Cayman’s real estate market is sizzling. Industry insiders told Cayman 27 home prices have climbed tremendously over the last two years.
The second quarter CIREBA statistics for 2018 give us a snapshot glimpse at Cayman’s real estate activity and trends in numbers.
On the supply side of the equation, there are 882 properties currently available, 257 condos, 239 homes, 365 land, and 30 commercial. Along with that, CIREBA stats show an additional 75 pending sales with offers accepted and conditions satisfied, as well as 189 pending conditional sales.
In the sold column there were 237 properties, including 109 condos, 56 homes, and 72 land parcels.
This week, Cayman 27 spoke with Team Property Cayman’s Michael Joseph and Stefan Prior for their take on the current state of real estate.
The mercury is rising in the world of Cayman Islands real estate.
“The numbers have improved tremendously over the last two years, we’ve probably gone from I would say a minimum of 50% increase in pricing, and in some cases 100%,” said Mr. Joseph.
He said its a classic tale of supply and demand.
“In 2016 I think we had about 2600, 2500, 2600 listings in CIREBA, 2600 listings for sale, and today we’ve got 1499, that’s a marked difference, that is a 40% decline and listings, that is a supply and demand,” said Mr. Joseph.
Seven Mile Beach is the molten core of the hot market. The new Aqua development breaks ground next month and already T Mr. Prior said it’s 80% sold.
“The Seven Mile corridor, South Sound, it’s always going to be in demand because of the commute time to George Town and Camana Bay,” said Mr. Prior.
He told Cayman 27 the nation’s expanding road network can help the heat of these traditional market hot spots to flow to the eastern districts, the natural ‘next frontier’ for development.
“As seven mile beach inevitably becomes a lot more densely populated, people are looking for that quiet retreat and they are moving off of the beach,” said Mr. Prior.
Halfway sold before it’s halfway built, he says North Side’s Rum Point Club development is a prime example of how one part of the market influences another.
“The demand of those other districts is going to, and is already increasing, and is going to increase more and more and more as a result of the activity in the hot to trot market,” said Mr. Joseph.
Could anything put the freeze on cayman’s red-hot real estate market?
Mr. Joseph told Cayman 27 sudden changes can impact any market: one example that’s very real in our region would be a devastating hurricane.
He said what sets Cayman’s real estate market from other jurisdictions is it’s remarkable durability.
“My personal opinion and professional educated and experienced opinion is coming from a place of confidence, Cayman as a safe harbor in the world that’s just a little bit irregular and vulnerable, and volatile,” said Mr. Joseph. “The Cayman product is something that is just driving us forward and forward and forward.”
He told Cayman 27 that’s one reason why the Cayman product itself will always be in demand.