The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Re-opening the real estate sector to allow property viewings should be “a no brainer” given its economic importance, the Bahamas Real Estate Association’s (BREA) president argued yesterday.

Christine Wallace-Whitfield said she and other BREA directors were pushing hard to persuade the government to treat it as an “essential service” that should be allowed to re-open given that its business did not involve multiple interactions with different parties.

Pointing out that the sector was inextricably linked to construction and foreign direct investment (FDI), an area that could bring in much-needed foreign currency amid the continued tourism shutdown, Mrs Wallace-Whitfield said it also played a key role in a domestic economy that the government is cautiously moving to restart following the COVID-19 pandemic.

She added that both residential and commercial tenants, some no longer able to afford their rent amid business closures and job and income losses, were desperately keen to move but unable to do so due to the real estate industry’s lockdown and wider economic restrictions. And inquiries from potential buyers are still coming in, the BREA chief added.

“We have written to the prime minister sending in a very, very detailed letter,” Mrs Wallace-Whitfield told this newspaper. “We did our research on different international markets and we thought-out our points.

“We basically wrote to him saying how real estate should be essential, and essential from the get-go. There are a lot of people in rental accommodation that need to make a move as they cannot afford the rent they are paying, so they need a chance to move.

“With commercial rentals people are closing or need to find somewhere cheaper. And there seems to be an ongoing flow of interest in purchasing. We are the third biggest revenue producer for the Government and we need to keep it going. It’s very important.”

Mrs Wallace-Whitfield said Dr Hubert Minnis replied to BREA’s letter, sent a week ago Friday, saying he would consult with his health officials and then get back in touch on what BREA was proposing. However, despite two text messages sent to the Prime Minister subsequently, no formal response has been received.

“Real estate is really a no brainer,” the BREA chief added. “It’s not an industry where a bunch of individuals are needed to complete a transaction. It’s one-on-one. One agent, one prospect. Real estate should be essential.

“We put in there that there will be no open houses or annual general meetings. Real estate, if you think about it, is really a one-on-one service industry. I commend the Government for doing what they did and shutting things down to look after the betterment of the Bahamian people. Now that they’re opening up certain sectors of the economy, real estate is essential.”

Realtors have told Tribune Business that the biggest obstacle facing their industry amid the COVID-19 lockdown and emergency powers is that they are unable to conduct property viewings with clients.

While virtual tours can lure a buyer in, and help them understand what they might be purchasing, they still usually want to touch, feel and physically visit a potential acquisition before committing hundreds of thousands of dollars - and in some cases, millions - to purchase Bahamian real estate.

With vendors told not to be present during a viewing in case it “sours a sale”, Mrs Wallace-Whitfield yesterday said the potential for COVID-19 spread was further reduced as typically only the buyer and agent are present.

She added that agents could inside a property to prepare it for viewing 10 minutes beforehand and let the buyer subsequently go in alone, while the wearing of masks and social distancing would also help to curb the health risks.

“We’ve got a few people inquiring about properties, saying when the borders open they’re interested in looking at ‘x’, ‘y’ and ‘z’,” Mrs Wallace-Whitfield added. “But we still have a local market that’s interested.

“In the beginning people were nervous. They did not want to do anything, but after a couple of weeks they said they need to start planning for the future, get back to this and see what they’re doing. Life goes on. They can’t keep sitting there.”

Mrs Wallace-Whitfield argued that real estate has a tremendous multiplier effect for the Bahamian economy by virtue of the number of sectors it touches, including construction plus home and hardware retailers. It generates commissions and fees for realtors and attorneys, as well as VAT and real property tax for the Government.

“I’m still trying to understand why we’re not essential,” she told Tribune Business. “The market is picking up and people are interested. I have inquiries coming in but I cannot do anything. It’s hard. It’s frustrating.

“BREA is lobbying very hard for its membership. We’ve got directors trying to reach out to certain members in the Government, MPs. We are really trying to get them to see what we’re trying to say: That it is essential and we can do this without compromising anyone else.”