The real estate market in the Caymans is a unique one affected by the international impact of competition for a share of the small island paradise. Retirees, expatriates, locals, and holiday seekers all want a piece of the pie, and the Caymans attract major corporations and individual investors alike. Lucrative income from vacation property rentals, short and long term capital gains potential, and the absence of traditional real estate taxes make the Caymans a magnet for real estate dollars from all over the world. About half of all properties in the Caymans are owner-occupied.

With several large developments underway, including a major resort project by Ritz-Carlton, prices are expected to rise steadily over the next few years (i.e. from 2005 onward). The Ritz project for example, will increase the value of land near it while simultaneously bringing about 1,000 new employees to the area who will need housing. Prices of homes near the Ritz-Carlton (expected to open in 2006) are expected to start around CI $2,500,000.

Current construction costs average CI $300 per square foot; costs including land value and furnishing are usually at least twice that amount.

The Cayman Islands Real Estate Broker's Association follows strict rules and regulations, and uses a Multiple Listing Service system similar to those used by real estate professionals in the USA and Canada. The association publishes a magazine of listings, and this can be obtained upon request, free of charge. Extensive information is also available through the association's web site: http://www.cireba.com/

No restrictions on foreign ownership of property exist. Title is granted and guaranteed by the Cayman Islands Government, and the land registry system is modern, reliable, and centralized. Vacant land can be owned and held for future investment potential, and there is no annual property tax.

Cayman's Building Control Department supervises building codes and inspections of such things as building sites, plumbing, and electrical work. Because construction materials have to be imported, costs per square foot are considerably higher than they are in other places where materials are readily available.

Houses, apartments, condos, and townhouses are available for purchase, and time-shares are also available. The prices vary widely depending upon location, size, design, and other features. Seven Mile Beach is the most expensive, and a vacant beachfront lot in that location can cost millions of dollars. Grand Cayman prices are higher than those on the smaller islands.

Because of the presence of so many financial institutions in the Caymans, mortgage lenders are abundant and rates are competitive. Many loans are written for shorter terms of 10 and 15 years, versus the traditional 30-year loans that are commonplace in other markets.

Typical price ranges

Condo

2 bedroom / 2 bathrooms $100000 to $1100000 (Plantana Condo's on SMB)

3 bedroom / 3 bathroom $200000 to $9000000 (The Ritz Carlton, being built on SMB currently)

Residential House

2 bedroom / 2 bathroom (townhouse) $150000 to $500000

3 Bedroom / 3 bathroom, $200000 to $5000000 (Private Gated Community, Vista Del Mar)