2025 Real Estate Market Recap and What to Expect in 2026

I thought I’d take this opportunity to provide a recap of the Cayman Islands real estate market for the year with respect to volume, transactions, inventory, and overall pricing as well as provide some insight as to where I believe our market will be heading throughout the year.

Please note that all figures included in this article are taken from CIREBA and are quoted in US dollars.

A look at sold transactions and volume

In 2025, the total number of sold transactions were 852 was down by 2.74% over 2024.

With respect to volume, 2025 saw $1.074 billion in sales, up 1.91% year over year.

New listings

When you look at new listings, we saw a total of 1,387 new listings in 2025. This number decreased 2.8% year over year.

With respect to the value of these new listings, 2025 saw $2.439 billion, which is up by 4.2% year over year.

Average price per listing – solds and new listings

In 2025, the average price per sold listing was $1.261M compared to $1.203M in 2024, a 4.8% increase year over year.

The average price per new listing in 2025 was $1.759M up from $1.641M in 2024, a 7.2% increase year over year.

Inventory is down

Although inventory levels fluctuate monthly, the average monthly inventory for 2025 is down to 1,403. This is the lowest since 2021. This is down from an average of 1,782 in 2024, which is a drop of 21.2% year over year.

As of January 7, 2026, there are currently 1,692 active listings equating to $3.543 billion in volume of which 283 are pending (16.7%) and 222 are pending/conditional (13.1%) which means only 1,187 are available for sale.

The 2026 Cayman Islands real estate market

New development pre-sales

The impact of pre-sales for new developments will have a huge impact on the real estate market in the Cayman Islands in 2026. Several major developments, which have been on the market for up to five years, and even longer, will officially close (i.e. transactions will move from pending to sold) in 2026 including Watermark, OneGT, Catalina Bay, Grand Hyatt, Serrana, and Dolphin Point Club, among others.

This means that over $1.06 billion of sales that were put under contract over potentially the last five years will become officially sold in 2026, a phenomenon the real estate market in the Cayman Islands has never seen.

Even with these closings, 2027 and beyond will bring more pre-sale solds to fruition with developments such as Aqua Bay, Hyatt Centric, Lacovia, Mandarin Oriental, RIA, and more going from pending to sold.

Understanding the impact of these pre-sales is fundamental to not only our market, but also when analysing our market’s statistics. Even with our substantial market of over $3 billion in active listings, the Cayman Islands is a relatively small real estate market.

Using Grand Hyatt as an example, it is important to reiterate that many of the sales that will close this year went pending, and thus basically sold, up to 5 years ago. With over 160 residences sold at the Grand Hyatt, which is officially sold out, this amounts to a tremendous uptick in solds hitting our market when the project finally opens when in fact these were sold over numerous years.

Stamp Duty changes

The Cayman Islands government has announced two major changes to Stamp Duty, a one-time government tax payable on real estate transactions. As of January 1 2026, Stamp Duty increased to 10% from 7.5% on transactions at or above CI $2 million. As stated above, numerous high valued pre-developments will close in 2026 impacting all purchases at Watermark, most at Grand Hyatt, and several at Serrana and Dolphin Point Club, among others.

In February, the Cayman Islands government changed Stamp Duty rates for first-time Caymanian buyers. Homes valued up to CI $550,000 and land valued up to CI $250,000 will no longer incur Stamp Duty fees for first-time Caymanian buyers. The is a direct result in the ongoing rising cost of real estate in our market.

Residential Property Price Index (RPPI)

In September, the department of Lands & Survey launched the Cayman Islands Residential Property Price Index, the first official record of property prices in the Cayman Islands. The Residential Property Price Index tracks property price changes from 1998 to 2024, broken down by regions of the Cayman Islands.

Supported by the International Monetary Fund and the Caribbean Regional Technical Assistance Centre, the index marks a significant milestone for the local real estate and development sector, offering market participants data-driven insights on pricing trends, valuations, and overall market performance.

More data means better decisions and less misinformation. If property prices only move slightly, people will understand the market better – transparency is positive.

The first phase of the index project focuses only on condominiums. It found that between 1998 and 2024, property prices on Seven Mile Beach rose by 517%. That compared to a 465% increase in West Bay and 402% rise in George Town over the same period. Prices in Seven Mile Beach reflect international investment conditions, while George Town is seen as a more accurate reflection of the local property market.

Phase two of the index project will cover houses. The goal is to expand data availability so that government, investors and the public can make data-driven decisions.

Price data for George Town will be released quarterly, while the other areas will see data released annually.[i]

Interest rates

The good news is that interest rates have been coming down, but the future remains a bit blurry. After cutting interest rates three times in a row last year, it appears that there may continue to be small reductions heading into 2026, however this remains to be monitored over the coming year.

External effects on real estate in the Cayman Islands

Everyone who lives in the Cayman Islands or has a vacation residence they frequent know that Cayman is a slice of peace and paradise in a world that can feel quite uneasy at times.

The Cayman Islands remain relatively protected from much of today’s global chaos due to our small size, political stability, and strong governance. As a British Overseas Territory, we benefit from a well-managed legal and financial system, which shields us from political instability. Additionally, the islands’ focus on tourism and finance allows us to maintain a resilient economy, minimizing the impact of global disruptions and preserving a sense of calm and stability.

This makes our islands very attractive to many buyers, and I anticipate that our appeal will continue to grow in the future.

In closing

Looking ahead, while 2026 brings changes in Stamp Duty and new development closings, the fundamentals of the Cayman Islands real estate market remain strong.

Limited inventory, rising property values, and continued international demand ensure that real estate here continues to offer both lifestyle and investment appeal. With a stable, well-regulated environment, world-class amenities, and long-term growth potential, Cayman remains a top destination for buyers seeking security, luxury, and opportunity.

As always, staying informed and understanding market dynamics will be key for both current owners and prospective investors in navigating the year ahead.

With immigration changes expected to be announced imminently, we will examine their impact on both the local and foreign markets, along with upcoming Investment by Residency updates, in our next article.

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[i] Cayman Compass, September 27, 2025