Cayman Is.

In Cayman Islands, rental returns can be surprisingly good. Condominium costs on 7 Mile Beach vary in a wide range, with prices from about US$4,000 to US$11,000 per square metre (sq. m.), and some super-luxury large condos hitting amazingly really high per sq. m. prices.

The expected rental income from the smaller properties (120 sq. m and 200 sq. m.) is now about US$3,000 to US$4,500 monthly. This means average rental yields of approximately 5% to 7%, which is not bad.

Our property sample for larger condos was too small to give an accurate picture of rental incomes for this property category.

In general, prices have been firm. The average price of condos in the Cayman Islands at the time of our 2012 survey was US$4,242 per sq. m. - just a bit higher than last year’s US$4,041 per sq. m..

Rental yields in the other beach communities in Grand Cayman were even better. Properties are less expensive, at about US$2,000 to US$3,000 per square metre, but the expected rental income from these properties is about US$1,000 to US$3,000, giving rental yields of from 7.48% to 8.17%.

In the Cayman Islands, really large properties are less attractive in income terms, with much lower rental yields.

We were surprised by the generous rental yields on smaller and medium-sized condos. But in recent years, high yields have been normal in the Cayman Islands.

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