Bermuda’s Property Market Continues To Boom

by Carla Johnson, Investors Offshore.com

07 January 2005

According to a local media report, property prices in Bermuda recorded one of their strongest gains in 2004, and Bermudian real estate professionals believe there are no signs of a market correction in 2005, with demand likely to remain strong.

“The market is hotter than ever,” Susan Thompson, sales manager for Coldwell Banker JW Bermuda Realty, told the Bermuda Sun, observing that the fourth quarter of 2004 saw the highest volume of sales throughout the whole year.

She added: “We are continuing to have more people who want to buy property than we have properties for sale.”

Ms Thompson expects no let-up in demand for Bermudian residential property in 2005, especially as several new condominium developments are unlikely to be available on the market until 2006.

Real estate experts have also observed that the market is being stimulated by the ready availability of mortgages, now that banks have eased restrictions and are competing aggressively for a slice of the island’s home mortgage business.

William Madeiros, vice president of Rego Realtors, told the Sun that 2004 was probably the best year on record for Bermudian real estate. He believes that another major factor behind the buoyancy of the market is Bermuda’s growing level of affluence, underpinned by sound economic fundamentals.

Consequently, with the economy on a sure footing, Madeiros also foresees nothing likely to upset the market in 2005.

“Bermudians continue to see real estate not only as a nice place to live, but they also see it as a viable investment vehicle,” he said, adding: “Short of a cataclysmic event, why would it change this year?”

Recommended