Why Cayman Brac Real Estate Is Attracting Buyers Like Never Before
Overlooked in the past, Cayman Brac real estate is attracting buyers like never before.
As the rugged gem of the Cayman Islands, the Brac is known for its laid back atmosphere and outdoor adventure. The perfect combination to attract buyers searching for a rustic vacation home. But that’s only part of the small island’s property lure.
Cayman Brac real estate offers an unrivalled price per square foot. And purchasers are further incentivized by government concessions. Affordability coupled with idyllic natural beauty and news of significant upcoming developments – it’s no wonder the bluff is booming.
Growth in Cayman Brac
Before border closures, the Brac was operating at an all-time high for tourism, with all hotels and private homes booked out. The recent purchase and rebranding of Le Soleil D’or as a unique luxury Caribbean farm to table Inn is a prime example of the island’s tourism growth.
And earlier this year, Health City announced an expansion that includes a state-of-the-art satellite clinic on Cayman Brac. Designed for chemotherapy treatment, the clinic will provide services that do not require major diagnostics or surgery. The hospital will concentrate on long stay recovery patients, with the Brac as the perfect peaceful backdrop for their recuperation.
Despite being stifled by border closures, medical tourism is still a long-term option for our islands. Just this month, the premier said, “This is the most reliable form of tourism there is.” And Health City’s new development serves as proof while furthering the interest of investors in Cayman Brac.
Cayman Brac Concessions
It is not widely known, but the Cayman Islands Government offers concessions on Cayman Brac real estate. Concessions provide buyers a window of opportunity to save on stamp duty tax, encouraging investments on the small island.
The Cayman Islands stamp duty is 7.5%, but currently, the government is offering a reduced rate of 3% for buyers purchasing established residents in Cayman Brac.
Save 100% on stamp duty on land. The government is currently offering a 100% stamp duty waiver for buyers purchasing land in Cayman Brac.
The waiver is subject to the following conditions:
a. the stamp duty waiver will be for the development of accommodation dwelling (homes and apartments) and any other physical structure from which a business – whatsoever the nature of the business – can be carried on;
b. the stamp duty waiver will be granted to both individuals and legal entities;
c. development is defined as construction being completed within two years of the purchase of the property;
d. completion is defined as when the development is fit for occupancy; and
e. if the development of the property is not completed within two years and in the absence of a reasonable explanation, applicants are required to either pay the stamp duty in full plus a penalty of 10% of the stamp duty or, request a further extension from the Honourable Minister for Finance & Economic Development in order to complete the development of the property.
Source Cite: The Cayman Islands Government
As we have seen with other stamp duty savings, the government’s Cayman Brac real estate concessions will not last forever. So timeliness is key, especially as sales and development on the island soar.
Cayman Brac Real Estate Trends
To give you a real sense of what is happening on the bluff, here is a quick comparison of last years property sales compared to five years before.
2020 vs 2005
440% increase in sales
12.5% decrease of average days on the market
12% increase in list price for land
On average, sale prices came in at 90% of the asking price in 2020, compared to 85% in 2005.
Source Cite: CIREBA
As prices in Grand Cayman soar to new levels, we all have pangs of regret. ‘If only I had bought in five years ago.’ Unfortunately, it’s an all too common feeling, the sting of missed opportunity. And now we are seeing real movement in Cayman Brac. There is a significant uptake in interest and sales on the small island. Get in while prices are stable and inventory is available.
Life on the Bluff
The serene eco-friendly lifestyle of Cayman Brac brings us back to true ‘island time’. Limestone caves, rare and unique indigenous flora and fauna, rock climbing and diving provide countless adventure opportunities, both in and out of the Caribbean Sea. The escape, coupled with stamp duty concessions and an affordable price per square foot, make Cayman Brac a feasible way for you to own a slice of paradise. And with no stamp duty on land purchases, you could finally build that island hideaway you have been dreaming of.