Rentals Level Off
Tuesday, April 20, 2004
The residential rental market in the Cayman Islands appears to have
stabilised according to reports from several local realtors
Although opinions differ among the agents as to where the rental market will
head in the future, the general consensus is that landlords are currently more
receptive to offers, are more sensitive to special needs, and that there are
some good deals out there.
However, despite the signs that it is a renter’s market right now, certain
kinds of housing, like one-bedroom apartments, remain hard to come by.
Tony Catalanotto of Rainbow Realty has noticed a softening of the rental market
after a strong end to 2003 and beginning of this year. “The market has corrected
itself,” he said, “prices have levelled off.”
One factor in the levelling off according to Mr Catalanotto was the departure
of many Fluor Daniel construction workers when the company was dismissed from
The Ritz-Carlton, Grand Cayman project, causing many apartments to come on the
market.
Another realtor cited the opening of the St Matthew’s University Residence
Hall as a reason for more available apartments, and a stabilisation of prices.
The new development team on the Ritz-Carlton project was expected to bring in
up to 1,000 overseas workers to fill available apartments, however, of the
workers who have arrived, Mr Catalanotto said many have been housed in a block
of rooms at the Treasure Island Resort.
As a result of more availability, rental rates are more rightfully priced
according to Mr Catalanotto.
“Landlords are a little more receptive to offers,” he said. “There is good
rental value compared to a couple of years back.”
Mr Catalanotto also said that there is more flexibility from landlords,
especially towards people with special needs, such as those who have children
and pets. “Landlords are learning that if they aren’t flexible, renters will
look elsewhere.”
Still, certain types of properties are hard to come by Mr Catalanotto said,
“The greatest demand is for one and three-bedroom apartments.”
Cayman Islands Real Estate Brokers Association (CIREBA) president Billy
Culbert echoed the sentiment about one-bedroom apartments. “If we had 50
one-bedroom apartments, we could rent every one of them,” he said.
Carolyn Ritch of Ritch Realty also said the low end of the rental market was
in short supply. “We desperately need apartments between $600 and $1,500. We
just don’t have enough. I wish a builder would build more one-bedroom
apartments.”
In the mid to higher range, Ms Ritch said some prices were going down. “We
have a unit at Lime Tree Bay that was just lowered from $1,900 to $1,700.
There’s some choice out there in that range.”
Another realtor who has noticed a drop in rental prices is Scott Roe of
Re/Max. “Coconut Bay units used to go for $2,500, but now are at $2,200, and
they are huge at 2,300 square feet.”
Mr Roe said the rental market is very much like the sales market. “The
attractive rental is one that happens to appear to be below the going rate, just
like sales.”
Like Mr Catalanotto, Mr Roe has found landlords more negotiable. “Owners are
learning that the key in rental is to never lose a month, because that lost
income comes off the bottom line,” he said. “As a result, some owners are
discounting their rentals to keep them rented all of the time.”
One realtor who has not seen much negotiating in price is Tessa Hydes of
Century 21. “The rental market has been steady, and I see it heading up again,”
she said.
Like her industry colleagues, Ms Hydes said one-bedroom apartments are
Cayman’s greatest need, as well as other lower-end housing. “There’s always a
shortage of apartments of quality in the $1,500 – $1,600 range.”
Ms Hydes also sees landlords meeting special needs more these days. “They’re
getting better with pets,” she said, but suggested that there should be some
limits to how many pets people just coming to the Island could bring with them.
“Last week I had someone who just arrived looking for a place that would accept
three dogs and two cats.”
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