If you want to know why the Cayman Islands property market is such a solid investment vehicle, look at its underlying strengths and why it attracts high net-worth individuals.
Government operating revenue in the Cayman Islands in 2019 exceeded $800 million, some $100 million greater than originally forecast. A lot of this unexpected surplus has come from a flourishing real estate industry generating revenue from land transfer fees and tourist accommodation charges.
Whether it’s a beachfront mansion, a condo, or an office for sale, in the Cayman Islands, a property is a highly desirable and secure investment, where demand outstrips supply and rental returns on investment are stable and attractive.
Here are eight good reasons why:
The Beaches: The Cayman Islands is home to some of the world’s most celebrated beaches, including the famous Seven Mile Beach. It is popular year-round.
The (lack of) Taxes: The Cayman Islands is an offshore financial centre with no inheritance tax, income tax, property tax or capital gains tax. You pay stamp duty (7.5%) when you buy a property and that is it.
Great Infrastructure: The Cayman Islands is family-friendly and extremely safe, with modern, sophisticated infrastructure and a stable government. The British colonial connection means the territory is English-speaking and the legal system is based on English common law. The Cayman dollar is pegged to the US dollar, so currency fluctuations are not a worry.
Best Diving: The three islands that make up the Cayman Islands are widely acknowledged to be among the best diving destinations in the Caribbean and the world, with more than 300 world-class dive sites.
Top-End Properties: The flourishing real estate market is geared towards the top end of the market. Did you know, for instance, that over 95% of Seven Mile Beach or waterfront homes for sale in the Cayman Islands are owned by cash buyers? The wealthy show confidence in the market.
Luxurious Living: The Cayman Islands’ prosperous economy offers one of the highest standards of living in the world and the highest in the Caribbean. The territory is the world’s sixth-largest banking centre.
Accessibility: George Town’s Owen Roberts International Airport has more than a dozen one-hour direct flights a day to and from Miami, a major airline hub and the world’s biggest cruise liner port. Thirty-four routes connect Grand Cayman to 31 cities in eight countries, including the USA, Canada, and numerous Caribbean destinations.
And finally, the big one for property investors…
Return-on-Investment: Demand has outstripped supply, meaning new-build prices and resale values are strong. The Cayman Islands has a big market for vacation rentals. If you were a lucky purchaser who landed one of just a couple of hundred Seven Mile Beach condos for sale in 2019, you can expect a rental income of between US$3,000 and US$4,500 a month, meaning an average rental yield of between 5% and 7%. In recent years, high yields have become normal on smaller and medium-sized condos rather than very large properties. Smaller Cayman Islands properties for sale are properties of 120-200 square metres. The price in 2019 has been around $5,000 per square metre at the low end and $11,000 at the top end.
Whether your plan is to buy a property in the Cayman Islands as your main home, as a vacation property or an investment for generating rental income, if you have the means and the desire to enter the Cayman Islands real estate market you will be joining some of the world’s highest income earners in one of the safest real estate investment markets in the world.