Tourist numbers in Cayman hit an all time high in 2014 with air arrivals up 11 per cent on 2013 and cruise ship numbers up more than 23 percent.
This growth has resulted in developers building homes and expanding resort hotels. This has opened the door for investors to come in and buy houses and condos all over the Cayman Islands and capture the lucrative sun-seekers holiday and rental market.
High tourist numbers has been the catalyst for the boost to Cayman’s economy. Usually a quick increase in housing comes from a dramatic increase in population. However Caymans full time population, although steadily increasing, is still less than 60,000.
Caymans massive visitor and tourism business largely comes from developers building homes and units on Cayman soil. This has in part caused the dramatic increase of living units and guest accommodation in the Cayman Islands. What also is an attraction for investors is that there is no annual property tax on land and residences on the Islands, only a one-time 7.5 percent stamp duty at the time of purchase.
Prime building locations in the Cayman are scarce and supply and demand is quickly coming into effect with the high end 1 million plus developments. Once high-end properties are purchased and ‘monied’ people become residents or part residents, it creates a groundswell of a ‘must experience’ place. Examples of this can be seen in Cannes, Santa Barbara and Monaco.by