Corporate employees are increasingly seeking out city centre rental accommodation in Hamilton rather than base themselves further away from their place of work.

The trend was noted by Coldwell Banker Bermuda Realty when it took the “temperature” of the rental sector to see where the highest demand exists and how many properties are available on the marketplace.

Employees from CEOs to accountants and other professionals employed in the city’s financial, insurance and reinsurance businesses have shown a strong desire to live in the city centre.

Coldwell Banker also discovered that despite predictions of a flood of rentals being freed up by guest workers leaving the Island as the first wave of six-year work permit limits kicked in there has been no evidence of such an occurrence.

For Bermudians seeking a worthwhile investment, buying a second property to rent out remains an attractive proposition with properties being rented out for up to $4,000 a month making up 68 percent of the total market and those in the $5,000 to $9,000 bracket accounting for the next 25 percent. Urban city living is particularly attractive to the corporate market with many in the world of business and finance comfortable living in a busier city environment and preferring to have easy access to their place of work with little or no commuting, and having an easy stroll to shops, restaurants and entertainment venues.

For executives the advantage of a central location is seen as particularly convenient if they commute off Island frequently.

One of the first such urban-living accommodation complex in Hamilton was Sir John Swan’s Atlantis building. Its popularity is evident by the the speed at which a rental in the building is snapped up almost as soon as it becomes available, according to Susan Thompson, agency manger at Coldwell Banker.

“When Sir John Swan built the Atlantis property with 60 apartments only for sale to Bermudians we saw a large percentage bought for investments rather than owner/occupier,” she said.

“The units that were not sold have been rented out and there is always 100 percent occupancy. We have doctors, lawyers, accountants, CEOs and a large mix of expat workers, who love living there for the convenience.”

There is very limited availability of urban living and “in town” condos are rented almost as soon as they become available.

The inventory for available rentals continues to be low on the Island. For Bermudians seeking a future investment the prospects remain good, particularly with a number of banks on the Island now offering 100 percent mortgages, Mrs Thompson noted.

With the expiration of six-year work permits rolling out this year there had been an expectation that a lot of accommodation would become available, but so far that has not been the case.

“There has not been a big exodus. The Government is dealing with the permits on a one-to-one basis.

“There is only a small rental market on the Island and often you have people who get into a share situation, maybe two or three accountants living together for a while and then they start to look for their own individual place.”

Although there has been an increase in the number of condominiums built on the Island many have been bought up by first-time Bermudian buyers seeking a place to live, with a few being bought as investments to be rented out. Another trend that has been picked up by Coldwell Banker is a change in the traditional “rush period” when new companies come to the Island to set up and seek office premises and housing.

In the past the months of October and November have been particularly busy as companies prepare for January start-ups. While 2006 was much the same as previous years the same cannot be said for 2007. So far this year there has been a steady and regular stream of new companies coming to Bermuda, according to Coldwell Banker.

Mrs Thompson said: “This year has been usual. We’ve seen a steady stream of people arriving, not a big wave in the usual months like October and November and January/February.”

Coldwell Banker’s analysis of the rented properties market over the past 14 months reveals that in the three rental sectors, those at the lower end (up to $4,000) are being rented out for an average of $3,986, those in the middle-market are renting at an average of $6,451 and those at the high end at $11,767.