Increase in demand for commercial rentals

Although the local real estate market is being hampered by slow mortgage approvals by commercial banks, Bahamas Real Estate Association (BREA) President Christine Wallace-Whitfield said commercial rentals are seeing an uptick.

Wallace-Whitfield said the reopening of the tourism sector has also ushered in increased demand for foreign residential rentals and second home purchases.

“I have noticed a lot of local customers looking for rentals mainly for commercial and fewer residential. As businesses continue to reopen, mainly the hotels and the service industries, you will see an increase for more foreign rentals. There are definitely strong numbers from second home buyers, especially now that the borders have opened and activity is starting again,” she said in an emailed response to Guardian Business inquiries yesterday.

“I commend the Ministry of Tourism for its swift action with its advertising campaigns, et cetera, but all real estate companies have been doing their part with making sure they get the word out there that The Bahamas is open for business and it is better in The Bahamas.”

Addressing the issue of loan approvals for potential real estate buyers, Wallace-Whitfield said while the process has been prolonged, to her knowledge creditors in good standing have been getting approved.

“I have been getting a lot of calls stating concerns from other real estate agents in regard to why has it become difficult for banks to lend. With everything that has happened with the pandemic, banks are taking more precautions, however, having spoken to one of the major banks, they seem to be entertaining lending but there will be more due diligence in the process,” she said.

“Personally, the process has taken a little longer than the norm, however, so far I have not received any rejections in terms of the customer or client not obtaining financing, so fingers crossed for us all.”

Wallace-Whitfield said overall she believes the real estate industry showed positive signs for improvement in the last quarter of 2020. She is hopeful for 2021 despite the global pandemic.

“We had lots of inquiries and a lot of interest coming in from foreigners at year’s end looking to buy the investment home or simply a second home, which is what it is all about when coming to The Bahamas to live for periods of time,” she said.

“So far it has been positive with a lot of interest and inquiries, but as we have all heard in the international news, the UK and other major areas that we heavily rely on have begun lockdowns again, so we must be very aware, keep positive and stay the course.”

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