Land Banking: Opportunity or Risk? 🏞️
Yesterday, I spoke with an investor about our offering at CPH Invest. He had flown all the way to Grand Bahama to visit my construction sites. But what he was looking for was something mid-term. Not a house, not a condo.
His motivation: He simply wanted to get a foot in the door before The Bahamas “closes.” Or before the world becomes even more chaotic. In uncertain times – with geopolitical crises, overburdened European systems, and rising taxes – owning a secured plot of land in The Bahamas is a form of stability.
His idea: Just buy a plot and hold it. That’s it. So, I structured a land banking deal with him:
Investor
buys 4 adjacent lots (land bank cluster).
CPH Invest
receives a purchase option valid for the next 5 years.
What Is Land Banking?
Land banking means acquiring undeveloped land with the expectation that future urbanization or infrastructure projects will increase its value.
- Secure plots in high-growth zones
- Appreciation through zoning and permits
- Resell later or develop into projects
London Docklands
Derelict land → financial hub. Early buyers multiplied capital.
Dubai
From desert to global metropolis – land prices exploded.
Mallorca
Once farmland, today prime luxury villa locations.
The Appeal
- Low entry prices compared to finished properties
- Strong upside potential once development begins
- Diversification with a tangible real asset
Example: In 2010, farmland in Texas sold for <$10,000/acre → after a new highway: >$100,000/acre.
The Reality (and the Risks) ⚠️
- No guarantee of rezoning or demand
- Long holding periods (10–20 years typical)
- Carrying costs: property tax, maintenance, management
- Legal uncertainties (zoning, permits)
- Aggressive marketing often leads to inflated prices
Land Banking Reimagined: Secure & Profitable with CPH Invest 🚀
We transform speculative land banking into a strategic, legally secure investment with clear exit strategies.
Approved & serviced zones
Plots within the Grand Bahama Port Authority – infrastructure in place.
Direct purchase
No intermediaries, transparent pricing from the master plan.
3–5 year horizon
Mid-term holding, then resale or development.
Residency leverage
Homeowner Residency from $250K / Fast-Track Plan B from $1M.
Case Study: Land Banking on Grand Bahama
- 4 plots of 15,000 sqft each in Fortune Bay (cluster)
- Purchase example: $400,000 total
- Option granted to CPH Invest: 5 years
- Exit 1: Resale of the cluster to a third party
- Exit 2: Development as a boutique project (3–5 villas)
- Exit 3: Subdivision into smaller lots
Benefit: Immediate market foothold, real demand, close to beaches, schools, marinas – no waiting for infrastructure.
Conclusion
Traditional land banking is often speculative. With the CPH model, it becomes a strategic wealth-building tool – with legal certainty, realistic timeframes, and transparent acquisition.
Disclaimer: This content is for informational purposes only and does not constitute investment or legal advice. Availability is strictly limited; subject to change.