Famous for its crystal-clear waters, white-sand beaches, and warm climate, the Bahamas has become a very popular tourist destination targeted by both domestic and international tourists. Aside from being a paradise for tourists, the Bahamas properties are no less attractive to buyers, including the wealthy and celebrities who are looking for the exclusive ones.
The properties available in the Bahamas are in the form of houses, apartments, land, private islands, ranches, castles, and chateaux. That said, most of the Bahamas’ properties are very expensive, with prices that continue to rise from year to year.
If you’re looking for a house in the Bahamas but do not yet know how much you need to spend, let’s find out everything about it in our post below!
What is the Average Price of a House in the Bahamas?
When it comes to the average price of a house in the Bahamas, we must first say that it actually varies and will depend on some factors, such as size, location, facilities, and proximity to the beach or other attractions. For example, houses on upscale resort islands like Paradise Island tend to be more expensive compared to properties on remote islands.
But, overall, most houses in the Bahamas are generally not considered cheap, particularly if they are situated in popular tourist destinations and more developed areas. That’s why the Bahamas is popular for its high-end luxury property market at a generally premium price.
MCR Bahamas, one of the best real estate agencies in the Bahamas, reported that the cost of houses in the Bahamas can range from $300,000 to up to $3 million. Depending on some factors that we’ve mentioned earlier, the average cost of a house will be different in some locations.
As of 2022, the following is the average price of a house in the Bahamas, as MCR Bahamas reported:
|
Location in the Bahamas |
Average Property Price |
|
Grand Bahama |
$258,233 |
|
Nassau |
$591,830 |
|
Eleuthera |
$992,788 |
|
Bimini |
$1,140,000 |
| Exuma |
$1,200,000 |
Reportedly, the average cost of a house in the Bahamas was up to $628,887 in the first six months of 2021, with 2,244 homes listed. Well, this surge is related to the surge in demand that has been pent up for so long after the COVID-19 pandemic.
It’s important to note that the highs and lows for each will greatly vary. It will be possible for you to find one in the low hundreds of thousands in the Bahamas.
Why are the Most Houses in the Bahamas Expensive?
The Bahamas has more than 700 islands that can only be accessed by plane or boat. Of course, transportation costs can be high since the goods and services come from off-island. There is no doubt that the economy is heavily dependent on tourism, and prices will be higher in areas frequented by tourists. Well, this is what happened in the Bahamas.
When it comes to Bahamas properties, it can be said that these might be expensive places to live due to their economy, location, and infrastructure. Basically, the demand from buyers, plus the limited availability of land and strict building regulations to preserve the natural environment, can lead to higher property prices.
Here are several reasons why most properties in the Bahamas are expensive:
-
High demand
As a popular tourist destination, many tourists from various parts of the world, such as Britain, Canada, France, England, and North America, are trying to get a privately owned stopover in the Bahamas. However, the properties are limited in stock.
Of course, high demand for properties in desirable locations will drive up prices several times. According to Forbes, the property demand in the Bahamas was one of the busiest and most high-performing years as of 2021.
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Limited land availability
Situated on a small island that consists of more than 700 islands, not all land in the Bahamas is suitable for building properties. Of course, there may be very limited land available for sale, especially beachfront or areas with ocean views. Well, it actually contributes to higher property prices.
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Strict regulations on property development
The Bahamian government sets strict development regulations that regularly control the size, type, and location of every new construction that is built in the Bahamas. It aims to preserve the natural beauty and ecological integrity of the islands.
-
Infrastructure and logistics
Due to its island geography, properties in the Bahamas may be relatively expensive. It relates to infrastructure to transport building utilities and materials to remote locations.
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Luxury market appeal
The Bahamas’ properties are known for their luxury real estate market, which actually attracts high-income individuals across the world. Of course, the luxurious homes and estates available in the Bahamas come at a premium. Of course, the demand for high-end living contributes greatly to the overall higher cost of housing.
-
Restriction on foreign ownership
Even though foreigners can really buy property in the Bahamas, they may be stuck with certain restrictions and regulations that they need to follow. It can be a requirement to get a government permit for non-Bahamians who will buy the property. Of course, the requirements can actually add complexity and fees to the buying process.
These are some factors that influence why property in the Bahamas is so expensive.
How Worthy is the Bahamas Property to Have?
Every property that we have somewhere always has two sides: advantages and disadvantages; the Bahamas properties are no exception. Before you decide to buy a house in the Bahamas, it’d be better for you to identify its pros and cons.
To make it easier for you to know both, we’ll show you both the pros and cons of having property in the Bahamas. Here they are:
Pros
- You will have potential income from property rental of up to $3,000 per month.
- Your Bahamas property may add to the quality of your life, including beaches, palm trees, watersports, and sunshine.
- The price of your property will go up in the next few years.
- You will not be charged tax on rental income.
Cons
- You may spend more on home maintenance due to the extreme weather and ocean-side living that regularly occur every year.
- You will get higher mortgage rates if you’re applying for a loan to purchase a house in the Bahamas.
- You may feel locked in the Bahamas, and it may be hard for you to travel elsewhere.
- You may be charged about 2.5% stamp duty on every property you purchase in the Bahamas.
Overall, the Bahamas property will benefit you with an average of $3,000 in rental prices. Well, your property can be used as a great investment opportunity to earn more income since it will potentially rise from year to year.
