Property

Property Market Update

Buddy Rego, President, Rego Sotheby’s International Realty, brings you up to date on the Island’s property market

Mark Twain once quipped, “You can go to heaven if you want to. I’d rather stay in Bermuda.” Of course, back when the famed writer visited the island, property prices were much more reasonable. However, that shouldn’t discourage prospective buyers in our present real estate market.

Since the economic downturn 10 years ago, Bermuda has remained a buyers’ market relative to the appreciation of property values across the globe. Sales activity over the past few years shows homes and office buildings trading for less than replacement value. What does this mean? It’s not good news for those with mortgage commitments exceeding present-day value or for those who need to sell having bought only eight to 10 years ago.

However, this does mean that buyers seeking homes and investment properties may enjoy an advantage not seen in Bermuda in recent memory.

Standalone homes, excluding the luxury market, continue to sell, ranging between $1.1 and $1.2 million with the notable

difference that buyers now can expect more amenities for the same price point.

There is a similar trend in the condominium market, which has suffered the most erosion in value and average price sold. Opportunities for the savvy buyer are island-wide, as older units and those in need of renovations are widely available. The average price for these units is around the $300,000 price point.

Higher-end condominiums and those available to non-Bermudians for purchase have enjoyed more stability with an average selling price of around $850,000. In 2018, year to date, 15% of these condominium transactions were bought by non-Bermudians. The inventory that is trading is predominately new developments in hotel/tourism properties or renovated units in more established developments.

Luxury homes available to all buyers, including non-Bermudians, continue to trade at an average price of between $5 million and $6 million. Two-thirds of these properties were purchased by non-Bermudians, indicating that local confidence and international demand is alive and well.

Bermuda government policy permits non-Bermudians the ability to own two properties in Bermuda, although an application to the Department of Immigration must be made to acquire property, a process that can take several months.

Currently policy does not allow those on work permits to purchase condominiums, though stand-alone homes are available for purchase by nonBermudian guest workers.

Renting is always an option while waiting for the right opportunity. Rental prices in the more affordable ranges have softened since the America’s Cup, while luxury properties are in shorter supply with values continuing to be firm.

Bermuda properties are as unique as the property market itself. You can embrace over 200 years of history in a stunning estate presently owned by Michael Douglas, or enjoy your own private beach along Bermuda’s famed South Shore at the recently completed Residence at The Loren at Pink Beach in Tuckers Town.

Whatever your price point, an opportunity awaits in the Bermuda real estate market, and, although it may take a while to get to heaven, it certainly appears to be well worth the wait.

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RESIDENTIAL SALES RENTALS COMMERCIAL VALUATIONS PROPERTY MANAGEMENT TENANT SERVICES

441.292.3921 regosothebysrealty.com info@regosir.com 83-85 Front Street, Hamilton, HM AX

Innisfree has dramatic ocean views from every room

The finest properties on the rock

Hundreds of people from all over the world have bought homes here. Here’s your best choice.

Bermuda has a large inventory of properties that are available for non-Bermudians to purchase, but with its finite amount of land and in order to ensure that adequate property is preserved for Bermudians, there are a few restrictions on overseas purchasers. Each property is allocated an ARV, which is an estimate of its annual rental value. Overseas purchasers may buy a house with an ARV of $126,000 or more, a condominium with an ARV above $25,800, or certain properties that are part of a development with a hotel component.

Fractional ownership has become a popular form of property ownership in Bermuda by non-Bermudians and locals, offering the purchaser a deeded real estate interest in a “residence,” which provides amenities such as swimming pool, tennis courts, golf club and course, and beach club. Examples include Tuckers Point, The Reefs, and Newstead, where ownership of between 8 to 12 weeks a year can be purchased for as little as $69,000.

Nautilus, on South Shore, is an example of a house above the ARV threshold of $126,000, making it available to nonBermudians. It is a fabulous waterfront house in an elevated coastal position with its own private access to a beach. Set in almost two acres with its own pool, this large home of approximately 4,500 square feet has the most amazing sea views. The house also has a lovely large kitchen with a center island, which leads onto an ocean-facing family room.

From the kitchen, you walk through double cedar doors to a dining room, which in turn leads to a living room with an open fireplace. There is an extensive covered external terrace, which is accessed from the family and living rooms. Wake up in the master suite with full-length windows affording panoramic views over the ocean. It features a dressing room and huge bathroom with a walk-in shower and his and her sinks. Two other bedrooms (one is currently set up as a library) share a Jack and Jill bathroom. These two bedrooms are on the same floor as the master bedroom. Downstairs, accessed from the entrance hall, is the lower floor suite comprising of a living room, bedroom, kitchen, and bathroom with a separate external entrance, ideal for rental income or as a guest suite. There is an integral garage, beside which is a smaller guest suite with a bathroom and kitchenette, currently being used as a gym. A little further down South Road and only five minutes from the famous

Coral Beach and Tennis Club is the beautiful home named Innisfree. It enjoys a picturesque location with dramatic ocean views from every room. On the 1.1 acres of thoughtfully planted grounds is a large, heated swimming pool, a lanai with built-in barbecue, tennis court, potting shed, and putting green, plus many patios overlooking the ocean and perfect for entertaining. The bright and airy entrance hall, with a lovely working fireplace, leads to the spacious and elegant living room, which also has a fireplace and wide glass doors leading to the deep covered porch. The formal dining room, with gracious bay window and wraparound porch, is adjacent to the living room and to the state-of-the-art kitchen with its own breakfast area. On the main level is a comfortable TV room with another fireplace and two generous size en suite bedrooms.

An elegant staircase from the entry hall leads to the upper and lower levels. The upper level comprises the enormous master suite with a feature fireplace, large water-view patio, deluxe bathroom, separate, huge, conveniently outfitted his and hers dressing rooms and a small office. On the spacious lower level there is a larger office and two additional en suite bedrooms and a large billiard and games room. There is generous storage throughout, a generator and a selfcontained, one-bedroom apartment with its own ARV.

AZURA BERMUDA: Luxurious Contemporary Oceanfront

Nestled on a dramatic cliff among Bermuda’s coveted South Shore beaches, Azura offers discerning buyers a luxurious contemporary oceanfront ownership opportunity.

Ownership is available to Bermudians, work permit holders, and international buyers. As a hotel residence, there is no license fee for international buyers, plus additional government incentives are available.

For details of the above and so many more properties, please contact The Property Group. Azura. Call Sallyann Smith: 441-234-6900; Cell 441-5354521; Email sallyann@tpg.bm Nautilus. Call Georgina Bowie 441-517-2424; Email Georgina@tpg.bm Innisfree. Call Gill Butterfield 441-534-7746; Email gill@tpg.bm Innisfree. Cal Vicky Hamshere 441-537-5337; Email: Vicky@tpg.bm

AZURA BERMUDA

The Property Group has a luxury portfolio of desirable properties in Bermuda. Contact us to get in touch with an agent. Featured Property:

• Situated cliffside along coveted South Shore just 10 minutes from Hamilton • Available to Bermudians, Work Permit Holders, and International Buyers • No license fee for International Buyers, plus additional incentives • Owners can generate revenue by renting part or all of residence through the Azura Hotel • 2, 3 and 4 bedroom condominiums with prices starting from $1,395,000 • Fantastic amenities including hotel concierge, pool, bistro & bar, a private beach, spa, fitness and shuttles Agent: Sally Ann Smith Phone: (441) 535-4521, SallyAnn@tpg.bm Phone: (441) 234-6900, info@tpg.bm, www.property-group.com

Nautilus, with private access to a beach

PROPERTY Whole Ownership Resort Developments

There is a wide choice for buyers from overseas looking to purchase in Bermuda. One of the newest and popular trends is condo-hotels.

Azura has carved out a niche for itself in this market, the resort development offering whole ownership real estate that can be owned by non-Bermudians as well as Bermudians. Some owners live at Azura full-time, while others purchased to use whenever they choose. When they are not in residence, they make part or all

Azura Bermudiana Beach Resort

of their unit available as hotel inventory and receive income from the hotel rental.

Another option is Bermudiana Beach Resort, part of Hilton’s Tapestry Collection. The two- and three-bedroom condominiums come fully equipped and fully serviced. Owners can stay up to 90 days each year – a condition that ensures the hotel side of the business remains viable – and can the choose to rent out the days or weeks they are not in residence through the hotel.

Both resorts are in beachfront locations with ocean views and access to resort amenities.

For more details, visit www. azurabermuda.com and www.bermudiana. com.