One of Bermuda's largest real estate companies recently reported that total sales in the local luxury residential market here amounted to over $30 million dollars in the first quarter of 2004.

Brian Madeiros, Director, Sales Representative of Coldwell Banker JW Bermuda Realty completed a half-year analysis of the sector and said that the total figure represents sales of seven exclusive residential homes with average rental values (ARV) exceeding $126,000. He said that around $9,000,000 of the total includes sales to date for 2004 of properties within the luxurious Tucker's Point development, while $23,000,000 represents sales in other parts of the Island.

He added however that sales at Tucker's Point "remained sluggish although there are some signs of activity" and that 42 percent of the luxury homes sold in the first six months of this year were situated in Point Shares and Fairylands, which he said "remain sought after areas".

According to Mr. Madeiros, the average selling price for the seven transactions was $3,200,000 and 70 percent of the homes were purchased by Bermudian buyers.

"This is a change in the trends we used to see in this market say ten years ago," Mr. Madeiros told The Royal Gazette.

"This is the ARV level at which non-Bermudians can purchase property here; typically we used to see purchasers taking up these properties as vacation homes, and being here for part of the year. Now we're seeing many more Bermudians buying at this level, which is great. I think locals are benefiting from the strong local economy and perhaps international business in particular."

Mr. Madeiros said that the average selling price registered over the past six months for luxury homes is effectively the entry-level for purchasers in this market and sales at that price point are "quite buoyant".

"But things are still softer at the upper end of the market, at the $7 to 8 million level, and I expect that to continue for the next 18 months," he added.