Lacovia – One Of The Last New Developments On Seven Mile Beach For Quite Some Time
Lacovia may be one of the last new developments on Seven Mile Beach for quite some time, due to a number of factors limiting development in Grand Cayman.
The slowing of development on Seven Mile Beach has already started and will continue. One issue is that large raw land parcels with over 200 feet of beach frontage are just not available for sale – Lacovia has a massive 390 feet of beach frontage. Now, Developers have to try to acquire sites that are already developed, the vast majority of which are condominium developments made up of Stratas (HOA) requiring a super majority of 75%+ of the owners to agree to redevelopment.
It is extremely difficult to get a Strata to agree to redevelopment with all the complexities involved. Currently, there are no others on Seven Mile Beach that have announced plans to consider redevelopment, aside from the ones currently being redeveloped. Once a Strata makes the decision to consider this, it is still about 5 years at a minimum before a development could be planned, built, and completed.
The other issue is that the Cayman Islands property development plan is being updated by our government, but this will take several years to complete. It was just reported that government expects the national development plan to be halfway completed by the end of their term, in about 3 years.
Until Developers know what they can build and the changes that will be made to current development parameters like density, building heights, setbacks, and many other items, most Developers are not going to plan new developments. Many of the largest Developers have indicated this already and are pulling back on development, at least until there is a revised development plan. This will basically halt most development on Seven Mile Beach.
Another further complication to development is the ongoing inflation and supply chain constraints, which most of us are already well aware. Until these subside with the pricing of labour and materials being more consistent and supplies available, then very little will happen on any large scale. After severe bouts of inflation, prices never seem to get back down to the level they were before, so prices will likely remain higher overall. Property investment was always a good hedge against inflation and it seems this era has come back.
Over the foreseeable future, resales of new and existing condominiums will benefit from a falling supply and increasingly high demand, pushing prices higher in a shrinking pool of available residences for sale. Lacovia is now the best and almost only option for the upper end of the market. It has an unparalleled location close to shops, restaurants, entertainment, grocery stores, Camana Bay, and much more. There is still a broad choice of residences to choose from, as you will note from the listings of residences below.
Every year, Grand Cayman becomes a more desirable place to visit and reside. Spend more time here with a Lacovia residence, still at pre-construction prices. It truly will not pay for you to wait to invest!