Affluent Bermudians are snapping up a greater share of the luxury home market than a decade ago, buying back property once owned by foreigners as the economy booms.

That?s the analysis of industry expert Brian Madeiros, who says some residents are comfortable spending up to $6 million on a top-notch estate home.

According to a picture painted by market intelligence from Coldwell Banker Bermuda Realty, over 60 percent of homes in the $3 million-plus ?luxury? bracket were bought by Bermudians last year, who spent an average $4 million.

In the last five years, said Mr. Madeiros ? president of Coldwell Banker ? around 70 percent of sales at the top end of the market have been to local purchasers whereas ten to fifteen years ago the majority went to foreigners.

?Bermudians are doing incredibly well in the international business sector and in industries providing services to it such as the professional services companies and the construction industry,? he said. ?They are benefiting from our economy by buying these wonderful homes, which I love to see. More Bermudians are buying in Tucker?s Town, which I love to see.?

Buddy Rego, president of Rego Sotheby?s International Realty, said 11 luxury homes were sold on the Island last year, and his analysis of the market concurred with the fact that Bermudians are staking their claim to more of them.

?I think it?s a wonderful thing. It also further illustrates that we are not selling our land to foreigners. Bermudians are in many cases buying it back from non-Bermudians who are selling,? he said.

He explained that in the current market, $6 million would buy a four to five bedroom home with substantial grounds and a swimming pool ? on the waterfront in some cases.

Minister of Social Rehabilitation Dale Butler said he did not have any concerns over the multi-million dollar mortgages necessary to buy such palatial properties.

?Banks do a thorough job of looking at people?s ability to pay and if the banks are happy, I?m happy. It?s nothing to do with me. I just think it?s incredible that we live in a society where that can happen,? he said.

Giving his take on the circumstances that prompted the boom in sales to Bermudians, he said it was a combination of high share option pay-outs from when Bank of Bermuda was bought by HSBC in 2004, inherited wealth, and people playing the real-estate market judiciously to climb the property ladder. These, in addition to the buoyant international business sector and its effect on construction.

Mr. Butler conceded that all economies are subject to busts as well as booms, but said he was not concerned that Bermudians were opening themselves up to the prospect of being stung if the economy suffers a downturn as they are generally judicious in their purchases. ?People realise the risks,? he said.

However, he stressed that not all are in such a fortunate position, and Government is working hard to provide affordable homes.

Mr. Madeiros went on to point out that there was a downturn of around 50 percent in the amount of property available for sale to international buyers since a Government policy was put in place in early 2005 banned Bermudians from selling their homes to foreigners.

Previously, homes over a certain Annual Rental Value - currently $153,000 which equates to a price of around $3 million- could be sold by Bermudians to foreigners. Now, the only way a home can be sold to a foreigner is if it is over the ARV threshold and already owned by a non-Bermudian.

Mr. Madeiros said that, generally speaking, homes above the $6 million mark are bought only by international purchasers, with the average price paid by them last year being just over $10 million.

?It?s going to be another two generations until Bermudians can buy that,? he predicted.

While he did not wish to criticise the policy, he expressed concern in this month?s edition of his Luxury Home Market Update about the dwindling pool of homes available to attract super-rich buyers to the Island and its impact on revenue generated from the 22 percent of the cost they must pay for an ?alien licence fee?.

He warned that if more choice was not provided, the future of the very uppermost end of the luxury home market would remain uncertain.