Many people dream of buying property in the Cayman Islands for obvious reason; the opportunity to “live the dream” and have a property in a sun destination. The opportunity to own a home or vacation property in the Caribbean is often the realization of a lifetime of hard work and a well-deserved reward.
However, for a growing number of individuals who are considering buying property in Grand Cayman, lifestyle is not the only motivation to purchase. Cayman Islands are becoming one of the preferred Caribbean real estate markets for property investment too.
Here are five reasons why Cayman Islands real estate can be a smart edition to a real estate portfolio.
Economic growth is strong in Cayman Islands. The recent opening of Health City, a private hospital that will host up to 1,200 beds when fully built out, has given a decided boost to the east end real estate market. So too has the recent announcement that the $300 million Ironwood project, consisting of a golf course, resort and lifestyle community, will commence construction in November 2016.
In the Seven Mile Beach area, a number of new hotels are under construction/expansion of including Margaritaville, Kimpton’s Seafire Resort, and a Four Seasons Resort, among others.
Another boost to the local economy is the expansion of the Owen Roberts Airport now underway and with a scheduled completion date by end of 2018. Once this project is done, Grand Cayman will have capacity to welcome over two million visitors annually.
These projects are some of the reasons the island is experiencing a construction boom. The new projects are a catalyst for economic spin off locally, particularly in the residential construction market. The result is growth in the number of Cayman Islands properties for sale.
Cayman Islands is largely a tax free destination. There are no income, property, corporate, capital gains or inheritance taxes. Cayman Islands properties for sale attract a one- time stamp tax (7.5% at the time of writing) but after that tax is paid, property ownership is tax free.
Over the last five years, the average value of residential properties on Grand Cayman have increased. The resort market and waterfront property market specifically have seen steady growth and excluding new higher end luxury resort products like the Kimpton, inventory is relatively low. Clipper Bay as an example sold preconstruction in 2014 for US$28/sq ft and although developer inventory is sold out, resale parcels coming to market in 2016 are trading at nearly US$50/sq ft. An isolated case but waterfront land values have seen excellent appreciation. Seven Mile Beach was voted “The Best Beach” by US Travel News (http://travel.usnews.com/Rankings/Best_Beaches_in_the_World/) in the world last year so inventory in that market sector will continue to perform well.
So what does all of this mean? Market data suggests this is a great time to buy property in the Cayman Islands. If you are interested in learning more about how buying real estate in Cayman Islands can be a good investment, talk to Paul Young at Prime Locations Cayman. A seasoned realtor with a wealth of industry knowledge and contacts, Paul can help you identify Cayman Islands properties that meet your lifestyle and investment goals.
For more information visit www.primelocationscayman.com.