Bermuda - Real Estate and RentalBermuda - Real Estate and Rental
Overview
Rego Sotheby International Realty reported in January 2016 that commercial properties sold at their fastest rate in eight years in 2015, and the sale of luxury residential properties also had “a significant resurgence” over the previous year. The average price paid at the top end of the residential real estate market went up 9% to $6.2 million compared to $5.7 million in 2014, but there was a “significant drop” in the average sold price for commercial properties from 2014’s $2.4 million to $1.14 million in 2015. Condominium sales continued to struggle in 2015,especially those with an annual rental value of less than $32,000, although those rated above that figure had “shown some resilience.”
Parliament passed legislation on March 25, 2015, making it easier for non-Bermudians to purchase real property – the aim being to increase Bermuda’s dwindling population and bring sorely needed investment to the island. The legislation lowered the price of properties available for purchase to non-Bermudians and non-PRC (Permanent Residents Certificate) holders. Now, they may purchase homes with an Annual Rental Value (ARV) of $153,000 or higher (equating to a home of approximately $3 million or higher) and condominiums with a minimum ARV of $32,400 or higher (equating to a condominium of approximately $850,000 or higher), and may own a total of two properties. PRC holders may purchase homes or condos of any ARV, also capped at two, and will continue to be liable to pay the land-holding charge for a license - currently set at 4% of the total value of the land/property purchased but rising to 6% on September 30, 2015. PRC holders cannot purchase in developments built with government assistance. Buyers of fractional units and other tourist accommodation are able to stay in those units as long as they like but will still be subject to immigration control in that they are required to seek residential certificates from the Department of Immigration. The legislation removes parish restrictions on acreage held by non-Bermudians but retains the cap island wide of 2500 acres.
Bermuda does not have an economic citizenship program. In 2013 it expanded the Incentives for Job Makers Act (IJMA) 2011, which offers a form of permanent residency to those who create jobs for Bermudians and gives them residential property purchase rights not available to other non-residents.
Sub-Sector Best Prospects
The best prospects in real estate and renting activities are in fractional ownership properties (standard hotel structures and condominium complexes), hotel development/management, and brokerage of luxury and executive properties.
Opportunities
Exempt companies may lease commercial land for up to 50 years and residential property for their employees for up to 21 years. Local companies are permitted to own property. (Exception: The Hotel Concession Act authorizes a company to lease a hotel or residential unit for a period not exceeding 131 years with an option to renew for a similar period.)
Web Resources
Ministry of the Environment & Planning: www.gov.bm
Bermuda Land Development Company: www.bldc.bm
$US thousands (total market size = (total local production + imports) – exports
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Rego Sotheby International Realty reported in January 2016 that commercial properties sold at their fastest rate in eight years in 2015, and the sale of luxury residential properties also had “a significant resurgence” over the previous year. The average price paid at the top end of the residential real estate market went up 9% to $6.2 million compared to $5.7 million in 2014, but there was a “significant drop” in the average sold price for commercial properties from 2014’s $2.4 million to $1.14 million in 2015. Condominium sales continued to struggle in 2015,especially those with an annual rental value of less than $32,000, although those rated above that figure had “shown some resilience.”
Parliament passed legislation on March 25, 2015, making it easier for non-Bermudians to purchase real property – the aim being to increase Bermuda’s dwindling population and bring sorely needed investment to the island. The legislation lowered the price of properties available for purchase to non-Bermudians and non-PRC (Permanent Residents Certificate) holders. Now, they may purchase homes with an Annual Rental Value (ARV) of $153,000 or higher (equating to a home of approximately $3 million or higher) and condominiums with a minimum ARV of $32,400 or higher (equating to a condominium of approximately $850,000 or higher), and may own a total of two properties. PRC holders may purchase homes or condos of any ARV, also capped at two, and will continue to be liable to pay the land-holding charge for a license - currently set at 4% of the total value of the land/property purchased but rising to 6% on September 30, 2015. PRC holders cannot purchase in developments built with government assistance. Buyers of fractional units and other tourist accommodation are able to stay in those units as long as they like but will still be subject to immigration control in that they are required to seek residential certificates from the Department of Immigration. The legislation removes parish restrictions on acreage held by non-Bermudians but retains the cap island wide of 2500 acres.
Bermuda does not have an economic citizenship program. In 2013 it expanded the Incentives for Job Makers Act (IJMA) 2011, which offers a form of permanent residency to those who create jobs for Bermudians and gives them residential property purchase rights not available to other non-residents.
Sub-Sector Best Prospects
The best prospects in real estate and renting activities are in fractional ownership properties (standard hotel structures and condominium complexes), hotel development/management, and brokerage of luxury and executive properties.
Opportunities
Exempt companies may lease commercial land for up to 50 years and residential property for their employees for up to 21 years. Local companies are permitted to own property. (Exception: The Hotel Concession Act authorizes a company to lease a hotel or residential unit for a period not exceeding 131 years with an option to renew for a similar period.)
Web Resources
Ministry of the Environment & Planning: www.gov.bm
Bermuda Land Development Company: www.bldc.bm
| 2014 | 2015 | 2016) | 2017 (estimated) | |
| Market Size | 452 | n/a | n/a | n/a |
| Local Production | $970,000 | n/a | n/a | n/a |
| Imports | n/a | n/a | n/a | n/a |
| Exports | n/a | n/a | n/a | n/a |
| Total Market Size | n/a | n/a | n/a | n/a |