The second quarter of 2024 has continued the trend set in the first quarter, demonstrating robust performance in the Cayman real estate market with over 225 sales. In total, sales volumes for the first half of 2024 reached a record-breaking US$541 million. This marks a 26% increase compared to the first half of 2023, which saw US$428 million in sales, and it surpasses the previous first-half record of US$508 million set in 2021 by US$30 million.
In total, US$327 million of CIREBA inventory was placed under contract in Q2 2024, suggesting that market demand remains strong. If the current trend continues, sales through CIREBA may exceed the billion-dollar mark for the first time, surpassing the previous record of US$968 million set in 2021.
We’ve witnessed a significant increase in sales volume at The Ritz-Carlton, Grand Cayman over the last quarter, with Provenance Properties representing an impressive US$24,269,999 in condo sales. Amid this surge, two Ritz-Carlton Residence, Grand Cayman penthouses remain available for sale, presenting a rare opportunity to own at this prestigious address.
In Q2, there was approximately one recorded sale for every two new listings on the CIREBA MLS, which is consistent with the observed ratio in Q2 of 2023 and slightly below the long-term average. “Despite a slight increase in inventory, demand has caused sales volumes to increase to a record level, underscoring the continued robustness of the Cayman real estate market,” says Antonette Baptist, Provenance Properties sales specialist.
Our condo price index showed a 10% increase in 2023 compared to the previous year. Halfway through 2024, our index currently shows an average condo price decline of 1% compared with 2023. We caution that a significant portion of condo volume recorded so far this year consists of a bulk sell-off of lower value condos in a single George Town apartment complex. We believe the decline in the index value can largely be attributed to these sales; however, we have retained them in the dataset as authentic market transactions. “A slight slowdown in the pace of price increases has been predicted by many over the last twelve months, but the market has so far shown resilience and we expect volumes to remain high throughout the rest of the year,” says Ewelina Cimring, Provenance Properties real estate agent.
The Cayman rental market also experienced a notable upturn in Q2, reflecting growing demand for high-quality rental properties. “With the growing demand for luxury living and an influx of new businesses, we saw growth in the long-term rental market in the Cayman Islands, reflecting the territory’s continuous appeal and thriving economic environment,” says Shanice Ebanks, Provenance Properties sales specialist. Rental rates have increased by 4-5% compared to the same period last year, indicating a return to more typical growth patterns following the accelerated expansion observed during the COVID-19 recovery period. Rising rent prices contribute to an increase in net investment income.
Our sales team’s exclusive access to Dart’s in-house data analysts allows us to provide up-to-date, accurate, and relevant information regarding the current sales index. Having this market analysis readily available, enables Provenance Properties to stay on top of industry trends and provide you with the knowledge to buy or sell with confidence. For more information on Q2’s data and the latest estimates in price changes, please contact our team today.
