The dark cloud of the global recession may still be brooding over the Bahamas economy, but the country’s real estate developers and other industry experts are giving a fearless forecast that it will not be long before the Bahamas real estate business starts looking at clearer skies. In fact, experts are predicting that the country’s real estate industry will be well up on its feet within the next five to ten years if necessary pump priming initiatives are maintained and further improved.
The “Ifs” That Will Help Continue the Increase in Bahamas Real Estate Prices:
- If bank financing initiatives for investments in residential property market materialize.
According to recent reports from Bahamas news outfits, residential property prices could undergo a steady rise in values of as much as five percent annually if bank financing initiatives targeted at fueling private sector investments in the residential property market materialize.
Despite a slump in Bahamas real estate (particularly in the residential properties and vacation homes market) by an average of 35 percent over the last three years of the preceding decade, better days are ahead – if the current upward trend in residential property market spending continues and further improves.
The latest Bahamas news reports point to the fact that Bahamas real estate industry experts share the view that private sector spending on industry staples like residences will herald a revival of the Bahamas real estate industry in general, including commercial and huge foreign investments into the country’s property market.
- If rental and construction demand in the residential market increases.
The key, experts say, is to increase rental and construction demand in the residential market to drive up prices of Bahamas real estate. Encouraging more buyers and renters, both locally and from the foreign expatriate community, by way of attractive bank loan and financing packages will help pull the demand for real estate in the Bahamas, which will result in a strategic bankrolling of market prices for Bahamas real estate property over the next few years.
When more and more locals and expatriates are buying residential houses and vacation homes in gated communities and prime beachside properties that the Bahamas is known for, other crucial real estate industry areas like construction will also start to boom again. Overall, more spending means higher demand, and higher demand pulls up prices as well as revitalizes the economy.
- If current figures show that the prices of beachfront and gated inland residential properties are continuing to pick up.
It may be a classic case of hoping that the neoliberal economic paradigm of demand and price harmony will actually work, but if current figures show that the prices of beachfront and gated inland residential properties in Nassau, Abaco, and New Providence are slowly picking up, then industry experts may be right on track in predicting a decent comeback for a robust Bahamas real estate scene.
- If the tourism sector and the government continue to work hand in hand.
Pump priming initiatives in the residential market, however, are not the only hope for the Bahamas real estate industry. A strong showing in the tourism sector, coupled with sound and stable government spending on infrastructure development, is already indicating that the Bahamas economy is springing up onto its feet.
Tourism accounts for about 60 percent of the Bahamas’ National Gross Domestic Product and currently employs close to 50 percent of the country’s workforce. With an annual visitor traffic almost hitting the 6 million mark, Bahamas rests securely on the inflow of spending tourists as well as prospective residential renters and vacation home owners.
Driven by the tourist influx into the Bahamas, mega development projects such as the USD 3.5-billion Baha Mar Resort and Casino project on Cable Beach is dominating activity in the construction sector and fueling up the supply of deluxe and hip destination hotels for the multitude of foreign visitors to the country.
Government spending on major development projects in the country is also helping to better the economy. Key projects such as the multimillion dollar expansion of the Lynden Pindling International Airport and the Airport Gateway Roadway Project in the district of New Providence, a couple of multimillion dollar government office compounds in Grand Bahama and Abaco, and the construction of a new international port in Abaco are proof that the important contributions to the economic resurgence of the Bahamas are driven by huge public sector investment.
Indeed, the Bahamas real estate prices are poised for significant increases in the very near future if sound policies on market finance and public sector spending are created and implemented.