The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian developer has warned that a looming shortage of quality housing in western New Providence could impact the ability of projects such as Baha Mar to attract essential expatriate management.

Jason Kinsale, Aristo Development’s president, told Tribune Business that the situation was brought home to him when his company was unable to find a property for a new staff member.

The developer of projects such as Balmoral, ONE Cable Beach and Thirty|Six on Paradise Island, said western New Providence’s rental market was especially tight between the $2,500-$3,500 per month price points, a trend that was now migrating higher.

“It’s really amazing,” Mr Kinsale told Tribune Business. “We have zero vacancies at Balmoral right now. We’re seeing a lot of absorption in the $2,500-$3,500 market, and seeing the start of it staggering into the over $3,500 market.

“I had a new staff member coming in from overseas, and couldn’t find anywhere for them to live. I think we’re going to have a shortage of quality housing when Baha Mar gets into full effect, definitely in the west, and the gated communities are already a problem. It’s going to become an even bigger issue in the next couple of months.

“This is the first time that Balmoral’s at 100 per cent. We’re getting two to three calls a day on a regular basis in the $2,500 to $3,500 market, so it’s encouraging, but I also believe it’s going to be an issue. I’m happy for landlords, but the shortage has to be addressed.”

Mr Kinsale said that while the heightened demand was helping to drive rental rates and benefiting landlords, the downside was the lack of quality accommodation for expatriate executives and their families.

He explained that if they and their dependents were unhappy at home, they “may not want to stay here”, especially given that the likes of Baha Mar executives would be coming from places such as London and New York and expecting accommodation of a certain standard.

Pointing out that new housing units would take at least nine to 12 months to construct, Mr Kinsale added: “Western New Providence is really going to benefit well from everything going on.

“It’s not due to Baha Mar right now. We’ve seen a couple coming in; not in droves. It’s just a general uptick in the market. I think maybe people feel a little better about things.

“It’s the first noticeable uptick I’ve seen in the Nassau market since 2008. I’m seeing it more in the rentals, and I’m hoping it might be enough to make the Bahamian investor realise he needs to invest and satisfy the demand.”

Mr Kinsale said the increased rental demand was also penetrating upscale communities such as Ocean Club Estates and Old Fort Bay, with nothing available in the latter community at $15,000 per month or more.

He added that gated communities were especially sought-after because of Nassau’s ongoing crime problems.