Discover what makes The Cayman Islands a desirable destination for homebuyers and real estate investors alike and tour a collection of luxury properties available in its booming real estate market
Surrounded by gin clear waters and soft coral sands, The Cayman Islands is a popular and prestigious destination for vacationers, homebuyers, and real estate investors alike.
From Seven Mile Beach, brimming with luxury hotels and residences, to the tranquil shores of Rum Point, The Cayman Islands is renowned for its pristine beaches, endless marine activities, shopping, restaurants, and entertainment.
Read on as Provenance Properties, Christie’s International Real Estate exclusive Cayman Islands Affiliate, shares with Luxury Defined expert insights on the current state of the Cayman Islands luxury real estate market.
A British Overseas Territory, The Cayman Islands is a well-regulated financial centre with an enviably high standard of living.
Beyond the gorgeous landscape and endless activities to experience, its proximity to the United States and status as a tax- neutral jurisdiction makes it an ideal place to live and conduct business.
“We are seeing more families relocating to The Cayman Islands than there are accommodations immediately available, and this has created a shortage of inventory in certain segments,” says Ewelina Cimring, Provenance Properties Sales Specialist.
“We have had to get creative with interim solutions to find the perfect home for our clients. In this market, with demand well exceeding supply, the price per square foot of condos and single- family homes are steadily increasing.”
2022 proved the resiliency and value of the Cayman Islands real estate market.
Despite the vestigial impacts of the global pandemic and higher interest rates, the Cayman Islands real estate market continued to entice investment from both home and abroad, with a total sales value of US$899 million – just shy of 2021’s record US$967 million.
With an 18% increase in condo prices over 2021 and a 12% increase in rents over the same period, the Cayman Islands continues to be a desirable location for those looking to invest in hard assets.
Last summer marked a milestone when the Provenance Properties sales team successfully sold all 62 homes at The Residences at Seafire.
The Provenance Properties team was also challenged to meet a high demand for homes in relation to supply in most price ranges. Assuming this demand continues in 2023, the team is optimistic that the Cayman Islands real estate market will have another strong year.
As the real estate brokerage for one of the largest Caribbean’s developers, Dart, Provenance Properties is armed with the best-in-class data providing their team with hyperlocal market insights. Read on for these insights in the team’s 2022 year-end market report.
For decades, the Cayman Islands real estate market has remained buoyant in the face of global economic upheaval, offering safe investment opportunities to affluent international buyers and locals looking to benefit from the continued growth and diversification of the economy.
While Provenance Properties’ long-term view of the market remains optimistic, 2023 will see central banks continue to use all mechanisms at their disposal to wrestle the worst inflation in four decades. Interest rates will likely increase, though at a more moderate pace through the first half of the year, dissuading potential buyers who require financing to purchase.
If the market softens as expected, there will be opportunities for cash buyers to invest in their portfolio for the long term. Keep in mind that in the ten years since 2012, the island’s price indexes show that condos have increased in value by 109% in Grand Cayman as a whole and by 170% on Seven Mile Beach.
“The Cayman Islands remain highly sought after as a place to invest in real estate. Our island is increasingly becoming the jurisdiction of choice, particularly for those who value safety, a stable government, global accessibility and a robust economy,” says Antonette Baptist, Provenance Properties Sales Specialist.
“I expect that 2023 will yet again reflect the strength and resilience of the real estate market here in The Cayman Islands.”
