The Tribune

The Bahamas Real Estate Association’s (BREA) president is hoping the government will consider economic citizenship and interest rate cuts as ways to stimulate growth for her industry and the wider economy.

With realtors reporting strong interest in The Bahamas following the COVID-19 pandemic, Christine Wallace-Whitfield said introducing an economic citizenship programme - which some have calculated could raise as much as $300m - is among BREA’s suggestions for reviving economic activity.

Besides reducing the Bahamian Prime interest rate to make borrowing more affordable for the middle class and first-time homeowners, she added that BREA is also recommending a stamp tax (VAT) exemption on certain property categories or Family Island properties purchased by Bahamians, plus a graduated increase in real property tax on properties valued at more than $3m.

Mrs Wallace-Whitfield said Bahamian realtors are reporting increased interest in properties deemed secure, such as private islands, secure estates in gated communities, and land with elevation.

“They are seeking a place that is safe and secure, yet has all the advantages of a contemporary lifestyle in a stable, English-speaking location,” said Mrs Wallace-Whitfield. “There is nowhere that fits the bill better than The Bahamas – close to the US, politically stable government, a peaceful, independent nation with magnificent waters for boating, clean air for recreation and good health and all the amenities people from all walks of life expect in the most urban and sophisticated cities.”

“Waterfront is still a huge drawing card and always will be, but now we are hearing more requests for waterfront with elevation as people become increasingly aware of climate change and its impact on low-lying areas.” Post-COVID-19, security is becoming an increasingly important consideration for buyers.

“As people spend more time sheltering-in-place, the place where they shelter becomes more important,” Mr Wallace-Whitfield said. “Whether we are working from home or just staying at home, that place we call home becomes a central part of our lives. There is no question that the pandemic was a game-changer.”

According to Realtor.com, the pandemic also changed how people shop for real estate, driving more traffic to virtual tours and even the scheduling of online open houses. The time spent per visit on Realtor.com increased 14 percent in the first lockdown month between March and April, its chief executive reported.

Mrs Wallace-Whitfield, who is serving her third term heading up the 700-plus member BREA, said increased interest in real estate could help The Bahamas’ post-COVID-19 recovery.

“Real estate and development combined create the second pillar of the Bahamian economy, and land is far less fickle than tourism, so it is a positive for The Bahamas that we are experiencing growth in this area,” she added.

“It is up to us to maximise the benefits of our unique position in the world. We need to be innovative and creative, understanding that just because we did things a certain way before does not mean we have to do them that way forever.”