There is an overwhelming amount of real estate development taking place in the Cayman Islands at present. In fact, it is probably impossible to keep up with them all. One piece of property after another is coming up for sale or rent, and locals are flocking to these newly constructed developments in droves. Those who own Cayman Islands Real Estate, however, aren’t quite as enthusiastic about such development, and there are a number of reasons why.
First of all, they fear that such rapid development is eroding the character of the community in which they live. The influx of foreign investors into the Cayman Islands during the last thirty years has caused waves of immigrants from different parts of the world to move to the area in great numbers. For many people in the native communities, especially those who have been in residence for decades, it is simply not possible for them to deal with the sudden influx of people from vastly different cultures and backgrounds, and the resulting cultural divide has been quite detrimental to the well-being of the local residents.
As a result, there has been a steady decline in the quality of life among residents of various Cayman Islands communities. Crime levels have increased dramatically, and the police force is slowly losing control of some of its more remote outlying areas. In addition, the lack of basic public services, like running garbage services and emergency medical services, has resulted in much higher premiums for properties in these communities. When it comes to real estate development in the Cayman Islands, the more remote communities suffer the most.
Another major concern that many residents of the Cayman Islands have is that their homes may not be able to withstand the rising costs of living in the community. Over the past twenty years, the cost of living in the Cayman Islands has increased by about forty percent. It is this increase in prices that has led to a significant slowdown in real estate development in cayman islands. Developers have tended to focus more on luxury developments in the islands, rather than low-income or affordable housing options. As a result, many of these residential properties sit vacant, while only the highest-end realtors and developers are able to secure new rental units.
Real estate agents have also complained that they have limited access to properties that have been put up for sale by private owners. While the government has done little to assist real estate development in the islands, it is becoming increasingly difficult for agents to find and broker good deals. It has also become increasingly difficult for potential buyers to know where to look when they are searching for a home in the Cayman Islands.
Another problem with real estate development in the Cayman Islands has to do with the legal framework surrounding the process of development. Until recently, the Cayman Islands was under the jurisdiction of the British Crown, so there was very little control over how the island’s resources were being used. This resulted in an unexpected lag in the growth of the economy, as people had no interest in investing in a property that they thought might not be developed into a market-friendly luxury residence. Because of this lag, the pace of commercial development has been slow, and the construction of new condominiums and apartments is lagging behind other major cities in the Caribbean.
Many people are hopeful, however. One of the main reasons why real estate development in the Cayman Islands is continuing at such a brisk pace is the arrival of international investors. Many of these investors come from Europe, Asia, and the United Kingdom. They enjoy the climate, lifestyle, and amenities that the Cayman Islands provides. They can afford homes in top-notch locations, and they have an interest in seeing things developed that they themselves could not afford. This is a huge step forward in terms of development in the Cayman Islands, and one that is hopefully going to bring about more investment and rental activity in the islands going forward.
Other than investors, there are plenty of domestic investors in the islands as well. There are some families who own homes outright, and there are others who rent their homes and rent out the rest of their residences. Real estate development in the Cayman Islands is therefore just beginning to catch up with demand. Developers have yet to start building in many areas, and the pace of commercial development is fairly low because most new constructions are still being constructed at sea. There are many projects on the go, but there is no sign of the commercial construction industry slowing down anytime soon.
