Coldwell Banker Bermuda Realty releases year end Real Estate market report for 2014
Article by: Coldwell Banker Bermuda Realty – 7th January 2015
For the second year running, market data consolidated by leading local real estate company Coldwell Banker Bermuda Realty suggests that first quarter sales results for 2015 will out-perform the previous years’ results. Does this mean Bermuda is on the road to economic recovery?
The answer is best summarized by local journalist Jonathan Kent in a recent Royal Gazette Article:
“Bermuda goes into 2015 with better economic growth prospects than at any time since the global financial crisis struck six years ago.” (by Jonathan Kent – Five reasons why the economy can grow in 2015 – www.royalgazette.com)
Economists worldwide are citing real estate and other economic indicators in predictions of changing global economies. In Bermuda, indications are that 2014 will show positive real estate sales (volume) growth, and 2015 should continue this trend. Final data will not be available until mid-year (2015) but based on the number of current sales registered in Government records condo sales for 2014 are up 8% over 2013 figures and single family homes are continuing to trend well, making up 40% of the total number of sales in 2014 vs. 26% in 2013.
Overall, average property prices have maintained consistency when compared over the last two years with the average hovering around $1,100,000. In reviewing property sales by Parish, it will come as no surprise that Pembroke and Paget were the leaders in 2013 and Warwick is leading 2014 totals. This reinforces that central parishes remain the desired locations and with preferred location comes premium market prices. Keeping with that thought, St. George’s parish continues to tip the scales with the highest average price reflecting the wealthiest homes in the Tucker’s Town area. If you are looking for a “bargain” Sandys continues to offer the most value on the dollar.
One of the leading indicators of the resilience of the real estate market is to take a look at the residential rental market. While there is no central recording of all rental transactions island wide, Coldwell Banker Bermuda Realty maintains the leading share of the residential rental market. From our year-end figures, we can report that the number of rental transactions is up 20% over 2013. Overall there have been no significant price increases over the past 12 months, but we are seeing marginal increases and prices are no longer falling. City living and centrally located units are bouncing back much faster than rentals at the ends of the Island.
Commercial property rentals offer another encouraging sign that the economy in Bermuda is improving. As reported in December 2014, our records indicate that that we have rented or placed in contract more than 80,000 square feet of office space this year, bringing commercial absorption levels more in line with annual historic absorption rates which average 75,000 – 125,000 sq. ft. pa.
Bermuda is eagerly looking forward to 2015 with the renewed hope of jobs and a growing population which will lead to a strengthening of the economy. We too look forward with optimism; sales transactions are up and inventory is at its lowest point in over 5 years, but we move into the New Year with the understanding that we have a long way to go in this recovery and it will take all of us working together to rebuild a better Bermuda.
For further information contact Susan Thompson at Coldwell Banker Bermuda Realty on (441) 247-1802