The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian realtor has urged more emphasis on buying a home for 2024 considering the rise in rental rates.

Matt Sweeting, chief executive at 1oak Bahamas, told Tribune Business that Bahamians looking for a house should be asking themselves if whether or they really want to buy a house or rent for the rest of their life as he expects rental rates to continually increase. “We’ve been seeing these considerable increases in rental rates and a two bedroom that was $700 three years ago is now a $1,500 a month rental. So from that perspective we’re seeing anywhere from a 40 percent to 70 percent increase in rental rate.”

Mr Sweeting also said: “What this means is that is that people who have the ambition of buying are now limited in their ability to do so because a lot of their money is going towards survival, so you can’t save if you are spending all of your money on rent.

“To compound that you have an appreciating market, which is a seller’s market, with very little inventory and now we’re seeing appraisal prices appreciate considerably, which makes it even hard for a single person and even couples to afford the type of real estate that they want.”

While there are many Bahamians who may be trapped in the rental market for longer than they wish to, 1oak Bahamas did see success with home buys for 2023. “We did just shy of $10m in sales in 2023, which is a 40 percent increase from last year. One of our biggest transactions was $3m and we’re a local firm as 90 percent of our business is local,” Mr Sweeting said.

He also said: “I think for 2024 we want to get more into the hand holding. While we appreciate that most people are in the market for a developed piece of property, nevertheless we want to help the buyer through the entire process and for people who want to build as well.”

There is a lot of uncertainty when buying a vacant piece of land so buyers may be intimidated by the process, but “handholding”, people will help them to feel more comfortable with the process for both developed and undeveloped land.

Also for 2024, Mr Sweeting sees more interest in gated communities as more Bahamians wish to move out traditional neighbourhoods in search for safety now that they can afford it. “Security is the major concern. Because if you have a couple that’s making over six figures annually, why shouldn’t they move to a gated community where it is safer?” he said.