The Bahamas real estate market remains one of the most dynamic and sought-after in the Caribbean, drawing interest from both local and international buyers. The stunning island landscapes, tax incentives, and high rental demand have made it a prime location for property investments.
However, 2024 saw some significant shifts that are shaping the market outlook for 2025.
To gain expert insight into these changes, we sat down with Peter Dupuch, Owner-Broker at ERA Dupuch Real Estate, who has been at the forefront of the industry for nearly 30 years.
According to Peter, “It's definitely a seller's market—we've seen fewer transactions overall, but prices have gone up.” This statement underscores the tension between high demand and limited inventory, a trend that has defined the market throughout the year.
In this report, we’ll analyse the performance of The Bahamas real estate market in 2024, examine emerging investment opportunities, and decode what lies ahead for buyers and sellers in 2025.
Table of Contents
Bahamas Real Estate Market in 2024
How Will The Bahamas Real Estate Market Change in 2025? Here’s What Our Experts Think…
Where Is It Best to Invest in The Bahamas in 2025?
Nassau Neighborhoods To Watch in 2025
Bahamas Real Estate Market in 2024
While the number of transactions fell in 2024, home prices remained high, highlighting the market's resilience. A persistent imbalance between supply and demand has created favourable conditions for sellers as low inventory continues to drive up prices.
However, a key shift has emerged: buyers are becoming more strategic, leading to a more precise approach to pricing. Sellers can no longer simply set any price and expect immediate interest, as today's buyers are more discerning and focused on value.
“Proper pricing was a challenge for sellers because, since COVID, people could just kind of try and put any price on anything and get it. In 2024, while there's still low inventory and high demand, you do have to price it properly now.” Peter notes.
This shift indicates a more discerning market where buyers expect fair valuations despite the supply shortage.
This evolving landscape has led us to closely examine specific property segments, particularly residential properties, which have played a crucial role in shaping market dynamics, especially as low inventory has pushed more buyers toward land investments.
Residential Properties
Residential properties include single-family homes, condominiums, and townhouses. Lifestyle trends, economic conditions, and market demand influence these properties, making them a key indicator of overall market health.
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New listings: The market saw 73 new residential listings in the first quarter of 2024, but as the year progressed, inventory tightened, averaging just 49.35 listings per quarter. This drop in supply further fueled price increases.
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Contracted sales: Averaging 19.7 per quarter, contracted sales saw a slight uptick toward the end of the year, signalling continued buyer interest despite limited choices.
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Completed Sales: Holding steady at an average of 17.5 per quarter, these figures demonstrate that while options were scarce, buyers remained committed to securing properties.
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Days on Market: Listings took longer to sell in 2024, increasing from an average of 84.4 days in the first quarter to 139.6 days in the last, with a yearly average of 111.7. This suggests a market that, while still strong, is becoming slightly less frantic compared to the post-pandemic boom.
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Sale Prices: The average sale price hit $1.01M, with a notable spike in the second quarter of 2024. This highlights how demand for quality homes kept prices high despite fewer overall transactions.
These numbers tell a story beyond the surface: strong demand in a limited market means sellers have the upper hand, while buyers face increasing competition and prices. As a result, buyers are becoming more strategic in their decisions.
According to Peter, “Buyers need to be super clear on what they want because inventory is low,” and in some places, like Exumas, the only choice is to “buy land and build it.”
Lots/Acreage
With available homes in short supply, many buyers have turned to purchasing land instead. Whether for custom-built dream homes or long-term investments, the role of land sales is growing in the market.
“For buyers…” Peter says, “It's just that there's just nothing to buy, so you have to adjust your expectations and maybe pivot a little bit.” Peter explains why many people have no choice but to buy land and build new homes.
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New listings: Averaging at 61 per quarter in 2024, new land listings remained steady, indicating that developers continue to recognise the opportunity to meet growing demand.
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Contracted Sales: With an average of 24.25 per quarter, consistent sales demonstrate a strong interest in buildable lots, particularly in areas where residential inventory is minimal.
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Completed Sales: Averaging 17 per quarter, these transactions show that interest in land is not just speculative—buyers are following through on purchases.
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Days on Market: Land listings took an average of 134.55 days to sell, peaking in the third quarter of 2024. This longer timeline reflects the nature of land purchases, where buyers typically take more time to plan their investments.
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Sale Prices: The average sale price hovered around $275K, with the highest figures recorded in the third quarter, suggesting that competition is heating up for prime land parcels.
These trends underscore a significant shift in the market:
Land is becoming the new focus of real estate investment in The Bahamas.
"In Exuma, there's no inventory left, so buyers turn to land—they know it's going to appreciate." This trend extends to Long Island and Andros, where affordability today could mean significant value growth in the coming years.
The land market across the islands is gaining more attention than the housing market. During the second quarter of 2024, many Family islands beyond New Providence Island showed either steady demand or growth.
“There is increasing interest from locals and tourists in other islands besides New Providence for tranquility, prompting developers' interest to start projects.”
The Bahamas' real estate market continues to evolve, demonstrating a blend of stability and transformation across different island markets. Despite the challenges of low inventory, the demand for homes and land remains high, making 2024 a pivotal year in shaping future investment strategies.
Learn more about how to buy a house in The Bahamas
How Will The Bahamas Real Estate Market Change in 2025? Here’s What Our Experts Think…
When discussing the future of The Bahamas real estate market, one can’t look at the numbers alone—you need to understand the lifestyle and investment trends shaping these islands.
"There's a lot of anticipation for 2025," says Peter. "Locally, there are several initiatives to create more inventory, especially for first-time buyers." This means there may be an increase in inventory for entry-level locals and first-time buyers.
“First-time homebuyer-friendly homes and income-producing properties, both commercial and residential, are always going to be hot because people can rent them out.”
There’s a lot of luxury condo development in the Bahamas, with many exclusive high-end communities and enclaves springing up in Nassau.
“The demand for luxury real estate has remained strong and consistent because when the luxury market does well, it just has a trickle-down effect.”
The Bahamas is currently the third-fastest-growing luxury real estate market globally, with a 15% yearly price growth in 2023, trailing only Dubai and Manila. This remarkable growth was particularly prominent in second homes.
While luxury condo developments continue to thrive, Exuma, Eleuthera, and Abaco are expected to see strong demand. Long Island and Andros, identified as emerging hotspots, are particularly promising for investors seeking appreciation potential.
Bahamas Rental Market
"Our rental market is very robust," Peter mentions, "with high demand from North American visitors." American visitors, who make up 90% of arrivals, drive the demand.
Here are some changes in the rental market that occurred in 2024.
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Monthly Rent: Monthly rent increased in 2024 by approximately 15.2% (from $1,008 in 2023 to $1,161 in 2024).
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Occupancy Rate: Occupancy rates decreased in 2024, with vacation rentals dropping from 32.7% to 29.1% (about 11% decrease).
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Short-Term vs. Long-Term: Long-term rentals increased, while short-term bookings decreased by 7.3% compared to 2023.
The monthly rent surge reflects strong upward pressure on rental prices, likely spurred by high demand from North American visitors. At the same time, the decline in vacation rental occupancy suggests that while rental yields are increasing, short-term demand has softened somewhat.
In addition, the shift toward long-term rentals—evidenced by a 7.3% decrease in short-term bookings—signals that investors and tenants alike gravitate toward more stable, longer-term agreements.
One reason people (particularly Americans and Canadians) may opt for long-term rentals is that “we have a whole new section of people that go back and forth because you can, and nobody knew you could before.” So, they can easily live and work in the Bahamas, and if they have something to do back home, they can hop on a flight and be back home by dinner.
With homes remaining scarce and more people working remotely from The Bahamas, this trend allows property owners to command higher prices even as the overall transaction volume adjusts.
On the other hand, the Bahamas’ favourable government policies make investment in rental properties secure and attractive, allowing for stable, long-term returns.
Factors Influencing the Real Estate Market in The Bahamas
Understanding what drives the Bahamas real estate market helps make sense of the bigger picture. These factors influence what’s happening now and give us a pretty good idea of what to expect next—so if you're considering investing, this is what you should know.
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Economic growth: GDP rose from $14.34B in 2023 to $14.83B in 2024, with projections hitting $17.62B by 2029. This growth signals a steady, expanding economy, which often translates into increased investor confidence and a stronger real estate market.
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Tourism: An unprecedented 11.22 million international visitors arrived in The Bahamas in 2024, a 16.2% increase from 2023. This growth indicates a booming tourism sector, which directly fuels demand for vacation rentals and investment properties across the islands.
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Policy changes: The permanent residency investment threshold increased from $750K to $1M. "It means investors now need to make a more significant commitment, potentially attracting more serious long-term interest," Peter explains.
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Sustainability: “Solar is definitely on the rise," says Peter, with self-sufficiency becoming more feasible, especially in developing islands. The Bahamian government has announced an aggressive plan to expand solar energy use by 2033, which could significantly impact real estate investment, particularly for private island properties where self-sufficiency is critical.
Should You Invest in The Bahamas in 2025?
Peter’s advice is clear: "If you're thinking of investing, 2025 is a great time to get in." With a stable government, high rental demand, tax-free rental income, and a growing economy, The Bahamas is positioned as an investment haven.
"We’re the closest to the U.S., with direct flights from multiple cities," Peter notes. The country’s tax-friendly policies, high rental yields, and stunning beaches make it stand out. "Our stable government and North American cultural influence also make the Bahamas uniquely appealing," he adds.
Peter points out the long-term value appreciation and the attractive tax advantages that make The Bahamas a compelling market for investors, "The path to financial freedom begins with real estate. In real estate, number one, the property will appreciate, and two, you can earn income that’s essentially tax-free for Americans and Canadians.”
Investing in the Bahamian real estate isn’t complicated or inaccessible. It's an exciting and rewarding endeavour, and we're here to guide you and assist you through every step.
Whether you're interested in a beachfront home, an inland townhouse, or your own piece of paradise on a private island, options are endless. "There's always a need for new homes, whether you're upsizing, downsizing, or just looking for a change," Peter concludes.
Learn how our agents help navigate The Bahamas real estate market
Where Is It Best to Invest in The Bahamas in 2025?
“Exuma and Eleuthera are in high demand. Abaco is becoming increasingly more in demand as it recovers from Hurricane Dorian. The prices are increasing.” Peter expects competition to keep increasing, driving the home and land prices even higher on the Family Islands.
Eleuthera and Abaco show rising activity, while Long Island and Andros are the markets to watch in 2025.
Regarding relatively affordable islands, Peter predicts, "Long Island is the upcoming one. If you buy there now, your property is likely to appreciate."
Long Island offers a rare combination of affordability and potential for growth, making it an attractive option for investors seeking long-term returns.
Let’s get a brief overview of these islands:
Exuma
Exuma is one of the Bahamas’ most inviting Family Islands—a serene escape 142 miles south of Nassau. Here, life moves gently, allowing you to explore traditional crafts in George Town, wander deserted beaches in Staniel Cay, or enjoy fishing and sailing from your beachfront property.
Homes are dotted along quiet coves, offering breathtaking waterfront, hilltop, and oceanfront views. Exuma hosts vibrant events like the Family Island Regatta, adding to its charm.
With a unique blend of natural beauty and a relaxed lifestyle, plus easy flights to major cities, Exuma is a dream destination for those seeking tranquillity without sacrificing convenience.
Eleuthera
Eleuthera is one of the Bahamas’ hidden gems. Time seems to slow down here, and every day feels like a mini-vacation. With its iconic pink sand beaches, dramatic cliffs, and lush tropical landscapes, the island captures the true essence of laid-back island living.
Eleuthera offers a range of real estate opportunities—from charming local homes to modern beachfront estates—that perfectly blend traditional Bahamian style with contemporary comforts.
The friendly community, vibrant local culture, and endless outdoor activities, from fishing to exploring secluded coves, make Eleuthera a warm and inviting place for families and investors. Discover its genuine beauty and tranquillity.
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Treasure Cay, Abaco
Treasure Cay, Abaco, is a stunning peninsula famed for its pristine white-sand beaches and diverse real estate opportunities. Just a 30-minute air trip from South Florida, this vibrant community is recovering steadily from Dorian.
Homes here range from charming beachfront bungalows and resort-style condominiums to luxurious waterfront estates. Many properties offer direct canal-front access in Brigantine Bay.
Although the island’s golf course remains closed during rebuilding, opportunities abound as the hotel, marina, and course transition to new ownership. With a lively town centre offering cafes, a bakery, and essential services, Treasure Cay is poised for a bright future today.
Explore real estate in Treasure Cay Abaco
Nassau Neighborhoods To Watch in 2025
Nassau’s real estate market continues to evolve, and as we look ahead to 2025, it is essential to understand which neighbourhoods will drive growth.
According to Peter, "Neighborhoods that remain hot in terms of listings and sell quickly are Eastern New Providence, including Eastern Road, Treasure Cove, Palm Cay, and Port New Providence. Anything listed in these communities typically sells fairly fast because there are so few listings."
"Anything on the ocean, whether East or West of New Providence Island, sells quickly. Properties with elevation and a view are also in high demand," he adds.
Considering these insights, the following list highlights the key Nassau neighbourhoods poised to capture buyer attention and drive market activity in 2025.
Eastern Road
Eastern Road is a classic, authentic slice of New Providence Island that exudes timeless charm. Stretching along the northern shoreline from Fort Montagu, it’s one of the island’s oldest communities, featuring stately Bahamian estate homes with ocean views, quaint beachfront residences, and welcoming creek communities.
Eastern Road and its neighbouring areas—Blair, Brace Ridge, Brigerdoon, Mount Vernon, and San Souci—offer a peaceful, residential vibe without high rises or commercial distractions.
Many older homes are lovingly renovated, preserving their original architecture, while natural barrier islands provide a serene backdrop. With convenient amenities and top-notch schools nearby, Eastern Road is truly a rejuvenating haven.
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Treasure Cove
Treasure Cove is a welcoming, family-friendly gated community in Eastern New Providence that offers exceptional value and convenience. Residents enjoy single-family homes on individual homesites with low HOA fees and a host of amenities, including secure gated entry, 24-hour patrolling security, a park, a basketball court, and a beach.
Treasure Cove's prime location is unbeatable. St. Andrew’s International School is just two minutes away, and three food stores are within a five-minute drive. Local conveniences like a pharmacy, gym, Palm Cay Marina, and Yamacraw Beach complete the picture, making Treasure Cove popular with young couples, families, and retirees. It feels like home.
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Palm Cay
Palm Cay is a unique, vibrant community on the southeastern shore of New Providence that truly has it all. With a bustling marina featuring nearly 200 boat slips for vessels of all sizes, it’s a dream come true for boaters and a haven for land lovers.
The neighbourhood offers a range of properties—from cosy anchorage units to luxurious oceanfront townhomes and home sites starting at around $200K—all without rental restrictions.
Families enjoy resort-style amenities like pools, a clubhouse, a beach, a playground, tennis courts, and pickleball. Plus, it’s just minutes from St. Andrew’s International School. Palm Cay blends relaxed island living with modern comforts, making it an unbeatable place to call home.
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Port New Providence
Port New Providence is a gated, canal-front community in eastern New Providence that offers a family-friendly waterfront lifestyle. With water views on every lot, it's a haven for boaters. The clear canal leads directly to the ocean, and Exuma is only 40 minutes away.
The community features single-family homes and the condo complex Seapointe, which boasts its own pool, beach, and cabana.
Port New Providence offers tennis courts, a renovated clubhouse, a playground, and 24-hour security, making it a safe, inviting place to raise children. Conveniently located near schools, shops, and marina services, it’s truly a rare find.
Explore real estate in Port New Providence
Looking ahead to 2025, the Bahamas real estate market remains dynamic. Stable economic growth, increased tourism, and favourable policy shifts fuel high demand for luxury and rental properties.
As you explore these exciting opportunities, remember Peter’s advice: "Get a great agent because our neighbourhoods are so diverse, and property types are unique." His insight reminds us that navigating such a vibrant market requires expert guidance.
Let our dedicated team help you unlock the best investment opportunities across the islands. Contact our experienced agents today and take the next step toward turning your Bahamian real estate dreams into reality.
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