Engel & Völkers 2019 Real Estate Market Report shows mixed results for the Bahamas real estate market. While the total number of residential units sold on The Bahamas Multiple Listing Service slipped by about 20% throughout the islands, the average sales price for all residential property sales (including land) increased by 6.7% from $239,56 in 2018 to $255,547. Factors affecting the decrease in unit sales were Hurricane Dorian in Abaco which effectively canceled one-third of the year in one of The Bahamas’ strongest real estate markets and a significant volume of new condo inventory launched into the market in full force at the beginning of 2019.
Jump to the full report > Here
In the capital, the average price of a single-family home decreased by 9.5% while the average price of a condo and vacant lot both increased on average by 7.2% and 13.5% respectively. The hot spot on New Providence was the Cable Beach community where there was a 19.8% increase in the average sales price from $440,844 in 2018 to $528,244.70 and a 5.8% increase in the average sales price of a home in the Sandyport sub-community, both also saw an increase in the number of units sold. Sandyport had one of the highest list to sales price ratios of 89% compared to the average in high-end communities of 84%. Engel & Völkers license partner Colin Lightbourn says, “Cable Beach is benefiting greatly from the Bahamar property and the restaurants and amenities it has brought to the immediate community. It has made renting very popular and when the yields are good the sales will reflect that. Buyers also appreciate the amenities for their personal use.” Cable Beach again outperformed Paradise Island on the average gross rental yield of 7.5% to 5.3%, both slight decreases over 2018. The luxury markets including Old Fort Bay, Lyford Cay, and Ocean Club Estates among others saw an average price increase of 16% for a residential home however the total units sold dropped for the second year in a row.
In the family islands, Abaco and Grand Bahama were both significantly impacted by Hurricane Dorian, and effectively lost a third of the year, with many sales contracts being canceled. Total units sold in the Abacos were almost half of the total number sold in 2018. Green Turtle Cay was the best performing island with the same amount of units sold in 2019 as in 2018 and an 8.6% price increase despite having a shortened year due to Hurricane Dorian. Properties are trading again in Abaco according to Lightbourn who ads, “There is not enough data just yet to determine the impact the storm has had on prices in the Abacos. By the end of this year, we should be able to determine that. The promising sign is the incredible resiliency shown and the fact that so many people, whether owners or aspiring owners, want to build their communities back.”
Eleuthera saw an increase in the average sales price but a decrease in units sold, while Exuma saw a 4.5% decrease in the average sales price. Lightbourn believes these two islands should be the main beneficiary of the potential Abaco buyer who may look for a second option, not wanting to either renovate or wait on community amenities and infrastructure to be rebuilt.
Looking forward Lightbourn says, “The main factor in 2020 is likely going to be price adjustments. The buyers are there but there is also a lot of inventory. The new condo developments have several years of supply at the current prices and at the time of this release, there are 2560 residential properties active on the MLS. Also, lending has improved since our report last year with rates now as low as sub-4 interest, so it should be a good year for vacant land and home sales to Bahamians.” He anticipates an equal or better market for 2020 overall.
Read the full 2019 Market Report > Here
https://oldevsite.bahamasislands.com/blog/2019/01/29/engel-volkers-releases-2018-residential-real-estate-market-report/
