What to consider?
The cost of accommodation will probably take the lion share of your budget!
The Bahamas has a competitive real estate market and serves as a popular destination for many second-home owners and Bahamians themselves. Strong political stability, currency parity with the US dollar, proximity to the USA, a strong tourism-driven economy, and ongoing development of alluring real estate assets are generally the elements that make the real estate market so attractive. The average real estate price in the Bahamas is 37% greater than that of its Caribbean neighbors, according to a 2019 article by Bahamas Guides.
There is a diverse range of property options depending on the island, city, area and property type. Real Estate can be priced in the high millions to the low hundreds of thousands depending on its location. Nevertheless, on average, one can purchase a nice home in The Bahamas as follows:
- Nassau: $591,830
- Grand Bahama: $258,233
- Eleuthera: $992,788
- Exuma: $1,200,000
- Bimini: $1,140,000
Purchasing real estate is a guaranteed way for foreigners to get permanent residency. In order to qualify, the property must be a commercial development that employs Bahamians or the home must be valued at least $750,000. The transaction has to be approved by the Bahamas Investment Authority. Beware, there are transaction costs such as stamp duty, legal fees, commission, and property taxes, that could significantly increase the cost of purchase. Unless purchasing real estate directly from the owner, one must use a real estate agent.
There is shortage of housing in The Bahamas, and rentals are in high demand! Short-term rentals (i.e. less than 3 months) are not a common offering; therefore, they are rented at a premium compared to the standard lease which generally requires a 12 month commitment. The cost of rentals can start from $500 per month for a one-bedroom in the inner city to tens of thousands of dollars in the affluent upscale areas. Lifestyle and family size play an important role in determining the best rental arrangement. Whatever you do, do not sign a lease agreement unless a local expert has reviewed it. There are elements to bear in mind, that may not be obvious to a foreigner, like hurricane preparation.
Whether you purchase or rent, you have to keep in mind the hidden elements of the accommodation, utilities, furnishing, and property insurance. Navigating the Bahamian real estate landscape is tricky, especially for new entrants. Do not go this course alone. Let us walk you through the finer details of housing in The Bahamas to ensure that you find a home that is just right for you.