The Bahamas # 3 - World’s Luxury Markets

The Knight & Frank Wealth Report 2024, indicates The Bahamas is ranked # 3 according to the Prime International Residential Index, which tracks the performance of 100 luxury locations globally. Of the tracked markets, 80 recorded flat or positive annual price growth with the overall index posting a solid 3.1% gain. Sun locations like The Bahamas continued to outperform, up 4.7% ahead of ski resorts and cities.

The outlook for interest rates, the strong performance of the US economy and uptick in equity markets helped wealth creation and the rise of private capital globally in 2023. The choices of Ultra High Net Worth Individuals (UHNWIs), those with assets of $30 m or more, will have a growing influence on luxury real estate investments. At the end of the year, there were 4.2% more UHNWIs than a year earlier, taking the global total to 626,619. This number should rise by over 28% during the next 5 years.

With funds totaling US$483 billion waiting to be invested, 2024 will be big for luxury property investments and developers who can deliver properties that suit the shifting tastes of buyers. Marketing Bahamian Luxury Developments will mean targeting the wealthy where they live and work – primarily the Middle East and Asia, with Turkey having the greatest growth in UHNWIs in 2023, at 10%.

Developments looking to attract wealthy investors will need to adapt their strategies to ensure they are relevant to a new, broader market. With more than a fifth of global UHNWIs planning a purchase in 2024, the big theme impacting global markets is Politics, evidenced by the attraction of Florida and the Caribbean for “Blue State” residents. There is also a 38% rise in female UHNWIs over the past decade, developers should be cognizant of the amenities that attract this market, like Wellness Spas and certain sports facilities.

The speed and flexibility of the internet has rapidly changed the distribution of wealth, creating new opportunities for success and younger millionaires. Wealthy individuals are better connected and more willing to move and work away from home than ever before. Because of rising prices and decrease in the value of the US dollar, real estate investments are more attractive and a good hedge against inflation. Those that fear the volatility of crypto currencies might also turn to real estate instead of USD based traditional securities.

In the residential market, the Covid-19 pandemic disrupted the delivery of new homes, especially in the luxury segment. Now, there's a window of opportunity for developers to disrupt the market by focusing on sustainable and eco-friendly building practices, which align with the growing demand for "green" investments.

These HNW individuals are also more willing to embrace Web3 and emerging technology, AI, robotics, blockchain, the metaverse and use of cryptocurrencies. The property technology sector, PropTech, was worth around USD 26.8 billion in 2022 and predicted to grow to around USD 120 billion by 2032.?The AI investment wave that carried the rebound in equities markets last year, is it about to do the same for real estate.

By aligning marketing and development strategies with these trends, Developers and owners of Luxury Real Estate can capitalize on the growing demand for luxury properties among wealthy investors, while staying ahead of the curve in an increasingly dynamic market landscape. This will mean embracing these new technologies which encompass all building and design processes including marketing, to attract these sectors of the market.

The integration of property technology (PropTech), tokenization and transactions in crypto currencies including AI-driven solutions, will be essential for enhancing various aspects of the development process, from marketing to location targeting.

We sell Developments & Luxury!

Rosalyn Brown, Crypto-Certified Agent, Relocation & Digital Specialist

[email protected] Cell: (242) 376 1249 / US#: (954) 406 4523