INVESTING

Paradise Island’s Ocean Club Estates had the greatest jump, nearly $16 million in 2018 compared with $2 million in 2016 Meanwhile, the average sales price of luxury properties in Lyford Cay, Old Fort Bay, Sandyport and, in the island’s east, Port New Providence, ranged from below $2 million to $4 million plus

Further afield

However, the boost in residential sales isn’t limited to New Providence. Other areas throughout The Bahamas archipelago are seeing an increase in sales activity, particularly the Abacos.

“Developments such as this demonstrate that investors continue to value The Bahamas as a world-class destination and an excellent place for investment,” said

Dr Minnis. “Over the next many years, the second-home market for Bahamians here at home, in the diaspora, and for non-Bahamians, will experience significant growth.”

Most popular properties

While the new condo-hotel projects and redevelopment of Hurricane Hole are expected to generate a sizeable boost to the capital’s real estate portfolio, there has also been a considerable uptick in sales of existing properties throughout New Providence

George Damianos, chief executive officer and managing broker of Damianos Sotheby’s International Realty says that “the most popular sales are taking place within the gated communities, including Sandyport and Old Fort Bay,” with the highest number of sales in the high-networth and ultra-high-net-worth markets at exclusive Lyford Cay and Albany, both found in western New Providence

Tim Rodland, broker and partner at Better Homes and Gardens Real Estate/MCR Bahamas Group agrees that the bulk of residential sales are taking place in the affluent gated communities on the island’s west end.

“In 2018, statistics show that the western side of the island, including locations such as Cable Beach and West Bay Street have shown to be some of the more popular areas in New Providence,” he says. “In the [market’s] higher end, locations such as Old Fort Bay and Paradise Island have shown to be the most popular.”

According to the Engel & Völkers report, the average sales price of single family homes and luxur y properties in Nassau and Paradise Island experienced an increase, 47 per cent since 2014.

Peter Dupuch, president and broker of ERA Dupuch Real Estate, says Abaco and Eleuthera are the front-runners for high-net-worth sales among the Family Islands, adding “there is a lot of interest for second-home owners in Bimini ”

Meanwhile, Damianos says that Hope Town, Guana Cay, Scotland Cay and Man-O-War Cay are the most popular for sales in the Family Islands. Properties listed in Abaco with Damianos Sotheby’s range from a $4 2 million, six-bedroom, six-bathroom estate in quaint Hope Town to a highly affordable $360,000, three-bedroom, three-bathroom single family home in the tiny picturesque island settlement of Man-O-War Cay

“In the Family Islands,” says Rodland, “Abaco has shown to be the most popular, representing 70 per cent of Family Island sales in 2018 ”

An investor’s market

Investors from the US and Europe continue to make up the bulk of foreign investors looking to purchase real estate, mostly second homes, throughout The Bahamas, according to Dupuch When seeking investment properties, he says: “Potential buyers are looking for security and amenities. The more amenities, the higher the value of the property More people are now looking for vacation rentals that they can live in and also rent out when they’re not here Palm Cay [in eastern New Providence] is very successful in the short-term rental market.”

Damianos has also seen an uptick in investors recognizing the appeal of investing in vacation rental properties.

“I don’t think [potential buyers] are looking at properties so much as a residential investment, but a lot of homeowners are taking advantage of the short-term rental opportunities,” he says

An analysis by Engel & Völkers into rental properties in Paradise Island and Cable Beach over the past five years reveals the median monthly rent for Paradise Island was $3,500 per month with an average size of 1,784 sq ft, whereas Cable Beach rentals averaged $2,700 per month at 1,658 sq ft.