To successfully buy residential property investments abroad depends on understanding local and external forces. Population, affluence and supply of land and housing will all greatly affect house price growth in excess of general inflation. Without all of these variables the housing market can stall or even send values downward.
Savills have recently published ‘World Residential Markets – Performance and Prospects‘, a report that identities what strategies international investors should look to adopt to take advantage of the way the world economy is heading.
The research looks mostly at the rise of secondary properties, growth of second-tier cities and the rise of international resorts.
‘Safe havens’ like London, New York, Hong Kong and Singapore have been and look likely to remain sound investments. The key to overseas investment is finding the higher yielding, lower-price purchases with higher capital growth potential.
One part of the world the report singled out was the Caribbean, and in particular, the Cayman Islands. Tourism is all important to the Caribbean, but Cayman like the British Virgin Islands benefits from a more diverse economy with more than half its GDP generated by the financial services sector. This attracts residents relocating from overseas businesses which in turn supports a prime residential market for long-term residents through high paid jobs.
Cayman is a British Overseas Territory but has strong links with the US. The government is trying to leverage this relationship by aiming their ‘Health City’, a medical tourism facility, at the North American Market. The Cayman government has also established ‘Cayman Enterprise City’, a special economic zone planned to attract new technology, finance and education investment.
There is plenty of money being invested in Grand Cayman with a new airport expansion underway, new cruise port planned, $360 million mixed-use Ironwood Community with an Arnold Palmer signature golf course, and a Dart Realty $300 million project that will see a new boutique hotel, highway and public beach redesign.
Investment has also gone into the sister islands as well. The Brac Reef Resort is undergoing a multi-million dollar renovation, and the Cayman Brac Charles Kirkconnel International Airport is in the midst of expanding.
The Cayman Islands real estate market suffered during the global economic downturn, hitting their lowest point in 2010, they have seen improvements from 2013.
In particular plot sales are enjoying a resurgence thought out the three islands, as millions are being spent on large developments.
To have a look at the full report click here.
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