Eleuthera, Bahamas Real Estate: A Buyer’s Guide to Houses, Condominiums, and Building Lots on Eleuthera Island, Bahamas

(Exerpted from How to Buy and Sell Real Estate in the Bahamas, by Max Bentham.)

First, let’s take a look at Caribbean real estate vs. Atlantic real estate. The two sides of Eleuthera look out on very different seas. The Caribbean side is shallow for a great distance and is usually calm and free of surf. There are sections of beach as well as sections of rocky frontage and cliff frontage along this side. Generally, the Caribbean beaches are not as desirable as those on the Atlantic side, and so Caribbean beachfront real estate is less expensive. The Atlantic-side beaches are world class in many locations with deep pink sand and moderate surf. In areas where the offshore reef is not present to break the waves, the surf can be substantial. On the other hand, the Caribbean cliff-top frontage or rocky shore frontage with its sunset views and freedom from salt spray is more valuable than on the Atlantic side. On the northern part of the island, the Atlantic side is subject to so much salt spray—and even waves washing over the land during high seas—that many Atlantic lots are simply not developable.

On Eleuthera and other Bahamian islands, native Bahamians typically live in small villages or clusters of concrete-block cottages, while the foreigners live separately in developments or single villas oriented toward the sea. There are a few exceptions where Bahamians and foreigners share a village, including Spanish Wells, Dunmore Town, and Governors Harbour, but in general, this characterization holds true. Consequently, when we review the different locations where vacation homes or lots are available, we are more likely to be reviewing beaches, bays, or developments, rather than towns.

We will explore Eleuthera by dividing it into its three areas: South Eleuthera, Central Eleuthera, and North Eleuthera. Harbour Island and Spanish Wells will be addressed separately.

South Eleuthera

South Eleuthera has half a dozen Bahamian villages. By far the largest is Rock Sound, which has the only shopping center on Eleuthera, a large grocery store, a hardware store, a pharmacy, a medical clinic, a bank with an ATM that sometimes works, a gas station, and several restaurants. There is a marina at Davis Harbour, not far from town, an airport (RSD), and the island’s only golf course, an 18-hole Robert Trent Jones masterpiece now suffering from poor maintenance. These facilities service the local community as well as a growing resort presence. South Eleuthera is home to two of the new resorts mentioned above. We’ll take a look at these high-end developments first. If they are out of your price range, don’t be discouraged: there is a lot more to Eleuthera than expensive resorts.

Powell Point at Cape Eleuthera, located southwest of Rock Sound, has a magnificent deep-water marina and was designed to appeal to the serious boating crowd. It also has a 4500-acre private beach preserve, so there’s plenty of room for picnics. Buyers can choose from townhouses facing the marina, beach villas, or estate homes. Prices are not cheap. The estate lots, for example, sell (or possibly don’t sell) for $800,000 and up, 1/6-acre beach villa lots are $600,000 and up, and the furnished 2-bedroom, 2.5-bath townhomes (already built) are $800,000-850,000 each. Garages are available for an extra $65,000, or about $200/square foot. At that price, why not take two?

The second major resort in South Eleuthera is Cotton Bay. This 1500-acre development is situated around a spectacular pink-sand beach and will include a boutique hotel to be operated by Starwood, estate lots from $700,000, and villas from $1 million. I’m not sure what you get for a million, because villa prices are being advertised on broker sites for $2 million and more. The clubhouse and villas are under construction as of this writing.

There is a third major resort in this part of Eleuthera, but unlike the other two, it has been around a long time. Windermere Island, long a favorite of the British royal family, made the news in 1982 when paparazzi scandalously photographed a vacationing—and pregnant--Lady Di in her bathing suit. Windermere is a gated private island four miles long with a pink sand beach running along much of the Atlantic side. A private club with a pool and dining room is maintained for members and guests. Starting in 2006, the uninhabited northern portion of the island was opened for development. The house lots on this exclusive island were to be sold by invitation only. I guess their invitation list was a little too exclusive, though—or too tight fisted--because they are currently hawking lots on the internet. Now that you’ve received an exclusive invitation, you have the privilege of spending $1.5 million for a beachfront lot. Construction of a house will be extra, of course. An oceanfront (but not beachfront) lot of .6 acres is available for $449,000, and inland lots can be had for as little as $290,000. Or you can buy a few miles away for half the price.

Which brings us to our next topic: Yes, these three resorts are lovely to read about, but most of us don’t have a couple million on hand for a vacation home. Fortunately, Eleuthera still has affordable options. As of this writing, oceanfront land in South Eleuthera is selling for about $200,000 for an average lot of half an acre with 100 feet of ocean frontage. Beachfront land will fetch twice that or more, depending on the quality of the beach. Plan on spending $300,000 more to build a basic two-bedroom, two-bath house on Eleuthera—yes, that’s $200 a foot, thanks to shipping, import duties, and strict hurricane codes. That figure includes soft costs, but garage and pool are extra. You can also buy a pre-owned home for less than it costs to build. Oceanfront houses come on the market from time to time for under $500,000, although the majority of houses are larger and considerably more expensive. South Eleuthera’s popular beaches and bays for vacation homes include Ten Bay Beach, Savannah Sound, Winding Bay, and Tarpum Bay.

Central Eleuthera

Central Eleuthera is centered on Governor’s Harbour, the island’s capital and largest town with a population of 1500. Governors Harbour has a large general store, a gas station, a bank, the island’s only movie theater, a medical clinic, a beautiful historic library, an internet café, a post office, a large harbor with a boat ramp, and numerous restaurants, shops, and government offices. The area also has several new resorts which we will review below. Governor’s Harbour, with its colonial architecture and critical mass of services, is generally viewed as the best location on mainland Eleuthera, the up and coming town that, with continued development, could become the next Harbour Island. As a result, the Central Eleuthera region from Palmetto Point to James Cistern has the highest property values on the Eleuthera mainland with premiums in the 25% range.

Let’s begin by reviewing the new resorts in this section of Eleuthera. Starting from the south, the Pineapple Fields condominium hotel opened for business in 2004 and currently has 32 one and two bedroom condominiums on the Banks Road across the street from French Leave Beach. This Atlantic-side beach, three miles long with deep pink sand, is one of the finest beaches in the Bahamas. Pineapple Fields has a pool and the best restaurant on mainland Eleuthera, Tippy’s, perched above the beach. As part of a condo hotel, the Pineapple Fields units come furnished, and owners are required to accept standard décor and make their units available for rent half the time. Pineapple Fields runs a crack weekly and nightly rental operation, and is one of the most popular resort hotels on the island. Pineapple Fields is currently selling 625-square-foot one-bedroom units with 300 square feet of decks for $275,000 and up—about the price of an entrance hall in Cotton Bay.

A mile farther to the north, the much-anticipated French Leave Resort and Marina has not yet broken ground. Based on the site of the old Club Med, which closed in 1994, French Leave sits right upon French Leave Beach, which as mentioned is one of the finest in the Bahamas. French Leave consists of 260 acres with over half a mile of beach frontage, and includes a marina on the Caribbean side of the island. Prices have not yet been revealed, but there is no reason to expect them to be reasonable.

Three miles north of Governor’s Harbour is the new Sky Beach Club development. Sky Beach sits on 22 acres of land with elevations that overlook both the Caribbean and the Atlantic. The resort has 600 feet of frontage on a prime Atlantic beach. The master plan calls for 35 stand-alone homes plus a clubhouse, pool, and tennis court. Is it just me, or does that sound like a tight fit on 22 acres? The land rises to a peak at the center of the island, so the homes on either side will have excellent views of their respective seas. Six of the homes, which have a modern architectural style, have been completed as of this writing. A one-bedroom house at Sky Beach Club rings up at $700,000, and a four-bedroom house, $2.7 million. Units must be made available for rental at least six months of the year.

Finally, just south of James Cistern is the Buttonwood Reserve condominium development, where site work is underway. Buttonwood consists of 50 acres extending from the Caribbean on the west to a deserted pink-sand Atlantic beach on the east. The condominiums will be located on a high ridge overlooking the Caribbean. They are connected to the Atlantic beach by a winding private road. Thirty-two units will be built along to the top of the ridge, all with unobstructed Caribbean views. Units come with a large private garage beneath the building. Construction is of steel. Prices for the 1140 square-foot two-bedroom units (plus 400 feet of decks) start at $385,000.

There are numerous beachfront, oceanfront, and ocean view lots and homes for sale in this section of Eleuthera. Beachfront lots with 100’ of frontage are selling for $550,000 and up as of this writing, and oceanfront lots are available for $250,000. Areas for vacation-home buying in Central Eleuthera include Palmetto Point, Banks Road, Governor’s Harbour, Double Bay, Balara Bay, Twin Cove, Little Bay, and Banana Beach.

North Eleuthera

Unlike South and Central Eleuthera, there is no large town to provide a focal point for North Eleuthera, nor are there any resorts. The center of gravity from the perspective of the real estate buyer is a vast subdivision dating from the 1970’s called Rainbow Bay. Rainbow runs the full width of the island from sea to sea and extends for two miles in length. The majority of its nearly 2000 quarter-acre lots are still undeveloped, but new homes are being built every year. Rainbow offers a variety of lots for sale, as well as completed houses. Most of the oceanfront lots in Rainbow on both sides of the island are rocky frontage or even cliff-front, rather than beachfront. Caribbean-side lots are much preferred to those on the Atlantic, as the latter experience considerable salt spray and occasional flooding from high waves. In fact, only a few Atlantic-side lots have ever been built upon. Prices for Caribbean-side oceanfront lots are in the $150,000 range. Atlantic-side oceanfront lots are in the $75,000 range, but may not be buildable. Ocean-view lots on either side are available for $75,000 or less. Other locations in Northern Eleuthera include the Eleuthera Island Shores subdivision, just north of Rainbow, which includes Surfer’s Beach along with much cliff-front property, and the Oleander Gardens subdivision, a cliff-front neighborhood farther north.