A record number of post-pandemic visitors to The Bahamas proves it’s still better hereSeptember 15, 2023
It’s time to add a property in The Bahamas to your real estate portfolio
When the Ministry of Tourism coined the phrase “it’s better in The Bahamas” almost thirty years ago, it was a simple yet effective idea that piqued travelers’ interests in an enigmatic, paradisiacal oasis located 35 minutes by air from South Florida. At that time, under the stewardship and vision of legendary hotel magnate Sol Kerzner, the Atlantis was a rising star among world-class mega-resorts, and the now-defunct Crystal Palace, with its Vegas-esque flair, was a formidable competitor conveniently located a few miles away from Atlantis, in an area called Cable Beach. For visitors who wanted a laid-back vacation with pristine beaches, delectable seafood, and hospitality that remains unrivaled to this day, The Bahamas was the perfect destination!
Today, “it’s better in The Bahamas” has evolved from a phrase to a fact. In 2019, amidst the devastation of Hurricane Dorian, The Bahamas saw a record-breaking 7 million visitors. Post-pandemic, The Bahamas reported over 630,000 air arrivals in Q1 of 2023, up 33.7% from 2022, and 2.8 million visitors by cruise, positioning itself to surpass the record of 3.9 million cruise visitors in 2019. Dare we reiterate it’s still better in The Bahamas?
As it turns out, tourism isn’t the only business booming in The Bahamas. So is real estate! 2022 marked a historic year and proved that The Bahamas is still an in-demand destination for spectacular high-end homes, with a waterfront property in Lyford Cay trading for what is believed to be a record sum of $47 million, and a newly built estate in Elbow Cay, Abaco closing at $14 million, just to name a couple of standout purchases. Although the market has cooled since the buying frenzy, with high-end sales down 20-25 percent, The Bahamas’ real estate market is still ripe for the picking. If a slower, more peaceful pace of life and pristine beaches are insufficient to pique your interest to invest in this market, keep reading for:
3 reasons to add a property in The Bahamas to real estate portfolio
Greater gains in passive income
Once again, it’s still better in The Bahamas. As more celebrities, influencers, and other public figures flock to The Bahamas, posting their thrills on social media, the allure of The Bahamas increases. While this increase in interest is great for business, the reality is that there are often not enough rooms to accommodate visitors. Realizing this fact, many locals list their homes on sites such as Airbnb and Booking.com to generate passive or supplemental income.
The challenge with many locals new to Airbnb culture is that they may not be able to live up to the expectations of North American visitors who have stayed at Airbnb properties since its inception over a decade ago. That creates an incredible opportunity for savvy real estate investors who can afford to provide accommodations and experiences comparable to what seasoned travelers are looking for. During peak seasons, when hotels sell out and nightly rates start at $375 at a 3-star hotel on average, you can list your property at rates that either meet or exceed what hotels offer, given you provide value.
Live or work in The Bahamas permanently
In a post-pandemic era, people not only seek remote work experiences, but they move to new countries for a change of scenery. When you purchase real estate for $750,000 or more, The Bahamas’ Department of Immigration gives you consideration for Permanent Residency. Why would you make that kind of investment in a foreign country? When you consider the median prices of homes in sought-after neighborhoods such as LA’s Silverlake and Seattle’s Belltown, the prospect of homeownership in The Bahamas starts to make more sense. For example, the median listing prices of single-family homes in LA’s Silverlake are $1.8 million and $658.8 thousand in Seattle’s Belltown, respectively.
If you do not wish to leverage your new Bahamas home to generate passive income, it will still be a property you can visit whenever you want to soak in the sun and invite loved ones to do the same. That’s our idea of spreading love and wealth.
Higher demand means more value for sellers
In an interview with Forbes, MAISON’s Founder, Ryan Knowles, described The Bahamas’ 2021 real estate market as “hot” with one of the busiest years on record. Ryan observed that “demand continues to outstrip supply” and predicted a record-breaking 2022 where demand would remain limited. He was right. That said, if you are fortunate enough to close on a coveted property here in The Bahamas, an in-demand choice for luxury U.S. buyers, you can rest assured about potential gains should you ever decide to sell.
Our vision of home ownership in The Bahamas is as clear as our waters – now is always the time to invest. If you are still unsure and would like guidance on where to begin, connect with the experts here at MAISON. We are happy to help! Welcome home.