This year should be a good year in the real estate market, particularly in the areas of vacant land and home sales to Bahamians, Engel & Völkers license partner Colin Lightbourn said in a statement released yesterday with the real estate services company’s 2019 Bahamas Real Estate Market Report.
According to Lightbourn, there will likely be major price adjustments in 2020.
“The buyers are there but there is also a lot of inventory,” Lightbourn said.
“The new condo developments have several years of supply at the current prices and at the time of this release, there are 2,560 residential properties active on the MLS (Multiple Listing Service). Also, lending has improved since our report last year, with interest rates now as low as sub-4 percent, so it should be a good year for vacant land and home sales to Bahamians.”
Lightbourn said in the statement that Cable Beach properties are benefiting from Baha Mar’s restaurants and amenities and this has made renting in the area “very popular”.
He added that Cable Beach has outperformed Paradise Island “on the average gross rental yield of 7.5 percent to 5.3 percent, 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 percent for a residential home, however the total units sold dropped for the second year in a row,” the report reveals.
It adds: “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 percent price increase, despite having a shortened year due to Hurricane Dorian.”
Lightbourn said data on Dorian’s impact on prices in the Abacos is not yet available.
“By the end of this year, we should be able to determine that,” he said. “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.”