Luxury Real Estate

By John Christie of H.G. Christie Ltd.

Based on the steady sales activity we have witnessed over the course of the year, we at HGChristie are of the opinion that the real estate market in the Bahamas is remaining relatively strong, especially for sales in the luxury markets. Speculative, high risk lending practices are non-existent in our country, and additionally, the government is very selective in its approval processes for new developments. As a result of these factors we do not see the high levels of market saturation which we understand to be common in today's troubled U.S. market.

The high-end residential market in the Bahamas has continued to perform steadily and pricing in luxury developments have ranged from $2,000,000 per lot to around $16,000,000 with the sizes of the properties varying. In new developments alone this year there have been $370,000,000 dollars in sales. These include the Albany development (through a culmination of pre-sales push), Bakers Bay, the Residences at Atlantis, and The Ritz Carlton in Abaco. The success of these developments is due mainly to the fact that the developers had a high level of pre-existing funding in place and also to their ability to perform as promised. Another strength has been the rising demand for private, undeveloped islands. During this downturn in the world economy, people with means have been struggling to find safe places to secure their wealth. This has lead them to invest their money in the one commodity that will not disappear or come into dispute - real estate. In general, sales prices have remained consistent but some motivated sellers have reduced their sales prices due to being over-extended in the U.S. market. The possession of development entitlements would further enhance the value and demand for an undeveloped island. Overall, we remain optimistic as our sales continue on this current trend.