With a stable economy, high standard of living and beautiful environment, the Cayman Islands is also an ideal place for you to own property.
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On this page you should find information and links to important information you will need to know about buying a home or commercial property in the Cayman Islands.
2024 What We Learned
In terms of the number of transactions, Cayman's property market was certainly cooler in 2024 than in 2023. However, the average value of those properties increased. This means that mortgaged-property owners who are able to manage the high interest rates that affected their monthly repayments have seen an increase on their investments. Whilst inflation dropped to less than 2% in the first quarter of 2024, interest rates remained high at 8%. This has disproportionately curbed new borrowing. Also, in some cases, home insurance costs have increased as much as 40%. All of this has hindered the local housing market.
Still, demand for housing is still high (hence the robust prices in spite of the high cost of borrowing), and has come from new residents moving to Cayman. They are primarily moving here to work in family offices, banks and in legal services, but many are also coming to work in construction and hospitality – there are three new hotels being built and everywhere you look, new apartments and houses are going up. There are also the traditional vacation home buyers who, having visited as tourists, fell in love with Cayman and bought property, which will continue to happen.
Learn more about the stamp duty waiver, for first and second time Caymanian buyers.
Traffic and its effects on the Market
Unresolved traffic woes have also fueled demand for more centrally located properties that are closer to work and schools, and as a result, prices in George Town, Seven Mile Beach, the Seven Mile Corridor, South Sound and West Bay have only increased. The latter developing at an astonishing rate due to the absence of rush hour traffic from that direction, though ironically this will undoubtedly change as the population in that area grows.
In August of 2024, Members of Parliament agreed the route of the proposed East-West arterial road, going through the central wetlands area, with a view that the road would alleviate traffic for residents of the Eastern Districts. The reality is that the proposed road still leads to a bottleneck created by Cayman’s geography – the Grand Harbour roundabout is the depository of all roads taking residents living in the Eastern districts west. The National Roads Authority asked for public input on redesigning the roundabout as it is estimated that by 2035, 50,000 cars per day will pass through this junction, and something needs to be done to alleviate the congestion whilst improving pedestrian and cycling paths in the area.
Due to these traffic problems, some homeowners have traded larger homes for smaller ones in the more centrally-located areas, while others with high mortgage costs have sold their property and are renting. The ultimate winner is the rental market, as properties are snapped up within hours of coming onto the market and prices have risen exponentially. One of the aggravating factors has been the huge delay in new builds being given their Certificate of Occupancy (CO). Cayman has incredibly strict planning laws and every stage of the build must be inspected and signed off by the Planning Department. With only a handful of inspectors and so many properties to inspect, the process of getting a CO once the property is completely finished is taking more than six months. Without this document, no electricity can be turned on, so people cannot move in, which has also fuelled the rental market. There's no wonder renting a great property has become so difficult for all involved.
Sales in 2023 vs. 2024
According to the Cayman Islands Real Estate Brokers Association (CIREBA), there were 425 sales in the first six months of 2024 totalling CI$143,419,653 compared to 791 properties sold in the first six months of 2023 totalling CI$379,387,665, with 242 of these sales in 2024 being condo sales and 61 being single-family home sales.
As of June 2024, the total value of 1,859 active listings was over CI$935 million, while at the same point in 2023, 1,600 listings were listed at CI$3.355 billion. The reduction is due to there being no new luxury developments being launched in 2024. Cayman still attracts a lot of interest from people overseas who review real estate websites, blogs and podcasts, demonstrating the allure of Cayman and properties that often sell without people even being here. Particularly on Seven Mile Beach, which is effectively a Cayman property market within the Cayman property market. The apartments, condominiums and limited amount of free standing homes on this luxury strip seldom, if at all, see a reduction in price. The reality is that without mountains, the number of properties that can offer an ocean view is limited; people that live on an island have the desire to be as close to the ocean as possible, so as a result, oceanfront property prices do not fall.
What's next for the market in 2025?
After a winter dip, which is typical, and aided this time by global economic tides which quell peaks in Cayman's market but don't materially change it, there is a somewhat speculative approach to Cayman's property landscape in early 2025.
While lending rates might not dive dramatically in the coming year, they remain anchored compared to historical highs. With projected year-end rates hovering around 7%, this signals a resilient market weathering external storms. It's a case of watch, wait and consider safety first. However, with a lot of global uncertainty in the political realm in the first few months of 2025, it's very hard to pin down an accurate interest rate forecast.
That being said, luxury condos and villas continue to dance to the tune of international demand and limited inventory, maintaining their unwavering allure within in that bracket and listed on CIREBA for several millions of dollars. Even with that price tag, they are all too tempting for cash buyers and as result, they form a consistently robust sector of the market, and one that will always have the ability to part a high net-worth client from their moolah. At the same time, as one moves down the ladder just one step to mid-level homes, interest rates are still going to dictate how much potential buyers are prepared to borrow to make their dreams come true.
The Cayman Islands' inherent attraction – from its enviable lifestyle and investment opportunities to its tax neutrality and thriving job market – continues to draw individuals and businesses. And, coupled with the Islands' removal from the internationally-recognised anti-money laundering 'Grey List' late in 2023, foreign investors will have more confidence in the safety of potential future investments here. Not that they weren't safe before, but appearances are everything. However, a sticking point comes between increasing demand and the sluggish pace of new housing development. The absence of a new national development plan (the current one is from 1997), and bureaucratic hurdles in planning approvals are contributing to a decline in new listings and overall inventory levels. In addition, the General Election of 2025, with a sizeable slate of politically inexperienced candidates, suggests that a new, completed national development plan is once again some years off. Although, for those in favour of slowing things down before Cayman becomes over-developed, with infrastructure sorely lacking to service the needs of current residents let alone future ones, this is a good thing.
Real Estate Legal Overviewkeyboard_arrow_right
The real estate market in Cayman is simple and straightforward. Apart from a one-time stamp duty, there are no annual property taxes or restrictions on foreign ownership by individuals and title is granted and guaranteed by the Cayman Islands Government.
CIREBAkeyboard_arrow_right
Back in the day (pre-1980) Cayman’s real estate market could best be described as the Wild West. There were no real estate laws, no safeguards, and no consistency of business practices except that it was every man for himself. In 1987 a group of local realtors agreed to work together and founded the Cayman Islands Real Estate Brokers Association (CIREBA)
Read MorePurchasing Landkeyboard_arrow_right
With no property taxes, owning land in Cayman is a solid and hassle free investment. You can build when you are ready, or sell the land for a profit when it is convenient or necessary.
New Developmentskeyboard_arrow_right
With the real estate market being a solid investment in Cayman, and current inventory being in short supply, it is no surprise that developers are taking this opportunity to replenish the marketplace.
Single Family Homes
According to Claudia Subiotto from Team Bovell, while there are only a few hundred single-family home property sales in Cayman each year, 61 had been sold by the end of June 2024 for an average value of CI$1.6 million, which was 91% of the asking price. 2024 saw more of a reduction on home prices than in 2023. The average length of time to sell a single-family home was 473 days, versus 493 days for a condo. Compared to previous years, this is a significant increase in time.
Realtors have also noticed an upward trend of people favouring single-family homes over condos as they are not subject to mandatory strata fees and insurance costs, and no restrictions on having pets. By 1st July 2024 there were 215 single-family homes for sale across the three islands, averaging CI$4.1 million. For homes that are part of a strata, there were 18 listed for sale at an average of CI$1.6 million each, while there were 55 semi-detached homes listed for an average price of CI$1.36 million.
Condominiums & Apartments
At the end of June 2024, there were 1,045 condos listed for sale on CIREBA and 242 had been sold in the first six months of 2024, with an average of 90% of the asking price. When considering the market for condominiums in the Cayman Islands, it is often worth noting that there are two main sectors; condos located on Seven Mile Beach (SMB), which are often bought by overseas residents and are usually for 'daily rental' investment purposes, and others which are often inland apartments and townhouses. As our 'New Developments' section shows, there is an ever-growing inventory of new condos.
In addition, the appreciation seen on SMB has been continuous, and older properties with great beach frontage have benefitted the most. These have been prime material for redevelopment, benefitting from the Planning Department's decision to now allow building heights up to 10 floors on Seven Mile Beach. A case in point is the Lacovia units that used to sell for US$1,200,000 back in 2019, but the prices jumped to US$3.6 million when the redevelopment was unanimously approved by the strata members. A duplex in Lacovia is now selling for US$19 million, the penthouse is under contract for US$30 million, and the least expensive unit is selling for US$5.6 million (3-bed 3-bath). Note: Prices on SMB vary depending on square footage, floor level and unobstructed view.
Inland apartment complexes with 2 to 3-bedroom units have also seen a steady increase in price. These units are usually acquired for owner-occupation or for long-term rental income. Secret Gardens, another popular condo complex in George Town, is a good indicator of how prices have risen between 2023 and 2024. A two-bedroom property sold in 2023 for CI$465k and in 2024 another 2-bed sold for CI$515k, showing a 10% increase in a year. Close-by in highly desirable South Sound, a 3-bed condo in San Sebastian sold for a healthy CI$760k in early 2024 and an almost identical 3-bed unit at nearby Vela then sold for CI$850k, even though San Sebastian was 630sq ft bigger, confirming that the area is a hot bed for sellers.
Warehousing
With the growth of the population and businesses, the need for storage spaces has skyrocketed and many parcels of land have been sold for the sole purpose of building warehouses. In June 2024 a newly built warehouse complex is selling for CI$550k per unit of 1,250sq ft which is an average of CI$420 psf. Important features to potential buyers include fire rated dividing walls, smoke detectors, sprinkler systems, steel and concrete construction able to withstand winds of 150mph, an electric shutter system, mezzanine level optimising a vertical space, fitted restrooms, air conditioning and finally, whether it is located in an area that does not flood. Many now double as a workshop or office space. Popular areas for warehouses are central George Town – especially near the airport – and near the centre of Seven Mile Beach.
