Written by: DreamFinders
Summary: The Cayman Islands are fast becoming some of the hottest real estate investment spots in the world.
The Dream Finders third quarter Cayman Islands real estate market report reveals some interesting sales data for Grand Cayman properties in 2014. The data shows that transactions have nearly doubled on the island, especially of beach-front and canal-front properties. This off-shore jurisdiction is gaining popularity, with its Caribbean climate and beauty and close proximity to the US. Here is what you need to know about investing in Cayman Island homes.
While the market shows the total number of listings down from last year, the number of properties sold year-to-date increased by an incredible 41 percent, equating to a dollar volume increase of 29 percent.
For property on the water, whether it is beach or canal, again we see very large increases in sales this year, with a more than 75 percent increase in water, beach or canal-front homes, and a 67 percent increase in water, beach and canal-front residential land. I believe that as much of this type of property is being bought up, there will be price increases in the coming year as the law of supply and demand kicks in.
Of particular interest is the Seven Mile Beach area, especially as an indicator of the health of our tourism industry and ability to attract overseas investors. Year to date, there have been significant increases in the number of units sold in all price segments along Seven Mile Beach: more than 146 percent increase in condos under US$500,000, more than 133 percent in condos US$500,000 to $1 million, more than 89 percent in condos US$1 million to $2 million, and more than 25 percent for condos over US$2 million.
For condominiums sold in the rest of the island, there have been increases in most segments, with a 28 percent increase in condos sold for under $500,000, and a 31 percent increase for condos $500,000 to $1 million. There have been very few sales of condos sold for more than US$1 million, as there are few condos listed at this price range in areas other than Seven Mile Beach.
Looking just at residential houses, there have been significant increases across the board. Sales of homes in the US$500,000 to US$1 million price range increased by 93 percent. The only segment not showing big increases are those in the $2 million and over price range. I believe that Cayman’s market is actually under-valued and that prices could increase considerably when compared to other markets, but only time will tell.
New Seven Mile Beach luxury condominium developments fueled some of the investment money coming into the island. Listings of canal-front Cayman homes with boating access to the sea have also begun to increase. The Cayman Islands are seeing more permanent residents thanks to recent adjustments in the immigration laws, leading to sales of canal-front land to skyrocket as these new permanent residents purchase property and settle down.
Where to Buy
Seven Mile Beach is where much of the new development is happening, but one can desirable find homes for sale in Cayman Islands all over the island. George Town is the financial hub of Grand Cayman, the largest island in the chain, and vacationers will love the easy access to shopping that comes with properties off of West Bay Road.
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