At the time of writing, it appears that there will be a transition from the Republican to the Democratic party in the US and even during this early transition, the Cayman Islands real estate industry is already seeing a positive impact.
Historically, any transition of power in the US has positively affected the Cayman Islands real estate market, but this time I have seen an increase in requests coming from the United States almost immediately after the election. I have received a number property enquiries just this week and I see this interest only increasing over time as many Americans may be keen to look to places such as Cayman for investment.
From a financial services perspective, historically the Cayman Islands has benefitted from a Republican in the White House as that political party generally supports the benefits and rationale of investment in offshore jurisdictions, whereas Democrats in the White House usually encourage investors to stay onshore. Having said that, as I mentioned above, over the past three US elections I have noticed that the Cayman Islands real estate market has benefitted from either party being in power. So, nowadays, it does not matter who is sitting in the White House as the Cayman Islands real estate market is set to benefit either way.
Now more than ever, the Cayman Islands have many attributes that many people from all over the world are now seeking, including a lifestyle pretty much unparalleled elsewhere in the world, with first class amenities, education facilities and healthcare services all set against a backdrop of stunning beaches and almost year-round sunshine. Add in the new Global Citizen initiative announced a few weeks back and the Cayman Islands is becoming even more attractive from a real estate standpoint.
The COVID-19 pandemic has also been another driving force for many investors, including those from the US, who wish to live in a jurisdiction where COVID-19 is well managed, such as in Cayman. Add in the ongoing, and in many places escalating COVID-19 crisis into the mix, one can understand how all this pressure mounting on those with the means to live anywhere in the world pushes them to seek a safe place. One can also appreciate why, in these circumstances, the Cayman Islands is an extremely appealing location in which to live.
However, I do have some concerns associated with the way that people in the Cayman Islands are able to live in a Covid-free environment and the potential ramifications that we could experience – and will experience even more acutely in the months to come – due to the exceptionally conservative approach to managing our borders. I urge you to read my next update where I will explore this issue in more depth.