Bermuda Property Market

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 investor. www.astonlloyd.co.uk