The Bahamas, comprising of more than 3,000 islands, spans some 5,300 square miles. The Bahamas residential market has experienced significant growth since the Global Financial Crisis. In the intervening years, the government actively enacted policy to boost the property market, including low property tax measures. This put the islands in a strong position when the pandemic hit and prices have risen by more than 10% since 2019, fuelled by low levels of supply, tight rental markets and the draw of amenities on offer.

The Bahamas prime market is typically characterised by unleveraged buyers who are searching for a new chief residency or place to reside for a minimum of four months of the year. The islands historically have been dominated by North American buyers; however in recent years, buyers from Europe have become more active in the market.

The Bahamas economy made a strong recovery during 2021 from its Covid-19 slump with GDP growing 15.6% year on year. Tourism comprises 50% of total GDP, a relatively strong financial service sector however aided this recovery and has attracted companies and talented individuals. A reliable and fast internet connection and infrastructure which supports remote working has all facilitated confidence in people relocating to the islands.

Capitalising on the surge in digital nomads has been a boost for the Bahamas tourism industry. The government launched the Bahamas Extended Access Travel Stay (BEATS) programme in October 2020 to attract digital nomads. This visa grants temporary residency in the Bahamas for 12 months and can be renewed for up to 36 month stay.

The country also has a business-friendly environment with incentives for investment, offering a favourable tax regime. Personal income, capital gains, corporate profits, inheritance and dividends are all tax exempt. Businesses can also receive relief from customs duties on approved building supplies, raw materials and equipment.

Receiving an average of over 6 million visitors per year pre-pandemic, a large tourism sector lends itself to a flourishing rental market. Despite tourism levels dropping during the pandemic, long term lets of between one and three years have experienced an estimated 20% increase in rental values. Agile working has played an important role in driving demand, according to agents.

There are over 50 high end hotels located on the islands, eight of which are branded from major international chains. The bounce in tourism is attracting institutional investors as well; in March 2022, a hotel in Nassau transacted for $54 million. Branded residences are expanding on the islands, with three pipeline developments set to increase the current number of units by 31%.