The Bahamas property market slowly recovers
The Bahamas property market is mildly recovering from the effects of the global recession as US and UK buyers return to the islands. Interest from Latin American and Asian buyers is also increasing.
Most islands are doing well, with a 10-15% increase in property sales. In New Providence, second homes and vacation residences priced between US$750,000 and US$1 million sell easier than those priced from US$1 million – the average price for a luxury home – and up. In the Family Islands, there is a larger demand for second homes and condominiums priced between US$500,000 and US$1 million.
The Bahamas has enjoyed stable economic growth, with an average annual GDP growth rate of 3% between 1997 and 2007. However, due to sharp declines in tourism and financial sectors in 2008, GDP growth was estimated to have slowed to 1%. In 2009, recession deepened and GDP declined by 3.9%.
A slight growth of 2% is anticipated from 2010 to 2011 as tourism receipts by air and sea improve due to increase in air services and cruise operations.
Tourism-related construction projects led by the government are also expected to spur development plans for real estate projects and to attract more foreign investments.
