The Tribune

By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

The Bahamas continues to have a two-speed real estate market with industry operators yesterday voicing optimism that the concluded US presidential election will further boost international buyer demand.

But, while international demand for high-end Bahamian properties remains robust, the local segment according to some realtors is struggling with many Bahamians unable to meet asking prices or qualify for the necessary financing. 

Christopher Adderley, agent for Maison Bahamas Real Estate, and Mikhail Barnett a real estate agent Condo Vikings & Jolie Luxury Homes, both agreed that Donald Trump’s return to the White House will impact the Bahamian real estate market.

Mr Adderley said 2024 has been “slower” due to the US election with investors and buyers taking a cautious, wait-and-see approach until the outcome was known and they got a better sense of the policy direction the new president is set to take.

“So, as we know, it’s an election year in the US, so for a good majority of the year things have been a bit slower,” Mr Adderley said. “We found that a lot of international clients were in a sort of wait-and-see holding pattern since the election. I won’t say that any floodgates have opened just because, as we know, inauguration won’t be until January.

“So what I’m hearing from a lot of clients is that they would be more comfortable moving forward in the Spring, essentially after January. Right now the market is moving a little slower than usual, but it is certainly moving. I think it’s just uncertainty in general. You have folks that may be on one side of the divide or another, and just the idea that there could be such a radical shift from one side or another.

“And even as important as the past election was for the US there are a lot of things that are likely to change in terms of policy in terms of, you know, disposable income and taxes and all of the like. So that really sets people in a way that does not allow them to be as forthcoming with any expendable funds,” Mr Adderley added.

“For the most part, they want to sit back and just kind of read the room and see what’s going on, see what’s happening, and make a decision once the tides would have turned, per se, then go ahead and make such a big decision, because it is, in fact, a huge decision to decide to purchase property in another country when you’re not exactly certain of the trajectory of your own country.”

Mr Barnett added: “When you look at different predictions on the stock market, when you look at the predictions on real estate websites, like really, really good ones that predict the market pretty well, it shows that there will be an increase and whenever you have disposable income, there’s always going to be money spent.

“Even if it’s not in the real estate market, it somehow trickles over into every single industry, the real estate market included. When Trump became president-elect, the stock markets went up… All those markets increased. So when we talk about individuals who control different investor portfolios, they also won’t have disposable income in the millions and they may want to invest, of course, which is always attractive.”

Mr Barnett said he has enjoyed a positive year for sales and is now starting to see more activity, which is normal given the approaching Christmas season with “a lot more home buyers shopping around, a lot more offer letters going out. I’s just like New Year’s resolution. 

“In some cases you will see the luxury market, which is always attractive, it’s always a steady flow of sales going on,” he added, “and then you also have that core market, which is your average median priced homes at around $300,000 to $500,000.

“Sometimes it’s doing pretty good, sometimes the market could be slow. But around this time, this is normally when we start seeing a lot more leads, a lot more home buyers shopping around, a lot more offer letters going out. I’s just like New Year’s resolution. Persons want to move into their new home for the New Year.”

However, Mr Barnett agreed that The Bahamas is indeed experiencing a housing crisis in its domestic market with many unable to afford their own home. He added that about 40 percent to 50 percent of Bahamians can afford the average price of a home, which ranges between $200,000 and $300,000, but there is a significant number who cannot afford anything higher than that.

Mr Barnett said “inventory goes fast” and many properties are “going to be off market within three to six months for sure”. He added: “When we talk about a local market, Bahamians just have to be able to make more money. Because banks tend to look at how long you stay on a job, and the type of job, the type of profession, it is as well.

“So if banks could kind of be a little bit more lenient on policies, on how they qualify persons and how much they could loan that person, that individual. I feel like the bank could be lenient and then it all comes down to being able to make more money.”

Broker and appraiser, Claudius Burrows, who caters mostly to the Bahamian market also believes financing is a challenge for locals. However, he attributes that to persons not saving money.

“The biggest challenge in the market is money,” Mr Burrows said. “Most people want certain things, but they don’t save money. We have to programme people now that they save at least 25 percent of what they make. That is the problem with The Bahamas today. Most Bahamians don’t like to save money. Now, the new Bahamians, I call them new Bahamians, most of my sales are the new Bahamians.

“I talking [about] the Bahamians what born in other countries like Haiti and what not, and they got Bahamian citizenship and they buying. They buying, they buying, they buying and they buying.”

Mr Barnett told Tribune Business that he likes the proposal from Gowon Bowe, Fidelity Bank (Bahamas) chief executive, which involves the private sector and the Government working together to create a real estate investment trust (REIT).

He added: “I already like the idea of creating single family homes or creating the traditional architectural style of homes. They can’t exist no more. We have to create complexes like condominiums. You see on Cable Beach, like Goldwynn, where you could take a property and then you could go up 20 storeys and have a 65-unit complex.

“So now that single property is able to supply a home to 65 different families versus putting one - or maybe putting four town houses on a property - now you only could sell that home to four different families versus a 65-unit condominium.

“So that’s a good idea. It’s a starting point at least. The talk is there to create some sort of opportunities, but we have to create different styles. We have to upgrade the architect. You know, we have to look at what Goldwynn is doing, what Aqualina is doing in bringing that affordability price down.”