Foreign purchasers of Bahamian real estate are still experiencing long delays in obtaining approval from the Bahamas Foreign Investment Board, The Tribune was told yesterday, despite previous government promise of greater efficiency, “red carpet” treatment and a 30-day turnaround once all required documentation is in place.
Mario Carey, a director with Bahamas Realty said that while market trends pointed to increased activity by foreign buyers over the past month, expected growth had been curtailed by the Investments Board’s onerous and lengthy approval process.
The current system was not working and served more as a hindrance than help to the smooth flow of business, he said, with many investors complaining how difficult it was to do business in the Bahamas.
“The government needs revenue, so what better way to get revenue than to close real estate transactions?” Mr. Carey said.
“But if the sale doesn’t close, then the realtors don’t get paid, the lawyers don’t get paid and the investor doesn’t get the land. there is a bottleneck in the process and it’s hurting our economy.”
The real estate industry and in particular the second home market, has been targetd by the government as an area for boosting economic growth.
Allyson Maynard-Gibson, minister of financial services and investments, announced in April this year that the Investments Board had received an 83 per cent increase in applications for second homes between May 2, 2002 and April 13, 2003 compared with the previous year, generating potential income worth $880.209 million.
Source: Yolanda Deleveaux, The Tribune
