By KEILE CAMPBELL

Tribune Staff Reporter

kcampbell@tribunemedia.net

HOUSING Minister Keith Bell admitted yesterday that foreign buyers are driving up property values, making it harder for Bahamians to afford homes.

However, he stopped short of saying whether the government would take action, noting that the country must seriously consider the impact of the Immovable Property Act’s repeal in the 1990s, which made it easier for foreigners to buy land.

Mr Bell said in affluent areas, a property valued at $100,000 might attract interest from foreign corporations looking to assemble a larger parcel of land. To secure the necessary individual properties, these buyers may be willing to pay significantly more — potentially doubling the price to $200,000.

He said once such transactions occur, property valuations in the surrounding area automatically increase, making it more difficult for the average Bahamian to afford homes. He said this trend has been particularly evident in eastern and western New Providence, as well as throughout the Family Islands. He referenced Harbour Island as an example, where home prices have surged into the millions, a phenomenon frequently showcased on real estate television programmes.

“We once had what is called the Immovable Properties Act and there are a number of persons and different schools of thought as to whether we ought to bring it back and the implications of having repealed that piece of legislation,” he said.

While Mr Bell did not announce changes or whether the Davis administration would review the matter, he said Crown Land would remain strictly reserved for Bahamians.

The first Ingraham administration repealed the Immovable Property Act and replaced it with the International Persons Landholding Act, a move credited with revitalising the real estate sector and increasing foreign investment. However, critics argue that it fueled rising property prices, speculative landholding, and shifting development priorities, making homeownership increasingly unattainable for younger Bahamians.

Mr Bell reiterated that more than 12000 homes are needed to meet housing demand in New Providence.

He highlighted a new 160-home subdivision, Adastra 2, planned near Perpal Tract in the Chippingham area, adding to government-led developments such as Renaissance at Carmichael and Pinecrest.

He said the government is trying to ease the financial burden of homeownership through concessions, particularly on building materials and tax exemptions for first-time homeowners.

He said a Rent-to-Own programme, first launched in Abaco, will now expand to New Providence. The initiative allows Bahamians who do not immediately qualify for a mortgage to pay toward homeownership over a two-year period, using rental payments as a down payment.

He expanded on the government’s review of the Rent Control Act, citing concerns over unfair rental practices.

“You know, we have Bahamians who are renting homes and there’s no bathroom facilities, there are no kitchen facilities, but yet, rent is being collected for these facilities,” he said.

Mr Bell highlighted the challenges landlords face when trying to evict non-paying tenants while still being responsible for their mortgage payments. He noted that banks are unsympathetic to landlords in these situations, and even after issuing a notice for a tenant to vacate, the eviction process can be lengthy. Landlords must go through the courts, where tenants are often granted extended periods before being required to leave the property.

He emphasised the need for a balanced approach to rental laws, acknowledging the concerns of both landlords and tenants. He suggested that policymakers examine best practices from other jurisdictions, develop appropriate legislation, and hold consultations to address these challenges. The goal, he explained, is to create a legal framework that fairly protects landlords’ rights while ensuring that vulnerable tenants are not exploited.