More Bermudians than ever are enjoying the luxury lifestyle according to the latest figures released by Coldwell Banker Bermuda Realty.

They accounted for 60 percent of the approximate $35 million in luxury homes sales, with the average price of a luxury home acquired by a Bermudian being just under $3.5m for 2006. Luxury homes are defined as estate homes with annual rental values exceeding $153,000.

Meanwhile a further $20m worth of luxury homes are currently under contract and should close by year end making 2007 another very strong year for this sector of the market.

Coldwell Banker predict the total value of luxury homes sold by year end should be around $60m, mirroring the results for 2006, which ended up being the third best year since 1996.

President Brian Madeiros said the reason for such a high take up of Bermudians was down to an increase in their earning potential and not a dwindling number of non-Bermudians.

"Sixty percent of the homes for six months of 2007 were acquired by Bermudians and quite honestly the main reason we are seeing this market effectively dominated by Bermudian buyers is the strength of our economy here in Bermuda and that Bermudians across the board are doing very well," he said.

"It is just what we estimated - in 2005, 75 percent of the luxury homes were bought by Bermudians and in the 2006, 60 percent were bought by Bermudians, so if you look at just the last couple of years the market has been very well served by the Bermudian home buyers."

Mr. Madeiros said that traditionally a large number of non-Bermudians had been buying in the luxury home market, but now that number has become outstripped by that of the local population.

"I think that when we first started looking and analysing the luxury home market, say 10 years ago, the overseas buyers were effectively driving the market in Bermuda and because of the value of our economic engine in Bermuda, Bermudians have dominated the market," he said.

But that is not to say non-Bermudians are not still in the market for luxury properties.

"Interest over the last few years has remained relatively buoyant," said Mr. Madeiros.

"It is not that there isn't interest from non-Bermudians and we are not seeing a significant decrease, but an increase from Bermudians, which can only be a good thing."

Looking ahead to the future, Mr. Madeiros sees that trend continuing.

"I think our prediction for 2007, without the use of a crystal ball, will see Bermudians continue to maintain a market share of 60 percent this year, looking at some of the contracts that are out there at the moment," he said.

In terms of the luxury housing market as a whole, he reckons the high sales trend will continue in the same fashion it has been in first half of 2007 for the rest of the year.

"I think if things continue in the direction that they are moving in right now we predict that the market should produce about $60m to $70m in luxury home sales by the end of 2007," said Mr. Madeiros.

Other findings in the report from the Survey from Wine Trend and Unique Homes Luxury Home Market Study for April 2007 show luxury home buyers, location, lifestyle and upscale amenities continue to be important when considering buying a luxury home.

In addition professional kitchens, media rooms, wine cellars and gyms top the list of amenities in the US luxury home market.

The newsletter also reveals that Bermuda's waterfront property compares favourably with the US market with entry level properties in the most sought after areas on the Island currently around $3.5m depending on location, condition, design and quality of docking amenities.

In contrast the luxury homes market in the La Jolla region of California entry price is around $4m, while on the East coast of the US shore homes can be priced between $3m and $6m at entry point.