The Bahamas real estate market has been tipped as one to watch in 2019, according to the Forbes Real Estate Council.
In its assessment of “Luxury Caribbean Markets to Watch in 2019” the organization tipped The Bahamas as one of its top 5 markets in the Caribbean and added that “2019 presents a good opportunity to invest.”
The market has certainly enjoyed rapid growth in recent years, which has been driven by several factors.
Economic & Political Stability
Firstly, the Bahamas is prized for offering economic and political stability.
As a consequence the country is widely considered a safe place to invest for overseas property buyers, particularly given its proximity to the USA.
With few restrictions in place, it is also relatively hassle-free. According to the International Persons Landholding Act of 1993, non-citizens can purchase real estate in The Bahamas with comparably few restrictions.
Prices Dampened but on the Rise
Secondly, property prices in The Bahamas are very attractive.
Prices have still not fully returned to levels seen before the 2008 global financial crisis.
As a result, prices for luxury real estate in The Bahamas remain highly appealing.
Consistent growth over the last few years offers the opportunity to benefit from capital appreciation while still purchasing at a discount.
Increasing Airlift & Tourism Surge Providing Opportunities for High Rental Returns
Thirdly, the growth in tourism and extra airlift to the country from key source markets is providing opportunities for investors to generate high rental returns from properties.
According to Prime Minister Dr Hubert Minnis, visitor arrivals rose significantly last year.
“Preliminary stopover numbers for the year through October 2018 stood at 1.33 million, a 10.4% increase over the same period in the previous year,” he announced.
Increasing airlift from key source markets is expected to provide continued stimulus for the tourism sector this year, which is a key driver for the real estate market.
“The outlook remains favourable for continued growth in air arrivals, with bookings for the first quarter of 2019 forecast to be ahead by 10.3% for international arrivals. International airlift capacity increased by almost 9.8% in December, with air seat capacity from the US and Canada scheduled to increase by 21% and 19.9% respectively in the first quarter of this year,” he added.
As a consequence, Dionisio D’Aguilar, Minister of Tourism & Aviation believes that air arrivals will rise 16% during the three of 2019’s first four months.
“Initial indications are that air arrivals for the month of January, air arrivals are projected up by 15.6%. February will be up 16.3%, and March down by 2.8%. April is forecast to be up by 16.8%,” he said recently.
Thanks to growth in visitor arrivals and airlift, owners of property in the most popular locations such as Cable Beach, Paradise Island, Treasure Cay and Elbow Cay have been able to generate a significant Return on Investment.
With a strong pipeline of new inventory, the outlook for condos for sale in The Bahamas is looking very promising in 2019.