In this episode, Eric Finnas Dahlstrom, CEO of JamesEdition, sits down with Jonathan Halata, Head of Development at Island Realty Bermuda. Jonathan leads two of the island’s most significant residential projects, Rosewood Residences at Tucker’s Point and Azura, and shares insights into Bermuda’s remarkable repositioning as a global luxury destination for discerning international buyers.
Key Highlights
- Market Renaissance: Bermuda is experiencing a rebirth as a luxury destination, building on its jet-set heritage from the 1970s and 80s while attracting a new generation of international buyers.
- Tourism Investment Advantage: New tourism investment orders have opened pathways for foreign ownership, with projects like Azura and Rosewood Residences eliminating traditional license fees for qualified purchases.
- Economic Investment Program: The EIRC (Economic Investment Residential Certificate) program offers long-term residency for investments of $2.5 million or more, generating over $600 million in capital for the island.
- Supply-Constrained Market: Strict planning protections and limited land availability create inherent long-term value preservation, with demand consistently exceeding supply.
- International Appeal: Bermuda attracts buyers primarily from the United States, Canada, United Kingdom, and Continental Europe, drawn by tax-free status, political stability, and discreet island luxury.
Jonathan HalataHead of Development, Island Realty BermudaBermuda represents a perfect blend of island paradise with familiar British influence: stability, privacy, and discretion that you simply don't find elsewhere. Every place our clients visited had one or two elements they wanted, but Bermuda was the only destination that offered everything: world-class beaches, exceptional infrastructure, tax advantages, and a quality of life that prioritizes substance over display.
Listen on Spotify
Eric
Thanks for joining us, Jonathan. I’m looking forward to hearing about a market we don’t discuss often enough: Bermuda as a luxury real estate destination.
Jonathan
Thank you for having me. Bermuda is a tiny island that most people forget about, so it’s not surprising it doesn’t come to mind immediately. But that’s changing.
Bermuda’s Renaissance
Eric
Let’s start with the fundamentals. How is the Bermuda real estate market structured?
Jonathan
The market is exceptionally small. This isn’t Dubai or Portugal with hundreds or thousands of listings. There’s genuine scarcity of housing stock here, which creates a very competitive market. It also means Bermuda doesn’t appear on many global radars unless you’re in the know.
Eric
I understand the market is experiencing something of a rebirth. Can you explain that evolution?
Jonathan
To understand where we are today, you need to look back. Bermuda had its moment in the jet-set circuit during the 1970s and 80s. This was before the Maldives, Seychelles, and Turks and Caicos took the spotlight. When the 1990s arrived, the market slowed considerably. Bermuda became known as a place where only billionaires could afford to buy, and there were significant restrictions against foreign ownership.
That perception has fundamentally changed through various tourism investment orders. The two projects I’m working on, Azura and Rosewood Residences at Tucker’s Point, have really transformed the dynamic and brought substantial visibility back to the island.
Branded Residences and Luxury Development
Eric
Tell us about these projects. Are we talking about branded residences?
Jonathan
We have both branded and unbranded offerings. Azura was the first true luxury condo-hotel in Bermuda. It’s positioned right on the iconic South Shore, adjacent to famous beaches like Elbow Beach and Coral Beach. It’s a magical cliffside setting that delivers a boutique experience.
The Rosewood Residences at Tucker’s Point represents the absolute pinnacle of luxury living on the island. It’s amenity-rich with a globally recognized brand behind it. I can say with certainty it’s unquestionably the most high-profile residential project Bermuda has ever seen, with condominiums starting at $6 million and going up from there.
Eric
Are these types of developments typical for the market, or fairly unique?
Jonathan
A few years ago, I would have said very unique. Today, these projects are the main driver for international residential purchases on the island. There are traditional houses available for purchase, but they’re typically older properties requiring significant investment and renovation, also in the many millions of dollars.
Bermuda has a technical system governing real estate ownership. The simplest way to understand it is that certain housing stock is only available to Bermudians, while other inventory is available to international buyers, typically with starting prices around $2 million and up. Much of that international inventory consists of projects like Azura and Rosewood Residences.
Eric
How do projects like Azura and Rosewood come to fruition in such a regulated market?
Jonathan
It’s considerable work and complexity. More projects don’t lift off the ground than do. It was raised to me recently that over the past 25 years, Azura and Rosewood Residences are two of the only luxury real estate success stories on the island, which is remarkable.
The reasons include high construction costs and limited resources in terms of labor and infrastructure. Planning restrictions are both beneficial and challenging. There’s only so much land, with strict limitations on usage. Bermuda isn’t interested in becoming Monaco in the Atlantic with skyscrapers everywhere. It’s protective of the lush greenery that makes the island magical.
I present this as a positive: owning property here offers security because supply will never exceed demand. There will always be greater demand for Bermuda property than available supply.
Eric
Should potential buyers be cautious about developer credibility and project success rates?
Jonathan
Absolutely, and that’s not just Bermuda; it’s a global consideration. It’s not always that developers aren’t credible or lack proper capital structure. Sometimes it’s timing, demand, or planning restrictions causing unacceptable delays. People start with good intentions, but reality proves different.
In Bermuda specifically, working with credible development companies that have proven success and proper capital structure is essential. With both Rosewood and Azura, we’re just shy of being sold out on both projects because we have that credibility. Both are either currently being built or, in Azura’s case, nearing completion. That provides enormous confidence to purchasers. They can see progress and know it will be completed, not abandoned.
Ownership, Residency, and Investment Requirements
Eric
What regulations exist for foreign buyers, and how does residency work?
Jonathan
There are two separate pathways. You can purchase as an international buyer, but there’s also a program called the EIRC, the Economic Investment Residential Certificate. This allows international investors to obtain long-term residency by investing at least $2.5 million USD into Bermuda, with real estate being a key qualifying asset.
Just yesterday, the government released a report on the program’s success. Over the past few years, it has raised over $600 million in investment. That may not seem substantial on a global scale, but for an island of 21 square miles with 60,000 residents, it’s actually quite impressive on a per capita basis.
Eric
What about property purchase costs? Are there stamp duties or similar fees?
Jonathan
From a consumer perspective, there’s no income tax, capital gains tax, or inheritance tax. Bermuda generates revenue through payroll taxes and customs duties, essentially a form of VAT baked into consumption costs.
For real estate purchases, there are multiple layers. As a foreigner, you need to apply for a license, which typically carries a fee ranging from 6% to 12%. However, if you’re purchasing in a tourism investment project like Azura or Rosewood, that license fee is waived. There are also stamp duties similar to the UK, though I can’t quote the exact percentages at this moment.
Eric
What should buyers expect to invest for a property in Bermuda?
Jonathan
Two and a half million dollars is the new benchmark because of the economic investment certificate. You can find properties in the $1.5 to $2 million range, perhaps a one-bedroom hotel residence. Prices extend up to $10 million and beyond.
If you’re seeking long-term residency and want at least a two-bedroom property, you’re realistically looking at $2.5 million and up. It’s a high entry point, but with that comes a residential certificate providing the ability to live and enjoy life in Bermuda with continuity.
Eric
Does that certificate also provide tax residence status?
Jonathan
Correct. There are other residential certificate pathways, but they’re not guaranteed, don’t offer continuity, and typically require annual reapplication, which becomes tiresome and expensive. The simplest pathway is through the EIRC program. The Bermuda Development Agency provides a white-glove, concierge-like experience through the entire process. You receive your certificate with the ability to enter as a long-term resident, in perpetuity, with no end date, for you, your spouse, and any children.
Buyer Demographics and Lifestyle
Eric
Who comprises your typical buyer base geographically?
Jonathan
We draw from four primary markets: the United States, Canada, the United Kingdom, and Continental Europe, particularly Germany, Italy, Switzerland, and France. It’s an incredibly international community, and you hear many different accents and languages from these individuals relocating or establishing a presence here.
Eric
How do you structure your marketing strategy to reach these international buyers?
Jonathan
Bermuda being small creates an interesting dynamic. Coming from New York, where you rely heavily on various sources for leads, here we find that 80% of our sales come direct to us, with only 20% through brokerages like Sotheby’s or Christie’s.
Of that 80% direct business, much comes through personal relationships with Bermuda: family history or close friends. I hear constantly from prospective buyers about “the secret of Bermuda.” Don’t talk too much about it because they don’t want the global jet set to discover this little slice of paradise.
For our direct leads, we rely heavily on platforms like JamesEdition to drive interest from our target markets, specifically Europe, the UK, Canada, and the US. We know those are our sweet spots based on connectivity and genuine interest.
Eric
What’s the demographic profile of your typical buyer, and what lifestyle should they expect?
Jonathan
The demographics range considerably. We see families in their 30s with young children who view Bermuda as the safest, most stable island environment for real estate ownership. Their confidence stems from Bermuda’s security compared to other island destinations.
We also attract empty nesters and retirees in their 60s and 70s looking for a permanent base to spend their later years enjoying life.
Eric
Is the younger demographic a more recent trend driven by remote work opportunities?
Jonathan
That’s an excellent question. There’s definitely been a shift toward younger audiences. Pre-COVID, interest was driven primarily by buyers aged 50 and above, largely due to affordability. A recent report showed that Bermuda now has a higher cost of living than Manhattan. It’s an exceptionally expensive place. You must remember it’s import-dependent, bringing in foods and high-end products via air and boat to a remote Atlantic island.
The flip side is we have access to absolutely everything. If you’re shopping at Whole Foods or Selfridges in London, we have access to the most incredible products. We joke that given the prices, the food must be flying over in British Airways first-class seats.
The counterbalance to high living costs is the tax-free status. There’s no income tax, no capital gains tax, no inheritance tax for foreigners coming to Bermuda.
Eric
What should buyers consider in terms of location and amenities?
Jonathan
It’s the classic expression: location, location, location. Even on an island 21 miles across, some locations are superior to others.
Rosewood sits at the center of Tucker’s Point, the only true master-planned resort development on the island.
Azura sits directly on the South Shore oceanfront next to Elbow Beach and Coral Beach, recognized as the absolute best locations on the island.
Location matters significantly. Other areas exist, but you could spend considerable time driving into town, and they may not represent premium positioning.
A Personal Journey to Bermuda
Eric
What brought you personally to Bermuda?
Jonathan
My background is actually in management consulting. I worked in top-tier consulting in New York, advising over a hundred global brands and C-suite executives on everything from corporate transformations to new brand developments and product launches.
Living in New York, we would battle with friends heading to the Hamptons, spending five or six hours in traffic. We would secretly, again, the Bermuda secret, get to LaGuardia Airport, and 90 minutes later we’d be on pink sand beaches in this beautiful environment.
I had a defining moment on one of these holidays. I’d rented a small boat and ventured out to Castle Islands near Frick Point, a true castaway spot. I dropped anchor thinking I had the place to myself. Then, one by one, beautiful boats began gliding into this picture-perfect bay. It wasn’t flashy or loud, not the South of France or Ibiza. It was elegant and quiet, with families and friends who clearly loved being on the water. It felt like a friendly reunion choreographed from a movie.
That experience stayed with me. I realized this was a place where we could build a life. The luxury isn’t on display like in New York or London; it’s on the water. It’s discreet, refined, and belongs to people who value privacy and quality of life. That was the defining moment that brought us here.
Eric
Would you say that discreet luxury remains the best aspect of living and working in Bermuda?
Jonathan
Absolutely. On land, everybody drives Hyundais and Kias. But when you enter someone’s home or step onto their boat, you realize that’s where they invest in their lives. That’s where you see the confidence in Bermuda. The luxury is incredibly discreet and private. It’s not on show through what people wear or drive. It’s how they enjoy their island from the water.
Buyer Success Stories and Future Outlook
Eric
Can you share an example of a recent buyer’s journey?
Jonathan
One of my favorite recent buyers was a family from the UK reconsidering life after the non-dom tax changes. This family conducted a truly global search over many months, all the usual tax-friendly destinations: Portugal, Greece, Italy, Dubai.
For them, Portugal had the lifestyle, but they didn’t want to learn Portuguese. Greece was beautiful, but they were concerned about long-term stability. Italy offered La Dolce Vita that the wife loved, but the bureaucracy sent them running. Dubai was exciting and new, but they found it too artificial.
Then a friend asked if they’d been to Bermuda. They hadn’t. Being British and based in the UK, they decided to visit. The wife said Bermuda offered this perfect blend of island paradise with a slice of Britain, familiar and reassuring. For the husband, it was the stability, privacy, and discretion. For the kids, it was simply the pink sand beaches, water life, and boats.
By the end of their trip, they told me that every place they’d visited had one or two things they wanted, but Bermuda was the only place that had everything. That’s when they made the move.
Eric
What’s your outlook for Bermuda’s future in attracting international buyers?
Jonathan
The government is exceptionally supportive of programs like the EIRC. They want more international families entering the market. The greatest challenge, as I’ve mentioned, is limited supply. There’s too little of the right kind of property available.
This returns to the theme of long-term wealth preservation. What greater wealth preservation exists than owning an asset in a supply-constrained environment where demand always outweighs supply? Bermuda can continue building on that foundation. Given the regulations and limited land, there will never be a scenario with too much supply. It will always be the opposite.
Hopefully, Island Realty can help bring the next Rosewood or the next Azura to market in the coming years.
Eric
Tell us about Island Realty’s history and vision for the future.
Jonathan
Island Realty was founded by John Bush, a local resident who serves as founder and president. The company was established several years ago, initially driven by the creation of Azura. The success of Azura led to additional projects, including Rosewood Residences, which is when I joined as Head of Development.
The future looks very bright. We’re leading two of the most high-profile projects on the island and hope to see a third project launch in the next couple of years. Both current projects keep us busy through 2027, and we envision many more projects like these in Bermuda’s future.
Eric
Thank you very much, Jonathan, for today’s discussion.
Jonathan
Thank you, Eric. It was a pleasure.
Explore luxury homes for sale in Bermuda
