Cayman is quickly opening up and has just cancelled post arrival testing requirements, as COVID restrictions are starting to fall away. More airlines are flying back into Grand Cayman, ramping up their number of flights and gateways. We are quickly getting back to normal.
Lacovia is in a unique position to benefit from some market dynamics that will work very much in its favour. These will positively impact Lacovia sales and prices, not only during their construction phase, but right through to completion and afterwards. As an example, the current top listing prices for the most prestigious properties, like Lacovia, are at US$2,450 per square foot and increasing. Yet, Lacovia’s pre-construction prices are still much less than this, for now.
Compare the per square foot cost, to recent sales within the last year, at a random summary below of other popular Seven Mile Beach condominium developments:
Lacovia is currently the only brand new Seven Mile Beach development starting construction, this year – yet its prices are almost the same as these existing properties, some of whom are over 40 years old.
Going forward, development on Seven Mile Beach will slow, which is already happening. Acquiring beachfront development land is becoming much more difficult and expensive. The bottomline: Lacovia is an absolute bargain for this level of sophistication, location, facilities, and amenities!
Over the foreseeable future, resales of new and existing condominiums will benefit from a falling supply and high demand, pushing prices higher in a shrinking pool of available residences. Lacovia is now the best and almost only option for the upper end of the market. It has an unparalleled location and can still offer a broad choice of residences.
Within the next 3 to 5 years, prices are expected to reach US$3,000 per square foot – about a 50% increase from Lacovia’s current average selling price. And this will still be far below the premium real estate prices in other resort locations around the world, most of whom have a lot less to offer than Grand Cayman.
Within 5 to 10 years, we will catch up. There is an increasing international awareness of how much Cayman has to offer new residents and investors. So, why wouldn’t you buy now?
Another push to real estate prices will come from the enormous infrastructure improvements in Grand Cayman, which are accelerating. More restaurants, shops, entertainment facilities, etc. are becoming available through new commercial developments like the Grove on West Bay Road and several other similar mixed-use developments that are planned for the Seven Mile Beach corridor. Camana Bay continues to expand and contribute more facilities at a very high level of quality.
New hotels are under construction including the 5 Star Grand Hyatt, 4 Star Kailani Curio by Hilton, and 5 Star Mandarin Oriental (starting construction in April). More new roads and better access throughout Grand Cayman is ongoing. Our airport is planning another expansion. All this helps drive demand for real estate investment and a sense of urgency now prevails, as it becomes apparent that prices will be higher and choices more limited.
Every year, Grand Cayman becomes a more desirable place to visit and reside. It will truly not pay for you to wait to invest!