With 2010 one of the worst in recent times in terms of real estate sales for the Cayman Islands, brokers across Grand Cayman are predicting a slight upswing this year, but warn that plans by government to lift the economy need to take effect to make it happen. Kim Lund, Owner/Broker with RE/MAX, said that 2011 will still be another slow and painful year for real estate sales, as the tepid US economic recovery starts to slowly have some impact in Cayman by mid 2011. “Sales should start picking up this year but it will only be the very best properties with the most beaten down prices that sell. There will be precious few properties that really sell for market value in 2011,” he confirmed.

Lund said there are two viable possibilities for the huge real estate tale of 2011. “One is a mega resort for the hundreds of acres currently owned by Thomas Enterprises, north of the CI Yacht Club. New financing has recently been place in place on this property, indicating there may be some activity brewing. The other is a boom of resort development, just north of the public beach on West Bay Road, if government agrees to go West Bay Road back to the east, so that it runs behind the vacant Courtyard Marriott Hotel. This would vastly increase the amount of developable beachfront on Seven Mile Beach,” he stated.

Following announcements last week, Lund’s wishes may well come right as the premier told the CBO on Thursday that the road is very likely to be went now that Dart have bought both the land and the Courtyard Marriot. But, the Camana Bay developer has not offered a timeline for developing the area and has described it as a future opportunity.

Regardless of the situation concerning the Courtyard Marriot, RE/MAX broker Kass Coleman says that everyone from their RE/MAX office feels that 2011 will be a minimum of 10 to 40 per cent better than last year and the year before. “Buyers feel the fog has cleared and they are making decisions and getting on with their real estate plotting and purchasing,” she said.

Although optimistic in the long term, Mike Joseph, also a broker with RE/MAX, feared the downturn in the industry had not yet passed Cayman by.

“The instability and uncertainty in many respects, locally and internationally, have been very influential despite the opportunities made in a recessionary market. Simultaneously the market believes that prices will drop further and are waiting for new opportunities this year. 2009 and 2010 saw reductions in pricing in many of the sectors of the local property market yet the number of transactions were still suppressed,” he confirmed.

Not only have North American investors (traditionally Cayman’s largest market driver for real estate) been nervous about spending during a recession, but the contraction in Cayman’s population has also hit the real estate industry hard.

Joseph clarified, “The contraction in population has negatively affected the rental market for landlords/property investors and in turn developers who have been left with completed but unoccupied units. Sales prices therefore have been reduced in order to generate sales and the local residents are seeing these opportunities but with a continued lack of confidence, they have still remained apprehensive to buy.”

Joseph believed that the slew of projects waiting in the wings will kick start investment in real estate.

“We need to see certain developments and projects, thoughts and concepts break ground,” he said. “Delays make more uncertainty. We need the new cruise berthing to start, the runway to be lengthened, the Shetty Hospital to proceed, along with other projects. Collectively these add value to the Cayman product and in turn will encourage activity once more.”

Joseph says the industry itself has been working hard to generate business. “The excellent news is that we haven’t been sitting still waiting for the storm to pass us by, the local industries and representatives have been actively reviewing and considering how to weather the storm small term and importantly how to emerge with wind in our sails. CIREBA has been and continues to consider our collective new reality, the Chamber of Commerce has been integral in making a public-private cross aisle review with the Future of Cayman Forum.”

Sheena Conolly, Owner/Broker with Sotheby’s International Realty, Cayman Islands said that the investment climate has changed and some have recognised that prices have dropped considerably and that now is a excellent time to buy.

“We are seeing signs from executives who are already established in Cayman, looking to go up the property ladder to capitalise on the down market. Interest rates have remained low and once potential buyers feel comfortable that Cayman is home and they have a reasonable sense of tenure, they are surely smart to buy now,” Conolly confirmed. 
She said that overseas vendors who really need to sell are now pricing more competitively than before to go the real estate asset.

“Historically there was rarely the same urgency or financial need to sell, as the Cayman property could rent if needed. Times have changed.”

She added, “Confidence is everything, and once Cayman starts to get active with some new projects like Dr Shetty’s hospital, the George Town cruise terminal and others, there could quickly be an upsurge of positive activity – and on these small islands, the trickle down effect can flow quickly.”

More Cayman Resorts Articles

With 2010 one of the worst in recent times in terms of real estate sales for the Cayman Islands, brokers across Grand Cayman are predicting a slight upswing this year, but warn that plans by government to lift the economy need to take effect to make it happen. Kim Lund, Owner/Broker with RE/MAX, said that 2011 will still be another slow and painful year for real estate sales, as the tepid US economic recovery starts to slowly have some impact in Cayman by mid 2011. “Sales should start picking up this year but it will only be the very best properties with the most beaten down prices that sell. There will be precious few properties that really sell for market value in 2011,” he confirmed.

Lund said there are two viable possibilities for the huge real estate tale of 2011. “One is a mega resort for the hundreds of acres currently owned by Thomas Enterprises, north of the CI Yacht Club. New financing has recently been place in place on this property, indicating there may be some activity brewing. The other is a boom of resort development, just north of the public beach on West Bay Road, if government agrees to go West Bay Road back to the east, so that it runs behind the vacant Courtyard Marriott Hotel. This would vastly increase the amount of developable beachfront on Seven Mile Beach,” he stated.

Following announcements last week, Lund’s wishes may well come right as the premier told the CBO on Thursday that the road is very likely to be went now that Dart have bought both the land and the Courtyard Marriot. But, the Camana Bay developer has not offered a timeline for developing the area and has described it as a future opportunity.

Regardless of the situation concerning the Courtyard Marriot, RE/MAX broker Kass Coleman says that everyone from their RE/MAX office feels that 2011 will be a minimum of 10 to 40 per cent better than last year and the year before. “Buyers feel the fog has cleared and they are making decisions and getting on with their real estate plotting and purchasing,” she said.

Although optimistic in the long term, Mike Joseph, also a broker with RE/MAX, feared the downturn in the industry had not yet passed Cayman by.

“The instability and uncertainty in many respects, locally and internationally, have been very influential despite the opportunities made in a recessionary market. Simultaneously the market believes that prices will drop further and are waiting for new opportunities this year. 2009 and 2010 saw reductions in pricing in many of the sectors of the local property market yet the number of transactions were still suppressed,” he confirmed.

Not only have North American investors (traditionally Cayman’s largest market driver for real estate) been nervous about spending during a recession, but the contraction in Cayman’s population has also hit the real estate industry hard.

Joseph clarified, “The contraction in population has negatively affected the rental market for landlords/property investors and in turn developers who have been left with completed but unoccupied units. Sales prices therefore have been reduced in order to generate sales and the local residents are seeing these opportunities but with a continued lack of confidence, they have still remained apprehensive to buy.”

Joseph believed that the slew of projects waiting in the wings will kick start investment in real estate.

“We need to see certain developments and projects, thoughts and concepts break ground,” he said. “Delays make more uncertainty. We need the new cruise berthing to start, the runway to be lengthened, the Shetty Hospital to proceed, along with other projects. Collectively these add value to the Cayman product and in turn will encourage activity once more.”

Joseph says the industry itself has been working hard to generate business. “The excellent news is that we haven’t been sitting still waiting for the storm to pass us by, the local industries and representatives have been actively reviewing and considering how to weather the storm small term and importantly how to emerge with wind in our sails. CIREBA has been and continues to consider our collective new reality, the Chamber of Commerce has been integral in making a public-private cross aisle review with the Future of Cayman Forum.”

Sheena Conolly, Owner/Broker with Sotheby’s International Realty, Cayman Islands said that the investment climate has changed and some have recognised that prices have dropped considerably and that now is a excellent time to buy.

“We are seeing signs from executives who are already established in Cayman, looking to go up the property ladder to capitalise on the down market. Interest rates have remained low and once potential buyers feel comfortable that Cayman is home and they have a reasonable sense of tenure, they are surely smart to buy now,” Conolly confirmed. 
She said that overseas vendors who really need to sell are now pricing more competitively than before to go the real estate asset.

“Historically there was rarely the same urgency or financial need to sell, as the Cayman property could rent if needed. Times have changed.”

She added, “Confidence is everything, and once Cayman starts to get active with some new projects like Dr Shetty’s hospital, the George Town cruise terminal and others, there could quickly be an upsurge of positive activity – and on these small islands, the trickle down effect can flow quickly.”

More Cayman Resorts Articles

With 2010 one of the worst in recent times in terms of real estate sales for the Cayman Islands, brokers across Grand Cayman are predicting a slight upswing this year, but warn that plans by government to lift the economy need to take effect to make it happen. Kim Lund, Owner/Broker with RE/MAX, said that 2011 will still be another slow and painful year for real estate sales, as the tepid US economic recovery starts to slowly have some impact in Cayman by mid 2011. “Sales should start picking up this year but it will only be the very best properties with the most beaten down prices that sell. There will be precious few properties that really sell for market value in 2011,” he confirmed.

Lund said there are two viable possibilities for the huge real estate tale of 2011. “One is a mega resort for the hundreds of acres currently owned by Thomas Enterprises, north of the CI Yacht Club. New financing has recently been place in place on this property, indicating there may be some activity brewing. The other is a boom of resort development, just north of the public beach on West Bay Road, if government agrees to go West Bay Road back to the east, so that it runs behind the vacant Courtyard Marriott Hotel. This would vastly increase the amount of developable beachfront on Seven Mile Beach,” he stated.

Following announcements last week, Lund’s wishes may well come right as the premier told the CBO on Thursday that the road is very likely to be went now that Dart have bought both the land and the Courtyard Marriot. But, the Camana Bay developer has not offered a timeline for developing the area and has described it as a future opportunity.

Regardless of the situation concerning the Courtyard Marriot, RE/MAX broker Kass Coleman says that everyone from their RE/MAX office feels that 2011 will be a minimum of 10 to 40 per cent better than last year and the year before. “Buyers feel the fog has cleared and they are making decisions and getting on with their real estate plotting and purchasing,” she said.

Although optimistic in the long term, Mike Joseph, also a broker with RE/MAX, feared the downturn in the industry had not yet passed Cayman by.

“The instability and uncertainty in many respects, locally and internationally, have been very influential despite the opportunities made in a recessionary market. Simultaneously the market believes that prices will drop further and are waiting for new opportunities this year. 2009 and 2010 saw reductions in pricing in many of the sectors of the local property market yet the number of transactions were still suppressed,” he confirmed.

Not only have North American investors (traditionally Cayman’s largest market driver for real estate) been nervous about spending during a recession, but the contraction in Cayman’s population has also hit the real estate industry hard.

Joseph clarified, “The contraction in population has negatively affected the rental market for landlords/property investors and in turn developers who have been left with completed but unoccupied units. Sales prices therefore have been reduced in order to generate sales and the local residents are seeing these opportunities but with a continued lack of confidence, they have still remained apprehensive to buy.”

Joseph believed that the slew of projects waiting in the wings will kick start investment in real estate.

“We need to see certain developments and projects, thoughts and concepts break ground,” he said. “Delays make more uncertainty. We need the new cruise berthing to start, the runway to be lengthened, the Shetty Hospital to proceed, along with other projects. Collectively these add value to the Cayman product and in turn will encourage activity once more.”

Joseph says the industry itself has been working hard to generate business. “The excellent news is that we haven’t been sitting still waiting for the storm to pass us by, the local industries and representatives have been actively reviewing and considering how to weather the storm small term and importantly how to emerge with wind in our sails. CIREBA has been and continues to consider our collective new reality, the Chamber of Commerce has been integral in making a public-private cross aisle review with the Future of Cayman Forum.”

Sheena Conolly, Owner/Broker with Sotheby’s International Realty, Cayman Islands said that the investment climate has changed and some have recognised that prices have dropped considerably and that now is a excellent time to buy.

“We are seeing signs from executives who are already established in Cayman, looking to go up the property ladder to capitalise on the down market. Interest rates have remained low and once potential buyers feel comfortable that Cayman is home and they have a reasonable sense of tenure, they are surely smart to buy now,” Conolly confirmed. 
She said that overseas vendors who really need to sell are now pricing more competitively than before to go the real estate asset.

“Historically there was rarely the same urgency or financial need to sell, as the Cayman property could rent if needed. Times have changed.”

She added, “Confidence is everything, and once Cayman starts to get active with some new projects like Dr Shetty’s hospital, the George Town cruise terminal and others, there could quickly be an upsurge of positive activity – and on these small islands, the trickle down effect can flow quickly.”