CIREBA: Real Estate Market Update – February 2012

Read our article in the Cayman Financial Review Magazine, eversion 

Data for January and February 2012, as indicated in the above charts, show a slight fall in market activity from the same period in 2011, though they are significantly higher than December 2011 figures.

However, the January and February figures still show a significant increase over 2009 and 2010, continuing the strong bounce back in Cayman Islands real estate since the economic downturn of 2008.

Overall sales dollars are down 18 per cent in January over the same period in 2011, but are still up 34 per cent from January 2010. The number of transactions dropped 4 per cent in January over the same period in 2011, but are up 10 per cent over January 2010.

February sales dollars jumped 34 per cent over January, though they are markedly below the unusually high activity in January 2011. The number of transactions jumped 18 per cent in February over January.

Although it is still early in the year, it is not unreasonable to expect that the 2011 rebound, which established 2011 as the first year since the global economic downturn of 2008 that figures had improved, will continue into 2012.

The downward trend in the number of transactions compared to dollar sales continues to reflect an interest in properties at the high end of the market. This vote of confidence in Cayman as an investment locale is a further positive sign of overall strength in the market.

The three major commercial projects announced in 2011 have reported significant progress in the last two months. These projects are now in various planning and construction stages, boding well for 2012 and beyond.

Grand commercial and infrastructure developments

The three major commercial developments announced in 2011 continue to make the news. The Shetty hospital has now purchased land in East End and has also named a general contractor. The ForCayman development has begun construction on its first phase of extending the Esterley Tibbetts highway into West Bay.

This new corridor is the underpinning of the hotel and commercial developments planned for West Bay. Cayman Enterprise City, the most intriguing of the three projects, has announced that it will locate in Savannah.

Grand Cayman is on the brink of a remarkable growth period. With massive non-retail commercial developments anchoring the eastern, western and central segments of the island, real estate in all forms is poised for tremendous expansion.

For more information:
Jeanette Totten
President
Cayman Islands Real Estate Brokers Association
E:    [email protected]  

 

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