News

As published in the Cayman Compass – TUESDAY DECEMBER 23, 2014 The half-built Kimpton Hotel. PHOTO: JAMES WHITTAKER The buyout of the Kimpton boutique hotel brand by the multinational Intercontinental Hotel Group is positive news for the Cayman Islands, according to developer Dart Realty.

The Cayman Islands government could earn millions from the sale of surplus properties it owns, but the figure projected by Premier Alden McLaughlins government is far less than what private sector consultants estimated.

The recently released IRR Viewpoint Caribbean Market Update 2016 Annual Report, written by James V. Andrews of Integra Realty Resources Caribbean, highlights some interesting discussion points when it comes to the state of Caribbean economies, especially in relation to real estate.

As recently as October 2015 I wrote how I saw the $2 million plus area of the residential homes market as remaining a difficult one for buyers to sell their properties in the short term. These properties are not moving anywhere near to the degree of other inventory, I wrote. Indeed, only ten homes of $3 million and above had been sold over the past three years. However, I also noted that I felt the market was about to change: Going forward, however, I see this becoming less of an issue. This is because desirable parcels of land are becoming increasingly less available. I went on to say that I believe as a result there will be a shift in the coming months and properties in the $2.5 million region will become a lot more appealing.

The total investments of non-residents in local financial assets was estimated at $119.3 billion by the end of 2014, according to a new report from the Economic and Statistics Office.

Cruise ship passengers still will not be able to gamble within Cayman Islands territorial waters next year, but gambling will be allowed on ships flying the Cayman Islands flag for the first time.

The higher end of Caymans real estate industry has traditionally catered to an affluent North American market of investors and individuals looking to acquire a second or possibly third home, for investment purposes but also to enjoy with their family and friends periodically. Opening up this market to a broader audience of investors via infrastructure improvements and the easing and improving of residency restrictions for people looking to reside here part or full-time could greatly improve Caymans real estate industry. This would ultimately be to the benefit of everyone who lives and works here. Creating an easier and more straightforward method by which residents can enter and leave Cayman would go a long way to attracting new investors to our shores.

Hotels help to broaden real estate investment opportunities. The recent announcement that the Treasure Island Resort will be converted into The Margaritaville Beach Resort on Seven Mile Beach over the course of the next year is exciting news for both Caymans tourism industry and its real estate industry; two sectors of Caymans economy which I believe have always been inextricably linked.

Since the development of Caymans cruise port is such a hot button right now I thought I should focus my discussions this month on the very important subject of infrastructure and how it relates to the real estate industry. We should closely examine the purpose for building a cruise port. While I can appreciate the needs of business owners, being one myself, I think its important to be objective in this regard, and in particular, we should try and take in the wants and desires of others.

Cayman Airways took possession of a new Saab 340 aircraft in August that will service the route between Grand Cayman and Cayman Brac.