Building Costs in the Cayman Islands

Industrial

A pre-engineered, aluminous-clad, steel frame building suitable for use as a factory shell is likely to cost about $25 per square foot erected, excluding concrete floor slab, which would cost another $10 per sq.ft. Water cistern costs are likely to be about $1 per gallon, but the increasing availability of piped water can avoid this cost. A 500 sq. ft. warehouse unit, likely to cost $30,000/$35,000 with land, would command a rental of $550/$600 a month.

Commercial

A conventional, multistory, steel-frame or poured concrete building, including all services but excluding floor finish, partitions, interior finish and soft furnishings, is likely to cost in the region of $90/$110 per sq. ft. A small, simple office complex completed to the same stage would cost $55/$70 sq. ft.

Rental costs in the George Town business area are likely to be in the range of $25/$35 sq. ft. per year.

Sale prices of businesses are likely to be based on three times the net annual income. Many businesses are 60 percent Caymanian-owned and any sale would be contingent on the new ownership retaining this ratio, as required by the terms of the business license.

Residential

Construction costs, which naturally vary according to the standard of building, follow these average levels:

• Lower-middle income: detached housing, $45/$55 per sq. ft., ready for occupancy, without furnishings. Water cisterns extra at $1 per gallon capacity. Other costs, such as landscaping and asphalt driveways, would also be extra.
• High income housing: detached, high-quality construction, $75 plus sq. ft. depending on finishes and fixtures, ready for occupancy, without furnishings. Condominium apartment in complex including normal services, $70/$110 sq. ft., depending on finish and degree of sophistication.

Improved Property

In general, a two/three-bedroom house in a fairly densely populated area will cost $70,000 to $150,000. In mixed single and multi-family sub-divisions, the cost will range from $150,000 to $295,000. In an exclusive, single-family residential area the price range is $350,000 to $850,000. Waterfront homes generally range between $400,000 and $1.5 million. Beachfront home prices range from $500,000 to $2.5 million, depending on the frontage.

Condominium apartments, of which hundreds have been built in the last decade or so, are very popular purchases with overseas investors, providing rental income prospects as well as opportunity for visits by owners. They range in price from approximately $150,000 for a one bedroom unit to over $3,000,000 for a three bedroom luxury beachfront unit at one of the top condo complexes.

Construction Time

Providing financing has been arranged and planning approval obtained, it should be possible to complete about 35,000 sq. ft. of commercial premises, of steel frame or poured concrete construction, including the tender process, in about 16 months. Individual, single-storey, concrete block houses can be completed in 4-6 months from the time of arranging financing and obtaining planning approval.

Hotel and Condominium Development

Under the Hotels Aid Law, concessions are available to encourage the building of hotels, if the hotel is to be built away from Seven Mile Beach. For approved projects elsewhere in the Islands reduced import duty on construction materials and initial furnishings, will be allowed. This is on the provision that a full list of materials on which duty exemption is sought submitted before construction begins. Applications for concessions should be addressed to the Hon. Member for Tourism, Aviation and Trade, Government Administration Building, Grand Cayman, BWI.

This concession is not available for condominium development.

It is not possible to give estimates of cost of hotel or condominium construction as this can vary widely according to quality of provision, type of design, nature of site, and other factors.