With tax advantages, private island retreats, secure gated communities and easy access from the US mainland, the Bahamas has emerged as one of the world’s most resilient luxury property markets. Ruth Bloomfield explores why demand for waterfront homes and branded residences continues to surge across the archipelago.
Extraordinary natural beauty, high security, an appealingly lenient tax system – and all just an hour’s flight from the US mainland. It’s little wonder the Bahamas is riding out the post-pandemic real estate slump in style.
Other global lifestyle hotspots have plateaued after the Covid-19-influenced race for space died down, but waterfront sales prices on New Providence Island, the largest and most populous isle in the Bahamas, increased by 15.45 per cent during 2025, according to data from the Bahamas Multiple Listing Service (BMLS).
“Transaction numbers are down, but that is a matter of inventory, not lack of demand,” says Colin Lightbourn, partner at Engel & Völkers Bahamas. “If we had more inventory to sell, we would sell more.”
Demand for Bahamian homes comes from a fairly even mix of holiday homeowners and permanent relocators. James Davies, a partner at Knight Frank, estimates that around four in 10 of his house hunters are seeking a primary residence where they can work remotely and enjoy pristine sands, exotic sea life, world-class golfing and – of course – sailing during their downtime.
“For people looking for that sort of slightly alternative lifestyle, the Bahamas is hard to beat,” says Davies.
North American buyers are responsible for around 85 per cent of deals (the islands were recently nicknamed “The Hamptons of Palm Beach” by Palmer magazine). Flights to Marsh Harbour from PBI are just under an hour, and around three from New York. Canadians, while slightly further away, are attracted by the complete absence of income, corporation, wealth or capital gains tax, as well as the infinitely more appealing climate.
For those who want to make the move permanent, residency is available through a minimum $1 million (£750,000) investment in either bonds or real estate.
Despite the Bahamas’ impressive scale (the country’s islands, islets and cays are spread out over around 500 miles of Atlantic Ocean), its high-end property is clustered in a few key hubs. New Providence Island, home to the capital city, Nassau, and almost three-quarters of the island’s population, is one. Just off Nassau is the tourist-friendly Paradise Island, where Oprah Winfrey owns an estate. Research by Knight Frank suggests that buyers should budget $3 million for a beachfront condo in Nassau, or up to $40 million for a substantial villa.
Lightbourn says that over the past couple of years, he has seen the price of waterfront property in other sought-after locations close the gap with New Providence – notably the Abaco Islands and Eleuthera, in particular its satellite Harbour Island, where Lenny Kravitz, Eddie Murphy and Sandra Bullock all own homes close to its famous pink sand beaches.
Homes in these hotspots tend to be clustered into secure, gated communities like Lyford Cay, where families often keep their homes for generations. More modern iterations on the island include Albany, Bahamas, a 240-hectare resort founded by Justin Timberlake, Tiger Woods, Ernie Els and veteran British investor Joe Lewis, which features a 71-slip marina, golf courses and spas.
Davies says that the vast majority of prime Bahamian homes are within one of these communities. “I suppose it is an exclusivity thing,” he says. “You can absolutely go and buy a home outside one of those communities, but that is where the highest values have always been achieved. It is an amenity thing, a security thing. They are a stable investment.”
Branded residences are also taking hold in the Bahamas. The upcoming Ritz-Carlton Reserve at Cotton Bay on Eleuthera and the recently announced Banyan Tree project on Bimini are giving buyers access to full-service homes with the backing of international operators.
Of course, some buyers prefer a more off-the-beaten-track vibe – and the Bahamas is chock full of private islands, like those owned by Johnny Depp, who bought Little Hall’s Pond Cay in the Exumas 20 years ago.
Despite the romance of living on a desert island, Davies advises buyers not to get carried away. The initial investment could be anywhere from $10 million to more than $100 million, depending on location, infrastructure and size.
And while some islands are sold with permits and permissions in place for a home to be built, those that are not represent a serious gamble. “You can’t expect to buy an uninhabited island and just build on it immediately,” says Davies. Strict environmental rules protecting wildlife, bird life and coral reefs could easily scupper plans if all due diligence has not been done, he adds.
While efforts are being made to protect the Bahamas, simultaneous attempts are being made to open it up to a wider international market, with a series of new airports and airport expansions planned.
Lightbourn is optimistic that prices will grow this year, although he stresses that the Bahamas market depends heavily on US economic health. “We tend to be six months behind whatever happens over there,” he says.
Davies is also hopeful, not least because the Bahamas provide a picturesque retreat from global strife. “There is a lot going on in the world, and there are definitely people who view the Bahamas as a safe haven location,” he says.
First published in the May 2025 issue of BOAT International. Get this magazine sent straight to your door, or subscribe and never miss an issue.