The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Freeport realtors yesterday revealed “a 360 degree turn” in buyer activity in recent weeks due to the prospect of an economic revival that is “as real as it’s been for 20 years”.

James Sarles, principal at Coldwell Banker James Sarles Realty, told Tribune Business his realtors are “going back and forth wheeling and dealing” due to renewed interest in the city’s residential and commercial offerings as a result of imminent foreign direct investment (FDI) projects.

He said Carnival’s planned $100m cruise port, its largest-ever investment in such a destination, coupled with Royal Caribbean’s involvement in a bid to purchase Freeport’s largest resort property, the Grand Lucayan, had “created new hope and confidence” that was driving the sudden uptick in real estate inquiries.

Donna Laing-Jones, a broker at Keys Bahamas Realty, told this newspaper that “people are calling from everywhere” to express interest in Freeport real estate. She said her simple message was that “if you have an interest in a property you’d better secure it now”.

“What we have seen recently is not surprising, but a lot of our buyers are coming out of Nassau looking for opportunities in Freeport, and we have a lot of foreign investors, Canadian and American, looking for opportunities here also,” Ms Laing-Jones said.

“We have persons looking for beachfront property, looking to see what openings are here. It’s both residential and commercial. With the expected influx associated with what Carnival is bringing here, we’re going to be short of rental properties.

“Carnival made their announcement that evening, and I was out the next morning with a Nassauvian looking at properties in Barbary Beach. We have double and triple offers on lots here at Barbary Beach, and those prices over the bridge are going to sky rocket,” she continued.

“People are looking for open space where they can build a mall, shopping centre and office spaces.” While the spike in inquiries has still to translate into actual sales, Ms Laing-Jones said business and investor confidence in Freeport had reached its highest level in two decades.

“Oh my God, it’s like a 360 degree turn,” she told Tribune Business. “It’s crazy. People are calling from everywhere. I have old clients coming back, and when I send them the announcement [of the Carnival port and other projects] I say you’d better move quickly. If there’s a property you have an interest in, you’d better secure it now.

“I had someone come into my office today and say: ‘You have your hands on the trigger. Is this [the ITM/Royal Caribbean project for the Grand Lucayan] going to happen?’ When you turn around, everyone is really excited. When you look at the attorneys, talk to Terry Gape, when you hear him talking how something real is coming for this island, that is about as real as it’s been for 20 years. Easily.”

Freeport’s economy, and society, has been mired in depression since 2004 when the Royal Oasis closed in the aftermath of Hurricane Frances, taking with it some 1,300 jobs that have never returned. The closure led to the demise of the International Bazaar, while another storm - Hurricane Matthew in 2016 - effectively polished off the rest of the city’s mega resort product at the Grand Lucayan.

While the industrial sector has kept Freeport’s economy from sinking, few to no new businesses and major investments have been attracted to the city for the past two decades, which also witnessed infighting among the Grand Bahama Port Authority’s (GBPA) two shareholding families from 2006 to 2010.

Ms Laing-Jones, meanwhile, said she was urging property owners in areas such as Port Lucaya, Barbary Beach and near the proposed Carnival cruise port to hold on to them if they can afford to do so as buyer interest was likely to drive prices up.

With prices having stabilised, she added that Carnival’s plans would provide opportunities for small businesses and entrepreneurs to develop businesses in the port area, especially since “they don’t want any franchises”.

“When you talk to business persons on the island, and even vendors in Port Lucaya, when they hear about it there’s just a boost of confidence,” she said of the cruise line’s plans.

Mr Sarles expressed similar sentiments, telling Tribune Business of the various project announcements: “It’s created some new hope and confidence in the marketplace.

“There’s a new story of hope owing to the Carnival port, Royal Caribbean and ITM proposing to buy the Grand Lucayan, the medical school... There’s going to be jobs, prosperity and a trickle down effect.

“People have been on the edge, wondering whether it’s a good time to buy. They’re quite active now. There’s real confidence. Developers have been calling me over beachfront property opportunities. It’s across the board instead of: Is this place going to make it?” he continued.

“This has always been a diamond in the rough. We’ve always had the infrastructure, the beaches, the waterways and great proximity. I wouldn’t say it’s boom time, but from no activity to lots of activity creates momentum. Everybody in town, if you ask them: ‘How are things?’ they say it seems like they’re getting better.

“That’s contagious. Foreigners coming here hear that, and that creates positivity. It’s a good mental frame of reference. Everybody’s feeling positive.”

Mr Sarles is doing his bit to drive confidence, telling clients in his e-mails: “There is exciting news in Freeport with Carnival Cruise Lines building their largest cruise port in the Caribbean, ITM/Royal Caribbean Cruise Lines potentially purchasing the Grand Lucayan, and Western Atlantic Medical School setting up operation on the island.

“Freeport’s economy won’t look back if everything moves ahead. The tide is changing and all eyes are on Grand Bahama as the island could finally reach its potential.”

Mr Sarles agreed that the spike in interest has yet to translate into sales closings, but said the real estate market had sufficient momentum to translate into such an outcome.

“I’m definitely feeling more positive than I have for the last few years,” he told Tribune Business yesterday. “As realtors we’re always active. There’s a lot of momentum and all my realtors are busy going back and forth, wheeling and dealing with offers and counter-offers. The phones are ringing; people are interested.

“With a little activity and hope in the air, and momentum, Grand Bahama has a lot to offer and now’s our opportunity to make it happen. Spruce up and improve properties.”

The Government unveiled its intent to focus on Grand Bahama’s economic revival from the moment it took office, unveiling initiatives to transform it into a “technology hub” and other plans in a bid to shift its momentum.

While there are some positive signs, it now has to follow through and execute to ensure the Grand Lucayan sale and other projects come to fruition if sustainable, long-lasting recovery is to be realised.