Published on and written by Cyril Jarnias
The Bahamas has become one of the most closely watched real estate markets in the Caribbean for international investors. Behind the clichés of white sand and turquoise waters, property prices are rising rapidly, with wide variations from island to island. In 2026, four destinations are drawing the most attention from foreign buyers: Nassau, Paradise Island, Grand Bahama, and the Exumas.
The Bahamian market is seeing more moderate growth after the post-pandemic euphoria, but prices are still rising, especially in the high-end and ultra-luxury segments. It is essential to know the market and prices well before any purchase.
A Bahamian market still rising but more selective
At the start of 2026, the Bahamian residential market shows several defining characteristics. Inventory of properties for sale is rising, with 948 active listings across all islands tracked by Graham Real Estate, up from 879 at the end of 2025. Completed sales, however, are slowing: 63 primary residence transactions in the first quarter of 2026, compared to 93 in the previous quarter.
The average time on market across all islands is about 201 days, indicating a slowdown in overbidding.
National figures indicate an expected value increase of around 5 to 10% in 2026, following post-Covid years where some areas saw gains of over 15% per year. The general trend is thus a slower but steady rise, with notable outperformance in luxury sectors.
In this context, Nassau, Paradise Island, Grand Bahama, and the Exumas each play different roles. Nassau concentrates liquidity and rental demand, Paradise Island and the Exumas embody ultra-luxury seaside living, while Grand Bahama positions itself as an opportunity market, more affordable, with strong yield potential.
Nassau: the most liquid and most expensive market per square foot
Nassau, the economic and political capital on the island of New Providence, remains the beating heart of Bahamian real estate. It is the most liquid market in the country, the most international, and the one with the most developed infrastructure: schools, hospitals, shops, marinas, year-round services.
This appeal comes at a price. Price ranges in Nassau have tightened noticeably in recent years. Around 2025–2026, a typical apartment trades between $350,000 and $900,000, while a standard single-family home is more in the $600,000 to over $3 million range, depending on location and sea view. Ultra-exclusive neighborhoods like Lyford Cay, Old Fort Bay, or certain Cable Beach residences go well beyond these thresholds, with villas starting at several million and potentially reaching $40 million for waterfront “trophy” properties.
Statistically, several indicators help situate Nassau relative to other markets.
Average and median prices, and time on market in Nassau
On New Providence (Nassau and surroundings), aggregated data from the first quarter of 2026 shows an average sale price of about $1.145 million, with a median price of $514,000. The gap between average and median again reflects the weight of the luxury segment in sales volume.
Time on market in Paris averages about 157 days, which is slightly below the national average. This confirms the better liquidity of the real estate market in the capital.
There are also values per square foot (or square meter) that allow comparing Nassau to other islands.
Table – Indicative prices per sqm in Nassau and national comparison
| Area / Property type | Indicative median price (BSD/sqm) | Approximate recent change |
|---|---|---|
| Apartment – Bahamas (overall) | ~5,177 | n.a. |
| House – Bahamas (overall) | ~2,821 | n.a. |
| Apartment – New Providence (Nassau) | ~6,991 | +3% |
| House – New Providence (Nassau) | ~4,054 | +6% |
| Apartment – Nassau (other source) | ~7,045 | +7% |
| House – Nassau (other source) | ~3,576 | +20% |
Even accounting for methodological differences between sources, the trend is clear: Nassau shows price per sqm levels well above the Bahamian average, especially for well-located apartments. For luxury products (waterfront, branded residences), ranges climb even higher, with values between $750 and $2,000 per square foot reported for certain high-end assets.
2026 dynamics: more inventory, firm prices
Market analyses for 2026 show a nuanced situation in Nassau. In May, new monthly listings fell about 5.7% year-over-year (50 listings vs. 53 a year earlier). However, on a trailing twelve-month basis, inventory brought to market over the year increased by more than 23%, from 225 to 275 properties. In other words, more owners are deciding to sell, boosting inventory.
The median and average prices are increasing significantly compared to 2025, with the list-to-sale ratio rising from 91% to 95-96%, indicating that buyers are negotiating less and sellers are achieving prices close to their expectations for well-positioned properties.
Nassau for the investor: moderate yield, high security
One of the key criteria for an investor remains rental yield. For Nassau, market guides place gross yields between 5% and 7% on average, a reasonable figure for such an established market, but lower than what is seen on Grand Bahama.
Rental demand is described as “very strong”. Between tourism, business travel, expatriates, and year-round residents, occupancy rates remain high, especially in well-managed condos or homes near beaches and infrastructure. This rental solidity comes with an entry ticket described as “High” for standard properties and “Very High” for waterfront.
For an investor seeking above all liquidity, visibility, and legal security from a central market, Nassau remains the benchmark in the Bahamas. But those targeting maximum gross yield are increasingly turning to Grand Bahama.
Paradise Island: insular ultra-luxury, expensive but in high demand
Immediately adjacent to Nassau, Paradise Island concentrates a major share of the very high-end Bahamian segment. Exclusive developments, five-star hotel complexes, and branded residences attract an ultra-wealthy (UHNW) and primarily international clientele.
The numbers confirm this special status. Prices are generally higher than those in Nassau for comparable properties, although the range is broad: some apartments start around $520,000, while prestige villas can trade between $15 and $20 million, and even more in communities like Ocean Club Estates.
Average prices per sqm and yield on Paradise Island
A study by CMC Global Estates Research for 2026 provides several key benchmarks. The average price per square meter is estimated around 14,985 BSD, the highest level among the destinations compared in this analysis. Gross rental yield is around 4.1%, lower than the Exumas and well below Grand Bahama.
Long-term data shows strong capital appreciation on Paradise Island, with price growth of +18% year-over-year, well above the national range of +5% to +10%. This indicates that this segment is more suited to a wealth appreciation strategy than to seeking rental yield.
Recent price trends: a very buoyant high-end market
Transaction statistics confirm this dynamic. Across Nassau–Paradise Island, average values surged in certain months of 2026, notably in May, when the monthly median price rose about 60.8% year-over-year (from $415,000 to $667,500), and the average price increased by 115.8% (from $843,200 to $1.82 million).
This temporary spike is due to the concentration of high-value sales in the period, particularly properties on Paradise Island and in other sought-after enclaves. On a trailing twelve-month basis, the picture is more mixed, with a slight decline in the median price, but an average price up more than 20%, reflecting the growing share of luxury transactions.
Rental market: strong competition for vacation rentals
Paradise Island, however, suffers from a phenomenon common to very touristy destinations: an abundant supply of seasonal rentals. Market analyses mention an “oversupply” of vacation rentals, leading to more competition among owners and a marked seasonality in occupancy rates.
Rental yields are capped at around 4% on average, while acquisition and management costs are very high. Paradise Island is a prestige product for portfolios focused on capital appreciation and personal use, rather than strategies aiming for high yield.
Examples of prices on Paradise Island
Recent listings give an idea of the order of magnitude. In upscale residences like One Ocean, The Reef, or Ocean Club Residences, apartments regularly trade between $1.5 and $2.5 million. Single-family homes in gated micro-neighborhoods like Palatial Estates can exceed $1.9 million, while villas with sea views, pools, and private docks range upwards of $5 million.
Grand Bahama: lower prices, higher yields
In sharp contrast to Nassau and Paradise Island, Grand Bahama positions itself as a more affordable and often undervalued market, especially since Hurricane Dorian in 2019. Analysts estimate that values there remain 20% to 30% below pre-storm peaks, even as infrastructure is being rebuilt and major projects are on the horizon (airport renovation, tourism developments, etc.).
Price levels: the most accessible entry ticket among the four markets
Price ranges on Grand Bahama are significantly lower than those in Nassau and the Exumas. Condos start around $250,000, while single-family homes are available from about $272,420, rising to over a million for waterfront or canal-front villas. The overall residential market range broadly spans from $250,000 to $2 million.
– Some listings illustrate this gap:
– Small apartments trade in the $180,000–$270,000 range,
– Buildable lots are listed around $130,000,
– Canal-front homes with pool and private dock sell between $775,000 and $989,000.
At the other end of the scale, large beachfront parcels intended for hotel or residential projects can reach $5 to $6 million, such as a 15-acre lot at Fortune Bay or a parcel at Bell Channel Bay listed at $6 million.
Table – Simplified comparison of residential price ranges
| Destination | Typical Condos (USD) | Typical Homes (USD) | Overall Range Observed (USD) |
|---|---|---|---|
| Nassau | $350,000 – $900,000 | $600,000 – $3,000,000+ | ~$400,000 – $5,000,000+ |
| Paradise Island | from ~$520,000 | ~$700,000 – $6,500,000+ (and more) | $500,000 – $20,000,000+ |
| Grand Bahama | from $250,000 | ~$272,420 – $1,000,000+ | $250,000 – $2,000,000 |
| Exumas | from $300,000 | $500,000 – $1,500,000+ (standard) | $500,000 – $10,000,000+ |
This table illustrates the unique position of Grand Bahama as the most accessible market among the four, especially when comparing price levels to rental income potential.
Rental yields: Grand Bahama’s trump card
One of the most striking points in the research report concerns rental yields. On Grand Bahama, income from seasonal rentals like Airbnb or VRBO can generate gross yields of 8% to 12%, compared to 5–7% in Nassau and 4–6% on Eleuthera.
This performance is driven by low acquisition costs and strong rental demand from tourism and major employers (Port of Freeport, Grand Bahama Shipyard, cruise lines). Thousands of well-paid expatriates seek long-term housing, securing rental income for programs like build-to-rent or modern residences with pools, beach access, and full amenities.
Market 2026: lower volumes, rising average prices
First quarter 2026 data confirms that Grand Bahama remains a market in transition. There are 145 active listings, 46 pending sales, and only 6 closed sales in the period, down from 10 transactions in the previous quarter. This low volume, however, is accompanied by a noticeable rise in average prices: approximately $715,000 on average, a 40% increase year-over-year, and more than double the previous quarter.
The median transaction price fell to $147,500, a drop of nearly 40% year-over-year, reflecting a two-speed market.
Tax advantage: Grand Bahama’s uniqueness
A decisive advantage sets Grand Bahama apart from the other three destinations: its historic free trade zone status under the Hawksbill Creek Agreement. Freeport and a large part of the island benefit from a very favorable tax regime, with no income tax, no capital gains tax, no wealth tax, and no inheritance tax.
For real estate investors, this environment means that rental income and capital gains realized on the island can, within this framework, be entirely exempt from local taxes, making Grand Bahama an exception within the archipelago. This context helps explain why the island ranks first in foreign direct investment flows into the country.
Exumas: the showcase of island luxury and private islands
The Exumas embody the most spectacular imagination of the Bahamas: translucent waters, sandbars, an archipelago of nearly deserted cays that have become the playground of celebrities, top executives, and the ultra-wealthy. This aura is directly reflected in prices, which rank among the highest in the archipelago.
Price levels: from “affordable” land to private islands worth tens of millions
Recent data shows that the Exumas have the highest average transaction prices in the country. Over one quarter, the average sale price is around $2.8 million, with an identical median, revealing a strong concentration on luxury properties. Other periods show an average price around $1.84 million, up nearly 80% year-over-year, and a median that jumps 130%, confirming the continuous upscaling of transactions.
The Exumas real estate market is divided into several price segments, from affordable inland lots to ultra-luxury private islands.
From $50,000 to $150,000 for parcels slightly set back from the sea.
Between $150,000 and $500,000 for beachfront land.
From $250,000 to $750,000 for mid-range dwellings.
Between $750,000 and $2.5 million for coastal villas.
From $500,000 to $3.75 million in places like February Point or Grand Isle Resort.
From $2 million to $50 million and above for exceptional properties.
Some emblematic listings show the upper end: a property like Whale Tail Villa or Hummingbird Cay is listed at $30 million, islets like Saddleback Cay or Hog/Mingo Rolle Cay range between $21 and $45 million, sometimes after discounts of several million.
Price per sqm and capital appreciation
Data from CMC Global Estates Research places the average price per square meter in the Exumas around 11,988 BSD, slightly lower than Paradise Island, but well above values seen on most other islands. Rental yield is estimated around 5.8%, higher than Paradise Island but still below Grand Bahama.
Annual price growth is estimated at +7% in some analyses, and up to +15% in certain Exumas submarkets, placing the archipelago among the areas with the strongest value appreciation in the country.
Buyer profile and type of use
The dominant buyer profile in the Exumas is described as “High Net Worth & Lifestyle“: wealthy individuals, often from North America or Europe, seeking both a wealth investment and a high-quality personal use (second home, retirement, discreet retreat).
The Exumas real estate market is characterized by a low number of transactions (e.g., five semiannual sales), but each sale involves very high-value assets. This structural scarcity of premium land explains the rapid price appreciation.
Price comparison with Nassau
An interesting element from the research report is the price differential for comparable waterfront properties: in some cases, beachfront properties in the Exumas sell for 40% to 60% less than in ultra-premium gated communities in Nassau like Lyford Cay, Albany, or Ocean Club Estates, with similar views and amenities.
In other words, the Exumas sometimes offer the same postcard scenery as an ultra-exclusive Nassau neighborhood, but at a lower face price – at the cost, however, of a less urban environment and more complex accessibility. For buyers primarily seeking natural beauty and privacy, this trade-off can be considered very attractive.
Table – Comparative indicators Nassau vs. Exumas
| Indicator | Nassau | Exumas |
|---|---|---|
| Entry price (standard homes) | “High” (~$600,000+) | “High” (~$500,000+) |
| Waterfront price | “Very High” (often $1–6M+) | “Very High” ($1–6M+, islands >$10M) |
| Estimated average price per sqm | ~7,000 BSD/sqm (apartments) | ~11,988 BSD/sqm (overall average) |
| Rental yield | 5–7% | ~5.8% |
| Rental demand | “Very Strong” | “Strong” |
| Appreciation potential | “Moderate” | “Moderate” to “High” locally |
This table simplifies a more nuanced reality, but it points to an obvious fact: the Exumas are more expensive per square meter in the ultra-luxury segment, while offering a rental yield slightly higher than Paradise Island and a very positive value dynamic.
How these four markets fit into the Bahamian landscape
For an investor or residential buyer, the real question is not just “how much does it cost?” but “what does this market bring me compared to others?”. Nassau, Paradise Island, Grand Bahama, and the Exumas each occupy a very distinct place on the country’s real estate map.
Nassau: nerve center, liquidity, and services
– Nassau remains the natural entry point for those who want:
– maximum services and infrastructure,
– year-round rental demand,
– easier resale thanks to a deep and very liquid market,
– a wide range of properties, from urban mid-range to ultra-luxury villas.
Prices are higher than on Grand Bahama, sometimes comparable to those in the Exumas for certain products, but the balance of risk and liquidity is particularly attractive for a first investment in the Bahamas.
Paradise Island: ultra-luxury showcase, capitalization over cash flow
– Paradise Island represents the quintessence of prestige products:
– high entry ticket,
– record price per sqm,
– strong capital appreciation (+18% over certain periods),
– moderate yield (~4%),
– increased competition on seasonal rentals.
This market is mainly suited to buyers who value the prestige of the address, immediate proximity to Nassau, and access to very high-level services, more than maximum rental cash flow.
Grand Bahama: undervaluation and yield
– Grand Bahama is increasingly attracting attention for several reasons:
– significantly lower acquisition prices ($250,000 to $2 million for most residential properties),
– realistic gross rental yields of 8% to 12% on vacation rentals and certain build-to-rent strategies,
– unique tax advantages linked to the free trade zone,
– a market still in the post-hurricane recovery phase, thus with appreciation potential.
This is not a speculative market disconnected from fundamentals: rental demand is supported by solid employers and a gradual restart of tourism and infrastructure projects. For investors with a 5–10 year horizon, Grand Bahama appears as one of the most interesting bets in the archipelago in terms of risk/reward profile.
Real estate market analysis
Exumas: rarity, prestige, upside potential
– The Exumas sum up the “trophy asset” segment of the Bahamas:
– private islands, large villas on nearly deserted beaches,
– transaction average prices among the highest in the country (often above $2 million),
– limited number of transactions, but very high unit values,
– rapid price appreciation (+7% to +15% depending on submarkets).
The market targets high-net-worth buyers seeking both a refuge, an exceptional living environment, and a rare asset likely to appreciate over time. The rental aspect exists—with very high income on some ultra-luxury properties—but it remains secondary to the wealth preservation dimension.
Taxation, ancillary costs, and macroeconomic environment
Regardless of the market chosen, the foreign buyer must account for a specific fiscal and macroeconomic environment. The Bahamas has no income tax, no capital gains tax, and no inheritance tax, which naturally attracts international investors.
Upon purchase, a 10% VAT on the transfer deed is applicable, generally split between buyer and seller. Property tax varies by value, type, and use of the property, with exemptions and caps for primary residences, even for non-residents.
For rental investments not occupied by the owner, rates are higher, especially for buildings with more than four units, which are treated as commercial real estate. Vacant land held by foreigners may also be subject to heavier specific taxation if left unoccupied.
Annual inflation rate in the Bahamas at the start of 2026, mainly driven by costs of housing, water, electricity, and fuels.
Which market to choose in 2026?
For a buyer or investor specifically interested in “Bahamas property prices in 2026: a comparative table of Nassau, Paradise Island, Grand Bahama, Exumas”, the summary can be put as follows:
Discover four real estate investment strategies in the Bahamas, each tailored to a different profile: rental performance, prestige, yield, or exceptional wealth.
Choose Nassau for its combination of infrastructure, liquidity, strong rental demand, and still moderately rising prices.
Target Paradise Island for a prestige asset, an iconic address, and strong appreciation potential, despite more modest rental yield.
Position yourself on Grand Bahama to capture high yields and potential revaluation in a recovering market, with a lower entry ticket.
Target the Exumas for an exceptional wealth investment, where land scarcity and high-end demand drive prices upward.
In any case, the year 2026 appears to be a pivotal moment: the Bahamian market is emerging from post-pandemic hyper-growth to return to a more sustainable pace, but the data clearly shows that the combination of limited supply, sustained international demand, and new infrastructure projects continues to push values higher, especially in the most sought-after coastal enclaves. For buyers ready to carefully analyze the differences between Nassau, Paradise Island, Grand Bahama, and the Exumas, this is an opportunity to position themselves before some of these price gaps close.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
