The Cayman Islands are currently undergoing a real estate boom. The financial services and tourism industries are the backbone of the Cayman Islands economy, and growth of these two industries has meant a steady increase in the number of transfers of freehold properties and average prices during the last 10 years.
Using data from the Land and Survey Department of the Cayman Islands Government, our analysis of the statistics from 2008 to 2018 shows that there was an increase of the total consideration of freehold transfers by 53 per cent. The number of freehold transfers also increased by 19 per cent from 2010 to 2018. The average sale price from 2008 to 2018 increased by 82.5 per cent.
In 2018, there was the highest total consideration of freehold transfers in the history of the Cayman Islands, reaching $1,030,097,911 USD. These increases in sale price and number of transfers are evidence of the growing demand for real estate in the Cayman Islands. The economic growth of the Cayman Islands provides a great opportunity to invest in real estate.
The average time property was on the market for residential, multi-unit, commercial and land fell from 2016 to 2017, while the time for business property remained the same. The prices shown in the pie chart is the average value of the property for sale in USD and show the number of properties of the specified type in brackets. Commercial property has had the most dramatic decrease in average time on the market at 36 per cent. The average time land was on the market decreased by 21 per cent.
Growth in the condominium market is centred along Seven Mile Beach on Grand Cayman. The Cayman Property Review 2018, an independent survey conducted by Charterland, confirms that since 2008, the Cayman Islands property market has been booming, having recovered from the 2008 financial crisis. The report says “higher-end” condominiums, which are bought by many overseas investors, are located along Seven Mile Beach. There were only 101 sales of beachfront condominiums in 2018 compared to 130 in 2017, but the total value increased.
The average value of Seven Mile Beach condominium sales in 2018 was more than $1.5 million US, a 35-per-cent increase over 2017.
The limited supply of beachfront property, combined with high demand, is why investors should invest now in property along Seven Mile Beach, as the space and opportunity to develop along this beautiful beach becomes more and more limited.
Having analyzed the rapid growth of the real estate market for the last 10 years, I think this trend is likely to continue. The Cayman Islands is undergoing lots of investment and the extension of Owen Roberts International Airport allows easier access with more frequent flights to the island. In my opinion, investing in real estate in the Cayman Islands is a smart and secure economic decision.
George Wauchope works in both the travel and real estate industry in the Cayman Islands. You can reach him here.
