Rental property demand in the Bahamas continues to rise strongly in line with increasing tourist numbers.
In January 2022, the number of room nights sold more than doubled from a year earlier from 41,064 to 113,559, according to figures from the Central Bank of the Bahamas.
Meanwhile, stopover arrivals in the Bahamas in 2021 reached around one million, the latest figures show. The totals were close to the target, says deputy prime minister and minister of tourism, Chester Cooper.
Occupancy rates for both entire place listings rose from 29.1% to 50.8%.
In December 2021, international air travel visitor numbers were down just 5% vs December 2020.
Compare that with figures from the United Nations World Tourism Organization showing that international tourist volumes globally were 72% lower than before the pandemic, and the Bahamas is ahead of the pace.
The encouraging tourism figures are borne out by high demand being reported by the Bahamas rental property owners. This includes the Exuma market, where large luxury homes, in particular, have seen strong bookings and yields.
The Exumas consists of more than 365 islands and cays, including Great Exuma, which is 37 miles (60 km) long. The capital and largest town in the district is George Town.
Here is a breakdown of the 2021 Exumas short-term rental property market, with figures from AirdNA.
The Exumas rental listings are at a new peak
Rental property demand in the Exumas has risen 6% in the three months to the end of 2021. Apart from a slight fallback due to the COVID pandemic in 2020, there has been consistent growth over the last three years. In total, there are 688 active listings, a rise of 19.$% on pre-pandemic levels. The boom in high-end rentals is helping attract more and more vacationers, second home owners and investors.
Main online listing platforms, both popular
Vrbo and Airbnb and both widely used by homeowners and managers in the Exumas, Airbnb just has the edge at present with a 46% market share, compared with 41% for Vrbo and 13% for both. Vrbo has historically been the main OTA in the Exumas, with most high-end rentals choosing it.
Exuma rated B+
The seasonality of the Exumas market and its effect on overall demand means that it is graded a respectable B+ overall, achieving 78 out of 100. Apart from the seasonality aspect, the scores are similar to New Providence, although the Exumas has the edge in revenue growth by six points.
Rates rising
The Exumas whole-home rental prices have risen 3% in the last month. This is less than the 8% achieved by New Providence/Paradise Island. The reason for this is that there was no significant drop in the Exumas rental prices during the hardest times of the pandemic.
Average Daily Rate rose during pandemic
It's interesting to note that the rates did not fall during the pandemic, as they did in most other areas, but rose in the Exumas. However, demand fell 70% compared with before the pandemic. The average daily rate is now B$375. In December 2021 demand rose 30% versus December 2019, while the rates increased only by 2%. Some homeowners might benefit from increasing their nightly rate to increase their gross revenue. The luxury market is more in tune with pricing vs demand, with pricing meeting the demand.
Soaring occupancy demand reflects high demand
The high occupancy rate in January 2022 at 65% overall reflects the high demand for the Exumas. Compare this to the 52% average rate in New Providence in January 2022. Also, low inventory impacts the high occupancy rate of the Exumas with 25% of active listings scoring an occupancy rate at 90% and up. Large rentals with four or more bedrooms have a higher average occupancy rate at around 80%. The same is true of New Providence.
Larger properties driving revenue rise
There were two peaks in the Exumas market revenue in July and December 2021 (71% December 2021 vs December 2019) and overall growth of around 50% on 2019. Rentals with four or more bedrooms represented approximately 70% of the revenue for only a third of the active listings. Once again, the luxury market is driving the Exumas market up.
2022 is off to a positive start
In our last market update, we predicted more good news for the rental property sector in the Bahamas, and we were right.
The new year has seen the vacation rental sector get off to a positive start in both the Bahamas and the Exumas.
This is particularly true of larger prime properties in the Exumas that benefit from occupancy rates of over 80% and the lion's share of market revenue while making up just a third of listings.
One of the most interesting points is that average daily rates in the Exumas rental sector did not fall during the pandemic, even though demand declined.
In the light of rising demand, it is worth rental homeowners considering increasing their nightly rate to boost gross revenue, says Lou Jupp, founder-director of Bahamas vacation rental management specialist, Shore Concierge.
Shore Concierge has helped homeowners increase their revenue and profitability, offering a complete management service, and marketing clients' properties around the world.
For details, email contact@shore-concierge.com
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