By Anthony Morgan

Pulse Investments’ entry into residential real estate should help satisfy some of the demand for homes in the market, according to THE ANALYSTS.

Pulse recently indicated that the preliminary designs for some 30 residences are ready, with construction to start on townhouses and detached units around March. Last December, the company raised $250 million in a bond to finance its real estate projects.

Research and Strategy Analyst at Sagicor Investments, Jodian Aris, said the Pulse homes are likely to do well as they will be helping to fill the deficit of homes required in Jamaica. She reasoned that with about 9,000 homes being built annually, only about half of the demand for 15,000 homes per year is being met. She referenced data from the National Housing Policy and the Ministry of Economic Growth and Job Creation.

 “So, there is space,” she said, adding that “There is still a great demand in the Kingston golden triangle in particular.”

Pulse Homes represents the first of a two-part project launched by the company last year. The other is the development of 68 guest suites which the company forecasts could generate US$2.5 million (J$375 million) in additional revenue.

Both developments will be located on the nine-acre Villa Ronai property in St. Andrew. Pulse operates the property under a 50 year lease from its Executive Chairman and principal shareholder, Kingsley Cooper.

Aris said while Pulse is “fresh” to residential construction, the project should pose little risk, as they have been doing commercial renting for quite some time. 

“They have some amount of experience in real estate that should help to guide whatever nuances that they may face,” she said. 

 Aris also said the market should respond favourably to the homes, reasoning that prices in the real estate market should hold steady for at least the next 5-10 years within the corporate area and even outside of Kingston and St. Andrew.

Meanwhile, Wealth Advisor at Ideal Portfolio Services, Dwayne Taylor agreed that Pulse exploring this side of the market was positive because of the high demand.

 “It’s an exciting development,” he said, noting that the market awaits the final pricing of the homes which Pulse previously said could range between J$45 million to J$65 million (US$300,000 – US$450,000).

 “I’m excited to see how they will price the homes that are for sale as well as the rental price; what they quote it in [and] if it will be affordable for the average Jamaican family,” said Taylor.

He added that the company shouldn’t have any issue capturing the market based on the popularity of the brand. In terms of risk, Taylor agreed that there has to be some caution based on the new territory being pursued, but he also thinks that management will provide sound leadership for a smooth transition into real estate. 

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Watch the full discussion here: