--- title: "Bahamas Construction Costs: 2026 Risks to Price In" description: "Bahamas construction costs in 2026: the Grand Bahama aggregate halt, insurance pricing and import duty rules investors should price in before building." --- [![CPH (1)](https://cphinvestmentgroup.com/hubfs/CPH%20(1).png)](https://cphinvestmentgroup.com) ![menu](https://f.hubspotusercontent40.net/hubfs/7479797/menu.png) ![close\_24px](https://7479797.fs1.hubspotusercontent-na1.net/hubfs/7479797/close_24px.svg) - START HERE Show submenu for START HERE - [Alma Residences](https://cphinvestmentgroup.com/alma-residences-renderings) - [Signature Series Miami](https://cphinvestmentgroup.com/gables-signature-accredited-investors) - ABOUT Show submenu for ABOUT - [About CPH Invest](https://cphinvestmentgroup.com/en/christoph-pamela-building-investment-income-through-real-estate) - [Testimonials](https://cphinvestmentgroup.com/testimonials) - CONTACT Show submenu for CONTACT - [Accredited Investors Access](https://cphinvestmentgroup.com/accredited-investors-access) - [Investor Portal Access](https://cphinvestmentgroup.com/portal) - [Ask Christoph & Pamela Directly](https://egsqs.share.hsforms.com/2pZMlphqMTqG21h3qZEoJGw) - START HERE Show submenu for START HERE - [Alma Residences](https://cphinvestmentgroup.com/alma-residences-renderings) - [Signature Series Miami](https://cphinvestmentgroup.com/gables-signature-accredited-investors) - ABOUT Show submenu for ABOUT - [About CPH Invest](https://cphinvestmentgroup.com/en/christoph-pamela-building-investment-income-through-real-estate) - [Testimonials](https://cphinvestmentgroup.com/testimonials) - CONTACT Show submenu for CONTACT - [Accredited Investors Access](https://cphinvestmentgroup.com/accredited-investors-access) - [Investor Portal Access](https://cphinvestmentgroup.com/portal) - [Ask Christoph & Pamela Directly](https://egsqs.share.hsforms.com/2pZMlphqMTqG21h3qZEoJGw) [Bahamas Real Estate](https://cphinvestmentgroup.com/en/blog/tag/bahamas-real-estate) # Bahamas Construction Costs: 2026 Risks to Price In [Christoph Albeck](https://cphinvestmentgroup.com/en/blog/author/christoph-albeck) Nov 7, 2026, 5:48:59 PM Most published analysis of Grand Bahama concentrates on entry price. For an investor who intends to build rather than acquire finished stock, the purchase price is the smaller variable. Two input costs moved during 2026, and neither appears in a sales contract: the island's aggregate supply and the cost of insuring the finished asset. Neither changes the case for the island. Both change the arithmetic. ## The aggregate halt: a constraint in force since September Bahama Rock stopped production at its Grand Bahama operation on 18 September 2026, having exhausted its permitted aggregate reserves without approval to mine additional sources at the former Bahamas Cement Company property. The company said the halt would last no more than 60 days, and 69 hourly-paid workers were temporarily laid off from 21 September. Residents have objected to the proposed expansion on blasting, flooding and environmental grounds, which is why the approval is not a formality. As of early October, the Bahamian Contractors Association described a ready-mix concrete shortage as a foreseeable rather than imminent risk. Its president, Leonard Sands, said the island could reach a point where "there is no concrete on the island" if the halt is prolonged or becomes permanent. Two concrete suppliers have been importing aggregate from Jamaica as an interim measure; one plant was reported to be running low and prioritising which customers receive deliveries. Imported orders take roughly two weeks in transit and are exposed to shipping disruption — including, as Sands noted, to hurricane season itself. A competitor, Freeport Aggregates, committed $9m on 22 September to expand its own production and fill the gap. That expansion targets completion in the third quarter of 2027. The date matters more than the pledge: a project pouring concrete in 2026 or the first half of 2027 cannot plan around it. ## Property insurance: the line item that reprices annually Insurance is the one holding cost in a Bahamian model that is reset each year by a market outside the country. Reporting in December 2025 put the increase in Bahamian property premiums at as much as 20 percent since 2022, following a contraction in reinsurance supply. Going into the 2026 renewals, the two local positions differed in degree rather than direction. Timothy Ingraham, chief executive of Summit Insurance Company, said the market was "not seeing what we would consider to be meaningful reductions in reinsurance rates". Anton Saunders, managing director of RoyalStar Assurance, said rates "are not going to increase for sure", while identifying the securing of capacity as the present challenge. The regional loss record sits behind both positions. Hurricane Melissa produced initial total damage estimates in Jamaica as high as $8bn, with insured losses projected as high as $4bn. Bahamian property risk is priced in the same reinsurance market as the rest of the Caribbean, which is why a storm that never approaches Grand Bahama can still appear in a Grand Bahama renewal. The procedural conclusion: model insurance as a variable cost with an explicit annual repricing assumption rather than a fixed percentage of value, and obtain a written renewal position before closing rather than estimating one afterwards. ## Import dependence and the duty position in Freeport Because most construction material arrives by ship, the duty treatment of those imports is a material part of the budget rather than an administrative question. Inside the Port Area, the Hawksbill Creek Agreement concessions are the reason the same building can carry a different cost in Freeport than elsewhere in the country, and the reason the standing of those concessions is itself a due diligence item. Which concessions run to 2054, and what a buyer should confirm, is set out in our note on the [Freeport free trade zone](https://cphinvestmentgroup.com/en/blog/freeport-free-trade-zone-what-buyers-must-verify). Two practical points follow. The concession applies to qualifying imports by licensees, which makes the contractor's licence standing part of the cost structure. And duty relief does not offset freight: the Jamaican aggregate now supplying Grand Bahama plants is priced comparably to local material, but shipping is additive and no concession reaches it. ## What published build costs say, and what they do not There is no official construction cost index for the Bahamas. The figures in circulation come from builders and cost guides and should be read as indications, not benchmarks. One Bahamian cost guide updated for 2026 puts a base structure at roughly $150 per square foot; a well-specified family home with central air conditioning, tile roofing and hurricane-rated windows and doors at about $350 per square foot; a typical range of $350 to $700 per square foot for most buyers; and high-end custom work with reinforced concrete and imported stone and hardwood at up to $1,500 per square foot. Ranges that wide are not imprecision. They reflect a market in which most finished material is imported, specification drives a large share of the cost, and a single line item — impact-rated glazing, for example — can move a budget by a double-digit percentage. A cost per square foot quoted without an attached specification therefore carries no information. Our note on [architectural and engineering services](https://cphinvestmentgroup.com/en/blog/architectural-services-in-the-bahamas) sets out where the design-side costs sit; a construction estimate becomes meaningful only once that specification exists. ## Building to a standard an underwriter will accept Resilience specification and insurability are the same conversation. Bahamian design wind loads are set well above general US practice: one Bahamian structural fabricator describes the current government requirement as design to the 2012 International Building Code at 180 mph, against 150 mph under the 2006 and 2009 editions. Confirm the applicable figure with the engineer of record for the specific parcel, since the requirement is set by the permitting authority and not by the contractor. The investment-relevant asymmetry is this. The incremental cost of exceeding the minimum — impact-rated openings, an elevated finished floor level, a roof-to-wall connection the engineer has specified rather than assumed — is quantified once, at design stage. The insurance consequence of not doing so recurs for the life of the hold. Treat the resilience specification as an input to the insurance quotation, and obtain that quotation against the drawings. ## The demand side has not paused None of the above describes a market in retreat. MSC Cruises agreed approximately $450m of investment at Freeport Harbour, announced in January 2026, of which about $400m is directed at cruise berthing infrastructure at Billy Cay. Concord Wilshire's Grand Lucayan redevelopment is costed at more than $700m and includes a 550-room Hilton-branded hotel and a casino. The first phase of Grand Bahama International Airport, exceeding $100m, covers a terminal designed for up to 500,000 passengers a year and expandable to one million. Cruise arrivals on Grand Bahama rose by more than 90 percent in 2025 against 2024 and stand at roughly double 2019 levels, growth attributed largely to Carnival's $600m Celebration Key. Residents and business figures on the island have nonetheless continued to press for firm completion dates, particularly for the airport, which still operates from a temporary terminal. Announced capital and delivered capital are different quantities, and a construction programme should be built on the second. ## What to verify before signing - **Aggregate and concrete supply:** written confirmation from the contractor of the source, the current allocation position, and the contingency if local production has not resumed. - **Price escalation:** whether the construction contract fixes material prices, and for how long. - **Programme risk:** float in the schedule for a two-week import cycle on aggregate, and which party carries the cost of delay. - **Insurance:** a written quotation against the actual drawings, with the renewal mechanism and the windstorm deductible stated. - **Duty treatment:** the contractor's licence standing in the Port Area and which line items the concession covers. - **Wind design:** the design wind speed confirmed in writing by the engineer of record for the specific parcel. - **Transaction costs:** the full closing cost stack, which is separate from and additional to everything above — see our note on [closing costs in the Bahamas](https://cphinvestmentgroup.com/en/blog/closing-costs-in-the-bahamas-what-every-investor-should-know). ## Reviewing a build on Grand Bahama For each project we track, we maintain a current set of input assumptions — contractor supply positions, escalation terms and insurance renewal terms — in a project-specific investment paper. If you are assessing a build on the island and want those assumptions reviewed against your own, request access below. *This article is for information only and is not investment, tax or legal advice. It is not an offer to sell, or a solicitation of an offer to buy, any security or any interest in any property. Figures cited are drawn from public sources as at the date of publication and may change. Tax treatment depends on individual circumstances and must be confirmed with qualified advisors in the relevant jurisdictions.* Previous Post ###### [Freeport Bahamas Property: Reform Timeline to 2028](https://cphinvestmentgroup.com/en/blog/freeport-bahamas-property-reform-timeline-to-2029) Next Post ###### [Grand Bahama Rental Income: Cruise vs Air Arrivals](https://cphinvestmentgroup.com/en/blog/grand-bahama-rental-income-cruise-vs-air-arrivals) ### Similar Blog Posts [![Christoph Albeck Grand Bahama](https://cphinvestmentgroup.com/hs-fs/hubfs/Christoph%20Albeck%20Grand%20Bahama.jpg?width=352&name=Christoph%20Albeck%20Grand%20Bahama.jpg)](https://cphinvestmentgroup.com/en/blog/bahamas-permanent-residency-costs-requirements-2026) ##### [Bahamas Permanent Residency: Costs & Requirements 2026](https://cphinvestmentgroup.com/en/blog/bahamas-permanent-residency-costs-requirements-2026) ##### [Freeport Bahamas Property: Reform Timeline to 2028](https://cphinvestmentgroup.com/en/blog/freeport-bahamas-property-reform-timeline-to-2029) [![Foreign buyers Bahamas, Grand Bahama property, buy real estate in Freeport, legal property purchase Bahamas, CPH Invest](https://cphinvestmentgroup.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20showcases%20a%20stunning%20beachfront%20property%20in%20Grand%20Bahama%20surrounded%20by%20palm%20trees%20and%20vibrant%20tropical%20foliage%20The%20villa%20features%20large%20glass%20windows%20that%20reflect%20the%20azure%20waters%20of%20the%20Caribbean%20Sea%20with%20a%20spacious%20terrace%20offering%20breath-1.jpeg?width=352&name=The%20image%20showcases%20a%20stunning%20beachfront%20property%20in%20Grand%20Bahama%20surrounded%20by%20palm%20trees%20and%20vibrant%20tropical%20foliage%20The%20villa%20features%20large%20glass%20windows%20that%20reflect%20the%20azure%20waters%20of%20the%20Caribbean%20Sea%20with%20a%20spacious%20terrace%20offering%20breath-1.jpeg)](https://cphinvestmentgroup.com/en/blog/how-foreign-buyers-can-secure-property-in-the-bahamas-fast-legally) ##### [How Foreign Buyers Can Secure Property in the Bahamas – Fast & Legally](https://cphinvestmentgroup.com/en/blog/how-foreign-buyers-can-secure-property-in-the-bahamas-fast-legally) ###### Join the Circle - [What Our Investors Say](https://www.provenexpert.com/en-us/cph-invest/) - [Stay Close to the Deal Flow](https://share.hsforms.com/2nkfi9OLHR1CQlD9pE_kTeAegsqs) - [FAQ](https://cphinvestmentgroup.com/faq) CPH Investment Group - We love Real Estate. 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