Property In Bermuda

Because of the remarkable growth in the Bermuda property market in recent years, many Bermudians have built 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 Rd. and South shore are among the spectacular properties to be found all over the island.

Condominiums available to overseas buyers start in price at approximately $450,000 and go up to $2.3 million. They can be found all over 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.

The real estate market in Bermuda is high priced because under supply and over demand have driven up prices in recent years. The price one can ecpect to pay for property in Bermuda is affected by factors such as market, location, and the state of the economy. Property sales to international purchasers are regulated by the Bermuda Government in an effort to protect the balance of foreign ownership on the island.