Bermuda's luxury homes market is still buoyant despite the current economic crisis, with total sales up at $63 million in 2008 compared to an annual average of $40 million over the last 10 to 15 years, according to one of the Island's top real estate agents.

The latest statistics released by Coldwell Banker Bermuda Realty reveal that more than $30 million worth of luxury home sales were closed during the last six months of 2008 as business picked up in the latter half of the year. But the market share of Bermudians buying high-end property declined to 50 percent for the past year compared to an upward trend since the late 1990s, culminating in an average 60 to 75 percent share since the early 2000s, said Brian Madeiros, president of Coldwell Banker Bermuda Realty.

Mr. Madeiros added he had noticed that executive rental rates had softened, but he had not gathered enough market intelligence at the moment to quantify what the reductions had been. "We are in the process of compiling some of this information so that we will have hard data on it," he said. "But most certainly we have noticed that executive rents have, in fact, softened."

Mr. Madeiros said approximately 10 luxury homes had been sold Island-wide over the course of last year, ranging from $4 million to $13 million, based on market intelligence.

"The total dollar value of luxury homes was just up over this year, which is good," he said.

"Meanwhile, the percentage of Bermudian buyers has dropped to 50 percent — is this just a blip? — maybe, but it is too early to determine whether it is going to be a trend.

"In terms of completions during the first quarter of 2009, there are approximately three sales, with 66 percent or two-thirds being non-Bermudian buyers, which is great because it shows that non-Bermudians are still looking at Bermuda as a domicile of choice for luxury housing."

The figures from Coldwell Banker's Luxury Home Market Update for January 2009, which defines luxury homes as estate homes with annual rental values exceeding $153,000, showed that, on the supply side, approximately 12 free-standing homes were available to the international market place with an average list price of around $11 million, 50 percent of which are situated in sought after waterfront locations.

"Although overall demand for homes at the very upper end of the residential market has softened we have several very motivated and qualified buyers looking to domicile in Bermuda; some of whom are actively carrying out their due diligence with respect to short listing their preferred properties," said Mr. Madeiros in his report.

"Our market intelligence suggests approximately $10 million of luxury property is scheduled to close during the first quarter of 2009.

"Making predictions for 2009 at this juncture would be entirely unrealistic given the current evolving state of the global economic markets, however we are optimistic that Bermuda will remain an island of choice for international buyers."