12.1 billion $30,800 Tourism, banking, oil bunkering, maritime industries, transshipment and
Bahamas BSD 1.00 10,010 Nassau logistics, salt, aragonite, pharmaceuticals
(2022 est.) (2013 est.) (2020 est.) (2020 est.)

302,674 144,000 $3.7 billion $12,900

Barbados BDS 2.02 430 Bridgetown Tourism, sugar, light manufacturing, financial services
(2022 est.) (2017 est.) (2020 est.) (2020 est.)

38,632 12,770 $500 million $34,200

British Virgin Islands USD 1.00 151 Road Town Tourism, light industry, construction, offshore banking centre
(2022 est.) (2004 est.) (2017 est.) (2017 est.)

64,309 39,000 *$4.78 billion *$73,600

Cayman Islands KYD 0.83 264 George Town Tourism, banking, insurance and finance, construction
(2022 est.) (2017 est.) (2019 est.) (2019 est.)

152,379 73,010 *$3.86 billion *$24,500 Tourism, petroleum refining, petroleum transshipment, light manufacturing,
Curacao ANG 1.80 444 Willemstad financial and business services
(2022 est.) (2013 est.) (2019 est.) (2019 est.)

789,683 313,800 $14.69 billion $18,700

Guyana GYD 209.29 196,849 Georgetown Oil, bauxite, sugar, rice milling, timber, textiles, gold mining
(2022 est.) (2013 est.) (2020 est.) (2020 est.)

2,818,596 1.113 million $25.89 billion $8,700 Agriculture, mining, manufacturing, construction, financial and insurance
Jamaica JMD 152.42 10,831 Kingston services, tourism, telecommunications
(2022 est.) (2020 est.) (2020 est.) (2020 est.)

7,103
St. Barthélemy EUR 0.93 25 Gustavia N/A N/A N/A Tourism, duty free retail
(2022 est.)

167,122 79,700 $2.25 billion $12,300

St. Lucia XCD 2.70 606 Castries Tourism, light manufacturing, agriculture
(2022 est.) (2012 est.) (2020 est.) (2020 est.)

34 45,126 23,200 *$1.44 billion *$35,300

St. Maarten ANG 1.80 (Neth.) Philipsburg Tourism, light industrial/ manufacturing, heavy industry
(2022 est.) (2008 est.) (2018 est.) (2018 est.)

54.4 32,792 17,300 $561.5 million $19,300

St. Martin EUR .93 (Fr.) Marigot Tourism, light industrial/ manufacturing, heavy industry
(2022 est.) (2008 est.) (2005 est.) (2005 est.)

1,405,646 629,400 $33.21 billion $23,700 Petroleum, liquefied natural gas, methanol, ammonia, urea, steel products,
Trinidad & Tobago TTD 6.79 5,128 Port of Spain beverages, food processing, cement, cotton textiles
(2022 est.) (2017 est.) (2020 est.) (2020 est.)

46,131 25,437 **$943.3 million $12,573

Turks & Caicos USD 1.00 948 Cockburn Town Tourism, finance
(2021 est.) (2016 est.) (2020 est.) (2021 est.)

Sources: Statistics Department Anguilla, The World Factbook, Statistics Department Turks and Caicos Islands, Forbes Advisor Currency Converter. Notes: *Data are in 2017 dollars. **Nominal GDP. Additional descriptions/notes: See page 27

6 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Cost of Living Indicators

Import duty Lawyers
City Electricity on building Import duty Real estate Vendors tax fees on
Water (median US$/kwh Gasoline Income tax, Income tax, materials/ on luxury Stamp duty commission on on property property
Country (US$/gallon) + fuel surcharge) (US$/gallon) personal business essentials goods on property property sale transfer sale

Anguilla 0.04 0.28 7.79 9% 9% 15% 35% 5% 5% 5% 2%

Aruba 0.02 0.21 9.66 14-52% 25% 6% 22% 3-6% 5% 0% 1%

Bahamas 0.02 0.29 6.19 0% 0% 15-20% 55% 10% 6% 0% 2.5%

Barbados 0.04 0.35 9.68 12.5-28.5% 2-5.5% Upwards of 10% 55% 1% 3-5% 2.5% 1.5%

4% Locals
British Virgin Islands 0.02 0.45 5.00 14% 0% 12.5% 20.0% 6.0% 0.0% 2%
12% Expats

Cayman Islands 0.02 0.34 10.16 0% 0% 22% 42% 7.5% 6% 0% 0.5%

Curacao 0.04 0.44 5.69 25.0% 34.5% 15.5% 32% 4% 2.5% 0% 1.5%

28% First Tier 25% Non-commercial

Guyana 0.01 0.32 4.00 Upwards of 10% 20-150% 2.5% 3-5% 3% 1-3%
40% Thereafter 40% Commercial

Jamaica 0.02 0.42 5.29 33% 33.3% 43% 46% 0% 5% 2% 3%

St. Barthélemy 0.04 0.12 7.18 N/A N/A 5% 5% 5% 6% 8% 1.25%

2.5-5% Locals 0.5-2.5% Locals

St. Lucia 0.01 0.33 5.03 30% 33% 30% 75% 3.8% 4.0%
10% Expats 3-5% Expats

St. Maarten N/A 0.29 5.08 30% 30% 0% 0% 0% 4% 0% 8%

Trinidad & Tobago 0.01 0.05 3.76 25% 30% 20% 30% 5% 4% 0% 1.5%

Turks & Caicos 0.04 0.45 6.40 N/A N/A 15% 35% 6.5-10% 6% 0% 1%

Source: Various. Descriptions/notes: See page 27

7 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Tourism
The Caribbean is the most tourism-dependent region in in the Caribbean region were expected from the US and Canada, 10% from
LATAM and the Caribbean and 17% from other areas. Arrivals from the US and
the world, with tourism representing the largest Canada were expected to increase by 19% from 2019 levels, and arrivals from
contributor to many nations’ economies. A significant LATAM and the Caribbean were expected to increase by 21%. Arrivals from
outside the region were expected to fall 10% from 2019 levels.
amount of construction across the Caribbean is tourism
related, so it is important to consider the performance of The countries with the highest growth in the region in Q3 2022 were the USVI,
the hospitality sector within our report. Guadeloupe, Turks and Caicos, Martinique and Curacao, with growth of 44%,
39%, 37%, 31% and 25%, respectively. The most resilient origin markets to
Caribbean destinations were Columbia, USA, France and the Netherlands,
Prior to Covid-19, the contribution of travel and tourism to the Caribbean GDP
which increased 54%, 18%, 5% and 1%, respectively, compared to 2019 levels.
was 13.9% of the total economy, accounting for US$61.5B. In 2020, it dropped
53.2% to US$28.8B or 7.1% of the total economy. However, 2021 saw a strong
The way people travel has changed since Covid. Of the Q3 2022 arrivals to the
recovery of 36.6% to US$39.3B or 9.1% of the total economy. Regarding
Caribbean, there was a 27% increase in passengers travelling in premium
employment across the region, the industry accounts for 2.35 million jobs,
cabins compared to pre-pandemic levels. Economy, on the other hand, only
equating to 13.4% of all jobs. Compared to 2020 levels, employment has
increased by 1%. Curacao saw a 120% increase in overseas arrivals in premium
increased by 15.2%.
cabins, and Bonaire saw an increase of 110%, with a 92% increase for
Guadeloupe, an 84% increase for Martinique and an 83% increase for the
The World Travel and Tourism Council (WTTC) explains that the potential for
Dominican Republic. Compared to pre-pandemic levels, flight prices are
GDP and employment growth is linked to various regional challenges. The lack
significantly higher, which may impact growth going forward.
of air connectivity and the high cost of air travel remains one of the main limiting
factors, along with a lack of investments in infrastructure, digital solutions and
Cruise tourism has also seen a significant improvement throughout 2022.
human capital. Better crisis preparedness improved environmental protection
According to data published by Tourism Analytics, total cruise visitors by first
and more region-wide collaboration and coordination by governments and
point of entry increased from 1,375,000 in 2021 to 13,193,000 in 2022. However,
industry are all cited as factors which would help improve growth.
2022 figures are still down 40.8% from pre-Covid 2019 levels of 22,282,000.

Most Caribbean destinations, except for Bermuda, Guyana and Turks and
Hotels across the region experienced a rebound following Covid-19 with ADR
Caicos, have completely removed Covid protocols and travel restrictions. While
(Average Daily Rates), RevPAR (Revenue per Available Room) and Occupancy
this makes it easier for tourists, the majority of destinations have seen significant
rates all performing positively during 2022. Data from the Caribbean Hotel &
improvements in passenger numbers and hotels’ key performance indicators
Tourism Association published in their ‘CHTA Insights Tourism Performance &
(KPIs) throughout 2022.
Outlook’ report showed that following Covid, the Caribbean is outperforming the
US, Mexico and Canada in both occupancy and ADR. Q1 2022 occupancy was
As of Q3 2022, total international inbound arrivals worldwide were still down
reported as 43.2% for Canada, 56.2% for the US, 53.1% in Mexico and 58.9% in
39% from 2019. Asia Pacific, for example, was down 72%, Europe was down
the Caribbean. ADR for Canada was US$114, $137 for the US, $150 for Mexico
31%, and The Americas was down 24%. The Caribbean was the only region
and $319 for the Caribbean.
with improvement, with international arrivals up 3%. In Q4 2022, 73% of arrivals

8 BCQS Market Trend Report – Caribbean & Latin America 2022 Photo:
bcqs.com
Richard James
I © BCQS
Taylor
International
/ Belmond, Anguilla
Caribbean

Tourism
STR data for the Caribbean region throughout 2021 and the first seven months of 2022 indicates how the Caribbean Average Daily Rates, Occupancy and RevPar - 2021 - 2022
region’s hotels have responded to the pandemic. As expected, occupancy continued to increase from an
average of 34.7% for the first six months of 2021 to 62.7% for the first six months of 2022. ADR increased
on average from US$241 in 2021 to US$304 in 2022. RevPAR from the first half of 2021 was US$83, OCCUPANCY ADR REVPAR
rising to US$192 in 2022. The graph to the right shows KPIs for Caribbean hotels up to July 2022. 400 70

The most recent STR data from October 2022 showed Year-To-Date occupancy at 59.7%, an 18.5%
increase from 2021 and ADR at US$277.39, a 22.7% increase from 2021. Countries with the highest 350
60
occupancy were Aruba, Curacao, Turks & Caicos and Puerto Rico at 73.7%, 69.9%, 69.7% and 69.3%,
respectively. ADR was highest in Turks & Caicos at US$1,154, followed by USVI at US$554, Bermuda at
US$547 and St Lucia at US$517. We note, however, that ADR for some countries is skewed due to a lack 300
of reporting properties; this is the case for Turks & Caicos. 50

Outlook 250
In 2023, the contribution of travel and tourism to the GDP growth of the Caribbean is expected to slow to

ADR AND REVPAR (US$)

40

OCCUPANCY (%)
11.1%. This is lower than the 15.1% growth expected globally due to other regions such as Asia-Pacific
continuing to fully open their borders to international travelers. 200

Travel & Tourism’s contribution to GDP is expected to return to its pre-pandemic level by the end of 2024 30
or early 2025, later than the global average. This is due to the heavy reliance that the Caribbean has on 150
international tourism, which, since Covid, has been slower to return to 2019 levels than domestic travel.
20
According to the WTTC, over the next decade, travel and tourism GDP in the Caribbean is forecast to 100
increase at an average annual rate of 5.5%, more than double the overall economic growth of 2.4%.
Travel and tourism jobs are forecasted to grow by an average of 3.3% annually, creating more than
10
916,000 jobs by 2032. There is potential, however, for the sector to grow significantly more than expected, 50
with up to 1.34 million jobs created in the next ten years. This can only be achieved if improvements are
made to infrastructure, flight costs, intra-regional collaboration and government initiatives.
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The Caribbean remains particularly vulnerable to natural disasters, with hurricanes causing huge losses

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disasters has reduced as countries learn from impacts and improve their crisis preparedness going
forward.

Tourism Sources: WTTC (World Travel and Tourism Council) - Travel and Tourism in the Caribbean 2022 Tourism Analytics,
Ailie MacGeoch, Senior Valuation Surveyor, BCQS International STR Data and Publications by CHATA (Curacao Hospitality and Tourism Association)

9 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Country Escalation
Construction Cost Escalation is guided by the culmination of 2020-2022 construction cost escalation for countries covered in our report:
reputable local data sources to determine the basic construction
cost elements, materials, plant and labour. Anguilla 29.99%
Cost research on an ongoing basis includes, but is not restricted to the following cost
elements, which represent common costs of construction within the region. A weighting Aruba 16.73%
has then been applied to proportion the percentage of the value of each element against
a notional whole project cost: Bahamas 21.55%

Material Plant Barbados 16.00%

- 8’’ Hollow-core Concrete Block - Dump truck -12 cy
British Virgin Islands 18.62%
- Ready-mix Concrete 4000 psi pump mix - Backhoe
- Washed Concrete Sand - D3
Cayman Islands 21.23%
- Aggregate, 3/4 ‘’ - Excavator, 20 tonne
- Cement Curacao 13.10%
- 3/4’’ rebar Labour
- 5/8’’ plywood - Labourer, non-skilled Guyana 22.50%
- 30lb Roofing Felt - Skilled carpenter
Jamaica 21.93%
- 2’’ x 8’’ pressure treated rafter - Painter/ finisher
- Plaster Sand - Tiler
St. Barthélemy 20.00%
- 1/2’’ regular sheetrock - Mason (excl. helper)
- Semi-gloss latex based white paint St. Lucia 14.29%
- 16’’ x 16’’ ceramic floor tiles
- Hollow-core flush door 3’ 0’’ x 6’ 8’’ St. Maarten 22.03%
- Copper tubing 3/8’’ diameter
- PVC Pipe 1 1/2” sch 40 – pressure Trinidad & Tobago 14.93%

Turks & Caicos 16.24%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

10 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Residential 580 960

Anguilla
Indicative Construction Costs (USD per Sq.Ft.)
320 540
110 180

270 440
The following table provides an upper and lower range of indicative construction costs for each jurisdiction on a Aruba 160 260
120 190
selection of residential property types. The costs are driven from our year-on-year escalation calculations. This
range is designed to give our readers data with 95% certainty based on our analysis. 500 800
Bahamas 300 500
200 320

300 500
Descriptions/Notes: Barbados
See page 27
High Quality Medium Quality Modest Quality 160 250
125 140

Low High Low High Low High 360 590

British Virgin Islands 240 400

Anguilla 580 960 320 540 110 180 160 240

350 570
Aruba 270 440 160 260 120 190 Cayman 200 330
150 250

Bahamas 500 800 300 500 200 320 230 380

Curacao 130 220
Barbados 300 500 160 250 125 140 100 170

130 220
British Virgin Islands 360 590 240 400 160 240 Guyana 90 140
70 110

Cayman Islands 350 570 200 330 150 250

270 450
Jamaica 160 260
Curacao 230 380 130 220 100 170 120 200

790 1,240
Guyana 130 220 90 140 70 110 St. Barthélemy 480 790
300 480

Jamaica 270 450 160 260 120 200

210 340
St. Lucia 120 200
St. Barthélemy 790 1240 480 790 300 480 90 150

350 580
St. Lucia 210 340 120 200 90 150 St. Maarten 210 350
170 270
St. Maarten 350 580 210 350 170 270
200 350
Trinidad & Tobago 120 180
Trinidad & Tobago 200 350 120 180 90 120 90 120

400 670
Turks & Caicos 400 670 220 370 170 280
Turks & Caicos 220 370
170 280
Source: BCQS Cost Database All values in US$
0 200 400 600 800 1,000 1,200 1,400

11 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Hotel & Resort 440 740

Anguilla
Indicative Construction Costs (USD per Sq.Ft.)
300 490

320 520

The following table provides an upper and lower range of indicative construction costs for each jurisdiction on a Aruba 170 280

selection of hotel and resort property types. The costs are driven from our year-on-year escalation calculations. This
range is designed to give our readers data with 95% certainty based on our analysis. 480 800
Bahamas 280 500

300 500
Descriptions/Notes:
See page 27
Five Star Low Rise Three Star Economy Barbados 220 320

315 475
Low High Low High
British Virgin Islands 190 265
Anguilla 440 740 300 490
420 690
Aruba 320 520 170 280 Cayman 220 360

Bahamas 480 800 280 500 280 460

Curacao 150 240
Barbados 300 500 220 320
250 420
British Virgin Islands 315 475 190 265 Guyana 160 260

Cayman Islands 420 690 220 360 320 540

Jamaica 170 280
Curacao 280 460 150 240
630 1,350
Guyana 250 420 160 260 St. Barthélemy 440 720

Jamaica 320 540 170 280 250 410

St. Lucia 130 210
St. Barthélemy 630 1350 440 720
420 690
St. Lucia 250 410 130 210 St. Maarten 230 380

St. Maarten 420 690 230 380

280 500
Trinidad & Tobago 190 310
Trinidad & Tobago 280 500 190 310
410 690
Turks & Caicos 410 690 220 360
Turks & Caicos 220 360

Source: BCQS Cost Database All values in US$

0 200 400 600 800 1,000 1,200 1,400

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Caribbean

Anguilla 110 180

Commercial 130
190
210
310
310 510

Indicative Construction Costs (USD per Sq.Ft.)

480 800
110 180
270 440
Aruba 150 240
260 440
220 360
The following table provides an upper and lower range of indicative construction costs for each jurisdiction on a 320
330
530
550
80 120
selection of commercial property types. The costs are driven from our year-on-year escalation calculations. This 120 200
Bahamas 220 370
range is designed to give our readers data with 95% certainty based on our analysis. 300
420
500
700
450 750
500 800
110 190
190 320
Barbados 200 300
300 480
Descriptions/Notes: 1-3 Storey 1-3 Storey 4-8 Storey 4-8 Storey Specialist Storage/ Retail 220
340
370
560
350 590
See page 27 Shell W/ Fitout Shell W/ Fitout Office Warehouse Single Storey 90 150
150 250
British Virgin Islands 170 285
Low High Low High Low High Low High Low High Low High Low High 220
340
335
525
395 475
420 525
95 145
Anguilla 110 180 130 210 190 310 310 510 480 800 110 180 270 440 140 230
Cayman 180 300
340 560
280 460
Aruba 150 240 260 440 220 360 320 530 330 550 80 120 120 200 420
430
690
710
90 150
160 260

Bahamas 220 370 420 700 300 500 450 750 500 800 110 190 190 320 Curacao 120 200
230 380
180 300
280 460
290 470
Barbados 200 300 300 480 220 370 340 560 350 590 90 150 150 250 60
110
100
170
Guyana 120 200
170 270
140 230
British Virgin Islands 170 285 340 525 220 335 395 475 420 525 95 145 140 230 190 310
200 320
60 100
110 170

Cayman Islands 180 300 340 560 280 460 420 690 430 710 90 150 160 260 Jamaica 140 230
270 440
210 350
320 540
330 550
Curacao 120 200 230 380 180 300 280 460 290 470 60 100 110 170 70
120
120
200
St. Barthélemy 200 330
360 600
Guyana 120 200 170 270 140 230 190 310 200 320 60 100 110 170
430 710

Jamaica 140 230 270 440 210 350 320 540 330 550 70 120 120 200 St. Lucia 110 180
200 340
170 270
250 410
260 420
St. Barthélemy 200 330 360 600 N/A N/A N/A N/A 430 710 N/A N/A N/A N/A 60
100
90
160
St. Maarten 190 320
350 570
St. Lucia 110 180 200 340 170 270 250 410 260 420 60 90 100 160 280
420
470
690
430 710
110 180
170 280
St. Maarten 190 320 350 570 280 470 420 690 430 710 110 180 170 280 Trinidad & Tobago 160 260
300 490
220 350
360 600
370 620
Trinidad & Tobago 160 260 300 490 220 350 360 600 370 620 80 130 140 230 80 130
140 230
Turks & Caicos 180 300
340 560
Turks & Caicos 180 300 340 560 270 450 410 690 430 710 90 150 160 260 270
410
450
690
430 710
90 150
160 260
Source: BCQS Cost Database All values in US$
0 100 200 300 400 500 600 700 800

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Caribbean

Residential 570 940

Anguilla
Average Sales Values (USD per Sq.Ft.)
380 630
190 320

400 600
The following table provides an upper and lower range of average sales values for each jurisdiction on a selection of Aruba 200 300
residential property types. 100 200

750 1,200
Bahamas 350 500
220 360

Descriptions/Notes:
See page 27
High Quality Medium Quality Modest Quality 420 900
Barbados 170 220
110 170
Low High Low High Low High
400 950
Anguilla 570 940 380 630 190 320 British Virgin Islands 270 380
160 260

Aruba 400 600 200 300 100 200

800 2000
Cayman 500 800
Bahamas 750 1200 350 500 220 360 250 500

Barbados 420 900 170 220 110 170 300 500

Curacao 150 250
100 150
British Virgin Islands 400 950 270 380 160 260
290 470
Cayman Islands 800 2000 500 800 250 500 Jamaica 170 290
120 190

Curacao 300 500 150 250 100 150

1,250 2,070
St. Barthélemy 1,000 1,660
Guyana N/A N/A N/A N/A N/A N/A 670 1,110

270 440
Jamaica 290 470 170 290 120 190
St. Lucia 190 320
90 150
St. Barthélemy 1250 2070 1000 1660 670 1110
480 790
St. Maarten
St. Lucia 270 440 190 320 90 150 430 720
250 420

St. Maarten 480 790 430 720 250 420 230 370
Trinidad & Tobago 140 220
Trinidad & Tobago 230 370 140 220 90 150 90 150

720 1190
Turks & Caicos 720 1190 360 600 230 380 Turks & Caicos 360 600
230 380
Source: Various All values in US$
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200

14 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Hotel & Resort 1260 2100

Anguilla
Average Rack Rates Per Night
230 380

650 950

The following table provides an upper and lower range of average rack rates for each jurisdiction on a selection of hotels Aruba 200 300

and condos.
380 750
Bahamas 200 350

400 750
Descriptions/Notes:
See page 27
Five Star Low Rise Three Star Economy Barbados 130 200

750 1,500
Low High Low High
British Virgin Islands 160 240
Anguilla 1260 2100 230 380
500 1,300
Aruba 650 950 200 300 Cayman 200 300

Bahamas 380 750 200 350 300 500

Curacao 150 200
Barbados 400 750 130 200
210 350
British Virgin Islands 750 1500 160 240 Guyana 110 180

Cayman Islands 500 1300 200 300 490 820

Jamaica 150 250
Curacao 300 500 150 200
2,230 3,710
Guyana 210 350 110 180 St. Barthélemy 320 520

Jamaica 490 820 150 250 300 500

St. Lucia 130 210
St. Barthélemy 2230 3710 320 520
860 1,420
St. Lucia 300 500 130 210 St. Maarten 170 280

St. Maarten 860 1420 170 280

150 250
Trinidad & Tobago 90 150
Trinidad & Tobago 150 250 90 150

680 1,130
Turks & Caicos 680 1130 290 470
Turks & Caicos 290 470

Source: Various All values in US$

0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000

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Caribbean

Anguilla 10 20
Commercial 5
10
10
20
10 20

Average Rental Values (USD per Sq.Ft.)

15 25
4 10
5 10
Aruba 15 35
20 40
20 40
The following table provides an upper and lower range of average rental values for each jurisdiction on a selection of 25
35
45
45
10 20
commercial property types. 15 40
Bahamas 20 40
30 55
30 50
40 60
50 70
15 30
30 45
Barbados 16 40
35 40
Descriptions/Notes: 1-3 Storey 1-3 Storey 4-8 Storey 4-8 Storey Specialist Storage/ Retail 20
35
40
40
35 45
See page 27 Shell W/ Fitout Shell W/ Fitout Office Warehouse Single Storey 10 18
22 35
British Virgin Islands 20 30
Low High Low High Low High Low High Low High Low High Low High 28
30
40
45
35 50
40 60
10 20
Anguilla 10 20 10 20 5 10 10 20 15 25 4 10 5 10 20 30
Cayman 30 40
50 60
40 50
Aruba 15 35 20 40 20 40 25 45 35 45 10 20 15 40 40 50
60 70
20 30
30 50

Bahamas 20 40 30 55 30 50 40 60 50 70 15 30 30 45 Curacao 20 25
30 35
20 25
30 35
30 35
Barbados 16 40 35 40 20 40 35 40 35 45 10 18 22 35 10
15
15
30
Guyana 20 30
20 30
British Virgin Islands 20 30 30 45 28 40 35 50 40 60 10 20 20 30
12 20
25 40

Cayman Islands 30 40 50 60 40 50 60 70 40 50 20 30 30 50 Jamaica 20

25
30
40
20 30
25 40
25 40
Curacao 20 25 30 35 20 25 30 35 30 35 10 15 15 30 10
15
20
30
St. Barthélemy 5 10
5 10
Guyana 20 30 N/A N/A 20 30 N/A N/A N/A N/A 12 20 25 40
10 20
10 25
15 30
Jamaica 20 30 25 40 20 30 25 40 25 40 10 20 15 30 St. Lucia 10 20
20 30
20 40
30 50
30 40
St. Barthélemy 5 10 5 10 N/A N/A N/A N/A 10 20 10 25 15 30 8
20
20
30
St. Maarten 30 40
50 70
St. Lucia 10 20 20 30 20 40 30 50 30 40 8 20 20 30 30
50
50
70
50 80
25 40
30 50
St. Maarten 30 40 50 70 30 50 50 70 50 80 25 40 30 50 Trinidad & Tobago 10 20
20 30
20 30
20 30
20 40
Trinidad & Tobago 10 20 20 30 20 30 20 30 20 40 5 10 20 40 5 10
20 40
Turks & Caicos 25 40
30 50
Turks & Caicos 25 40 30 50 N/A N/A N/A N/A 40 60 10 20 40 60
40 60
10 20
40 60
Source: Various All values in US$
0 10 20 30 40 50 60 70 80 90

16 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Bid Environment Average Preliminaries and Profit Margins:

Preliminaries Profit
The Bid Environment can be categorised into five scenarios as per the following table:

Anguilla 15.0%
15.0%
Factoring Indicative
Description of Reductions and/ Percentage (%) 10.0%
Aruba
Market Conditions or Increases Profit Sought 7.5%

Very aggressive bid environment with multiple bidders, vendors, Bahamas 15.0%
15.0%
subcontractors and contractors (lump sum hard bids) are willing to bid work
1 at or below cost in order to pay for leased equipment and keep critical work At cost 5
force employed. They have no or critically low backlog. They are operating Barbados 9.0%
10.0%
in the red and need work.

British Virgin Islands 15.0%

10.0%
An aggressive bid environment with coverage in all levels of contracting.
Owners are able to get participation for all work. Contractors have a little 17.0%
Cayman Islands
2 backlog but are still aggressively looking for work. The workforce and Just above cost 10 12.0%
equipment is not at 100% capacity and close to operating at a loss. Bidders
will place a minimal profit on the work being bid.
Curacao 15.0%
10.0%

This is a neutral bid environment. Owners are able to get participation in all Guyana 10.0%
10.0%
work, but may have difficulty getting work/ bids from speciality contractors.
Neutral historical
3 The contractor’s labour force and equipment is operating at capacity with 15
aggressive for profit
the flexibility to complete all work on the books. Contractors have, and are Jamaica 15.0%
not concerned about backlog. 10.0%

St. Barthélemy 15.0%

10.0%

Contractors are operating at capacity. They are having difficulty completing

Marginally
work on hand. The backlog is at 100% capacity. Owners will have difficulty St. Lucia 17.5%
4 aggressive above 20 17.5%
finding bidders for some of the specialty contractors. All tier contractors will
average profit
bid work at a higher than average profit margin.
St. Maarten 10.0%
12.0%

Contractors are operating above capacity. They cannot complete the work Trinidad & Tobago 12.5%
they have on hand without aggressive hiring, significant equipment 10.0%
Aggressive well
5 procurement and/or expediting materials for projects. Contractors are 25
above average
pricing work with an aggressive mark up/profit. Owners are having difficulty Turks & Caicos 15.0%
getting participation for proposed projects. 10.0%

Source: BCQS Cost Database

17 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Caribbean

Overall Market Trend (Year-Over-Year Cumulative Escalation)

The data collected over the past twelve years enables us to trend our findings. The chart below shows Year-Over-Year cumulative escalation for countries included in the reports since inception.

Bahamas Barbados British Virgin Islands Cayman Islands Curacao Jamaica St. Lucia St. Maarten Trinidad & Tobago Turks & Caicos Average YoY % change

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

Source: BCQS Cost Database

-10.00%
2011 2012 2013 2016 2018 2020 2022

18 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Latin America

Market Overview
Generally, the economies of Latin America have
continued their positive post-pandemic rebound.
Still, the winds are shifting as global financial
conditions tighten, and commodity prices are
reversing their upward trend while inflationary
pressures persist.
Accordingly, most of the major Latin American economies performed
better-than-expected in 2022, in many cases growing above-trend
because of resilient domestic demand and an uptick in exports.
In 2023, however, most Latin American economies are expected to
shift into low-trend growth as more challenging external dynamics
weaken exports in the region, and waning confidence takes a toll on
domestic demand.
over energy shortages in Europe. Thermal coal is an alternative
energy source to natural gas, and Colombian coal exports to Europe
have doubled since the onset of the Russia-Ukraine crisis.
In Brazil, President Luiz Inácio Lula da Silva won the October 2022
election. Attacks against Brazil’s government institutions by thousands
of the former president’s Bolsonaro supporters in January 2023 drew
shock and condemnation from world leaders, raising concern that
similar violence in the U.S. has provided the playbook for anti-
democratic violence. This will undoubtedly mean delays to inward
investment in Brazil in the short term.
Overall, the economic overview of the region is generally pessimistic.
However, this presents opportunities for investors willing to take a
long-term view and take account of regional currencies, which remain
very weak against major world currencies.
James Slattery, Director, BCQS International

Additionally, uncertainty over the trajectory of the U.S. economy, with

a shallow recession now expected in the first half of 2023, is a key
downside risk to the GDP growth forecasts in Latin America.

The region faces significant challenges, including tightening global

financial conditions, lower global growth, persistent inflation and
increasing social tensions amid growing food and energy insecurity.

Dimming prospects for growth in the U.S., Europe, and China, means
that global trade is likely to soften, with negative implications for
exports out of Latin America. This is particularly the case for
consumer-facing exports, like manufacturing goods, which are more
sensitive to the weaker global demand.

Volumes for most of the energy-related exports out of Latin America

are expected to soften. One notable exception is Colombian thermal
coal, which has been surging, arguably partly resulting from concerns

19 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com
Photo:
I © Schneider
BCQS International
Electric, Colombia
 General and Government Statistics

Local Currency GDP

Exchange Rate Land Area Capital Labor (Purchasing Key Industries
Country to US $1.00 (Sq. Km) City Population Force Power Parity) (Exc. Construction)

Agriculture, textiles, shoes, chemicals, cement,

8,358,140 217,240,060 86.621 million 1.89 trillion
Brazil BRL 5.2586 Brasilia lumber, iron ore, tin, steel, aircraft, motor vehicles
Sq. Km. (2022 est.) (2020 est.) (2022 IMF)
and parts, other machinery and equipment

Agriculture, textiles, food processing, oil, clothing

1,038,700 49,059,221 19.309 million 3.42 billion
Colombia COP 4,856.468 Bogota and footwear, beverages, chemicals, cement, gold,
Sq. Km. (2022 est.) (2020 est.) (2022 IMF)
coal, emeralds

Sources: World Bank eLibrary. The CIA World Factbook. International Monetary Fund (IMF). Exchange Rate as of 9th January 2023, Forbes Advisor Currency Converter.

20 BCQS Market Trend Report – Caribbean & Latin America 2022 Photo: Canpack, Colombia
Latin America

Brazil – Typical Building Costs (BRL$ per m2) High quality home 4,700 12,000

The following table and chart provides an upper and lower range of typical Brazilian building costs Medium quality home 3,000 4,700
shown in local currency.
Modest quality home 2,400 4,000

BRL/m2
High quality apartment 4,000 8,500
Descriptions/Notes: See page 27 Low High
Residential Medium quality apartment 3,000 5,000

High quality residential home 4,700 12,000

Modest quality apartment 2,600 4,000
Medium quality residential home 3,000 4,700
Modest quality residential home 2,400 4,000
High quality office fit-out/ city centre 6,200 12,500
High quality residential apartment 4,000 8,500
Medium quality residential apartment 3,000 5,000 Medium quality office fit-out/ city centre 3,700 6,200

Modest quality residential apartment 2,600 4,000

High-tech factory/ laboratory 2,900 5,000
Offices / Commercial
Offices fit-out / City centre - High quality 6,200 12,500 Large warehouse distribution centre 1,945 3,200
Offices fit-out / City centre - Medium quality 3,700 6,200
Warehouses Warehouse/ factory unit 1,000 1,800

High-tech factory / laboratory 2,900 5,000

Large shopping centre / mall, shell and core 2,350 4,200
Large warehouse distribution centre 1,945 3,200
Warehouse/factory unit 1,000 1,800 Supermarket/hypermarket 1,945 3,000
Retail
Luxury hotel exc. FF&E, refurbishment 6,000 9,000
Large shopping centre / mall - shell and core 2,350 4,200
Supermarket/hypermarket 1,945 3,000
4 star hotel exc. F F&E, refurbishment 3,000 6,000
Hotels
Luxury hotel exc. FF&E - Refurbishment 6,000 9,000 3 star hotel exc. F F&E, new construction 3,000 4,000
4 star hotel exc. FF&E - Refurbishment 3,000 6,000
4 star hotel exc. F F&E, new construction 4,000 6,000
3 star hotel exc. FF&E - New construction 3,000 4,000
4 star hotel exc. FF&E - New construction 4,000 6,000
5 star hotel exc. F F&E, new construction 6,500 12,000
5 star hotel exc. FF&E - New construction 6,500 12,000
BRL per m2 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Source: BCQS Cost Database

21 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Latin America

Colombia – Typical Building Costs (COP$ per m2) High quality home 3,671,250 5,117,500

The following table and chart provides an upper and lower range of typical Colombian building
Medium quality home 2,336,250 3,337,500
costs shown in local currency.

Modest quality home 2,002,500 2,892,500

COP/m2

Descriptions/Notes: See page 27 Low High High quality apartment 4,005,000 6,007,500

Residential
Medium quality apartment 2,225,000 3,337,500
High quality residential home 3,671,250 5,117,500

Medium quality residential home 2,336,250 3,337,500

Modest quality apartment 1,557,500 2,558,750
Modest quality residential home 2,002,500 2,892,500

High quality residential apartment 4,005,000 6,007,500 High quality office fit-out/ city centre 2,002,500 3,337,500

Medium quality residential apartment 2,225,000 3,337,500

Medium quality office fit-out/ city centre 1,668,750 2,892,500
Modest quality residential apartment 1,557,500 2,558,750

Offices / Commercial
High-tech factory/ laboratory 3,448,750 5,117,500
Offices fit-out / City centre - High quality 2,002,500 3,337,500

Offices fit-out / City centre - Medium quality 1,668,750 2,892,500 Large warehouse distribution centre 1,112,500 1,668,750

Warehouses

High-tech factory / laboratory 3,448,750 5,117,500 Warehouse/ factory unit 1,112,500 1,668,750

Large warehouse distribution centre 1,112,500 1,668,750

Large shopping centre / mall, shell and core 2,225,000 3,104,717
Warehouse/factory unit 1,112,500 1,668,750

Retail
Supermarket/hypermarket 1,557,500 2,238,675

Large shopping centre / mall - shell and core 2,225,000 3,104,717

Supermarket/hypermarket 1,557,500 2,238,675 Luxury hotel exc. FF&E, refurbishment 3,099,107 4,338,750

Hotels
4 star hotel exc. F F&E, refurbishment 2,066,071 2,892,500
Luxury hotel exc. FF&E - Refurbishment 3,099,107 4,338,750

4 star hotel exc. FF&E - Refurbishment 2,066,071 2,892,500

3 star hotel exc. F F&E, new construction 1,986,607 2,781,250

3 star hotel exc. FF&E - New construction 1,986,607 2,781,250

COP per m2 100,000 1,100,000 2,100,000 3,100,000 4,100,000 5,100,000 6,100,000
Source: BCQS Cost Database

22 BCQS Market Trend Report – Caribbean & Latin America 2022

Latin America

Brazil Regional Construction Cost Differences 4.00%

3.89%

Based on the size of Brazil, we have provided a table to identify internal regional construction
cost fluctuations across the country. Using São Paulo as our benchmark, the table identifies 2.00%

the adjustment indices for the region. As can be observed, price ranges fluctuate considerably
0.00%
in Brazil; by in excess of 20%. 0.00%

Brazil: State - City % of Change -2.00%

Rio de Janeiro - Rio de Janeiro 3.89%
São Paulo - São Paulo 0.00% -4.00%

Paraná - Curitiba -12.54%

-6.00% -5.58%
Amazonas - Manaus -7.68%
-6.57%
Distrito Federal - Brasilia -5.58%
-8.00% -7.68%
Mato Grosso - Cuiabá -6.57%
-8.88%
Santa Catarina - Florianòpolis -8.88% -10.00%
-9.89%
-10.13% -10.11%
Minas Gerais - Belo Horizonte -10.13% -10.31%

-11.04%

Pernambouco - Recife -12.14% -12.00% -11.48%

-11.75%
-12.14% -12.15%-12.15%
-12.54%
Alagoas - Maceió -10.11%
-14.00% -13.42%

Espirito Santo - Vitoria -9.89% -14.52%-14.52%

-15.26%
Maranhão - São Luís -10.31% -16.00%

Paraiba - João Pessoa -11.04% -16.66%

-18.00% -17.42%
Goiás - Goiânia -11.48%
Pará - Belém -12.15%
-20.00%
Amapa - Macapá -12.15%

São Paulo - São Paulo

Paraiba - João Pessoa

Piaui - Teresina
Ceará - Fortaleza
Mato Grosso - Cuiabá

Santa Catarina - Florianòpolis

Mato Grosso do sul - Campo grande

Rio de Janeiro - Rio de Janeiro

Paraná - Curitiba

Rio grande do sul - Porto alegre

Pará - Belém
Distrito Federal - Brasilia

Rio grande do Norte - Natal

Pernambouco - Recife

Espirito Santo - Vitoria

Goiás - Goiânia
Minas Gerais - Belo Horizonte

Bahia - Salvador
Maranhão - São Luiz
Amazonas - Manaus

Alagoas - Maceió

Sergipe - Aracaju
Amapa - Macapá
Rio grande do Norte - Natal -11.75%
Mato Grosso do sul - Campo grande -13.42%
Bahia - Salvador -14.52%
Sergipe - Aracaju -14.52%
Ceará - Fortaleza -15.26%
Rio grande do sul - Porto alegre -16.66%
Piaui - Teresina -17.42%
Source: BCQS Cost Database

23 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
Latin America

Colombia Regional Construction Cost Differences

Based on the size of Colombia, we have provided a table to identify internal regional construction
cost fluctuations across the country. Using Bogota as our benchmark, the table identifies the
adjustment indices for the region. As can be observed, Colombia construction costs are fairly
consistent and aligned to Bogota, with the range less than 2% across the sample group.

Colombia: State - City % of Change

Barranquilla - Atlantico 0.01%
Bogotá D.C. 0.00%
Cali - Valle del Cauca -0.43%
Medellin - Antioquia 0.78%
Source: BCQS Cost Database

0.90%
0.78%

0.70%

0.50%

0.30%

0.10%

0.01% 0.00%
-0.10%

-0.30%

-0.43%
-0.50%
Barranquilla - Atlantico

Bogotá D.C.

Cali - Valle del Cauca

Medellin - Antioquia

24 BCQS Market Trend Report – Caribbean & Latin America 2022 Photo: GSG Globles Scotiabank, Colombia
Latin America

Brazil and Colombia Map

Regional map showing location cost fluctuations from base locations (Bogota, Colombia and São Paulo, Brazil).

Note: Maps and location placement are not show in accurate scale. Source: BCQS Cost Database.
 Weights and Measures
There is no regional pattern of quantification within the region in terms of metric or imperial systems. The following is intended as a guide to the conversion rates of the most common units of measurement within the construction
industry in the region.

METRIC IMPERIAL

Length Length

1 millimetre (mm) .0394 in 1 inch 2.54 cm

1 centimetre (cm) 10 mm .03937 in 1 foot 12 in 0.3048 m
1 metre (m) 100 cm 1.0936 1 yard (yd) 3 ft 0.9144 m
1 Kilometre (km) 1000 m .6214 mile 1 mile 1760 yd 1.6093 km

Area Area

1 sq cm (cm2) 100m2 .1550 in2 1 sq inch (in2) 6.4516 cm2

1 sq metre (m2) 10000 cm2 1.1960 yd2 1 sq foot (ft2) 144 in2 0.0929 m2
1 hectare 10000 m2 2.4711 acres 1 sq yard (yd2) 9 ft2 0.8361 m2
1 sq km (km2) 100 ha .3861 mile2 1 acre 4840 yd2 4046.9 m2

Capacity / Volume Capacity / Volume

1 cu ccm (cm3) .0610 in3 1 cu inch (in3) 16.387 cm3

1 cu decimetre (dm3) 1000 cm3 .0353 ft3 1 cu foot (ft3) 1728 in3 0.0283 m3
1 cu metre (m3) 1000 dm3 1.3080 yd3 1 fluid ounce (fl oz) 28.413 ml
1 litre (litre) 1 dm3 1.76 pt 1 pint (pt) 20 fl oz 0.5683 litre
1 hectolitre (hl) 1000 litre 21.997 gal 1 gallon (gal) 8 pt 4.5461 litre

Mass (weight) Mass (weight)

1 milligram (mg) .0154 grain 1 ounce (oz) 437.5 grains 28.35 g

1 gram (g) 1000 mg .0353 oz 1 pound (lb) 16 oz 0.4536 kg

1 kiligram (kg) 1000 g 2.2046 lb 1 stone 14 lb 6.3503 kg

1 tonne (t) 1000 kg 09842 ton 1 ton 20 cwt 1.016 t

26 BCQS Market Trend Report – Caribbean & Latin America 2022 bcqs.com I © BCQS International
 Notes, Terms and Sources
CARIBBEAN
Page 6/7
1. Indicators such as water, electricity and especially gasoline are all subject to fluctuations but are indicators of cost
levels at the time of writing. Where figures vary depending on value or type of goods or services, such as import duty
on building materials, or stamp duty on property transfer, then a medium average has been calculated.
2. Currency exchange rates are for general information purposes only and are subject to change at any time. Rates are
valid at the time of writing.
Page 8 & 9
1. Figures are subject to revision by reporting countries.
Page 10, 11, 12 & 13
1. The indicative construction costs are given in US currency per square foot of gross floor area, measured to the
external face of the external walls for a spectrum of property types. These costs are shown in a low to high range for
each building type. These costs have been derived both from our indicing of materials, plant and labour and our on
the ground expert opinion, and experience of the market in each jurisdiction. All costs are indicative averages, and
have many caveats. Figures exclude land costs, professional and legal fees, plus all other soft costs which should be
added to the costs in this study.
2. Where metric measurement or other currencies are used, conversions have been done.
Page 14, 15 & 16
1. The average rental and sales values per square foot for a spectrum of types of properties show a low to high range
for each building type. These costs have been derived both from our indicing of materials, plant and labour and our
on the ground expert opinion, and experience of the market in each jurisdiction.
2. Where metric measurement or other currencies are used, conversions have been done.
Page 17
1. The average overhead and profit margin percentages are typical for projects ranging from $1M to $5M in construction
cost. Average overhead and profit margin percentages for higher cost projects are expected to be less due to
economies of scale.
Page 18
1. The overall market trend is based on data we have cumulated since we started reporting.
Page 20
1. Currency exchange rates are for general information purposes only and are subject to change at any time. Rates are
valid at the time of writing.
Page 21-25
1. All building costs for Latin America are shown in m2 (1 m2 = 10.764 sq. ft.).
2. Costs are given in local currency per m² of gross floor area, measured to the external face of the external walls.
3. All costs are indicative averages, and have many caveats.
4. Figures exclude land costs, professional and legal fees, plus all other soft costs, which should be added to the costs
in this study.
5. Please consult BCQS in relation to the averages used above to seek any clarification.
The building types referred to in the cost indicator sections are as follows:
CARIBBEAN
High quality residential home: New construction, high quality finishes, complete MEPF network including sanitary
fixtures, including swimming pool.
Medium quality residential home: New construction, medium quality finishes, complete MEPF network including
sanitary fixtures.
Modest quality residential home: New construction, modest quality finishes, complete MEPF network including sanitary
fixtures.
Hotels/ condos five star: Five-Star resort with normal facilities.
Hotels/ condos three star: Three-Star economy hotel with normal facilities.
Offices, 1-3 storey, shell: Shell only partitioned, staircase, package units A/C, bathrooms, doors and aluminium
windows.
Offices, 1-3 storey, fitout: Fitted out partitioned, staircase, package units A/C, bathrooms, doors and aluminium
windows.
27 BCQS Market Trend Report – Caribbean & Latin America 2022
High rise, 4-8 storey, shell: As above shell only, with elevators.
High rise, 4 to 8 storey, fitout: As above fitted out, with elevators.
Specialist offices: Including medical centres, laboratories, restaurants, etc.
Storage or warehouse Structures: Walled and metal sheet roofed, electrical and water.
Retail single-storey: Open plan, bathrooms, glass storefront.
LATIN AMERICA
Costs are given in local currency per m² of gross floor area, measured to the external face of the external walls. All costs
are indicative averages, and have many caveats. Figures exclude land costs, professional and legal fees, plus all other
soft costs which should be added to the costs in this study. Exchange rates are valid as of January 2023.
High quality residential home: New construction, high quality finishes, complete MEPF network including sanitary
fixtures, including swimming pool.
Medium quality residential home: New construction, medium quality finishes, complete MEPF network including
sanitary fixtures.
Modest quality residential home: New construction, modest quality finishes, complete MEPF network including sanitary
fixtures.
High quality fit-out works within existing residential apartment: Refurbishment of an existing apartment, high quality
finishes to floors/ walls/ ceiling, new MEPF network including new sanitary fixtures.
Medium fit-out works within existing residential apartment: Full strip out works of an existing apartment, medium
quality finishes to floors/ walls/ ceiling, mechanical and electrical services and lighting upgrade.
Modest fit-out works within existing residential apartment: Refurbish existing apartment with medium quality finishes.
High quality office fit-out/ city centre: Acoustical quality suspended ceiling, internal partitioning with acoustic
consideration, mechanical, electrical, plumbing and fire safety installations including lighting upgrade, installation of
below floor power distribution and data cabling, enhanced finishes to bathrooms, tenant stand-by power generation and
UPS, IT and telecommunications installations, adaptation of life safety systems and signage, decoration and branding,
high quality carpet generally, specialist finishes to reception/lobby.
Medium quality office fit-out/ city centre: As above, but with medium quality finishes.
High-tech factory/ laboratory: Pad foundation system including strip footings, reinforced concrete ground floor slab and
vapor barrier, structural steel frame including all columns and beams, curtain glazed facade, metal wall cladding and
insulation, concrete staircase and CMU wall, internal partitioning and doors, medium quality finishes to floor, walls and
ceiling, plumbing and drainage system to the overall building and sanitary fixtures, electrical system including generator
set, communication/ alarms/ data system including CCTV system/ cameras/ access control, telephone/ WIFI system,
audio/ video system and TV and screen projection, air handing units, air distribution ductwork and extract and supply
grilles, exhaust system, elevator and scissor lift, sprinkler system.
Large warehouse distribution centre: Pad foundation system including strip footings and reinforced concrete ground
floor slab, roofing structural steel frame, in-situ reinforced concrete to columns and beams, external CMU wall with metal
wall cladding, Internal partitioning and doors, modest quality finishes to floor, walls and ceiling, plumbing and drainage
system to the overall building and sanitary fixtures, electrical system including generator set, UPS system to store,
communication/ alarms/ data system including CCTV system/cameras/access control, telephone/WIFI system,
audio/video system, air handing units to stores only, air distribution ductwork and extract and supply grilles, exhaust
system, sprinkler system.
Warehouse/factory unit: Pad foundation system including strip footings and reinforced concrete ground floor slab,
reinforced concrete including all columns and beams: using bolted connections for secondary beams / primary beams,
external CMU wall, internal partitioning and doors, modest quality finishes to floor, walls and ceiling, plumbing and
drainage system to the overall building and sanitary fixtures, Electrical system including generator set, communication/
alarms/ data system including CCTV system/ cameras/ access control and telephone/ WIFI system, air handing units, air
distribution ductwork and extract and supply grilles, exhaust system, sprinkler system.
Large shopping centre / mall - shell and core: Shell & core in concrete, glazed curtain wall façade, reinforced concrete
staircase, CMU walls, Internal partitioning and doors, high quality finishes to floor, walls and ceiling, Plumbing and
drainage system to the overall building and sanitary fixtures, electrical system including generator set, UPS system, BMS
system, communication/ alarms/ data system including CCTV system/ cameras/ access control, telephone/ WIFI system
and audio/ video system, air handing units, air distribution ductwork and extract and supply grilles, exhaust system,
elevators and scissor lift, sprinkler system, landscape works.
Supermarket/ hypermarket: Pad foundation system including strip footings, reinforced concrete ground floor slab and reinforced
concrete including all columns and beams, external CMU wall, internal partitioning and doors, modest quality finishes to floor, walls
and ceiling, plumbing and drainage system to the overall building and sanitary fixtures, electrical system including generator set,
communication/ alarms/ data system including CCTV system/ cameras/ access control and telephone/ WIFI system, air handing
units, air distribution ductwork and extract and supply grilles, exhaust system, sprinkler system.
Luxury hotel, excl. FF&E: Refurbishment of an existing building, full strip-out of an existing building, structural
modifications to be compliant with the design, new external glazed façade and windows to overall building, internal
partitioning with acoustic consideration, high quality finishes to new public and guestroom area with some iconic
construction elements, new plumbing and drainage system to the overall building and sanitary fixtures to public,
guestroom and back of house area, new electrical system including generator set, UPS system, BMS system, new
communication/ alarms/ data system including CCTV system/ cameras/ access control, telephone/ WIFI system and
audio/ video system, air handing units, air distribution ductwork and extract & supply grilles, exhaust system, elevators,
sprinkler system.
4 star hotel, excl. FF&E: Refurbishment of an existing building. As above but with medium finishes.
3 star hotel, excl. FF&E: New construction, new shell and core in concrete, glazed façade and windows to overall
building, concrete staircase and CMU wall, internal partitioning and doors, medium quality finishes to floor, walls and
ceiling, new plumbing and drainage system to the overall building and sanitary fixtures, new electrical system including
generator set, UPS system, BMS system, new communication/ alarms/ data system including CCTV system/ cameras/
access control, telephone/ WIFI system and audio/ video system, air handing units, air distribution ductwork and extract
and supply grilles, exhaust system, elevators, sprinkler system, landscape works.
4 star hotel, excl. FF&E: New construction. As above but with medium to high quality finishes..
5 star hotel, excl. FF&E: New construction. As above but with high end quality finishes.
ADDITIONAL NOTES:
This report is intended as a guide only. Should the reader require detailed construction advice, then the services of a
professional RICS accredited and professionally indemnified Quantity Surveyor should be sought. BCQS International
accepts no responsibility for results of the actions of individuals acting directly through the findings of this report. Whilst
we have made every effort to ensure that all rates and statistics herein are accurate, BCQS International accepts no
responsibility for the accuracy of the sources of such rates and statistics.
Sources have been referred to where appropriate. Although extensive research has been carried out in the compilation of
this report, much of it has been generated in-house, and not all references have been named. We hereby extend our
thanks to those sources known to us through professional relationships, suppliers, employment brokers, plant hire
companies etc. throughout our named jurisdictions.
Neither the whole nor any part of this report or any reference to it may be included in any published document, circular or
statement nor published in any way without BCQS International’s written approval of the form and context in which it may
appear.
BCQS International gives no warranty, representation or assurance that the statements, conclusions and opinions
expressed or implied in this report are accurate or valid. BCQS International has prepared this report without any
acceptance or responsibility on their part to agents outside of the employ of BCQS International.
Due to current volatile financial markets, our findings should be regarded as valid for a limited period of three months,
after which they will be subject to re-examination.
Given the degree of overall uncertainty due to the COVID-19 pandemic, data contained herein may change dramatically,
or be different than under stable market conditions. Therefore, we advise the intended user to consider the current lack of
overall economic stability in evaluating the data and opinions expressed herein.
It is important to note that this report is generic in nature and for general
guide purposes only.
Given current global market volatility, possible unique site conditions
and/or specifications of individual projects, we encourage you to reach out
to your local BCQS contact for more up-to-date and customised cost data
relating to each project location.
bcqs.com I © BCQS International
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28 BCQS Market Trend Report – Caribbean & Latin America 2022