BAHAMAS Trends and Developments Contributed by: David Johnstone and Nateisha Bain, Lennox Paton
Lennox Paton 3 Bayside Executive Park West Bay Street & Blake Road P.O. Box N-4875 Nassau The Bahamas Tel: +1 242 502 5000 Fax: +1 242 328 0566 Email: lxp@lennoxpaton.com Web: www.lennoxpaton.com
Foreign Investment and Real Estate Development in The Bahamas: A Market Overview Introduction Due to its geographical location, favourable climate and tax neutrality, The Bahamas remains a highly sought-after jurisdiction for property acquisition and development. Over the years, and particularly fol - lowing the COVID-19 pandemic, the real estate mar - ket has undergone a quiet but significant evolution. While luxury second-home sales remain strong, resort development, condo-hotel and condominium markets have become increasingly prevalent. This growth has been driven by a combination of foreign direct invest - ment, luxury tourism demand, and highly strategic and sophisticated developers and investors. Hotel and mixed-use resorts Hotel and mixed-use resort developments continue to form the foundation of large-scale real estate develop - ment in The Bahamas. The iconic Atlantis and Baha Mar integrated resorts are experiencing high market demand, and both have committed to substantial additional capital expendi - ture across their properties. Atlantis has recently renovated and upgraded the Royal Tower and its casino and is now launching a comprehensive BSD600 million transformation of The Cove property. In parallel, Baha Mar has announced the expansion of a new BSD700 million beachfront resort and residential development on its Cable Beach property, scheduled to open in 2029.
The owners of both Atlantis and Baha Mar are incen - tivised to renovate and expand their investments in The Bahamas through the provisions of the Hotels Encouragement Act and the Hotels Act. These include favourable and flexible development agreements with the government, commonly known as Heads of Agreement, which provide for tax and tariff conces - sions, key commercial terms and development rights. As these projects are major drivers of economic activ - ity and employment, the government actively engages with stakeholders to ensure alignment with national development objectives. Branded residence resort boom Driven by the Hotels Encouragement Act and the Hotels Act, branded residence resorts have expand - ed significantly across The Bahamas. These devel - opments combine luxury residential ownership with internationally recognised hospitality brands and rep - resent one of the most influential trends shaping the high-end Bahamian real estate market. Notable developments include projects in New Provi - dence and Paradise Island such as the Four Seasons Ocean Club Residences, Rosewood at Baha Mar, GoldWynn and Albany. In the Family Islands, a renais - sance of development is being led by luxury brands including Aman, Rosewood and Bulgari in Exuma, and Montage in Abaco. The scale and pace of branded residence development highlight The Bahamas’ stra - tegic location, favourable development legislation and the stability, co-operation and reliability of its govern - ment.
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