A change in use of the Bermudiana Beach property from tourism to residential has been allowed on appeal.

The Bermuda Housing Corporation had sought approval to use the 94 units on the Warwick property — built as affordable housing and adapted for tourism — as homes.

However, the Development Applications Board refused the application to change use from tourism to residential over concerns about density and the number of parking spaces on the site.

In a decision letter dated September 3, Diallo Rabain, the education minister whose portfolio contains planning, upheld an appeal from the BHC that allows the change of use for the site, stating that the merits of the proposal outweighed the reasons for refusal.

Mr Rabain said: “While the residential density marginally exceeds the applicable Residential 1 maximum, I am satisfied that it has not resulted in any material adverse impact on the character or amenity of the site or surrounding area.”

The minister also stated that while the DAB had raised concerns about the number of parking spaces on the property, he was not persuaded that the arrangements have resulted in “unacceptable” parking conditions or given rise to traffic safety concerns.

Mr Rabain noted that the possibility of leasing additional, adjacent land to bolster parking at the site but added that he had not relied on it for his decision.

He said: “This additional parking facility does not form part of the application site before me.

“Accordingly, I have not relied on the proposed parking area in determining this appeal.

“Notwithstanding this, I consider the information relevant insofar as it demonstrates that the appellant has identified a potentially viable means of improving parking provision in the future, should this be required.”

Mr Rabain said that when considering the appeal, he placed considerable weight on the fact the buildings were already occupied and functioning as residential accommodations, along with the public interest in the “retention and regularisation” of the units as residences.

The units on the site were originally developed for the Grand Atlantic affordable housing project but the plans were scrapped after only two of the 78 units built were sold.

It was later announced that the project would be converted into a boutique condominium hotel and rebranded as the Bermudiana Beach Resort, with 94 condo units for sale and 110 hotel keys.

In late 2024, the Government jettisoned that plan after an assessment found that the hotel model was no longer financially viable and the units would be put on the rental market once construction was completed.

Zane DeSilva, the Minister of Housing and Municipalities, formally opened the Bermudiana Beach Residences in April 2025.

An application to change the site’s use was submitted in March this year, but in a report prepared for the DAB, technical officers said that the 66 car parking spaces on the site were inadequate and the bid was refused on June 3.

An appeal against the decision was launched and additional documents were submitted stating that the owner of the property to the immediate east was willing to lease an acre of land for additional parking.