We live on a rocky outcrop in the middle of the ocean, with beaches, open water, harbours, hills and brightly coloured houses.
Our island boasts a mass of breath-taking views – and many homes from which to enjoy them.
With housing stock in high demand, however, homes with views come at a premium. We sat down with some of Bermuda’s real estate experts discuss whether they’re worth the asking price.
In demand views
The definition of a good view is very much down to individual opinion, but valuation experts Suzanne Stones and Steve Bowie of Bermuda Valuers & Appraisers agreed that the most valuable views are not just of the water, but are active water views.
“Hamilton Harbour, St George’s Harbour, Salt Kettle, where there’s a water view, but there’s stuff going on,” Ms Stones said.
Mr Bowie said: “There’s always something going on and of course, people like the sunset, so if you’re in the Hamilton Harbour, looking out towards Dockyard, you will get the sunset.”
Valuable views aren’t just confined to the central parishes.
Ms Stones continued: “There’s some beautiful little coves up in St David’s where there’s a really lovely water outlook.
“You go up to Somerset and you’ve got Ely’s Harbour or Cavello Bay, where there’s always something going on.”
Other popular views, they said, include those of Harrington Sound, South Shore looking down the coast, and Boss’s Cove.
Albert Moura, operating principal of Keller Williams Bermuda, appreciated the value of water views, and added that some buyers also enjoy the “serenity of South Shore”.
The best views, he added, “would probably be panoramic, as opposed to a corridor view between trees”.
He explained: “So, a good view would affect more than just one room. You could see it from the living room, from the dining room, from the bedrooms, from the pool area. That would be a great view.”
How much is a good view worth?
“Water views are always going to attract a higher premium versus something that doesn’t have a water view,” Mr Moura said.
“Unobstructed views of the Hamilton Harbour, the Sound, or the South Shore are going to attract the biggest premium.”
One centrally located property Mr Moura recently helped sell had views looking northwest and southeast.
“So, two bodies of water and even within the same neighbourhood, that probably would have sold for 15 to 20 per cent less with zero views.”
“The more central, the higher the premium. As you start to go further east and west, the buyer pool starts to shrink so the competition for those views will be less, so the premium becomes less.”
An exception to this, he said, is Tucker’s Town – location, while important, is just one factor that will impact the value of a home with a view.
“Topography plays a role as well. You could have a great view, but just a slope in your yard versus no view and a nice flat piece of lawn. Some people would value the flat land more than they would the view because at least they have a yard. That’s individual,” he pointed out.
Market trends
While demand for views has always been high, 15 or 20 years ago Mr Moura found that “there was a mental block going past Barnes Corner and the Causeway”.
This is no longer the case:
“Today, more and more people are considering the eastern and western ends of the island,” he said. “The market’s changed in the sense that the demand is so high that people are now considering moving further east and west. It’s just not going to command as high a premium as the central parishes.”
Thinking of recent sales, Mr Moura explained: “Some who wouldn’t have ordinarily considered St George’s or Somerset have moved there because the view was a difference maker; in order for them to get that view, essentially they would have had to have paid hundreds of thousands more.”
As an indication of just how competitive the housing market is at the moment, Ms Stones estimated that about 60 per cent of purchases are cash buyers.
Another change Mr Moura observed is that even though views are in demand, privacy now commands more of a premium because it’s becoming harder to find.
“Getting a property in a location where you can’t see any others, some people may prefer that to having a view,” he said.
Is it worth it?
In terms of saleability, Ms Stones said that if you have two similar houses in the same neighbourhood – one with a view, one without a view – the one with the view will “100 per cent” be easier to sell.
“There’s always been a demand for homes with views,” confirmed Mr Moura.
“A good view is a good view, no matter where you get it, and it’s always going to give you a return. And, if you have to sell it, and whether you’re in a good market or a bad market, your view’s still going to command a premium and it’ll be in higher demand than a house that doesn’t have a view.
“Anybody will buy a house with a view, but some people won’t buy a house without a view.”
