Buying property in the Cayman Islands is a dream for many, and for good reason — beautiful beaches, a strong economy, and no property taxes make the islands an ideal place to invest.
In looking for their own slice of paradise, one option that continues to gain interest among both local and overseas buyers is purchasing pre-construction. This simply means buying a property before it’s completed, often at the early planning or construction stages.
Pre-construction purchases offer unique advantages, especially when it comes to pricing. Buyers often have the chance to secure lower prices by getting in early and can even make a tidy profit along the way, since the value of the property typically increases as the project moves toward completion.
This natural and, to a large extent, anticipated appreciation is what makes buying pre-construction in the Cayman Islands an attractive long-term investment.
Why buy pre-construction?
One of the biggest benefits of buying pre-construction is the price.
As ERA Cayman broker John Pohlmann explains: “Buying pre-construction offers several attractive benefits to purchasers. These include favorable pricing by getting in on the ‘ground floor,’ so to speak, and realizing the natural appreciation as the property nears completion.”
In other words, getting in early often means you can secure a lower price than if you waited until the building is finished — and by the time it is, your property may already be worth more.
ERA Cayman real estate agent Kristina King points out another advantage: no surprises.
“New build advantages compared to an existing property would include things such as no special assessments that might pop up in the near future, like painting the buildings or a new roof,” she says. Plus, many new developments include hurricane-rated windows and doors and other upgraded features that meet today’s building standards.
Buyers also enjoy a greater level of customization. With pre-construction, you often get to choose your unit location, finishes, appliances, and more.
“Purchasing pre-construction allows you to put in your own personal touch and customize your property to suit your specific needs,” John avers.
What about the risks?
Like any investment, buying pre-construction comes with some risks, and delays are one of them.
“Delays should be anticipated and, oftentimes, expected,” says John. “These can occur for a myriad of reasons: procurement of materials, weather, global geopolitics, cost overruns, natural disasters and – as we all saw in recent times – the possibility of a global pandemic.”
He also advises buyers to plan their finances carefully and be ready for payments at each construction milestone
“The inability to pay on time could cost buyers their new island home and possibly cause them to incur legal problems,” he cautions.
Choosing the right developer
One of the most important steps in buying pre-construction is doing your homework on the developer.
“Make sure to ask you real estate agent if the developers or builders are well known on the island and have a track record of quality developments,” Kristina says. She recommends looking at the developer’s portfolio of past projects to see how those buildings have held up over time and what residents have to say.
John agrees: “It’s always good to review a developer’s past projects and, if possible, get a hold of the minutes of their most recent Annual General Meeting to see how healthy things are going at their past developments.”
A positive sign, he says, is if the developer owns a unit in the building or serves on the strata board, showing that they have long-term interest in the property’s management and maintenance after completion.
Working with an experienced agent is especially important during this stage. “A solid real estate professional should be in a position to identify red flags for would-be purchasers,” he emphasizes.
Legal support and buyer protection
While the Cayman Islands is known for being a secure and stable place to buy real estate, it’s still important to protect yourself legally.
Kristina recommends having a lawyer review the developer’s contract before signing.
“I always recommend that the developer’s contract be reviewed by a property/ real estate attorney and have them assist in the closing,” she avers. “That way the buyer is protected and aware of any red flags of the contract and pre-construction development they are buying into.”
Local laws such as the Strata Titles Registration Law and the Development and Planning Law can provide important protections for property buyers.
In addition, the Cayman Islands Government also offers useful tools and information through the Lands & Survey Department and the Department of Planning, helping buyers verify ownership, strata registration, and planning approvals.
A smart investment with the right guidance
Buying pre-construction can be a great way to invest in a property that not only suits your needs, but also grows in value. However, it’s not a decision to make lightly. It takes careful planning, working with the right team, as well as patience and flexibility during the construction process.
But for many buyers, the opportunity to secure their ideal island retreat at a favorable price makes it well worth the effort. The key is going in with your eyes open and working with experienced professionals who know the local market.
With the help of your trusted agents at ERA Cayman Islands, you can find your future property with confidence — and look forward to enjoying your new home in one of the most beautiful and secure locations in the Caribbean. Contact us today!
Inquire for More Information
