Explaining Nassau Real Estate Prices

New Providence (Nassau) home prices have climbed steadily over the years and, while they may have levelled in recent times, they may still seem high.

There's a reason for that.

The simple law of supply and demand determines the final sale price. If there are fewer homes for sale in your area, then buyers must compete for those listings, making it a seller's market.

Let's take a closer look.

Seventy percent of the Bahamas' total population resides in New Providence where the capital of Nassau sits. Yet this tiny island only comprises approximately 1.5 percent of the country's total land mass.

Between 1990 and 2010, the New Providence population grew from 172,196 to 248,948 with residential communities spreading throughout the length and breadth of New Providence.

Land is becoming scarcer; hence Nassau real estate prices have not plunged as we've seen in some of the U.S. States where there are a surplus of homes and fewer buyers. The same holds true for high-end Paradise Island, which is linked to Nassau by bridge.

It also costs a lot more to build a home or develop property in Nassau because of hefty increases in building materials, labour and land costs

Having said that, whether it's a buyer's or seller's market, the simple fact is that your home is worth only what a buyer will pay for it.

At the end of the day, regardless of real estate market conditions, if your Nassau home is to get attention – especially in challenging times - you've got to price aggressively against your competition.

If you choose not to comply with the current market value, then you won't be a seller, you'll just be an owner with a stale For Sale sign in the yard.