Bermuda Property Market
Successful economic growth over the years along with past
exchange controls and limited investment opportunities has
resulted in Bermudians building wealth through residential
real estate holdings.
In an effort to ensure that most property in Bermuda is
preserved for its citizens, availability of houses and
condos to overseas purchasers is strictly limited by the
government, and significant fees are imposed on such sales.
Houses are defined as eligible for sale to non-Bermudians
by virtue of their assessed annual rental value (ARV)
exceeding a limit stipulated by the Bermuda Government And
may only be purchased by an overseas buyer if they are
being sold by a non- Bermudian owner. The minimum price to
qualify a property for this market is $153,000. This value
is periodically reevaluated by the Bermuda Government.
Along with an island wide assessment of ARV's which was
last done in 2005.
Properties in this range tend to have one or more features
which dictate a 'premium' price, such as: an especially
desirable location, large size, exceptional views, large
land area, a guest cottage and/or staff quarters, a pool,
waterfront, beach, sports and/or exercise facilities, etc.
There are a limited number of such residences available for
sale at any particular time, typically fewer than two dozen
houses, ranging in price from $3,500,000 to $20,000,000.
Geographically, the largest concentration of houses in this
select market is located in the Tuckers Town area. Other
favored locations are: Point Shares & Fairylands, Harbor
Road, and the South Shore, although there are spectacular
properties to be found in nearly every part of the island.
Condominiums available to overseas buyers start in price at
approximately $450,000 and go up to $2.3 million. They are
located throughout the island. The newest introductions to
this market are associated with hotel or resort properties
and offer the option of lease-back through the hotel to
generate some income when not in use by the owner.
Although there is no island-wide multiple listing service,
per se, agencies freely cooperate, or 'co-broke', on
listings in Bermuda. The Property Group deals extensively
with houses in this market and will be able to show you any
property available for sale to overseas purchasers.
Non-Bermudian purchasers must pay a 'license fee' of 22
percent of the purchase price to the government on
acquiring a house and 15 percent for a condominium.
Today's real estate market continues to offer opportunities
to many, although under supply and over demand have driven
prices up in recent years. Many factors, including the
number of comparable properties on the market, location,
and the state of the economy affect the price you can
expect to pay for either rental or sale of a property in
Bermuda. Property sales to international purchasers are
regulated by the Bermuda Government in an effort to protect
the balance of foreign ownership on the island.
About the Author:
Aston Lloyd & Partners is a City based global real estate
investment company specialising in the emerging markets. We
source and develop opportunities that have the ability to
deliver generous returns for both the seasoned and novice