Q1 2026 Real Estate Market Update

Now that Q1 2026 has come to a close, I wanted to share a brief overview of the Cayman Islands real estate market so far this year, covering key trends in sales volume, transaction activity, inventory levels, and pricing, along with my perspective on where the market may be headed over the remainder of 2026.

Please note that all figures included in this article are taken from CIREBA and are quoted in US dollars, except those from the Residential Property Price Index as outlined below.

A look at sold transactions and volume

In Q1 2026, the total number of sold transactions were 198 down by 12.4% over Q4 2025.

With respect to volume, Q1 2026 saw $311M in sales, down 2% over Q4 2025.

This is not surprising and doesn’t mean that sales are declining. As Cayman is a small market and thus can be greatly influenced by slight shifts in the market, it is important to note that two key factors contributed to these declines.

First, as of January 1, 2026, the Cayman Islands Government introduced updated Stamp Duty rates on property transactions, increasing the rate for properties valued over CI $2 million from 7.5% to 10%. In December 2025, 92 properties sold, of those 16 were over CI $2 million. In comparison, only 5 properties above that price have closed in the first 3 months of 2026.

Second, the drop in sold volume is only down by 2% compared to 12.4% for transactions. This is greatly impacted by the Watermark ground floor penthouse that sold for US $29M on March 30, 2026.

New listings

When you look at new listings, we saw a total of 445 new listings in Q1 2026. This number increased 26% over Q4 2025.

With respect to the volume of these new listings, Q1 2026 saw $682M, which is up by 3.9% over Q4 2025.

As stated with the sold data, it’s important to look at factors that contribute to larger shifts in the market such as a 26% increase in new listings quarter-over-quarter. At the end of March, over 40 land listings went live averaging CI $150K each. The math is easy. More listings equal a higher increase but more listings at a lower price point equals a lower overall volume.

Average price per listing – solds and new listings

In Q1 2026, the average price per sold listing was $1.571M compared to $1.405M in Q4 2025, a 11.8% increase.

The average price per new listing in Q1 2026 was $1.532M down from $1.859M in Q4 2025, a 17.5% decrease.

When you consider the factors outlined, these shifts in average prices are not unexpected.

Inventory is up

Although inventory levels fluctuate monthly, the average monthly inventory for Q1 2026 is up to 1,721. This is up from an average of 1,689 in Q4 2025, which is an increase of 1.9%.

As of April 10, 2026, there are currently 1,759 active listings equating to $3.529 billion in volume of which 302 are pending (17%) and 230 are pending/conditional (13%) which means only 1,227 (70%) of the total inventory is available.

2026 and the Cayman Islands real estate market

New development pre-sales

As I stated in my “2025 Real Estate Market Recap and What to Expect in 2026” article, pre-sales tied to new developments are set to significantly influence the Cayman Islands real estate market in 2026.

A number of major projects—some of which have been on the market for five years or more—will officially close, meaning transactions will shift from pending to sold. These include Watermark, OneGT, Grand Hyatt, Serrana, and Dolphin Point Club, among others.

This trend will continue beyond 2026. Additional developments such as Hyatt Centric, Aqua Bay, Lacovia, Catalina Bay, Mandarin Oriental, and RIA are expected to close in 2027 and later, further converting pre-sale contracts into finalized sales.

Recognizing the role of pre-sales is essential when evaluating market performance and interpreting statistics. Despite having more than $3.5 billion in active listings, the Cayman Islands remains a relatively small real estate market, making these large-scale closings especially impactful.

Using Grand Hyatt as an example, many of the units closing this year were actually placed under contract—effectively sold—up to five years ago. With more than 160 residences sold and the project now fully sold out, the official closings will create a sharp increase in recorded sales activity, even though these transactions occurred gradually over several years.

Residential Property Price Index (RPPI)

Last 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.

On March 23, 2026, Lands & Survey released the 2025 Property Price Index Report. It is important to note that the below statistics are for condominiums only not houses, land or commercial properties. Additionally, these statistics include all transactions including non-CIREBA solds.

In 2025, the Total Cayman Islands index stood at 282.8, down slightly from 286.7 in 2024—a modest decline of 1.4%. This indicates a generally stable market, with a mild cooling following earlier growth.

The Department reported a total of 2,188 residential transactions for the year. Although transactions dipped slightly, total consideration—the combined volume of all property sales—increased by 10%, reaching CI$1.36 billion compared to CI$1.24 billion in 2024.

Additionally, the average consideration per transaction rose significantly by 14%, from CI$544,000 to CI$620,000.

George Town followed the broader national trend, increasing by 1.4% from 245.2 to 248.6, while the Other Cayman Islands recorded a smaller rise of 0.9%, moving from 218.2 to 220.2.

West Bay was the standout performer, posting the strongest growth with a 12.1% increase from 263.8 to 295.6. In contrast, Seven Mile Beach saw the most notable decline, dropping 11% from 311.9 to 277.7.

I think it’s important to give some context to numbers above.

What does the decline in Seven Mile Beach mean?

No new developments in Seven Mile Beach completed in 2025, which means that even though hundreds of condos have been sold they are still officially pending as the buildings cannot be occupied. This includes sales for the Grand Hyatt, Watermark, Aqua Bay, Lacovia, among others. Therefore, 100% of the sales in Seven Mile Beach in 2025 were re-sales.

As of today, there are 92 pending listings in Seven Mile Beach that are in CIREBA, but that doesn’t include many other sales for larger developments which are not included in the CIREBA network, which Lands & Survey will capture in its reporting.

Why was West Bay a standout performer?

In contrast, several new developments opened in late 2024 throughout 2025 in the West Bay area including Sunset Point, Arza, Emerald Point, among others. In 2025, there were 106 condominium transactions in West Bay (area 10) for 2025 compared to only 48 in Seven Mile Beach (area 25).

West Bay will see another increase throughout 2025 as new developments open such as Serrana and Dolphin Point Club, among others.

Interest rates

As of April 2026, the US Federal Reserve has opted to keep its benchmark interest rate unchanged at 3.5%–3.75%, reflecting a cautious effort to navigate between a softening labour market and ongoing inflation concerns. These inflationary pressures have been intensified by rising energy prices, largely driven by escalating geopolitical tensions involving the US, Israel, and Iran.

2026 is shaping up less like a clear easing cycle and more like a holding pattern under pressure. The Fed is likely to stay patient, waiting to see whether inflation from energy fades or spreads. The key swing factor isn’t domestic policy—it’s geopolitics and oil.

Booming tourism

In mid-March, I published an article, “Cayman Islands Sets All-Time January Record for Air Arrivals, Signalling Continued Economic and Real Estate Momentum”. Since then, February air arrivals have been published.

The Cayman Islands is on track for a record-breaking year in tourism, with February 2026 recording 49,075 stayover visitors—the second highest ever and a 10.1% increase from 2025.

Overall arrivals for the first two months of the year are already 11.5% higher than the same period in 2019, previously a record year.

This growth has been driven by expanded flight routes, targeted marketing, and strong partnerships, with Canada emerging as a rapidly growing market following new direct flights, while the United States continues to dominate as the primary source of visitors.

This is important to the Cayman Islands real estate market because strong and growing tourism is a key driver of property demand. Rising air arrivals signal increased economic activity, higher short-term rental demand, and greater international exposure to the destination, all of which support both investment interest and property values.

As visitor numbers reach record levels—especially with expanding flight routes and new source markets like Canada—it often leads to more people first experiencing the islands as tourists and later returning as buyers or long-term residents. In short, sustained tourism growth strengthens both rental yields and long-term demand for holiday rentals, reinforcing upward pressure on the real estate market and impacting the general housing market.

If you build it, they will come

In my article, “Cayman Islands Sets All-Time January Record for Air Arrivals, Signalling Continued Economic and Real Estate Momentum” I stressed the impact that the upcoming reopening of the Grand Hyatt Grand Cayman is set to further boost both tourism and real estate demand, adding over 400 rooms to a market already experiencing record visitor numbers.

The hotel is expected to attract more international travellers and bring a wave of new employees to the island, many of whom may eventually transition from renting to homeownership, strengthening housing demand.

The return of the Hyatt brand also reconnects Cayman to a global network of millions of loyalty members, increasing international visibility, though it will also place added pressure on infrastructure and highlight the need for expanded flight capacity.

Another significant step forward in the planned improvement of Grand Cayman’s airport was taken last month when the Cayman Islands Airports Authority issued a request for environmental impact assessment services to support the potential expansion of runway capacity.

As part of the Airports Authority’s 2041 Master Plan, proposals include extending the runway at Owen Roberts International Airport into the North Sound and developing a new general aviation terminal for private jets. The extended runway would accommodate larger aircraft, enabling long-haul flights from more distant international destinations.

External effects on real estate in the Cayman Islands

I would recommend reading my previous article, “Investing in Cayman Real Estate, Why Now” as it highlights numerous external effects on the real estate market in the Cayman Islands.

The Cayman Islands real estate market is entering a particularly attractive window for investors, driven by a mix of policy changes, global trends, and local growth.

Upcoming immigration reforms are expected to raise investment thresholds, creating urgency to act before costs increase.

At the same time, rising demand from remote workers, global investors seeking stability, and population growth is putting pressure on a limited supply of property—especially scarce beachfront land. Planning challenges and delays are also adding additional pressure.

Ongoing economic expansion, particularly in tourism, is also expected to bring more workers to the islands, further increasing housing demand.

This article explains how regulatory changes, global uncertainty, and local supply-demand dynamics are aligning in a way that could push property prices higher. For both international investors and locals, understanding these factors is key to making informed decisions—especially before entry costs rise and availability tightens.

In closing

In summary, while Q1 2026 shows a modest slowdown in transactions alongside rising inventory, underlying market fundamentals in the Cayman Islands remain strong, with increasing prices, significant pre-sale closings, and sustained demand driven by tourism growth, population expansion, and global investment trends.

With major developments nearing completion, potential immigration policy changes on the horizon, and continued pressure on limited housing supply, the market appears well-positioned for continued momentum.

Overall, 2026 is shaping up to be a year defined less by short-term fluctuations and more by long-term structural growth—reinforcing that those who understand the timing and dynamics of this market will be best positioned to benefit.

In a constantly shifting market, working with experienced and trusted professionals is more important than ever. If you have questions about buying, selling, or navigating the Cayman Islands real estate market, the Bovell Team is here to help. Contact us at +1 345 945 4000 or [email protected].