Real estate market stays strong

REAL ESTATE MARKET REMAINS STRONG

Confidence and investor engagement in the Cayman Islands real estate market remained strong in 2021, evidenced by a record US$958 million in total sales of listings active on the Cayman Islands Real Estate Brokers Association MLS system. This historic sales performance, in tandem with a reduction in the average time on market and the variance from list to sell price for properties, credentialised the robustness of the real estate market. Equally, Cayman’s value proposition as a safe, sophisticated and tax-efficient jurisdiction with no restrictions on foreign ownership of property made it an attractive location option for investors who sought to expand their real estate portfolios despite the impact of the COVID-19 pandemic.

MARKET INSIGHTS
The sale of properties along both sides of the Seven Mile Beach corridor and in South Sound neighbourhoods accounted for approximately 52% of all sales last year. Demand soared for single-family homes and vacant land, which exceeded their 2020 sales volume totals by 95% and 61% respectively. Sales volume in the condo sector registered a lower overall increase, but still showed a 41% rise in sales compared to the previous year.
Median days on the market for homes and land priced above US$1 million was reported at 219 and 226 respectively, an average decrease of 16% for homes and 21% for land in that price range. Many of these sales were driven by the jurisdiction’s existing residents, who identified opportunities to expand their real estate portfolios. Of the properties priced at US$1 million or above, Provenance Properties had the highest average price per property sold — US$3.77 million — of all CIREBA brokerages that sold more than one property. Provenance Properties Sales Agent Fleur Coleman was involved in the two highest-value residential home sales of the year in this price bracket.

GLOBAL FACTORS
Investors’ desire for a vacation home or investment property grew as several COVID-19 variants emerged throughout the year, prompting countries around the globe to maintain varying levels of restrictions on personal movement and travel.

Those prevention measures drove the necessity of remote working, which has now become commonplace globally.
There was an increase in sentiment seeking a reset of work-life balance and a desire to explore new destinations due to many countries limiting travel.

CAYMAN’S VALUE PROPOSITION
Cayman’s small and low-density population coupled with high-quality medical facilities made it an attractive option for COVID-wary individuals.

Cayman kept local transmission at bay for much of the 18-month period that followed its March 2020 border closure and earned a reputation as a safe haven for those weary of COVID-19's spread and the daily impacts of COVID-19 faced by those in other jurisdictions.

This reputation combined simultaneously with the Cayman Islands' government’s global citizen programme allowed individuals potentially looking to move to or invest in the islands an inside glimpse of Cayman prior to making their decisions. Cayman’s tech infrastructure – regionally considered the most advanced – provided the support needed to work from anywhere. The medical facilities, schools, restaurants and entertainment, a low crime rate and year-round sunshine continued to make the Cayman Islands an attractive location in which to live full time.

PPCI IN THE COMMUNITY
Provenance Properties once again showed its commitment to the Cayman Islands community by supporting important initiatives like Cayman Art Week, aimed at enriching the lives of all who create and appreciate art.

In April, the luxury brokerage also hosted its second annual auction benefiting Cayman’s Acts of Random Kindness; in the same month, teams representing Provenance Properties and Camana Bay’s first for-sale residential development, OLEA, participated in the Cayman Islands Crisis Centre’s fundraiser, A Walk in Her Shoes.

Late in the year, Provenance Properties announced that its new sales centre on Market Street in Camana Bay is set to open in the second quarter of 2022.