Since the gloomy days of the Great Recession, the Cayman Islands real estate market has regained a strong footing as market fundamentals continue to improve and property prices increase. Many consumers and investors have reclaimed their purchasing confidence. As a result, the Cayman real estate market is realizing significant growth.
According to data reported by Global Property Guide, during the first seven months of 2016, the average value of property conveyances rose by 23.8% to $475,124 over the same period in 2015. This momentum has carried into 2017 and is expected to progress throughout the year. The following are some specific factors that are contributing to the recent Cayman real estate price increases.
Cayman real estate prices have increased largely due to the combination of increased foreign investor demand and limited real estate supply. As such, the Cayman housing market has evolved into something of a seller’s market. Global Property Guide reports that approximately 75% of property buyers in the Cayman Islands are foreign investors from the United State and Canada.
In addition, a clear sign of increased housing demand can be seen in a survey conducted by Charterland, Ltd., which reports a 14.5% increase in total open market property transfers in the Cayman Islands in 2015 as compared to 2014. Furthermore, the value of reported real estate conveyances also increased by 6.5% year-to-year.
Due to a rebound in Cayman real estate market fundamentals, demand for new residential supply has increased, and as a result, Cayman developers have answered the call. The bulk of the new development is focused in the Seven Mile Beach area, where numerous condominium projects have sprung from the ground, with some properties commanding prices as high as $1,300 per square foot.
Some notable new development projects in this area include The Pinnacle, The Meridian, Regal Beach Club, George Town Villas, and The Grandview. Other Cayman areas are also realizing significant growth, including the inland capital of George Town as well as various canal-front areas.
Rental Market Growth
With sound infrastructure, improving economic fundamentals, and an increasing population, the Cayman residential rental market is expanding as investors look to capitalize on upward trending rental rates. In addition, Global Property Guide reports that approximately 48% of households in the Cayman Islands were being rented in 2015, which represents a 2% increase from the previous year.
As the industry continues to grow, short-term rentals are currently in high demand, while more long-term rental options are becoming available to the local population as residential development continues to rebound. Rental rates vary greatly; however, the most expensive rental options can be found along Seven Mile Beach and throughout George Town.
With an increased residential housing demand, an uptick in new construction, and an expanding rental market, Cayman real estate has realized substantial property increases as of late. This trend should continue throughout the remainder of 2017, making now a great time to invest in Cayman Islands property. With a relatively stable economic and political environment in conjunction with a growing population, the Cayman real estate market’s outlook is positive for the foreseeable future.