Political unrest has hit the real estate market on the island, a real estate company has warned.

Coldwell Banker Bermuda Realty’s first report of the new year said last year’s sales figures had suffered as a result of disruptions. The unrest included the blockading of Parliament for several days over the controversial Pathways to Status proposals.

The January update from the company said sales figures for the industry for 2016 are likely to show a total of 300 transactions, on a par with 2015. That would be a step down from the 10 to 15 per cent year-on-year increase the company had expected to see when it issued its market report last July.

“While encouraged by the robust start to 2016, demonstrations and political unrest throughout the calendar year have caused some potential purchasers, both Bermudians and non-Bermudians, to reconsider their desire to make such a huge financial investment in Bermuda,” the company said in its latest report.

But Susan Thompson, the company’s general manager, added that last summer, a traditionally slow time in the market as many are off the island, was followed by a pick-up in October to the end of the year.

She said: “December was a crazy month. We had the best December we have had for years.”

“We could have continued that same confidence throughout 2016 if we had maintained the same considerations for one another throughout the year.

“We had years when the market was booming. People were coming on to the island, people were buying. We are heading back to recovery at the moment, but it’s tenuous.”

The report said that the benefits of the America’s Cup had been “tangible” with “an increased disposable income and exposure of Bermuda for longer term growth.”

It said: “The impact of the 2017 event on real estate has been positive in that residential rental product in the West End has been more buoyant.

“The expectation for the remainder of 2016/17 is for short-term rental opportunity.”

Ms Thompson added: “It’s been a huge positive, it’s short-term, two or three years in general, but for those people in the west, it’s been huge for them.

“Not only have they rented properties where they had difficulties in the past, they can rent them at good, fair market value.”

Ms Thompson added that as the event approaches its climax this summer, the rental market will get a further boost as hotels reach capacity and private rentals become the only option for overseas racegoers.

She said: “In addition, we will see an influx of people on short-term rentals, which will add money to Bermudian pockets.

“We are definitely looking for people in the West End who want to rent their properties short-term.

“It has to be a decent property and it has to be furnished, but there are opportunities for people and there continue to be opportunities.”

Ms Thompson said that some homeowners had even arranged to move out of their homes in order to rent them out to visitors for the summer peak of the America’s Cup.

The report said that house prices had not risen significantly. Coldwell Banker said that realistically priced homes were selling more quickly and often attracting multiple offers.

A total of 24 per cent of Coldwell Banker transactions in 2016 sold at or above the asking price.

Average prices were $1,207,000 for a single-family house and $681,000 for a condo, while vacant land went for $366,000.

Single family homes accounted for 24 per cent of the firm’s sales, with condos on 22 per cent, with the remainder a mix of land, commercial and multifamily homes.

The report said: “There is still a layer of overpriced property on the market that has not seen significant interest.

“Additionally, there is a limited demand for multi-unit dwellings and fixer-uppers, but sales of vacant land have seen a resurgence in recent years.”

Average prices for residential rentals went up by around 10 per cent on 2015 figures, with a one-bedroom apartment at $2,400 a month, a two bedroom at $3,300 and three bedroom apartments at $5,500.

In Hamilton, one bedrooms reached $3,800 a month.