The Tribune

A local realtor is predicting "a banner year" for the Bahamian property market in 2018, due to growing millennial demand and improved investor confidence stemming from recent US tax cuts.

Ryan Knowles, the HG Christie realtor who handled $28 million worth of transactions to become the firm's top 2017 producer, said these factors would further boost the real estate markets in the Family Islands and New Providence.

"There are two independent engines that I believe will drive buyers to purchase in the Bahamas this year," said Mr Knowles, identifying the Trump administration's regulatory roll-back and tax cuts as a stimulus to foreign buyer confidence.

"A booming Wall Street and a US president who is business-friendly may not be popular with a lot of people, but the reality is that the top corporate executives and major shareholders who benefit from less regulation and lower taxes are the same people who are going to be looking at the Bahamas," said Mr Knowles.

"With greater disposable income and increased confidence, they have more money for second, third or fourth homes. They want to invest in a place that is close to the mainland, is stable and, above all, where both their family and their investment are secure. Safety and security are the number one concerns among the super wealthy, an economic category enjoying unprecedented growth. They are the clients who will buy or build in Albany, Old Fort Bay, Lyford Cay, Ocean Club Estates or make a lifelong fantasy of owning an island their 2018 reality."

Mr Knowles said the second driver for real estate sales will be rising demand from millennials seeking starter condos and homes, or an upgrade from their first home.

"There are thousands of millennials who want to take advantage of affordable mortgage rates, and who understand the value of owning rather than renting," Mr Knowles said. "Their challenge is going to be finding inventory in the right location at the right price."

The lack of market inventory below the $500,000 price point motivated Mr Knowles and his colleague, Shamon Campbell, to back a 20-unit condo project in Coral Harbour called Aqua. Mr Knowles described the waterfront community on New Providence's south coast as "the best value for money on the waterfront today".

"The thirst is greater than the supply to quench it," said Mr Knowles. "Greater disposable income for Americans and lower mortgage interest rates for young professionals in the Bahamas will combine to create a banner year for real estate in the Bahamas in 2018."

His one piece of advice for developers is: "Get busy and build for the millennials for their needs now, and their growth five years from now."