The Bahamas has seen massive growth in rental property bookings and returns in 2021, in line with an increase in tourism, which is set to overtake pre-pandemic levels. In the latest figures, tourist arrivals by air increased by 28% in November 2021 vs. November 2019, according to preliminary data from the Ministry of Tourism (tourism-today.com).
Despite the pandemic, rental property demand remains strong, with a total of 2.9 million hosts on the popular Airbnb platform and 14,000 new joiners each month on average in 2021. In total, there are more than 7million listings from more than 220 countries and regions – including The Bahamas - and 100,000 cities, the latest data shows.
In the Bahamas vacation rental market in November 2021, total room nights sold rose from 39,917 in November 2020 to 95,440 in November 2021, figures from AirDNA show.
Deputy Prime Minister and Tourism Minister, Chester Cooper, says, "This is a very exciting time for The Bahamas. Our Tourism Industry continues to experience strong market rebound and recovery, even in the midst of the Global Covid Pandemic. The positive visitor arrival trends speak to the pent-up demand for our destination and the global confidence and interest in Brand Bahamas."
Rental listings hit new High.
Let's take a closer look at the rental property figures for the Caribbean during 2021. This chart shows the number of active listings with at least one night booked, which shows an 8% rise over the last three months. With more people buying a second home, owners benefiting from the security and exposure that Online Travel Agencies (OTAs) provide, and increasing interest in Caribbean destinations, the number of listings is now at a record level.
Airbnb tops online listing platforms.
Airbnb leads the way with 61% of listings in the Bahamas, compared to 22% on Vrbo. The data is from AirDNA, which does not include Booking.com in its figures. Almost one in every five rentals are listed on both channels.
New Providence gains market A-rating.
New Providence has previously had B-ratings, but now it has achieved the coveted A-rating for the first year, with an overall score of 87/100. This is largely thanks to increasing demand and revenue growth and an attractive seasonality allowing properties to be rented consistently throughout the year.
Occupancy and bookings up.
Occupancy rates, booking ahead, and the number of properties booked are all rising. Guests looking for a dream holiday to give them a lift following the pandemic restrictions' effects are booking earlier, causing occupancy and overall bookings to increase. Guests are also booking earlier in the hope that the pandemic will wane. Studies show that booking a holiday gives guests new hope, focus, and a positive lift.
Average Daily Rate rising fast.
Echoing the comments earlier, this chart shows a steep rise in the number of booked places over the last few months. It's also interesting to compare this with the end of 2019 - before the pandemic - and see an increase of 10.5% in the two years to December 2021. The average nightly rate hasn't seen a major decrease during the lockdowns and is experiencing a small increase, meeting the demand.
House rental revenue spikes.
It's a similar story for home rental revenue, with December 2021 outpacing two years ago by a sizeable 28%. The situation started to turn around from July 2021, when travel restrictions eased and higher vaccination rates made people more confident to travel with their families. The trend is even more noticeable in homes with four bedrooms, where there has been an increase in revenue of 124% on average in December 2021 vs. December 2019.
Total revenue up vs. pre-pandemic.
Put all that together, and you can see the spectacular rise in revenue from house rentals, up 60% in December 2021 vs. December 2019. This growth is boosted by the booming demand for luxury homes with four bedrooms or more, which accounts for 44% of the total revenue for only 20% of the listings.
Separate data on the whole of the Bahamas rental sector presented in May 2021 during the Budget also shows that the market has strengthened. The then Prime Minister, Dr. Hubert Minnis said, "On the property front, short-term rentals in the Airbnb market have already shown signs of a rebound since the careful reopening of our tourism sector in November," the Tribune reported.
"Occupancy rates have more than doubled, from 8.2 percent in November 2020 to 16.6% in March 2021. At the same time, there was a 2% increase in average daily rental rates and a 52% increase in room reservations. As a result, based on Central Bank data for the period end-March 2021, vacation home rentals and comparable hotel listings increased by 65.9% and 55.4%, respectively. This also impacted average daily room rates, which similarly increased by 10.8 and 7.5% to $497.95 and $169.36 for vacation home rentals and hotel listings, respectively."
Expect more of the same in 2022.
The data shows the property rental market globally is seeing strong demand, and, in The Bahamas, the vacation rental sector has overtaken the pre-pandemic market in many areas. This is all despite the latest Omicron wave.
More people are investing in luxury second homes with the idea of renting them out short-term and with flight options increasing, along with the urge for people to travel as the pandemic fades; this is promising for the vacation property rental market in New Providence, Bahamas.
So, what can we expect for 2022, and how can it evolve moving forward? Well, probably more of the same.
We've alluded to the pent-up demand from the pandemic, which is set to result in a further increase in vacation bookings over 2022, as guests gain more confidence in traveling. They are also more likely to be looking to book spacious, top-quality properties so that they can have space, relaxation, and a holiday to remember.
As a leading holiday destination, both New Providence and the Bahamas are set to benefit – and particularly vacation rental properties.
With a focus on shorter travel times, the Bahamas will be among the most popular overseas destinations for much-needed vacations for United States residents, who account for 82% of visitors to the islands. As it takes under an hour to fly from Florida to Nassau and under two hours by boat, The Bahamas is convenient and accessible.
If you want to list your property and need professional help, contact vacation rental sector specialist Shore Concierge Management.
Or, if you are a guest looking for excellent vacation property rentals in the Bahamas, check out our listings here.
Comments