Are wealthy buyers returning to the Caribbean?

JC Calhoun, Broker and Owner of Coldwell Banker Cayman Islands Realty researches, writes and publishes his well known and much awaited Market Report bi-annually. 

In his latest report JC notes a "freshening in the market" and a "definite increase in activity". As realtors and brokers, staying on top of global real estate trends is a vital part of what we do. As we peruse reports we find that, in tandem with JC's predictions and thoughts, investors from the United States, Europe, and Canada have started seeing real buying opportunities and are showing renewed confidence in the Caribbean Market.  

UK, USA and Canadian buyers still represent the largest component of foreign demand across the Caribbean and higher disposable incomes from the mid market are looking at the $2.5 to $4.5 million dollar properties. 

The weak USD has also caused European investor interest in the Caribbean with an increase of enquires from Sweden, France and Eastern European countries. For example, a European investor looking at purchasing a $2 million property in Barbados would have paid $1.53 million in 2010. In 2013, due to currency rates and price movements, the same property would cost the buyer closer to $1.26 million. 

Prime prices softened on Grand Cayman in 2013 but, in tandem with JC's report, activity is rising, which is an indication of renewed confidence and limited new supply. Sales in 2013 were focused on Seven Mile Beach, South Sound and the Eastern Districts. 

It is estimated that prime prices slipped by around 5% on Grand Cayman in 2013 but it is also predicted that price growth will remain fixed in 2014. Sales have been particularly strong in the $1 million to $5 million price bracket with interest from US, Canadian and British buyers as previously noted.