This section provides detailed information on how to find a home in the Cayman Islands. We give an overview of the residential areas of Grand Cayman. We talk about renting or buying a property in the Cayman Islands and we even give you insider wisdom on what pitalls to avoid. Finally we list temporary accommodation to tide you over for your first few weeks in Cayman.
Overview of The Cayman Property Market
The real estate market in Cayman is simple and straightforward. Apart from a one-time stamp duty, there are no annual property taxes or restrictions on foreign ownership by individuals and title is granted and guaranteed by the Cayman Islands Government. Title to land is recorded in a modern, reliable and centralised land registry, where every plot of land is mapped and given a descriptive title number based on its location. Any encumbrances such as mortgages, rights-of-way and cautions pending contract are recorded on the title register of that parcel of land. Vacant land can be owned and held for future investment potential. To date, Cayman real estate has proved to be an attractive and profitable investment. Most law firms in Cayman have attorneys who are experts in property law and it is recommended to consult one before signing a contract. Fees are negotiable, but usually less than 1% of value. Owning land in the name of a corporation is possible, but there are strict rules to be followed and a lawyer's advice will be essential.
Buildings are subject to planning controls and are required to be constructed to high standards: These are monitored by the Cayman Islands' Building Control Department, which carries out inspections on such things as building sites, plumbing and electrical work. Construction companies now have to follow the guidelines of the newly gazetted Builder's Law. Construction materials have to be imported and are subject to duty on the landed value, usually at 20%. Consequently, the cost of building is considerably higher than in places where materials are more readily available. Houses, apartments, condos and townhouses are available for purchase, as are time-shares. Prices vary depending upon location, size, design and other features. Water and beachfront properties, particularly those on Seven Mile Beach, command high prices.
The Cayman Islands Real Estate Brokers Association
Buying and selling properties in the Cayman Islands in the 1970's and 1980's used to be a bit of an ordeal: All real estate companies kept new listings to themselves; some realtors were better trained than others; some charged higher commissions than others, and not everyone followed the highest standards of business practices. In 1987 a number of realtors agreed to form The Cayman Islands Real Estate Brokers Association (CIREBA) which is based on the North American style of relationship between realtors.
Today the association has 187 sales associates from 30 member companies- 80% of all realtors in the Cayman Islands. All CIREBA listings are kept in a central database, known as the Multiple Listing System, or MLS, that can then be accessed by any member agent. The MLS encourages close working relationships between customers and individual realtors, indeed, most realtors say that it is important that customers pick a good realtor that they can work with and then stick with them exclusively, as all members have access to the MLS database.
One of the associations founding aims was to "improve and elevate the general knowledge of persons engaged in the real estate business". They have a customized training course that all realtors must pass before they can start working with customers and clients and gain membership of the association. The programme takes into account legislative matters, business ethics and due diligence requirements (which are among the toughest in the world).
Current Overview of the Property Market (Stats from CIREBA)
Currently in the Multiple Listing System there are 2,030 active listings totalling US$1.62 billion. The average amount of time a property is on the market is 259 days. There are 111 three bedroom homes on the market at an average price of US$666,250. There are 458 two bedroom condominiums listed Island-wide with an average price of US$525,000. There are 567 residential/agricultural parcels of land for sale island-wide at an average of US$388,000. To date so far this year (June 2007) 259 listings have been sold, amounting to US$175.2 million. There are 373 properties that are under contract and scheduled for closing amounting to US$184.6 million. This is mainly from sales that were done last year and pre-construction properties that have not yet completed. Over the last year the association has seen the average movement in price from listing price to sales price to be at 6% for the 317 sold condominiums with average days on market of 417 days. Residential homes have seen an average movement in price from listing price to sales price of 12% for the 86 homes sold, with an average days on market of 301 days. Residential/agricultural parcels of land have seen a 12% movement for the 194 parcels sold and they have been on the market for an average of 439 days.
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