Published on and written by Cyril Jarnias
The Bahamas, a Caribbean paradise archipelago, is attracting increasing numbers of real estate investors from around the world. With its white sand beaches, crystal-clear waters, and favorable tax framework, this country offers numerous opportunities for those looking to invest in luxury real estate. Let’s explore together the most promising neighborhoods and future prospects of this expanding market.
Nassau’s Real Estate Gems: Between Luxury and Returns
Nassau, the capital of the Bahamas, concentrates a large portion of the archipelago’s real estate investments. Several neighborhoods stand out for their appeal and growth potential:
Cable Beach: This beachfront neighborhood west of Nassau is undergoing significant transformation. With the recent opening of the Baha Mar resort, which includes several luxury hotels, a casino, and a golf course, Cable Beach is attracting more and more investors. Real estate prices here are steadily rising, offering promising appreciation prospects.
Lyford Cay: This ultra-exclusive gated community is one of the most sought-after addresses in the Bahamas. With its luxurious villas, private club, and marina, Lyford Cay attracts an international wealthy clientele. Prices are high, but demand remains strong, ensuring good investment stability.
Paradise Island: Connected to Nassau by two bridges, this island is home to the famous Atlantis resort and offers exceptional living conditions. Luxury apartments and villas here are highly sought after, particularly for seasonal rentals. The rental potential is especially attractive.
Good to Know:
Real estate prices in Nassau vary considerably by neighborhood. In the city center, they range between $2,500 and $4,000 per square meter, while in high-end residential areas, they can reach $6,000 per square meter.
The Out Islands: Opportunities to Seize
Beyond Nassau, the Bahamian Out Islands also offer interesting prospects for real estate investors:
Harbour Island: Nicknamed “Briland” by locals, this small island northeast of Eleuthera charms with its authentic character and pink sand beaches. The real estate market here is dynamic, with growing demand for renovated colonial homes and luxury beachfront villas.
Exuma: This archipelago of 365 islands and cays is attracting more investors seeking exceptional living environments. Great Exuma, the main island, offers a good balance between modern amenities and preserved nature. Investment opportunities are plentiful, particularly in the developing tourism sector.
Eleuthera: This 180 km long island attracts with its deserted beaches and bohemian atmosphere. The real estate market here remains relatively affordable compared to Nassau, offering interesting opportunities for investors seeking properties with strong growth potential.
Good to Know:
In the Out Islands, real estate prices are generally more affordable than in the capital. In Exuma for example, they range between $1,200 and $2,500 per square meter for beachfront apartments.
A Promising Future for Bahamian Real Estate
The growth prospects for the Bahamian real estate market are encouraging for the coming years:
A Growing Economy: The Bahamian government has implemented several initiatives to stimulate the economy and attract foreign investment. The tourism sector, the country’s main economic driver, is expected to continue developing, thereby supporting the real estate market.
Ambitious Infrastructure Projects: Numerous development projects are underway or planned throughout the archipelago, including the modernization of Nassau’s international airport and construction of new hotel complexes. These investments should contribute to real estate market appreciation.
An Attractive Tax Framework: The Bahamas offers a favorable tax environment, with no income tax, capital gains tax, or inheritance tax. This tax policy should continue to attract international investors in the coming years.
Growing Demand for Luxury Real Estate: The COVID-19 pandemic has strengthened the Bahamas’ appeal to wealthy clients seeking security and quality of life. This trend is expected to continue, supporting high-end real estate prices.
Good to Know:
Real estate prices in the Bahamas have increased by an average of 5-10% annually over the past decade, demonstrating the market’s strength.
Tips for Investing in the Bahamas
To succeed in your Bahamian real estate investment, here are some recommendations:
- Hire a local real estate attorney to guide you through the process
- Research restrictions on property purchases by foreigners
- Carefully study your property’s rental potential if considering leasing it
- Account for additional purchase costs (notary fees, taxes, etc.)
- Visit the property and its surroundings multiple times before committing
Investing in Bahamian real estate offers excellent prospects for profitability and long-term appreciation. Whether you choose a luxury apartment in Nassau or a beachfront villa on a more secluded island, the archipelago abounds with opportunities for savvy investors.
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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.
