ULI Southeast Florida/Caribbean – Financing Real Estate Development in The Caribbean: Cayman Islands Deep Dive
Camana Bay
The Cayman Islands are located about an hour and a half from Miami by plane – between Jamaica and Cuba. Immediately upon arrival, you will notice that cars drive on the left-hand side, everyone speaks with a British accent, and lots of construction and other economic activity. As you walk around the streets, security, safety, and order are commonly heard as The Cayman islands best-selling points.
Population 68,136 (2022)
Ritz Carlton Hotel – Cayman Islands
The Cayman Islands has one of the highest GDP per capita at $86,500 (World Bank)and real estate prices in the luxury sector range from $1,800 to $2,700 per square foot.
Some notable examples include the Kimpton Seafire (built around 2016) that today sells condo-hotel units at $2,031-$2,600 USD sales price per sq. ft.https://www.seafireresortandspa.com
As for new hotel developments, there are several projects under-way including the Hotel Indigo and Grand Hyatt Grand Cayman Residences. Both are projected to open their doors in 2024. Other luxury hospitality projects include:
Watermark (under construction to 2023) – US $2,700 USD sales price per sq. ft.https://www.thewatermarkcayman.com
Mandarin Hotel (Presales) $2,300 USD sales price per sq. ft.https://moresidencesgrandcayman.com/overview#aerial-view
Camana Bay Office Park
Some other statistics:
· 55% of GDP comes from the financial services and related companies.
· Neutral taxes, regulations, and laws
· No income taxes
· Consumption taxes is 20%.
· Real estate has a one-time 7.5% transfer fee
· No real estate taxes. The Strata/HOA is the principal holding costs
· Construction costs to build new residential $400-$600.
·60% of the world’s hedge funds domiciled on island.
If you would like to learn more about the Cayman Islands, Join a group of distinguished professionals in finance, development, real estate, and construction, tomorrow, May 2 at 9:30 am EST.
Seafire Resort and Residences
Originally published on LinkedIn on May 01, 2023.
Adam Greenfader is Chairman of AG&T, a Caribbean real estate capital advisory firm with more than three decades of experience structuring and executing real estate development projects across the Caribbean and Latin America, with over two billion USD in aggregate value.