2026 Bahamas Luxury Real Estate Market Report | Glenn Ferguson | Nassau & Paradise Island
Updated February 2026

2026 Bahamas Luxury Real Estate Market Report

Record-breaking tourism, tightening luxury inventory, and sustained foreign buyer demand define the Bahamas property market entering 2026. The Bahamas welcomed 12.5 million visitors in 2025 — the highest ever — generating $7 billion in tourism revenue. Luxury property values sit approximately 15% above 2021 levels with the premium segment continuing to outperform.

Glenn Ferguson
Glenn Ferguson — 24+ Years in Bahamas Luxury Real EstateLicensed Agent (BREA #1247) & Residency Consultant
12.5M2025 Visitors (Record)
$7BTourism Revenue
+15%Luxury Prices vs. 2021
-20%Inventory vs. Prior Year
Discuss Opportunities with Glenn Island-by-Island Analysis

Market Snapshot

What Is the Bahamas Real Estate Market Doing in 2026?

The Bahamas luxury real estate market enters 2026 in strong position. Nassau median home prices sit around $495,000, with an average sale price near $590,000. The luxury segment — properties above $3 million — has roughly doubled in value since 2020. Waterfront inventory in prime communities remains exceptionally limited, approximately 20% below recent levels, creating favorable conditions for sellers while presenting rare opportunities for buyers who act early. Prime residential price growth registered 5.1% in 2024, above the global average.
~$495KNassau Median Price
~$590KNassau Avg. Sale Price
+5.1%Prime Price Growth (2024)Above 3.6% global avg.
~2xLuxury ($3M+) Since 2020

The Bahamas ranked 31st globally in the Knight Frank Prime International Residential Index for 2025, with prime residential growth exceeding both the global average and the "sun destinations" average. This reflects sustained international demand — approximately half of wealthy expats in The Bahamas are now permanent residents, up from about 20% before the pandemic.

Inventory compression is the defining theme entering 2026. With new construction limited and foreign buyer demand sustained, well-located luxury properties are selling faster and at stronger prices than any point in the past decade. Glenn has watched this cycle develop firsthand and advises clients on timing, pricing strategy, and the communities where value still exists.

For sellers: If you're considering listing, contact Glenn for a market valuation. For buyers, reach out now — the best inventory moves quickly.

The Tourism Engine

Why Record Tourism Matters for Property Values

The Bahamas shattered its tourism record in 2025 with 12.5 million total visitors — an 11.4% increase year-over-year and over 70% above pre-pandemic 2019 levels. Tourism revenue hit $7 billion for the first time in history. This matters for property investors because tourism drives rental demand, supports local infrastructure, and attracts new permanent residents who become buyers.
12.5MTotal Visitors (2025)+11.4% YoY
$7BTourism RevenueFirst time ever
1.8MStopover Visitors20x higher spend than cruise
6.1MNassau Cruise Port+9.5% YoY

Stopover visitors — those staying in hotels and rental properties — are particularly important for property investors. Though smaller in number than cruise passengers, stopover visitors spend approximately 20 times more per person, making them the primary economic driver for vacation rental properties. Two-thirds of stopover visitors stay in Nassau and Paradise Island, while nearly 30% now travel to the Out Islands.

The Bahamas' tourism infrastructure continues expanding. The $300 million Nassau Cruise Port revitalization completed in 2023 now handles 6.1 million cruise passengers annually. New private cruise destinations — Royal Caribbean's Perfect Day at CocoCay, Norwegian's Great Stirrup Cay — are drawing visitors deeper into the archipelago and creating awareness that converts to real estate interest.

For rental property investors, this tourism trajectory is strong confirmation that demand is structural, not cyclical. Glenn factors these tourism patterns into every investment pro-forma he builds.

Buyer Demographics

Who Is Buying Bahamas Real Estate in 2026?

American buyers continue to dominate the foreign property market, followed by investors from Canada and the European Union. Approximately half of wealthy expats in The Bahamas are now permanent residents — up from about 20% before the pandemic. This surge in permanent relocation, combined with second-home demand, is reshaping the market.
~70%
US, Canada & Bahamas

Primary source markets. American buyers lead from the East Coast — New York, South Florida, and Boston. Canadian buyers surpassed pre-pandemic levels in 2025 via expanded Ontario and Quebec routes.

~22%
Europe

Primarily UK, Switzerland, Germany, and France. European buyers often target the ultra-luxury segment ($5M+), particularly in Lyford Cay and Harbour Island.

~8%
South America & Other

Growing segment, especially from Brazil and Argentina. Tax-motivated buyers seeking permanent residency through the EPR program.

The most significant shift Glenn has observed over 24 years: the buyer profile has moved from "vacation home" to "primary base." Remote work, tax optimization, and lifestyle quality are driving longer stays and eventual permanent relocation. This is creating deeper, more sustained demand than the seasonal patterns of the past.

Glenn works with buyers from all source markets and understands the specific concerns of each — from US tax planning to EU wealth structuring to Canadian snowbird logistics. Discuss your situation with Glenn.

Ocean Club Four Seasons Residences Paradise Island

Island-by-Island Analysis

Which Bahamas Island Is the Best Investment in 2026?

Nassau and Paradise Island remain the safest long-term investment with the deepest buyer pool. Exuma and Harbour Island deliver the highest rental yields and fastest appreciation among the Family Islands. Abaco is the recovery story — air arrivals now exceed pre-pandemic levels, with prices rising from their post-Dorian lows. Grand Bahama crossed 1 million visitors for the first time in 22 years, signaling renewed momentum. Glenn works across all islands and matches each client to the right market.
Nassau luxury homes Strong

Nassau & New Providence

The Bahamas' primary hub. Lyford Cay, Old Fort Bay, Albany, Cable Beach/Baha Mar, and Palm Cay anchor the luxury market. Median price ~$495K; luxury segment $2M-$30M+.

~$495K median-20% inventory
View Nassau Listings
Paradise Island real estate Premium

Paradise Island

Leads the luxury segment. Ocean Club Estates, Four Seasons Private Residences (completion ~2027), and One Ocean. Two-bed condos start ~$700K-$800K; estates to $40M+.

$700K+ entry$3M-$40M+ estates
View Paradise Island
Exuma real estate High Growth

Exuma

The Bahamas' hottest Family Island market. Private islands, luxury villas, and the strongest short-term rental returns in the archipelago. Average nightly rate ~$750.

$750 avg. nightly70-75% peak occ.
View Exuma Properties
Eleuthera Bahamas property +30% Tourism

Eleuthera & Harbour Island

Pink sand beaches, boutique luxury vibe, and nearly 30% tourism growth in 2025. Attracts privacy-seeking buyers and strong rental demand from high-end travelers.

$450-$800 nightly+30% visitors
View Eleuthera Properties
Abaco Bahamas real estate Recovery Play

Abaco

The Bahamas' strongest recovery story. 2025 air arrivals exceeded pre-Dorian levels. Montage Cay and Baker's Bay Golf & Ocean Club driving renewed interest. Prices rising from post-hurricane lows.

520K visitors (record)+12% air arrivals
View Abaco Properties
Grand Bahama real estate Emerging

Grand Bahama

Crossed 1 million visitors in 2025 for the first time in 22 years. More accessible pricing than Nassau with waterfront and canal-front options. Air arrivals +20% YoY.

1.1M visitors+20% air growth
View Grand Bahama

Nassau's Luxury Communities

How Do the Top Communities Compare?

Nassau's western corridor — Lyford Cay, Old Fort Bay, and Albany — remains the crown jewel of Bahamas luxury real estate. Paradise Island leads the branded-residence segment. Cable Beach and Baha Mar offer the strongest rental returns with newer construction. Waterfront inventory across all communities remains exceptionally limited, creating favorable conditions for sellers.
CommunityPrice RangeCharacterBest For
Ocean Club Estates$3M - $40M+Ultra-luxury, Four Seasons servicesTrophy assets, branded living
Lyford Cay$2M - $30M+Historic, most exclusive private clubPrivacy, generational wealth
Albany$2M - $25M+Resort community, mega-yacht marinaLifestyle investors, UHNW families
Old Fort Bay$2M - $20M+Colonial charm, waterfront clubLong-term appreciation, community
Cable Beach / Baha Mar$1M - $15M+Branded residences, beachfrontRental income, newer construction
Palm Cay$600K - $3M+Modern marina villageEntry-level luxury, families

Glenn has closed transactions in every one of these communities and knows the micro-markets within each — which streets appreciate fastest, which HOAs are best-managed, and which properties are likely to surface before they hit the MLS. Contact Glenn for community-specific insight or a curated property shortlist.

For residency-motivated buyers, all communities listed above contain properties qualifying for Economic Permanent Residency ($1M+ threshold). Read the complete EPR guide or the qualifying real estate guide.

The Bahamas Tax Advantage

How Much Can You Save by Moving to The Bahamas?

The Bahamas imposes zero income tax, zero capital gains tax, zero inheritance tax, and zero wealth tax. For high-net-worth individuals relocating from high-tax jurisdictions, the savings can be substantial — often hundreds of thousands to millions of dollars annually. This is the single biggest driver of EPR applications.
Tax TypeBahamasUnited StatesUnited KingdomCanada
Income Tax0%Up to 37%Up to 45%Up to 53%
Capital Gains Tax0%Up to 20%Up to 24%Up to 26.8%
Inheritance / Estate Tax0%Up to 40%Up to 40%Deemed disposition
Wealth / Net Worth Tax0%None (varies by state)NoneNone
Property Tax (Owner-Occ.)0.75% - 1%Varies by stateCouncil taxVaries by province

The Bahamian dollar is pegged 1:1 to the US dollar, eliminating currency risk for American buyers. Combined with the tax structure, this creates a uniquely favorable environment for wealth preservation.

Glenn helps clients understand the full cost picture — including property taxes, VAT on services, import duties, and insurance — so there are no surprises. Use the Bahamas Property Tax Calculator or read the complete property tax guide.

Glenn Ferguson — Licensed Bahamas Real Estate Agent and Residency Consultant
BREA Licensed Agent #1247
Bahamas Residency Consultant
WPIC-Certified Wedding Planner
Licensed Marriage Officer
24+ Years On-the-Ground Experience

Your Bahamas Market Expert

Why Glenn Ferguson Is the Agent International Buyers Trust

Glenn doesn't just sell property — he handles the entire relocation lifecycle. As both a licensed real estate agent and an authorized residency consultant, Glenn is the only professional most clients need when buying Bahamas property and applying for permanent residency. No handoffs, no coordination between separate firms.

Most international buyers face a frustrating process: one firm for property search, another for legal review, a third for immigration filings, and a fourth for property management. Information gets lost in the handoffs. Timelines slip. Costs multiply.

Glenn consolidates this into a single relationship. He identifies qualifying properties, negotiates the purchase, coordinates with Bahamian attorneys, prepares and files the EPR application, and connects clients with property management for rental income. One point of contact from first inquiry to residency approval.

After 24 years in the Bahamas luxury market, Glenn has deep relationships across every major community — Lyford Cay, Ocean Club Estates, Albany, Old Fort Bay, Cable Beach, Palm Cay, Exuma, Eleuthera, and Abaco. He often knows about listings before they hit the MLS and can provide comparable sales data that's simply unavailable through online searches.

For destination wedding clients considering property purchases — Glenn is also a WPIC-certified wedding planner and licensed Marriage Officer with the same depth of island knowledge. Learn more at BahamasPackageWedding.com.

2026-2030 Forecast

What Is Glenn's Outlook for the Next Five Years?

Continued growth with moderation. The luxury segment will likely remain the star performer, supported by global wealth trends, structural tourism demand, and The Bahamas' enduring tax advantages. By 2030, expect a more diversified market with growing activity on the Family Islands. Sustainability and hurricane-resilient construction will become increasingly prominent. GDP is projected to reach ~$17.6 billion by 2029.

After 24 years in this market, Glenn sees five structural forces shaping the next five years:

1. Family Island diversification. As Nassau and Paradise Island become more built out, both buyers and developers are looking to Exuma, Eleuthera, Abaco, Andros, and Long Island. Competition for property on the most desirable Family Islands is already driving prices higher.

2. Remote work permanence. The pandemic-era shift to remote work has become permanent for many UHNW professionals. The Bahamas' Eastern time zone, fiber-optic infrastructure (1GB+ speeds), and proximity to US airports make it an ideal work-from-paradise base.

3. Branded residences. The Four Seasons Private Residences on Paradise Island (completion ~2027) and developments like Montage Cay on Abaco are attracting a new wave of international buyers who want luxury hotel management with private ownership.

4. Resilient construction standards. Post-Hurricane Dorian building codes and hurricane-hardened construction are becoming standard in new luxury developments, reducing the risk profile that historically deterred some buyers.

5. EPR demand. The $1M residency threshold, established January 2025, continues to attract tax-motivated investors. With zero income tax, zero capital gains tax, and zero inheritance tax, The Bahamas' proposition only strengthens as other jurisdictions raise taxes on high earners.

Read more about the residency by investment program or buying real estate in The Bahamas as a foreign buyer.

Luxury Bahamas waterfront property

Frequently Asked Questions

Bahamas Real Estate Market FAQ

Is now a good time to buy real estate in The Bahamas?

The fundamentals are strong: record tourism (12.5M visitors), $7B in revenue, limited luxury inventory, and sustained foreign buyer demand. Luxury values are approximately 15% above 2021 and continuing to rise, while inventory is roughly 20% below prior year levels. For residency-motivated buyers, the $1M EPR threshold is established and the 10-year hold requirement makes early entry advantageous. Glenn helps clients assess specific opportunities relative to their timeline and goals. Ask Glenn for a personalized assessment.

What are luxury real estate prices in The Bahamas in 2026?

Nassau median home prices sit around $495,000 with an average sale price near $590,000. On Paradise Island, two-bedroom condos start around $700K-$800K with larger units exceeding $1-2 million. In exclusive communities like Ocean Club Estates, Lyford Cay, and Albany, prices range from $2M to $40M+. The overall average Bahamas home price is approximately $3.5 million, skewed by the luxury segment. Browse current listings.

Which island has the best rental returns?

Exuma commands the highest average nightly rates at approximately $750, followed by Harbour Island ($450-$800), Bimini ($500+), and Paradise Island ($400-$1,200 depending on property). Nassau leads in total listing volume and year-round consistency. Peak occupancy (December-April) runs 65-75% across most markets. Glenn provides property-specific pro-forma analyses that account for seasonality, management fees, and operating costs. See rental data by market.

Can foreign buyers purchase property in The Bahamas?

Yes. Foreign nationals can purchase residential property (under 2 acres) with the same freehold ownership rights as Bahamian citizens. Larger parcels and commercial properties require government approval through the Bahamas Investment Authority. The Bahamian dollar is pegged 1:1 to the US dollar, eliminating currency risk for American buyers. Glenn handles the full purchase process for international clients, including Bahamian attorney coordination. Read the foreign buyer's guide.

How does buying property lead to Bahamas residency?

Investing $1,000,000 or more in Bahamas residential real estate qualifies you for Economic Permanent Residency (EPR), granting lifetime residency with zero income tax, zero capital gains tax, and zero inheritance tax. The investment must be held for 10 years. Glenn is both a licensed real estate agent and a residency consultant — he manages the property purchase and EPR application under one roof. Read the complete residency guide.

Ready to Invest in Bahamas Real Estate?

Glenn Ferguson has 24+ years of island-by-island market knowledge. Whether you're buying for lifestyle, rental income, or residency, he'll match you to the right opportunity.

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1-242-395-8495