RIS Media Global Spotlight: Tropical Destinations Lure International Buyers
Bermuda
By RISMediaJune 14, 2024 Reading Time: 8 mins read
Above, Bermuda’s Westcoast Topsail is listed for $2,950,000
From the appeal of year-round coastal living to the desire to lead a laid-back yet upscale lifestyle, destinations in tropical locales are becoming increasingly popular for homebuyers across the globe. This month, we take a look at three brokerage firms in sun-drenched locations to find out the trends that are driving property sales in their markets.
Tell us about your company.
Cranfields Property Bermuda (CPB) is a family-run business that opened in 2013 as a boutique-style agency that has grown organically over the past 10 years. We serve the international and local Bermudian market, covering the entire country of Bermuda, and handle all types of real estate—residential and commercial sales, rentals and property management. We have an in-house appraiser, a compliance department and an internationally licensed real estate trainer. Our real estate connections thread through the whole community, and we value and respect all our property partners.
Please describe your current housing market.
Since COVID, we have been low in inventory of stand-alone homes and internationally available properties (for non-Bermudian buyers). New international condo inventory is steadily increasing in both price and demand, with a backlog of purchasers waiting for new developments to complete. International house prices remain stable.
Larger Bermudian-only family homes are coming to market at higher prices, and there is a quick turnover through cash buyers. Other segments are not as buoyant, specifically at the lower end of the local market where buyers are struggling to afford mortgages and cope with inflation and higher interest rates.
We have a strong investment market, supported by rental demand and increased rental prices. Because the majority of international employees are on work-permit contracts and can’t buy, there is a very strong rental market. Right now, we are near a crisis point in terms of rental availability.
Tell us about the market for international real estate investors in Bermuda.
International buyers can purchase condos through investment in the Economic Investment Residence Certificate (EIRC) program. The EIRC program grants residency to an international investor and their family, and this allows for the purchase of one or two condos as part of an investment of $2,500,000 in Bermuda. Alternatively, condos in a tourism development are also available to international buyers.
In Bermuda, a $35,000,000 purchase on the ocean buys you a prestigious 14-acre estate with a mansion house, multiple cottages, a glorious beach and pool. The $6,950,000 purchase of Glebe House with renovation and updates, could double your investment.
Bermuda is a remote island location, often under-appreciated or unknown. Its high-end real estate properties compare with some of the best global locations in the world, rivaling these in terms of desirability, safety, security and privacy. We offer a high standard of living to those looking for a secondary residence.
Our international investors are mainly from the USA, predominantly the East Coast U.S., but we also see multiple European and Canadian investors. We comply with European standards and laws for anti-money laundering and KYC.
The Glebe house in Bermuda is listed for $6,950,00.
What advice do you have for foreign buyers interested in buying in your area?
Foreign buyers with an understanding of the purchase process in Bermuda will fare better. CPB will provide an overview of the process and the current market, as well as arrange to show properties of interest. We would then help the buyer to align with a lawyer versed in immigration and real estate law, and we can advise and guide you through the process. The smoothest transitions to life on the island are those through a relocation company that will arrange school visits and previews, family pet imports, drivers’ licenses, car purchase and registrations, etc.
What do you love most about living in your area?
Bermuda affords you an exhale, a place where you can come to get away from the world and enjoy a slower pace of life but a high standard of living. This is not a transitional summer community. Residents are included in our close-knit community, with its very old-style culture and a classically beautiful way of life.
How does being part of Leading Real Estate Companies of the World® support your business?
We love the closeness of the LeadingRE global family—we feel part of a group of like-minded people with similar goals, ethics and standards. LeadingRE is constantly evolving and adapting to meet new trends in real estate.
