House and land prices continue to rise across most real estate sectors in 2019 as a property boom continues in the Cayman Islands. Analysts agree that the market has recovered from the downturn of 2010 and is now way beyond the previous peak seen in 2008.
The most expensive and valuable properties overlook the ocean. Luxury homes for sale in Grand Cayman along Seven Mile Beach are the most expensive due to their prime location on the white coral-sand beach with crystal blue water. Property prices here are nudging US$1,500 per square foot in 2019. The limited supply of these popular beachfront properties has resulted in soaring prices. There are also many properties overlooking canals, giving investors the opportunity to keep a boat there.
The growth in the real estate market has also resulted in increased prices of many empty plots of land, a sometimes overlooked investment opportunity that is popular with investors who want the freedom to create their own development.
Rising demand and rising prices on Seven Mile Beach have largely been a reflection of the strength of the US economy. Seven Mile Beach condo sales dropped slightly last year, but the total value – an average of $1.3 million for the 101 beachfront condos sold – was up significantly, giving a boost to sellers and Cayman Islands realtors.
Property transfers in 2018 increased by almost 10% on the year before, while the total value of sales climbed almost 20% to over $800 million. The ripple effect is starting to be seen in other sections of the market, including in Savannah, an enclave of mostly mid-range residential development, enjoying rising prices for the first time in a decade.
The highest single value sale last year was the $45.7-million purchase of a 2.8-acre piece of land fronting Seven Mile Beach, according to reports in the Cayman Compass. The site is being developed into a luxury, 10-story condo complex to be known as The WaterMark.
In the residential market, the biggest sales involved major resort properties. An 8,000 square-foot property at The Ritz-Carlton residences sold for $8.15 million, while two properties at the Seafire Residences, next to the Kimpton, sold for $5.83 million and $5.33 million, respectively, the Compass reported.
The Cayman Islands luxury real estate market is expected to continue growing due to strong demand and limited supply. New hotels, restaurants, and residential properties are springing up all over the islands and many luxury condominium developments are due to be built in the next few years, suggesting an upcoming boom in buying property in the Cayman Islands.
As the population of the islands continues to increase due to immigration, so will the demand for property. This, along with a higher standard of living and continuing economic growth point to a bright future for luxury homes for sale in the Cayman Islands.