Website Smart New Homes, says the tropical island nation is most popular among Brits searching for overseas property at a time when homeowners are cashing in on their UK homes.
 
David Bexon, Managing Director of SmartNewHomes.com said: "Previously dominated by American buyers, the Bahamas are now increasingly popular with Britons looking to invest overseas. Recent research on our site has found that the Bahamas is by far the most searched for destination by new home buyers."
 
Though not all searches will lead to property purchases on the  tropical island group, the Bahamas undoubtedly received a portion of the £20 billion the Association of International Property Professionals (AIPP) estimate Britons invested in overseas property in 2006.
 
"The Bahamas is proving a fashionable attraction," says Bexon. "This is led by its popularity among well known celebrities and the current tax exemptions for those investing in property there."
 
The Bahamian government has also taken steps likely to appeal to future investors in tropical island property. In an attempt to attract a worldwide audience improvements have been made to the airport, extending the runway and improving infrastructure to allow the airport to welcome visitors from long-haul destinations.
 
Significant new property development on the island is also taking place in New Providence and Nassau. Major developments include the Baha Mar at Cable Beach and the Albany Golf and Club resort on the south coast, which have had a knock-on effect on local property prices as island property prices are steadily on the increase.
 
"Prices in the Bahamas vary, from affordably priced bolt holes to million pound properties making the area hugely accessible for a range of buyers," says Bexon. "Holiday rentals in the area are typically very good, ranging from £400 to £1000 a week, depending on location and style of property."
 
Tropical island property investments currently available in the Bahamas include the aptly named Atlantis Paradise Island development. The 22 floor aparthotel is ideally located next to a white-sand   beach, properties are available in studio, one- and two-bedroom apartments from £349,668.19 and are listed on website International Horizons.
 
At the higher end of the island property market, the Villa Bahamas is available on Exumas island for £1,014,970. The villa overlooks the waters of George Town, has five large bedrooms, four bathrooms, a gym, three living rooms and pool. International Horizons lists a potential rental income of £150,049.52 per annum on the property.
 
However, if you have a budget of a million pounds-plus and have a tropical island paradise property in your sights, your property searches could range further west to Grand Cayman.
 
Knight Frank have the four-bedroom South Sound Villas listed at £888,347, and the three-bedroom, three-bathroom Caribbean Club apartments for £1,244,307.

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Article first published 5 September 2007