NIA CHARLESTOWN NEVIS – The Nevis Island Administration (NIA) is already seeing the positive impact of its newly launched Home Renovation/Modernization Policy, as construction activity on the island surges, benefiting homeowners, suppliers, and workers alike.
Permanent Secretary in the Ministry of Finance, Mr. Colin Dore, highlighted the early success of the policy during a recent edition of the Government at Work programme.
“Having launched it in December [2024] in the budget, we have already started to see an uptick in activity for persons wanting to do these things, which is good because it means that that level of economic activity is turning over as we go along. So it is generating the benefits that we were looking for,” Mr. Dore stated.
Recognizing the resilience of the construction sector, particularly in the aftermath of the COVID-19 pandemic, Mr. Dore noted that the sector had remained a pillar of Nevis’ economy.
“We noticed after COVID, when tourism was down, the construction never lost its way. The construction sector was the first one to open after COVID-19. Since then, we have continued to build. When we checked last year, we had more than 170 active construction sites, and as a result of that, we felt we needed to do things to stimulate that sector.”
The Home Renovation/Modernization Policy is designed to assist homeowners who are upgrading their properties by offering significant concessions.
“What we find interesting is that whereas we had the First-Time Homeowners Programme, persons from time to time would be adding, remodelling, and renovating. So we’ve implemented a second policy for this year called Home Renovation/Modernization, which allows for an exemption from Customs Duty and Customs Service Charge on building materials—homeowners only pay VAT [Value Added Tax], and this does not apply to furniture or equipment,” he explained.
The Permanent Secretary emphasized that the policy is particularly beneficial to homeowners whose living circumstances have changed since their initial home purchase.
“We felt that you may have somebody who built a first home when they had a family of two children, and the numbers have increased to three and four—they need to add two more rooms. You could not go back into a first-time homeowner’s programme because you already have a first home.
“And so we felt that if you’re going to provide some relief for these persons who want to improve themselves and their surroundings, we have to put something in place. So we put this arrangement in place, and when we have our discussions with the suppliers of building materials, these little initiatives are turning over stock at these entities because people are doing work. Even the smaller projects, worth $50,000 or so, are having a cumulative effect and driving economic activity.”
The increased demand for construction services has created full employment in the sector, he revealed.
“The construction sector now seems to be fully engaged seven days a week. As a matter of fact, at this point, I don’t think you can easily find a construction worker available. To try to get a contractor to do something for you, you have to fit into the schedule somewhere along. It tells us that this sector is growing, it’s carrying the weight of the economy, and therefore we thought we needed to subsidize it and incentivize it through this programme.”
The Honourable Premier Mark Brantley, Minister of Economic Planning, has consistently emphasized the pivotal role of the construction sector in Nevis’ economic development. He credited the NIA’s incentive programmes, such as the COVID Relief Programme and the First-Time Homeowners Initiative, for sustaining growth in the sector.
The Department of Physical Planning reported that from January to October 2024, a total of 226 construction applications were received. These included applications for new homes, property renovations, apartment buildings, commercial properties, and perimeter fencing projects. Of these, 144 permits were approved, with 112 projects commencing construction.
The Home Renovation Modernization Policy is expected to further boost economic activity, ensuring that Nevisians continue to benefit from a thriving construction industry.