Last year was a slow one for high-end real estate in Bermuda but 2004 should be better, according to a report released yesterday.

The report, issued by Coldwell Banker, said the value of residential sales to non-Bermudians was about 50 percent below normal during the year.

Only $20 million in residential property was sold to non-Bermudians compared to about $40 million ? representing 10 to 14 houses ? in an average year.

Foreigners are restricted to buying houses with a government-assigned annual rental value of $126,000 or more.

The years 1998 and 1999 ? boom years for the US stock markets ? represented an anomaly for Bermuda real estate, when sales to overseas purchasers spiked. In 1998, more than $80 million in residential real estate was sold to foreigners. No properties have sold for more than $10 million since 1999.

But the report said Coldwell Banker's estate agents for high-end properties had noticed an increase in offers and sales for houses priced over $4 million during the last three months. They also expect two significant sales during the first quarter of this year and the market to firm during 2004.

"We are cautiously optimistic that as the global markets improve, so too should the number of sales transactions of exceptional properties which are priced at the upper end of our residential market," realtor Brian Madeiros wrote in the report.