Cox: Better days ahead for Real Estate sector

WEDNESDAY, NOV. 21: Premier Paula Cox told the Real Estate Division of the Chamber of Commerce’s AGM she remained confident there would be a turnaround in “our overall economic fortunes”.

But she warned it was not just the Government’s job to kick-start a recovery, calling on realtors and bankers to also do their bit.

In a keynote speech to Commerce stakeholders on Monday, Premier Cox acknowledged the importance of the sector to Bermuda’s economy and conceded the island’s real estate industry had been hit badly by the recession with one of the highest number of job losses.

Premier Cox said in a press release: “Despite the sobering position with reference to the wider economic conditions and the real concerns regarding job losses, there are some hopeful spots.

“For instance a Coldwell Banker’s report has indicated a rise in commercial property sales and that the market for condos and homes priced or reduced to under $1 million are selling well. So there are incredible opportunities available for people to take advantage of.”

However, she added the Government needed assistance in ensuring there are better times ahead: “Realtors and bankers have a responsibility to think of new ways of providing opportunities to open up the market to first-time Bermudian buyers. It is not purely for Government to have the sole onus of action. No-one, even our most virulent and vicious critics, can say that we failed to act.

“Our current focus is to create expanded economic activity. We are doing this by focusing on: creating jobs; enhancing Bermuda’s attractiveness overseas as a business jurisdiction; strengthening Bermuda’s tourism industry with the implementation of the National Tourism Plan; improving social policies; and improving infrastructure.

‘People need housing’

“Greater economic activity, whether it’s investing in our infrastructure, stimulating tourism development, more construction projects, or inviting investment into our island, ultimately helps our economy; and the knock-on effect is helping your sector.

“It brings people in. People need housing, thus people need real estate. More business creates more volume. And again this benefits your sector and the wider economy. That is why standing strong for Bermudians in-not an empty slogan. It is based on generating real value so that Bermudians are empowered and Bermudians benefit.”

Premier Cox added that by putting plans, initiatives and programmes in place that supported businesses, the real estate industry would recover.

She told the AGM: “As a Government, we promised that the 2007 provisions of the land policy would expire and this has been done.

“You may recall that those changes were implemented against a background of prevalent and illegal ‘fronting’ which was used to frustrate the laws on foreign ownership of land in Bermuda. Also we promised that Bermudians would be able to sell to non-Bermudians. This too has been done.

“We promised that the ARV (Annual Rental Value) for sale to non-Bermudians would be increased to $177,000 and this too has been done.”

She added: “We also reduced the landholding charges to zero per cent for tourism accommodation or hotel residences development properties where these properties were available for hotel inventory. Where this tourism development properties were not going back to inventory the rates for homes and condos were reduced respectively from 25 per cent and 18 per cent to 6.5 per cent. 

“We also indicated there would be no more licences where one spouse was non-Bermudian on a first-time family home and this too has been addressed with changes to the legislation.

“We also amended the legislation to increase the territorial limit of land that can be owned by non-Bermudians. This will permit the validation of licences for land already owned by non-Bermudians over 2,000 acres.”