The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE “Baha Mar effect” has led to a surge in real estate activity in western New Providence, a local realtor yesterday urging Bahamians to “buy now”as a significant price appreciation on properties in the area is expected in the coming years.

  Ali Capron, a Bahamas Islands Realty sales agent, said western New Providence has been buzzing with real estate activity and increased buyer interest. “There is obviously a Baha Mar effect with respect to properties in the west,” he said.

“I think it’s wise for people who are investing now in terms of building to take advantage of that. You can build to sell or rent. Some people want to purchase a building and flip, some people want rental income.

“Due to the fact that Baha Mar is being built in stages, where you have a year and ahalf before completion, people who have rental properties on the market know it would be to their best interest to not rent long-term.

“Obviously, when Baha Mar opens the demand will certainly be greater, and if the supply is minimal then the persons  who have properties to rent at that time would be able to charge more than what you could have rented for a year-and-a-half away for completion.”

 Mr Capron noted that since the start of the year there has been increased buyer interest and activity in western New Providence.

“We have noticed in the last six weeks a higher volume of calls with regard to properties, condominiums as well as vacant land,” he added.

“The west has definitely seen an increase in interest. The appeal for the west is there because a lot of people know that their investments are going to be protected not only short-term but long-term, and they want to realise the capital appreciations and take advantage of the rental income. I

“It makes good investment sense to buy now knowing that the price is reasonable, and that 10-20 years from now you are going to experience some great capital appreciation. The west is the place that is at the top of the list right now for a lot of people.”

Mr Capron added that the general consensus was that eastern New Providence was built-out with limited growth potential.

He said persons seeking condominiums may want to look at a new condo development that has not yet broken ground and is selling at pre-construction price.

“Once the project is complete, you will have the option of selling and benefiting from capital appreciations or generating rental income. If someone is looking at a home I would suggest investing in a duplex, triplex or fourplex,” said Mr Capron.

  Last week, in an interview with Tribune Business, Gustaf Hernqvist, vice-president of sales and marketing for Caves Heights, noted that the development had generated $5-$6 million from condo sales in January alone, crediting the revitalisation of western New Providence and the Baha Mar project as being a major factor behind the sales success.