The Bahamas, with its pristine beaches, turquoise waters, and inviting climate, has long been a coveted destination for luxury real estate buyers. According to Jim Bernard, President, Broker, and Senior Appraiser of Berkshire Hathaway HomeServices Bahamas Real Estate, the market is evolving in fascinating ways, driven by both global interest and changing buyer preferences.  

The Changing Face of the Bahamian Buyer

The Bahamas attracts a global clientele, but most buyers hail from the East Coast of the United States and Canada, followed by Europe. Bernard noted that while there are some buyers from countries like India and Mexico, the majority still come from these three regions. 

In recent years, the purpose of these purchases has begun to shift. Historically a second-home market, The Bahamas saw an influx of permanent residents during the COVID-19 pandemic—a trend that has continued. “During COVID, many people relocated here, making it their primary residence,” Bernard reflected. Now, in addition to snowbirds escaping harsh winters, there is a growing contingent of people establishing permanent roots. 

The influx of tech professionals and entrepreneurs has further diversified the buyer base. While entire companies may not relocate, senior executives often move to the islands, some bringing key team members along. This has bolstered both the residential and business investment markets. A recent transaction involving a resort and marina on Harbour Island, listed at $18 million gross, exemplified this shift, with the buyer intending to launch a business in The Bahamas.  

Property Trends in a Limited Market 

In the world of Bahamian luxury real estate, beachfront properties reign supreme. “Everyone who can afford it wants to be on the beach,” Bernard remarked. Canal-front homes, offering private boat docks, and golf course properties with ocean views are also highly sought after. However, the market for these premium properties is increasingly constrained. 

New Providence, home to Nassau and the center of Bahamian life, is largely built out when it comes to beachfront and canal-front properties. This scarcity has driven prices up, making them a secure and lucrative investment. Bernard emphasized the long-term value of beachfront properties, noting their limited supply. “If you want a secure investment in The Bahamas, buy beachfront. The supply is naturally limited, and nobody can make any more of it.” 

In response to the lack of available land, buyers are increasingly purchasing older homes in desirable locations for extensive renovations or complete rebuilds. While the Out Islands offer more beachfront opportunities, their remoteness and limited air access make New Providence the preferred choice for many. With direct flights from cities like Toronto, London, Miami, and many other major airports, Nassau offers unmatched convenience.

The Rise of Sustainable Luxury

As environmental concerns grow, sustainability and resilience have become critical considerations in luxury home construction. Solar energy is rapidly gaining popularity in The Bahamas, where high energy costs make renewable solutions particularly appealing. Many new builds now incorporate solar systems, while older homes are being retrofitted to reduce reliance on the grid. 

Builders are also addressing the challenges posed by hurricanes and rising sea levels. Waterfront homes increasingly feature elevated land, with retaining walls and infill raising properties by six to eight feet to mitigate flooding risks. Bernard highlighted this trend as a key investment for high-net-worth buyers seeking security in their properties.  

The Draw of The Bahamas 

The appeal of The Bahamas extends beyond its natural beauty and luxurious homes. Its tax-friendly environment is a significant draw for high-net-worth individuals. With no income, capital gains, or inheritance taxes, The Bahamas offers buyers the opportunity to optimize their financial strategies. By purchasing a property worth at least $750,000 (increasing to $1 million in 2025), buyers can apply for permanent residency, providing both lifestyle and financial benefits. 

Luxury vacation rentals also play a significant role in the real estate market. Some communities fully embrace short-term rental opportunities, offering management services that make it seamless for owners to earn income from their properties. Other neighborhoods, however, prefer a quieter, residential atmosphere and restrict vacation rentals. The choice often depends on buyers’ preferences for privacy or profit.  

A Bright Future 

While The Bahamas luxury real estate market is not without competition, Berkshire Hathaway HomeServices Bahamas Real Estate continues to strengthen its presence. Since its founding in 2019, the company has expanded from New Providence to Eleuthera, Harbour Island, Spanish Wells, and Exuma, with plans to grow further into Abaco. 

“Each year, we continue to capture more market share,” he said, noting that their commitment to community initiatives, such as gift drives for underserved children and support for the Humane Society, adds a meaningful dimension to their operations.  

With its growing market and enduring appeal, The Bahamas remains a premier destination for discerning buyers worldwide. For more information about Berkshire Hathaway HomeServices Bahamas Real Estate, visit www.BHHSB.com or read the Berkshire Hathaway HomeServices Resort Report 2024. To learn more about real estate opportunities in the area, contact Jim Bernard: (242) 702-8788; jbernard@bhhsb.com