If you’re considering investing in real estate in the Cayman Islands, it’s best not to delay.
That’s the key takeaway from the latest market data.
Total Cayman Islands Real Estate Sales Rise from $463m to $568m
According to figures from the Cayman Islands Real Estate Brokers Association, the total number of real estate transactions in the Cayman Islands rose from 703 in 2017 to 806 transactions in 2018.
The surge in the number of property sales has squeezed the availability of inventory in the most sought after areas such as the Seven Mile Beach corridor which has consequently pushed up the average selling price from US $659,000 in 2017 to US $704,000 in 2018.
Much of this growth is due to the the Cayman Islands success as a financial center, the tremendous growth in tourism which saw visitor arrivals reach record levels in 2018 and population growth, all of which have combined to stimulate demand among overseas property investors and diminished stock of available properties.
As a consequence the overall value of sales surged by more than 22% from US $463 million in 2017 to US $568 million in 2018.
Given the very limited availability of property for sale in the most desirable locations, property prices are more than likely set to continue to rise.
The Total Value of Both Residential & Commercial Real Estate Transactions Increased from 2017 to 2018
Of the total, the number of residential real estate transactions rose from 492 (with a total value of US $369 million) to 536 (with a total value of US $446 million), while the number of commercial sales increased from 12 (with a total value of US $17 million) to 19 ((with a total value of US $20 million).
Value of Condo Sales Up 27%
Condos for sale in the Cayman Islands saw the most significant rise.
The total number of condo sales increased from 327 in 2017 to 339 in 2018, with the average selling price increasing from US $650,000 to US $807,000.
This resulted in an overall increase in the value of condo sales in the Cayman Islands, which increased by 27% from US $213 million to US $272 million during the period.
Average Selling Price of Homes in the Cayman Islands Up
Homes for sale in the Cayman Islands also saw an increase last year.
The total number of sales of standalone houses and villas increased from 6 in 2017 to 7 in 2018, with the average selling price increasing from US $410,000 to US $1,145,000.
This resulted in an overall increase in the value of home sales in the Cayman Islands, which increased by 27% from US $2,457,000 to US $8,017,000 during the period.
Value of Land Sales Up by Almost 40%
The market for land for sale in the Cayman Islands also increased in 2018.
The total number of sales of land sales rose from 192 in 2017 to 241 in 2018, with the overall value of land sales increasing by almost 40% from US $68 million to US $95 million.
There was particular demand for residential and beachfront land for sale in Grand Cayman.