Nearly half of property purchases at a leading estate agents this year were funded with cash.

And Coldwell Banker Bermuda Realty said that the average price paid last year was more than $975,000 up on the 2008 market peak of nearly $950,000.

Susan Thompson, agency manager at the real estate firm, said the number of cash buys was “encouraging.”

She explained: “This number has been growing in strength for several years and presently we have recorded that 46 per cent of purchases in 2017 via Coldwell Banker Bermuda Realty have been cash.

“For anyone that has been tracking the real estate market this is a sign of an improving market as it has been reported by several sources that prices dropped 35 per cent from the height of the market.”

Brian Madeiros, company president, said: “Cash buyers, looking at our own in-house sales data, they’re buying at entry level all the way up to $2 million plus.

“They have been accumulating cash, maybe saving more than they ordinarily would and waiting for an appropriate time to purchase. They don’t require lending institutional support. They write a cheque.”

Mr Madeiros added that the category included individual buyers as well as trusts.

Ms Thompson said that due to delays in getting transaction details from the Bermuda Government the company released its findings in midyear and that it was expected that 2016 would see around 300 real estate sales, in line with the previous year.

She said: “There are other indications that the market continues to improve, including homeowners investing in renovations/additions to current property or newly-acquired property with certainly assists with economic growth.

“We have seen an increase in interest in purchasing for investment either for long term tenancy or jumping on the Airbnb/short term bandwagon.”

Mr Madeiros said: “Because of the current market and the nature of some of the rents we are getting, we’re seeing more individuals getting back into the residential real estate market as investors.”

He added that the market for short-term tourist rental and online vacation service Airbnb had helped fuel demand in that area.

“We are looking for inventory for short term rents in July and August — there seems to be an uptick in demand for short term tourism rentals.

“People are exploring the Airbnb opportunity and have been exploring that for about a year now.”

He added that the America’s Cup may have fuelled demand for tourism rentals — especially first-time visitors determined to return.

“It’s just intriguing that over the month of June we started to experience this massive influx of guests. I would think probably 60 per cent of the people I spoke to at these events had never been to Bermuda before, and most of them said they were coming back.

“When you hear that, it’s not surprising we start to see an uptick on the demand side for short term rental properties.”

Ms Thompson added that sales of vacant land had also seen an increase in enquiries.

She said: “Our agents report a renewed interest in purchasers looking for vacant land particularly in the central parishes with some lots selling in as little 34 days, while average days on the market is 241.”

Mr Thompson said that real estate remained a good and flexible long term investment, with some control on the return on investment and use of the property.

She added: “Owners have the option of renting the property out or living in it, depending on the stage and events in their life.”

And she said that there were “plenty of opportunities” in the marketplace for first-time buyers to multiple property owners, with a strong inventory available and banks willing to lend to qualified applicants.

Ms Thompson said: “But beware, it is important that people have done their homework in advance and come armed with a pre-approval and readily available closing cost because there is competition.”