A high-end Abaco rental destination, known for generating annual six-figure income and listed at $5.4m, is expected to generate strong interest when auction bidding opens.

Describing the demand for sophisticated short-term vacation rentals as “unprecedented”, a Sotheby’s Concierge Auctions executive is forecasting a high level of buyer interest when Coconut Island Estate and a similar Jamaican property are put up for auction this month. 

“It is extraordinary that two distinct properties, each designed with spaciousness, attention to architectural style and detail, as well as amenities that cater to a highly sophisticated luxury market, come to market at the same time,” said Danny Prell, vice-president of business development at the real estate auction house.

Coconut Island Estate consists of four separate houses with a total of ten bedrooms and nearly 9,000 square feet of space. The residence features a beachside bar and grill, heated pool, and opportunities for guests to enjoy swimming and snorkelling without leaving the property. Nearby charter options offer boating, fishing, diving or excursions to charming neighbouring islands and settlements.

“The short-term vacation rental industry as we know it today was unheard of just a generation ago,” said Mr Prell. “Globally, it is generating upwards of $87bn annually and there is no sign of a slowdown. What is less well-known is the demand for luxury properties where those of a certain economic standing can enjoy all the family, friends and colleagues they want to have around them in a non-commercial environment.

“These properties, Coconut Island Estate in the Abacos of The Bahamas and Kenyan Sunset in Montego Bay, are quintessential opportunities for the client who wants everything at his or her fingertips in a location that is easy to access and hard to leave.”

Sotheby’s Concierge Auctions is working in collaboration with local Sotheby’s affiliates in both locations. Coconut Island Estate is listed by Mitzi Pearce of Bahamas Sotheby’s International Realty for $5.4m, with bidding expected to start between $1m and $1.75m.

“Finding one revenue generating property at this level in excellent condition is rare. Finding two in the same region at the same time is extraordinary,” he said. “It should be exciting and one of the most active auctions we have had in recent history because both lend themselves to the opportunity for owners to enjoy when they want and earn revenue when they wish.”