Absorption Rate of Condos in the Bahamas | Bahamas Real Estate

CondosIMG_0112

Condos in The Bahamas have become an extremely attractive investment for both locals and foreigners alike. The average cost of purchasing and maintaining a home has increased over the years and both down payment and household closing costs are beyond what most can afford. Condominiums can be a less costly alternative to owning a home. With this lower cost comes a smaller size but also lower maintenance costs and more amenities. Judging the growth in condominium construction in recent years, this combination appeals to a growing segment of the population.

The Pointe Condos to be rolled out in the near future, its looking promising based on existing condo inventory in the Bahamas being absorbed over time.

  • The Reef is sold out
  • One Cable is 85% reserved/under contract
  • One Ocean is 75%-80% sold/ under contract.
  • Thirty Six is 70% reserved/ under contract.
The average price per square foot for a two bedroom condo is $729 and most 2 bedroom condos are around 1,500 square feet.
 
On average we see perhaps 1 major condo development being started on the island per year.
 
It is seeming most foreign buyers and now local buyers are becoming more interested in the “lock and leave” lifestyle instead of maintaining a large estate.
 
Common key points to desired condos.
  • Beachfront/ Waterfront
  • Higher end modern finishes.
  • Higher end modern kitchens & appliances.
  • Open floor plans

Using an average of condo sales from the developments mentioned we can plug in the following data to find out the absorption rate.  

THE DATA:

•1. Time Frame =365 days

•2. Number of Sold Condos =30

•3. Number of Active Condos =14

CALCULATIONS:

•Rate of Home Sales =9 days

•Absorption Rate =5.6 Months.

Therefore, it is my prediction within 5.6 months all existing condo inventory at One Cable, One Ocean and Thirty Six will be sold out. Therefore a ripe time for a new developer to create more supply.

If you are looking for a condo or any other real estate investment contact Danny Lowe.

Daniel Lowe

 

242.424.3499

danny@www.bettermcrbahamas.com

#ExpectBetter

www.bettermcrbahamas.com

Absorption Rate of Condos in the Bahamas | Bahamas Real Estate

2 thoughts on “Absorption Rate of Condos in the Bahamas | Bahamas Real Estate

  1. Definitely noticed this trend over the last 4 years. Traditional home purchases are way down and young professionals are looking for investment properties, easy to maintain and lower up front purchase costs.

    1. Thanks for your comment Dario, some changes need to be made with regards to the housing situation in New Providence. Majority of young professionals cannot afford the traditional home now a days. We are hoping that developers will recognize the shift and create products that are on the more affordable side and still offer some amenities in the future.
      -Danny

Leave a Reply

Your email address will not be published.

Scroll to top