The real estate market ticked upwards last year for the first time since 2008, according to Rego Sotheby’s International.

The company’s president Buddy Rego said dollar volume of deals done last year totalled $225 million — up 13 percent on the $197 million recorded last year.

Mr Rego wrote in Rego Sotheby’s May report: “Likewise, the real estate industry did more business over 2012 as the number of 2013 property transactions increased by 10 percent to 107 units. Furthermore, the average price of condominiums with an annual rental value (ARV) of $32,400 or less increased four percent and units over $32,400 ARV increased by over eight percent in 2013.”

Mr Rego said the numbers are still “a long way” from the $685 million, 592-unit turnover of 2008.

The reduction in Permanent Resident Certificate holders’ licence fees is leading the movement in property sales. This trend applies to the middle price range of condominium and stand-alone home market and range from $750,000 to $1.5 million.

He said: “Detached homes with an ARV less than $177,000 were the strongest supporters of the market, showing an increase of 15 percent in unit volume at an average price of $1.2 million. Currently, this is representative of a three-bedroom, two-bathroom stand-alone residence possibly with pool and dependant on location and condition of property,” he said.

He also added: “The positive changes made to real estate policy in 2013 have had (an) unfortunately slow effect in bearing fruit,” and explained that the luxury market (homes with an ARV greater than $177,000) saw a decline in volume in 2013 from 2012.

“This sector of the market continues to be sluggish during 2014, and not showing any recovery to date. The reduction in licence fees applicable to non-Bermudian condominium and house buyers has not yet had the desired effect of increased purchases in the luxury-end of the market.

“The average sale price in the luxury-end of stand-alone residences has held well at an average sales price of $6.6 million over the last three years.”

Mr Rego said a policy change has now been drafted which will allow exempt and local companies to purchase residential property.

“In both instances, purchases are proposed to be restricted to only those properties available to overseas purchasers. The immediate impact of this too has been minimal, with interest cautious at this time.”

Penny MacIntyre, executive vice-president at Rego Sotheby’s said the commercial market has seen activity but: “The absorption of the near one million square feet of centrally available office throughout the City of Hamilton, Pembroke and Paget continues to remain roughly unchanged despite transaction activity increasing.

“This is a result of the recent commercial activity stemming from existing tenants renewing their leases and tenants currently on-Island relocating to less or similar square footage in newly constructed spaces such as Endurance relocating into Waterloo House.”

Ms MacIntyre added that in 2012 nine commercial properties sold averaging $1.68 million per unit, compared to eight units sold in 2013 — though 2013 yielded a higher average sales price at $2.24 million.

“Notable is the only commercial property sale so far for 2014. Our recent significant sale of the 30,000 square foot city centre office building — L.P. Gutteridge on Par-la-Ville Road listed at $8.75 million — will become the new home to Bermuda Commercial Bank,” she said.