The Cayman Islands property market continues to go from strength to strength and has historically proved itself to be buoyant in the face of global economic pressures.
The trends from 2022 indicate that the market is normalising after a hugely busy period – 2021 was a record-breaking year for real estate with a total of $1.08 billion in properties sold.
Increasing interest rates, rumblings of recession and the war in Ukraine all impacted buyers’ ability to borrow and their confidence in buying when mortgage rates were increasing; this ultimately led to a 16.8% decrease in sales volume year on year.
However, this still represents a wildly successful 2022 year for the Cayman real estate market with the second highest transaction and sales volumes in its history. More than that, this was at a time when other real estate markets globally and regionally, suffered far worse by comparison. All in all, 2022 can therefore be viewed as another year during which the Cayman real estate market showed its resilience at a time of lesser global stability.
Active listings in CIREBA increased by 13.3% from 2021 to 2022, indicating the end of inventory shortage after a prolonged period of lack of housing supply. However, as noted, a total of US$972 million in properties sold in 2022 was not a vast decrease from the record-breaking year preceding it. Analysts are predicting interest rates will start to cool down towards Q2-Q3 of this year at which time we can expect to see an increase in buyers picking up their house hunt with more confidence.
Rising construction rates may have stalled development slightly in 2021. However, 2022 saw developments spring up from West Bay to Rum Point. A number of our group’s own developments have made waves in the industry, including the completion of the multi-use retail/residential/commercial project Harbour Walk, which set a new standard in this market sector. Bringing many of the benefits of a small Camana Bay, and with the majority of units now occupied and the retail space now taking shape, Harbour Walk is fast becoming a vibrant buzzing neighbourhood.
Several new group developments also broke ground recently including Silver Reef Residences and ONE | GT, which will become an irresistible destination for residents, tenants, and guests whether locals or visitors.
The ONE | GT boutique hotel and residences is arranged over 11 floors and was designed to provide a selection of exceptional resort amenities that redefine luxury living. ONE | GT boasts a range of restaurants, outdoor leisure spaces, and Cayman’s first rooftop Sky Club. Apart from being a great business opportunity, we think ONE | GT will be the catalyst for other major redevelopment projects and will start the next wave of revitalisation and rejuvenation of George Town.
Looking forward into 2023 and beyond, with the islands opening completely to visitors in 2022, Cayman saw tourism return to pre-pandemic levels. We continue to see these numbers increase especially with new direct routes opening this year. More visitors will have a direct impact on real estate with more people seeking either a permanent move or a second home in paradise to escape the cold weather and increased stresses of global life. Safe to say we look forward to seeing what 2023 has in store for the Cayman Islands real estate industry.
This article appears in the Spring/Summer 2023 issue of InsideOut magazine, now available at magazine stands and delivered to select homes.
Related Videos
