BCQS, the well-known property development and consulting firm, has released its market trend report for 2011. Key among the trends presented is that construction costs, after rising for the last several years, are predicted to drop in coming years. In BCQS’s analysis, Cayman ranks…
…as the third highest in overall construction costs in the Caribbean region, with only Turks and Caicos and Barbados being more expensive. However, in commercial construction, Cayman far outranks the rest of the region. Businesses in Cayman demanded higher standards in construction and rental properties after Hurricane Ivan in 2004 – standards that would ensure business operations could continue in spite of major storms and flooding. Cayman’s offshore business sector has continued to thrive, even higher construction standards have raised the costs of building and renting.
Indeed, as blogged about here before, commercial development has been the backbone of Cayman real estate recently. Major office developments and other commercial projects have buoyed the market, creating and up year in 2011, the first up year since the global economic down turn in 2008.
The BCQS report also notes the increase in tourism in 2010-11 across the Caribbean region. This alone is a good marker for Cayman real estate. Additionally, if construction costs do indeed fall for residential and hotel developments, the outlook is good for Cayman real estate to continue rebuilding after the 2008 drop.