The Cayman Islands real estate market has kicked off 2024 with remarkable momentum, showcasing impressive performance in the first half of the year. According to data from the Cayman Islands Real Estate Brokers Association (CIREBA), the market saw over 200 sales totalling more than US$250 million in the first quarter alone, setting a record high for Q1 and marking the third-largest sales volume for any quarter on record.
This positive momentum continued throughout the following months. CIREBA’s report, covering January to June 2024, revealed that 452 units were sold, reaching a total value of US$573.8 million. This impressive figure surpasses the half-billion mark by the end of the second quarter, highlighting the market’s robust growth and resilience.
The consistent demand and significant sales volumes reflect a dynamic and thriving real estate environment in the Cayman Islands, setting the stage for continued success in the latter half of the year.
Experts attribute the strong Q1 performance partly to speculation that the Federal Reserve may lower interest rates in the coming 18 months, increasing mortgage affordability. This optimism has helped fuel the market’s upward trend. Additionally, the scarcity of available land in prime locations, especially along the coveted Seven Mile Beach corridor, continues to drive property prices higher.
Land sales were particularly strong in the second quarter, contributing US$56.1 million, or 9.8% of total Q2 sales. Over half of this came from three beachfront properties designated for hotel and tourism development, which alone generated US$28.5 million. Low-density residential land also performed well, with 38 of 85 properties sold in this category, bringing in an additional US$14 million.
Overall, the Cayman Islands real estate market has shown steady growth with ongoing demand. Population growth and a slowdown in new development have contributed to limited inventory, sustaining firm property pricing. While mid and entry-level properties have experienced slower movement, there has been an uptick in inquiries from a new class of buyers, driven by negotiable sellers and a growing acceptance of current lending rates. As we look ahead to the second half of the year, the market is well-positioned to maintain its strong performance, with potential interest rate cuts and continued demand likely to drive future growth.
With the market thriving and opportunities abundant, now is the perfect time to explore your options. Contact Oasis Land Development Ltd today for expert advice and personalised listings tailored to your needs. Our experienced team is ready to help you find your perfect property in the Cayman Islands.