Coldwell Banker Bermuda Realty release Luxury Home Market Update
Luxury Home Market Update
By Brian E. Madeiros, B.Sc., M.R.I.C.S.
A couple of large waterfront homes available to overseas buyers sold in the first half of 2015, with total sales proceeds exceeding the same period for 2014. In the last quarter, our agents have negotiated three sales transactions over $3M and are continuing to receive enquiries from qualified luxury home buyers. As mentioned in our January market update, we have seen a noticeable increase in the inventory of large homes available to overseas buyers and our research indicates that the total dollar volume of homes in this category* is currently around $325M. This creates an opportunity both for purchasers who now have a greater choice of inventory and Bermuda, as our tax base will benefit from alien license fees, which at 8% equates to a much needed $26M injection to our tax base.
(*stand alone homes with ARV’s $153,000+)
In order to stimulate transactional volume in our luxury home market, resulting in an increase in tax revenue Government have recently passed new legislation which will invariably impact global engagement with high net worth individuals. A host of changes are designed to incentivize our international buyers, some of which are listed below:
The ARV threshold for standalone homes has been reduced from $177,000 to $153,000
International purchasers and PRC’s can now purchase two properties in Bermuda
International purchasers can now purchase any privately developed condominiums providing the ARV is in excess of $32,400+
Coldwell Banker Bermuda Realty have been selected by the developers of Morgan’s Point to form a joint venture real estate company, and open a dedicated sales office at Morgan’s Point in preparation of the impending development of phase 1 of the proposed luxury residential, marina and hotel property.
The joint venture will allow our team to work closely with the property developer to create and market a brand new ultra-luxury waterfront residential product for Bermuda. Leveraging the extensive local and international network of Coldwell Banker, we look forward to introducing buyers to Bermuda’s newest signature residential and hospitality development. Phase 1 will include 149 two and three bedroom waterfront condominiums. Amenities will include a fully operational marina and hotel facilities. Morgan’s Point is situated within close proximity to the beautiful Port Royal Golf Course.
For more information please contact Coldwell Banker Bermuda Realty - +1 441 292 1793