James Bovell, Broker/Owner, RE/MAX Cayman Islands, gives an insight into Cayman’s current property climate.
TO SAY THAT THE REAL ESTATE MARKET is booming in the Cayman Islands is an understatement. In 2021, for the first time in our real estate industry’s history, sales exceeded $1.43 billion. But where will the real estate industry go this year and into the future?
Everywhere you turn you will see new construction. Even with new developments, inventory continues to decline. With limited inventory, prices will continue to climb. This is not something that is unique to the Cayman Islands but is happening globally. New listings are slightly up year-over-year, but if you see something you like, don’t wait. There is a good chance it will be gone tomorrow.
INVENTORY LOW
As inventory continues to remain low and new listings will not be as plentiful as in the past, the options are becoming less available. Some people may look even further with respect to land purchases. Throughout 2021, land in the Sister Islands saw an unprecedented boom.
For the last few years record low interest rates have fuelled the real estate market on a global basis including the Cayman Islands, but after several years of record low industry rates, it is expected that interest rates will increase in 2022.
The Cayman Islands real estate market will continue to be robust in 2022 but several factors will contribute to potentially lower transaction sales from higher interest rates to longer timelines for new developments.
People are looking to find and/or build their ideal home, and land will become more important. Foreign investment and relocation will also become more prevalent as people wishing to enjoy the benefits of our tax-neutral status need to relocate to our islands.
This article appears in the Spring/Summer 2022 issue of InsideOut magazine, now available at magazine stands and delivered to select homes in eco-tote bags sponsored by LIVING.KY.
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