BAHAMAS Trends and Developments Contributed by: David Johnstone and Nateisha Bain, Lennox Paton
the Family Islands, reducing dependence on Nas - sau’s main airport and promoting tourism-led growth in outer islands. Through public–private partnerships, the government is expanding terminal capacity and amenities, extend - ing runways and improving safety and sustainability features. Increased airlift capacity is expected to drive higher passenger volumes to the Family Islands and unlock further development opportunities. Accessibility, reliability and direct airlift remain funda - mental determinants of sustainable real estate devel- opment across both New Providence and the Family Islands. Sustainable development Given the country’s direct exposure to hurricanes, tropical storms and other climate-related risks, envi - ronmental and resource sustainability plays a central role in the approval of infrastructure and commercial projects in The Bahamas. The Department of Environmental Planning and Pro - tection requires Environmental Impact Assessments and Environmental Management Plans for all major developments. These assessments focus on coast - al and marine impacts, environmental preservation, building design and construction standards, waste management, renewable energy integration, and sus - tainable water and energy use. For large developments, it is common for the develop - er to enter into a binding Heads of Agreement with the government. These agreements incorporate environ - mental obligations, local employment requirements and social impact commitments, such as roads, utili - ties and airport infrastructure. Such obligations are binding for the duration of the agreement and are intended to ensure responsible development in line with national sustainability goals. Cruise line development The ongoing expansion of cruise line-led develop - ments continues to exert a significant influence on the Bahamian real estate market. Central to this growth is the redevelopment of the Nassau Cruise Port into a modern, high-capacity facility through a public-private
consortium, Nassau Cruise Port Ltd. Construction is led by Global Port Holdings Plc, which holds a 49% interest, alongside the Bahamas Investment Fund with an equal stake, and a charitable foundation holding the remaining 2% with a social and community man - date. The redevelopment of Prince George Wharf repre - sents a total capital investment of approximately BSD300 million and has played a critical role in deliv - ering record passenger volumes to Nassau Harbour. This has, in turn, catalysed development in Down - town Nassau, including infrastructure upgrades and improved passenger amenities. A notable emerging trend is the proliferation of cruise line owned onshore destinations throughout the Baha - mian archipelago. Royal Caribbean has opened its Royal Beach Club on Paradise Island, Carnival has launched Celebration Cay on Grand Bahama, and Disney has developed Lookout Cay at Lighthouse Point in South Eleuthera. Most significantly, MSC has announced plans for a BSD500 million integrated theme park, retail and hospitality development within its ecosystem at Freeport Harbour, Grand Bahama. Collectively, these onshore investments are expected to generate well in excess of BSD1 billion in local eco - nomic impact. Increasingly, such projects are being structured as public–private ventures with bespoke regulatory approvals that directly benefit Bahami - an residents through investment participation and returns. Emerging opportunities As a low to nil tax jurisdiction with no income, capital gains or inheritance taxes, The Bahamas continues to present compelling opportunities for international investors. The use of offshore companies and trusts to hold Bahamian real estate also remains common, sub - ject to applicable international reporting obligations. While New Providence and Paradise Island remain pri - mary investment destinations, there is growing inter - est in development opportunities across the Family Islands. These islands typically offer larger land par - cels at comparatively lower acquisition costs.
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