Bahamas Real Estate, according to MLS stats*, continues to show steady growth with the average sales price up from $349,812 in 2018 to $470,979 for the 1 st half of 2019. The total sales volume is $99,847,548 which is slightly ahead of the 2018 total sales by about 5.7%. Total units sold has decreased and the median sales price has decreased from $310,000 to $270,000. Average days on the market for properties closed decreased from 337 for 2018 to 300 for the first half of 2019.
The Abaco market continued to be a hot spot with the average sales price of $456,589 up just over 2% from 2018. Treasure Cay, Elbow Cay and Green Turtle Cay all had significant increases in average sales prices with Treasure Cay having the biggest average sales price increase from $370,600 in 2018 to $445,972 in the first half of 2018 or a 20% increase. The typical unit sold in the Abaco market averaged 2 bedrooms, 2 bathrooms and 1,884 square feet.
On New Providence, the Cable Beach sub-market including Sandyport showed an increase of 9.6% on the average monthly rental up to $3,397 and was right on target with 2018’s gross yield performance of 8%. Paradise Island, which is usually one of the more active markets, had a very sluggish start to 2019 with total sales and the average sales price well below 2018 averages.
Overall on New Providence and Paradise Island, there were 103 residential unit sales with an average sales price of $562,293. The unit sales are well ahead of the total unit sales for 2018 but the price point has decreased significantly from $806,842.67 in 2018 to 562,293 in the first half of 2019**.
While the total units sold in Eleuthera was well off the 2018 pace, the average sales price increased by 33% to $424,850.
Analysis and Outlook
New Providence/Paradise Island
$100,000 – $500,000 – Lending will continue to be the main factor determining how well this market performs. This is primarily a local market relying on mortgages. Improved data supporting lending, appraisals, property tax structures can help stimulate confidence by establishing a more accurate baseline of values to support confidence in lending practices.
**$500,000 – $2,500,000 – Anticipation that the market will continue to be affected by new development projects representing approximately 900 new units. Most of these projects include Rosewood and SLS at Bahamar, One Marina at Palm Cay, Hurricane Hole – Paradise Island, Residences at Goldwynn and The Pointe. These projects are all new, modern and amenity driven with prices competing with the already established market. These project sales are not reflected in MLS data and in most cases are in the early contractual stages with their buyers and sales will not complete for a period of time pending the final completion of each project. These projects should affect the market in this price range for the next 18 to 24 months.
$2,500,000 + – As long as The Bahamas has a politically stable, economically sound, safe and environmentally beautiful product, the high net worth international investor will continue to see the country as a viable lifestyle opportunity.
Family Islands
The biggest real estate growth opportunities exist in the family islands. Exuma, Abaco and Eleuthera benefit from airlift, amenities and lifestyles that support a strong rental market lifting property values. The announcement new developments and airlift in Grand Bahama, Long Island and Cat Island present early opportunities to invest in a potentially growing market.
Disclaimer & Copyright
*Sales data used in our reports are a minimum $20,000.
The data provided in this report is sourced from the Bahamas Multiple Listing (MLS) service which is supported by a network of licensed real estate agents in The Bahamas. The data was extracted as of July 2, 2019, any sales closed but not entered will not be reflected in this report. Engel & Völkers makes no guarantees that the data entered in the MLS is always correct. These sales do not represent 100% of the market transactions and would exclude distressed sales, foreclosures, sales by private owners, new development condos and community sales where the developer is not a part of the MLS and other situations where realtors are not a part of the transaction or the sale is not an MLS listing. We do however believe that overall the data serves as the most reliable public source for arms length transactions that are public knowledge. The concept of an arm’s length transaction assures that both buyer and seller are acting in their own self-interest and are not subject to any pressure or duress from the other party. It also assures third parties that there is no collusion between the buyer and seller. Engel Völkers Bahamas makes no statement, representation, or warranty and assumes no legal liability in relation to the accuracy, context or suitability for any purpose of the information provided through use of this information. Distribution of this report or the content herein is not permitted without the prior written consent of Engel & Völkers Bahamas.
