The Property Investment Market in the Bahamas

Past, Present & Future

The real estate market has been dominated by wealthy clients of high-end luxury property, making the market less susceptible to economic fluctuations as other areas throughout the world. After independence from the UK in the mid 70s, the Bahamas gained prosperity through investment banking and tourism, which generates around 60% of the country’s total GDP.

In the mid 90s a landholding law was passed to enable easier purchasing processes for foreign buyers. The requirements for obtaining permits prior to purchasing were removed, and the provisions for residency status were established.

As the economy in the Bahamas is closely based on the tourism market, any sharp declines in world tourism place a direct effect to the local market. Since 2007 the real estate market in the Bahamas has also felt a knock-on effect from the world economic situation. While the property prices have not shown effects of drops in the market, the number of sales transactions and new constructions have gone down compared with previous years.

The future for real estate in the Bahamas appears to be steady as a luxury property market. The stability of the location is evident as an established market with high end appeal, along with its potential for growth and expansion. As the country consists of 700 tropical islands, the majority of the established construction is based on only a small percentage of the land mass. Newer areas are being opened up for development offering land prices at up to 95% cheaper than the established areas, enabling a larger percentage of overseas investors to access the market.

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