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Dec 29, 2013

Rental incomes in Cayman Islands – good rental yields, ranging from around 5% to 8.2 %


Last Updated: Dec. 29, 2013
CAYMAN ISLANDS condos-7 Mile COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
120 sq. m. 545,040 2,801 6.17% 4,542 23.34
250 sq. m. 1,838,250 6,900 4.50% 7,353 27.60
CAYMAN ISLANDS condos-other areas
80 sq. m. 211,760 1,353 7.67% 2,647 16.91
120 sq. m. 266,400 1,740 7.84% 2,220 14.50
200 sq. m. 459,200 2,832 7.40% 2,296 14.16
Districts researched:
Cayman Islands: Cayman Brac, East End / High Rock, NE Coast / East Inland / Colliers, Northside, Rum Point, Seven Mile Beach, South Sound, Spotts / Prospect, West Bay
Note: 1. We did not use our usual method of computing the rental yields because rents are seasonal in the country. Instead, we used the expected/projected rental income in our computation.
2. The first table, Cayman Islands condos-mixed, is a combined study of the second and third tables - Cayman Islands condos-7 Mile and Cayman Islands condos-other areas.
3. Cayman Islands condos-7 Mile covers only the condos located in & Mile Beach while Cayman Islands condos-other areas, covers the condos located in the other upscale areas stated above.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

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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