11 FINDING A HOME

Finding a Home

Overview of Cayman’s residential areas, renting guidelines, resources for finding a place to live, buying a property and temporary accommodation.

Overview of the Property Market 150 -Homes & Land 152 - Condos & Apartments 152 - New Developments 152 - The Real Estate Industry in Cayman 154

Photos courtesy of Jonathan Sparrow and Design Cayman

Overview of Residential Areas 156 - Grand Cayman 156 - Cayman Brac 167 - Little Cayman 167

Buying a Property 168 - Stamp Duty & Other Charges 169 - Legal Conveyancing 169 - Mortgages & Borrowing 170 - Insurance Required for Mortgages 171 - Strata Titles 171 - Property Valuations & Appraisals 171 - Pitfalls to Avoid 172 - Home Inspections & Site Surveys 173 - Property Management Services 174 - Realtors - Sales 175

Renting a Property - Starting Your Search - Related Costs - Realtors - Rentals 177 177 178 179

Temporary Accommodation 179

OVERVIEW OF THE CAYMAN PROPERTY MARKET

During the first eight months of 2021, Cayman’s real estate sector was as active as it has ever been. Government initiatives like the Global Citizen Concierge programme (designed to attract digital nomads and their families), and the granting of Residency rights through real estate investments allowed qualifying individuals to relocate to the Cayman Islands with minimal red tape.

These attractions sustained international investment interest, despite ongoing border closures, and sales continued to go ahead ‘sight unseen’ or via Zoom viewings. If that was not enough to catapult market values towards exponential growth, the lockdown period of 2020 inspired some locals to review their lifestyles and upgrade to homes with more office space or outdoor living area; while other homeowners, especially those at the very high end, benefitted from realtors who were eager to make a match, knocking on their doors and proposing a price!

However, this past year also shone a spotlight on the negative impacts of Cayman’s open housing market. A high demand for properties combined with a dwindling inventory has drastically inflated prices. Entry-level homes presently start at around CI$300,000, with many banks requiring a down payment of at least 10% – and this doesn’t account for additional administration fees! Many young Caymanians or lower-income families are finding themselves priced out of the market and unable to compete with high-net-worth bidders from overseas who are prepared to pay

upfront. While stamp-duty is waived for first time Caymanian buyers, there are increasingly few properties available on the market below the qualifying price point. The Government has proposed further concessions to mitigate these issues, however, industry experts argue that certain solutions, such as placing restrictions on foreign investments, could instead discourage necessary development and destabilise the economy. Although the current real estate climate is great news for sellers, home ownership is an important part of future social stability, and we hope 2022 brings further partnership between private developers and the Government as they seek more sustainable and effective development solutions.

Homes While the number of available properties on Island has been steadily dropping by an average of 15% per year and there was a notable decrease in the number of sales recorded during the first wave of the pandemic, 2021 witnessed a huge increase in the number of singlefamily home sales, 18% higher than even the pre-pandmic figures in 2019. The average sales price was also 53% higher in 2021 than in 2020! Presently, a 2-bedroom cottage in Cayman Brac goes for US$205,000 and a South Sound waterfront palace in Grand Cayman goes for US$49,950,000 (September 2021)!

Land After 2020’s up-and-down year for land sales due to the overall global climate, the first half of 2021 saw a restabilising and gradual increase in certain areas. 72% more Low Density Residential land parcels were sold in the first half of 2021 versus the same period of 2020, with the average price being 53% more than last year. These lots are often sold for single-family homes in more attractive areas and are more expensive than others. In contrast, 73% fewer Medium Density Residential land parcels were sold in the first half of 2021 and 50% fewer High Density Residential land parcels were sold. Many of these parcels were sold over the past few years leaving Cayman with a lack of supply in this category. For Beach Resort Residential land parcels, 200% more were sold during the first half of 2021, compared to the previous year! These are development parcels and are considered a longer-term play, which is always a preferred option for purchasers if they can afford it.

Condominiums & Apartments Condos will always be in greater demand than other residential options in a resort location like Cayman. According to CIREBA records, there were 471 condos available for sale across Cayman, as of August 2021, the majority of which were either pre-construction units or in-land developments. A whopping 97% more condos were sold in the first half of 2021 vs 2020. Presently, a 1-bed unit in West Bay goes for CI$305,000, while a 4-bed on Seven Mile Beach at the Watermark is priced between CI$8-10 million.

However, you should keep in mind the longer you expect to stay in Cayman, the less this lifestyle will fit, as many condos are designed for short-term stays both in their physical designs and in their by-laws. Before making a purchase, read the Strata By-Laws to ensure they meet your personal requirements and review strata or condominium fees to determine if any assessments are pending and whether insurance payments have been factored in.

It is also worth noting that many of the Island’s new-builds are trending towards smaller unit sizes with equally, if not higher price-points, depending on the area. Existing units are only coming on the market if the pricing will allow sellers to realise a profit. Nobody really wants to sell their Cayman property, but sometimes appreciation makes a sale logical. A change of living circumstances (age, divorce, downsizing, etc.) can also incentivise the sale of a cherished property. Many property owners in the SMB area live abroad and rent their units out for the majority of the year. New Developments As always, the Seven Mile Beach area is thriving. Construction began in 2021

on the 10-storey Grand Hyatt Residences located on Pageant Beach. The 351-room hotel will contain 167 residential units and amenities to include five on-site restaurants and bars, a sandy ocean lagoon and a worldclass spa and fitness facility. Studios and 1-to-3-bedroom units are priced between US$643,000 and US$7.1 million. Agua will offer residents modern beachfront luxury that seamlessly blends indoor and outdoor living spaces. With only 10 units split across 10 storeys, residents can choose from four different, full-level floorplans, each benefitting from large private, waterfront terraces. Prices start from US$3.5 million. The Watermark, which is going up between the existing Avalon and Harbour Heights complexes, will provide residents of the 54-unit development with five-star, resort-style amenities and services. 4- and 5-bedroom units remain available, with prices ranging from US$8-10 million. Lacovia is being remodelled into a threebuilding, multi-storey, contemporary development comprising of 3 to 5-bedroom units, all outfitted with luxury appliances and bespoke finishes. Prices range from US$5.4-9.5 million.

Also along the Seven Mile Beach

corridor are the Residences at Magellan Quay. Each 2-storey, 3-bedroom house boasts ample square footage and 0.2 acre of land per residence. Pricing information is available upon request from Edgewater Development. Baraud Development introduces: Lotus at Canal Point, a zeninspired intimate community of only 20 luxury townhouses, with prices from CI$895,000; and TWENTY40, modern 3-bed/2.5 bath townhouses in Governor’s Harbour with dock access, private driveways, and carports. Pricing starts at CI$625,000 pre construction.

Further west is the ongoing development of an area that has come to be called the North West Point Corridor. Serrana is an upcoming ultra-modern, low-density development with only 18

residences, each with panoramic ocean views. Prices start from CI$3 million. SeaDreams, a luxurious 8-unit, 4-storey oceanfront boutique complex will also be located on North West Point Road. With 4 storeys and only 2-units per floor, residents will enjoy large living spaces and fantastic amenities including a pool and BBQ area. Units start at just over US$1 million. Salt Air Townhomes, with 2 and 3+ dens and 4 bedroom configurations, present a stunning opportunity to purchase a brand new preconstruction townhome in a family and pet-friendly, private gated neighbourhood in The Shores. Moving inland, you’ll find

The Meadows at Batabano, which redefines Island living, combining old Caymanian design elements with modern functionality and facilities. Choose between 1- and 3-bedroom units.

There has been a renewed interest in the George Town area by developers of recent years and presently there are several projects underway. The Bentley is a conveniently located, fully gated community, comprising of 2- and 3-bedroom units that start from CI$512,000. Catalina Bay presents a unique opportunity for ocean-front living adjacent to the existing Barcadere Marina. Residents will enjoy 800 ft of sea frontage, and a 170 ft freeform pool. 3 bedroom units start from US$1.7 million. On the George Town waterfront sits FIN, a 36-unit residential development that boasts a private beach, salt water lagoon, elevated glass-bottom pool and five-star services and amenities. Pricing starts at US$2.3 million. On the cusp of George Town and the Seven Mile Beach area is Kailani, Cayman’s first luxury wellness and business boutique hotel, developed by NCB group in partnership with the Curio Collection by Hilton™. Investors will have access to their suite for two weeks per year for their own personal use. Kailani's 1-3 bed suites range from US$575,000 to US$5 million. The South Sound area shows no signs of slowing down. Davenport Development introduces Bahia where residents can enjoy amenities typical of a high-end resort: boasting open roof terraces, an Olympic training pool and 200m ‘resort’ pool, tennis courts and yoga studio, a clubhouse and full-time, on-site property manager. Units are priced between US$580,000 and US$1 million. South Bay Residences by Palmyra Developments offer spacious waterfront living, fitted with luxury amenities in a lush, landscaped setting. Indigo Bay, located in eastern South Sound, is a luxury development comprising of 29 oceanview villas. Communal amenities include private dock and gazebo, pet-friendly Indigo Park, roof top patios, jacuzzi and on-site, multi-purpose community centre. Pricing is between US$890,000 and US$1 million. Starting at US$689,000, Privé by Baraud Development comprises of 36 townhouses and 16 homes nestled within a 6-acre South Sound site. Amenities include an on-site water park. Nearby, The South Sound Collection is carefully designed to allow for decadent exclusivity in the heart of South Sound. Choose from 4-bed/5bath townhouses which each benefit from private rooftop terraces and unobstructed waterfront views.

Neighbouring South Sound in Grand Harbour is Allure, which will hug the coastline and offer unimpeded views of the North Sound for sophisticated Island living at its best. Featuring 2- and 3-bedroom luxury condos and a wide range of amenities, pricing starts from US$870,000. Arvia will be a single-phase development, located on the Grand Harbour Canal, comprising of 96 condos, and interestingly the first approved aerial subdivision on-Island. The condos will be clustered around a small, marina-like set of docks, ensuring each home has a view of the waterway. The units will range in price from US$606,353 to US$834,486. In the Red Bay area, is Paraiso, built by Smith Development. This exclusive, residential community located on the serene banks of the North Sound offers indoor/outdoor living. All 12 units boast their own boat dock, large private patio area, green space and individual plunge pool. Pricing starts at US$1 million.

Looking towards the Island’s Eastern districts, you’ll find Silver Reef, a private beachfront development in North Side boasting several resort-style amenities, including a yoga platform, zen garden, 40’ heated oceanfront saltwater pool and more, priced from CI$870,000. Then, Ocean Vista offers 2- and 3-bed units with modern finishes, a mile away from Health City, starting at CI$300,000.

The Real Estate Industry in Cayman Pre-1980, Cayman’s real estate market could best be described as the Wild West. There were no real estate laws, no safeguards, and no consistency of business practices except that it was every man for himself. In 1987 a group of local realtors agreed to work together and founded

the Cayman Islands Real Estate Brokers Association (CIREBA). Their purpose, as a not-for-profit organisation, was to try to regularise the industry for the benefit of buyers, sellers, and realtors. They created a hybrid of the US and Canadian real estate systems of that time, added a sprinkling of the most acceptable Cayman market norms of the day, and wrapped it all in British Law. Not only did that lead to the Caribbean’s first Multiple Listing System (MLS), but also to a 3-part course of study for brokers and agents, including entrylevel testing and continued education, a required code of ethics and comprehensive set of rules and regulations with penalties for noncompliance. In short, CIREBA became the gold standard for the Cayman real estate industry and eventually its quasi-regulatory body. This meant the industry did not have to be regulated by Government, which has been a bonus for all concerned.

To say that CIREBA was a significant contributor to what the Cayman real estate industry is today would be a gross understatement; there is no way our industry would have approached its current levels without CIREBA. There is still nothing close to it anywhere in the Caribbean – although it has been copied elsewhere, often with help from CIREBA.