Bahamas Luxury Real Estate Surging in Demand
Posted on March 9, 2015Bahamas luxury real estate is now in the midst of a new renaissance. Led by an insatiable foreign demand for ultra-luxurious property, all signs point to a new era of real estate growth for the country that has never been seen before. The Out Islands in particular are a prime destination for the world’s elite, and their interest continues to get stronger by the day.
Great Exuma Rising High
The Billionaire’s Row chain of Islands in the Exumas are some of the most prized assets in the world. They make up some serious glitz and glamour that are associated with The Bahamas luxury real estate. When one can have it all, when virtually any thought can be made into a reality, a private compound in paradise is seen by many as the ultimate indulgence. Great Exuma, sitting at the hub of the Out Islands, is the next playground. When the billionaires and power players of the neighboring private islands crave a bit more social interactions, Great Exuma will be the spot.
Bahamas Luxury Real Estate Expanding
Discussions with the government of the Bahamas are underway to create a new town center in the land that is sitting adjacent to February Point Resort Estates in Great Exuma. This area would also encompass a sporting complex, featuring an athletics track and soccer field, basketball gymnasium and an Olympic-sized swimming pool. These new amenities will no doubt bring further attraction to The Bahamas luxury real estate located in the Out Islands.
Hot Residential Real Estate Market
The news from the government on their latest housing starts has been equally as exciting with plenty of optimism for the future. Residential housing starts soared 27% year-over-year to 296 properties, and the value of residential starts surged by almost 30% to BSD 75.13 million (US$75.13 million) over the same period in the year of 2014. Activity in the construction sector has been boosted by a number of foreign investment projects, including the multi-billion dollar Baha Mar development and tourism-based initiatives on the Family Islands, according to the Central Bank of The Bahamas (CBOB). Property prices are rising and residential construction activity is back as strong as ever.
North American and European Buyer Interest
The Americans, who make up the largest Bahamas luxury real estate buyers, are back into the market. There is also a noticeable increase in the number of wealthy investors from Canada, France and Britain who are interested into buying a residential property in the islands.
Significant Tax Advantages
Foreigners who own properties in the Bahamas are eligible for a homeowner’s residence card (renewable annually) and those who purchase properties valued at least US$500,000 are given priority in permanent residence applications. There are many tax advantages and incentives for foreign real estate buyers in the Bahamas. There are no income, sales, and estates taxes. The only direct tax is real property tax. The Bahamas’ tax situation is very attractive to foreigners, many of whom choose to become residents. There are no taxes on income, estates or inheritances. There is no capital gains tax on real estate.
