Interview with a Luxury Real Estate Developer - Mike Ryan Owner and developer of The DeckHouses at The Ritz-Carlton Grand Cayman

Mike Ryan is a long-time luxury property developer with an “interesting,” pedigree. Since the age of 14 Mike has been involved in property development in one way or another, from planning, construction and administration. He has earned a reputation as a “hands-on” operator, and has been involved in numerous successful luxury developments around the world. His latest project, The DeckHouses at The Ritz-Carlton Grand Cayman promises to be one of his most successful so far and is certainly distinctive. I had the opportunity to interview Mike last week, and get some of the reasoning behind the project and his choice of location.

The DeckHouses Grand Cayman

MK -I am seeing more and more mixed-use luxury developments, particularly residential golfing communities and water-based Marina residential developments. Is this a local, regional or global trend?  What does this mean for the Caribbean?

MR - People come to the Caribbean to be connected to the water, physically and emotionally; and there is nothing that solidifies that connection quite like being in your own boat. I would not say that building properties on the water is a trend — people have been living on the water for centuries and have found ways to embrace the connection between their homes and the water from the earliest days. However what is happening now, is that we are seeing more mature and thoughtful designs which are encapsulating this connection and its importance to the homeowner. We are moving away from the high-rise, generic style of development that has characterized much of the coastal and warm weather developments for decades, and are moving towards intimate and personalized homes which truly speak to a person’s inner sensibility.

MK - What do prospective buyers need to know when purchasing this type of property?

DeckHouses - Living & Dining area

Buyers always need to be selective and thorough; but probably more so when researching offshore purchases.  Location, design and a track record of delivering results are key elements that must be evident before even considering a purchase.  Make sure the location is one that will sustain its value over the long term, and that there is solid infrastructure in place which will allow the project to go forward and succeed.  Always ask, what the legal framework is like? Can you depend on the Rule of Law and consistent fair treatment as a foreigner?
Can you depend on the developer to deliver? Can you depend on the service provider to be there over the long haul delivering the types of management, services and amenities that make places valuable?
Water communities have added challenges that land-locked ones do not; and today, more than ever, you want to work with people who have proven they can make it happen. You want a team that has demonstrated its commitment for the long haul. Ultimately, you will want a vacation home you can enjoy, not manage, so the importance of research and of qualifying your developer, your location and the service providers must never be overlooked.

MK - What advice or tips would you offer to some one considering an investment in these types of property ?

I would suggest that you make sure you are dealing with someone with a solid track record. Buy in a location that is not only well-respected but is the best in the area you are considering in terms of good transportation access and support facilities. I would also take into consideration the local government and legal system – make sure they are stable and consistent. When purchasing a property be sure to deal with the owner. not just with an agent. It is in your best interest to deal with the person who will be there after the transaction is done. And finally, make sure that if there are amenities and services to be provided that they are in place and managed by a brand you can trust.

MK - What are the advantages to owning this type of property?  And are there any disadvantages?

The advantages fall into two categories: lifestyle and economic. The advantage from a lifestyle point of view is that few things can match having your own vacation home in a destination you love.  It is important to reward yourself for all the hard work it took to be in this position and to give yourself the opportunity to recharge for the challenges ahead.  You can also make your vacation home the place where family and friends gather, creating both one-of-a-kind experiences and lasting memories.

From an economic point of view, purchasing the right home in the right location, within the right project, has proven to be a good investment over time in Grand Cayman. For example, prime vacation real estate has averaged over a ten percent growth for the last twenty years and, with no real estate tax, this is a very strong growth by any measure.

The disadvantages can be in standing the test of time. When you select a piece of property, you want to enjoy it now as well as in the future. That’s why it’s important to seek out developments whose direction is clear. You want to make sure that the value of your property will not deteriorate because the project is going in the wrong direction or because the quality is inconsistent. Otherwise, you can get stuck with a headache that becomes too challenging to manage from off-site.

MK- Your sales brochure states that this is a unique real estate concept - how would you justify that?

The DeckHouses is unique because of the dedication it takes to build something that is so truly special that there are only 19 of them. With a clear commitment to making water the focal point and having the North Sound as your front door, we have aligned the elements to create something that exists nowhere else in the world.  The uniqueness of The DeckHouses also comes from taking the many elements that embody private-island living and bringing them into private estates which are wrapped inside the finest Ritz-Carlton in the world.

Born from the ultimate “private island – sea connection,” the only way to truly understand the concept of The DeckHouses will be to be a DeckHouse owner.

The DeckHouses - External view

MK - Why are vacation homes seemingly still in demand in the current real estate climate as compared to other types of property and investments?

MR - I think many people have decided that they don’t want to play in the markets anymore. They see the right vacation home as not only a way to enhance their lifestyle and to spend time with their family, but also as a place to secure some of their nest egg.

MK - Grand Cayman real estate seems to be more in demand than the rest of the Caribbean, why would you say that is the case?

MR - As people travel more and understand the region better, they come to realize the many differences between Grand Cayman and the rest of the Caribbean. The Cayman Islands has emerged as one of the safest, most secure, most cosmopolitan and easy-to-get-to destinations. When you add to this the superior products and services which we are creating in The DeckHouses and The Residences at The Ritz-Carlton, Grand Cayman, it is self-explanatory why people are naturally gravitating toward the best the market has to offer.

MK - What are the benefits of living in Grand Cayman?

Living in Grand Cayman has many benefits, starting with the weather: year-round warm temperatures separate the island from the likes of Palm Beach, Fla., the Bahamas, Bermuda and Turks and Caicos, which have climates that cool off. This is also probably the safest place in the world to live, and I emphasize safe because in all my years living here, I have never locked my doors. It is extremely easy to get here via commercial airlines or direct jet links; and it is also very easy to do business while you are here, especially with the superior infrastructure, reliable phones, internet, power, etc. And finally, perhaps the most important when all is said and done, the wonderful and welcoming people make you feel at home and accepted in Grand Cayman.

Thank you Mike, and good luck with the project. For more information - The Deckhouses