Bermuda’s struggling commercial property sector is showing green shoots of recovery, experts said yesterday.

Brian Madeiros, president of real estate firm Coldwell Banker Bermuda Realty, said: “Our analysis indicates that by year end we will have placed 30,000 square feet of either new city tenants or tenants expanding their businesses.

“Although this only reflects 24 percent our historic absorption rate five years ago, these figures reflect four months of trading so we appear to be heading in the right direction.”

The firm reported in May that the commercial rental side of the business was up 22 percent compared to the previous year.

But Mr Madeiros said: “We certainly have a long way to go.”

He added, however, that promotion of the Island as a business centre by organisations like the Bermuda International Business Association (BIBA), Government and the Bermuda Business Development Agency (BDA) and private sector groups should help the recovery to continue.

Mr Madeiros said: “We will hopefully be able to report this time next year that this recent positive trend has in fact been sustainable.”

And he added: “In addition to an increase in commercial leasing, we have likewise seen significantly more showings and interest in commercial sales.”

Mr Madeiros was backed by Buddy Rego, head of Rego Sotheby International Realty.

Mr Rego said: “We are busy — we just hired two new trainee commercial associates — we have work on, no question about that.”

But Mr Rego cautioned that — despite an increase in activity in the sector — that had yet to be reflected in values and pricing, with clients still seeking good deals.

He said: “Like the residential market, we seem to have bounced up from the bottom — and, while prices are not going sky-high, activity has definitely increased.”

The Royal Gazette reported last week that a joint report by Deutsche Asset and Wealth Management, international real estate firm Savills and luxury property developer Candy & Candy placed Bermuda in top spot among 20 islands for investment in real estate by the super-rich.

Rego Sotheby’s Penny MacIntyre said then: “We’ve had business owners and decision makers from around the world, particularly New York, the east coast and London, inquiring about property and moving their business here.”

Ms MacIntyre said Bermuda’s closeness to the US East Coast and mid-Atlantic position made it attractive to the wealthy from both the US and UK.

Bermuda beat Caribbean islands like the British Virgin Islands, Antigua, as well as the Bahamas and the Channel Islands off the UK to claim number one position.

The report added that buyers were prepared to pay a premium for a piece of the rock — with the price of a typical four-bedroom home around $4 million, more than the double the cost of a similar property in the Bahamas.