Cayman Islands real estate is a safe, lucrative form of investment that also offers a host of lifestyle benefits.
Despite a global pandemic, lockdowns and travel restrictions, the Cayman Islands real estate sector has continued to enjoy strong growth. Remote viewings and online sales have boosted sales of condos, apartments and detached family homes. All are enjoying strong demand as world economies pick up and investors, retirees and international travellers look for stellar returns and the dream of a tropical island lifestyle.
Thanks to a strong economy, a stable government, a welcoming business philosophy, and a growing, wealthy population, demand for housing is strong. The real estate sector continues to attract foreign property and land buyers.
This is no surprise, given the many advantages that the Cayman Islands property market offers the canny investor.
Firstly, there are no restrictions on foreign ownership if the property is for personal use. Then there is the Cayman Islands’ ‘tax-neutral’ approach to government funding, meaning the administration raises revenue through stamp duties, import duties and licence fees, not direct taxation.
No direct taxes means no income tax, no capital gains tax, no inheritance, withholding or property tax. A coordinated real estate brokers arrangement operating under the umbrella of Cayman Island Real Estate Brokers Association (CIREBA), along with the Cayman Islands’ efficient legal system and land registry services, ensures a swift and secure property buying experience. Property transactions and transfers are usually processed within two weeks, often less, saving buyers time and money.
The lands registry system maps every plot of land. Allocates a title number based on its location and records it in a central land registry. Details of any mortgages, rights-of-way and any cautions are also included in the title register of that parcel of land.
After purchase, the property can be passed on without penalty to family members, and vacant land can be owned and held for future investment potential with no restriction. Property investment also opens the door to a residency visa if that is a goal. And local banks are often willing to consider non-residents for mortgage loans and bank accounts in the Cayman Islands if they meet income requirements.
The very active Cayman Islands real estate market has enjoyed a high ROI for almost 20 years with little fluctuation — even during the pandemic, following a trend seen in other global investment property markets such as London and Vancouver, where demand actually picked up as people rethought their investment and lifestyle options. Rentals in Grand Cayman have hardly moved from their average of around CI$2,000 a month pre-pandemic.
Most interest in property for sale in the Cayman Islands, of course, centres around the famous Seven Mile Beach and areas of the capital George Town, where anything with beach access commands premium prices. But many other residential areas are also enjoying a property boom as developments and projects planned before the pandemic come online and are quickly snapped up amidst strong demand from locals and foreigners.