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October 18, 2021

The Next Wave Is Coming And Its Impact Will Change The Market

After we were released from lockdown, last summer, when COVID first hit, we had a huge wave of demand for real estate.  Cayman had been locked down for about 3 months with virtually no real estate sales activity.  Right after lockdown, an unprecedented wave of sales activity began. 

This strong demand was from both overseas investors buying “sight unseen” and our local residential market trading up and purchasing investment properties.  Our existing real estate inventory was already limited and quickly sold down, across the board.  Even the many new preconstruction developments sold out, or very close to it.

After a year of frantic sales activity, we now have a more limited supply of existing property and preconstruction developments available for sale.  However, in the last few months, sales activity has fallen off to a crawl.  But, not for long, as we await a new tidal wave of demand!

This next wave of strong demand occurs as we open our borders, which is expected/hoped to happen by the end of this year.  An enormous pent-up demand from new residents, visitors, and tourists, who have patiently waited to come here before they buy, is on its way.  This buying wave is about to hit a real estate market that has not yet been fully replenished but is slowly gaining more inventory with new listings and new preconstruction developments.

The problem for the next wave of Purchasers is twofold.  Our lower, current supply of inventory is going to sell off quickly and prices will increase and stay elevated, as the supply diminishes.  Any future new development to replenish our supply of real estate inventory will be much more limited going forward, as land and development sites are more scarce, so less choices will be available in the future.

Goldman Sachs has just announced that US home prices will increase another 16% by the end of next year.  Cayman’s real estate prices have the potential to easily surpass this increase, as we have more compelling reasons for a stronger upswing in prices.  Still, that’s an impressive return on investment in just over a year, wouldn’t you say?

To capitalize on this trend and procure a good long-term investment and have a hedge against inflation, while locking in the best prices, you really only have one option.  You will need to move quickly, when we open up and buy in early along with the smart money.  Those who wait are going to miss out on the best prices and availability.

In order to realize these 16% Goldman Sachs type gains, two of the best investment options are summarized below.  They are at the very top of the market and are the most exclusive Seven Mile Beach preconstruction developments in their categories:

1) LACOVIA “RENTAL INCOME” – This new preconstruction development is the market leader among new rental income investment property on Seven Mile Beach.  It has tremendous appeal to the most affluent visitors and tourists.  Not only is the architecture and design absolutely stunning, but it has without question the best location on Seven Mile Beach.  Definitely unsurpassed for beach quality and consistency, most upscale area of development on the beach, and an uber-premium location for any and all conveniences within easy walking distance.  Preselling now at the first offering of prices – but, they won’t stay there for long.  Truly not one to miss!

2)  WATERMARK “RESIDENCES” – Simply the most exceptional residential development on Seven Mile Beach.  Once again, this award-winning Developer has not only raised the bar, but created an amazing bespoke property so unique and comprehensive, it has become one of the most sought after developments ever.  Perfect beach, vast array of ultra-luxurious facilities and services, and the ultimate in privacy and security, the residences at Watermark surpass anything else in Cayman and likely the Caribbean.  Unrivalled for the very best in beachfront residences.

In addition to the very top of the market, Cayman is fortunate to boast a broad range of various types of development across a wide price spectrum.  While currently, a good choice of properties is available – we have not yet opened to new residents, visitors, and tourists, so this will quickly change.  

Whether for a personal residence, vacation residence, or investment property, the available properties listed below provide a comprehensive range across all levels of investment.  Please contact me to assist with any personal requests.  I have over 35 years of real estate experience in Cayman, so know this market well.

Remember the caveat previously discussed - move quickly when you are here!  This market is very dynamic and fluid.  Available inventory across all of these levels will reduce rapidly, once our borders open.