2025 Full Year Market Report

In 2025, the Cayman Islands residential market moved closer to maturity. Most of the indicators we track normalized over the course of the year. Condo prices increased by 5% year over year, broadly in line with the 4% gain seen in 2024 and well below the double-digit growth seen between 2018 and 2023. Rents increased by approximately 2%, consistent with consumer price index trends, while land prices edged up by 1%.

Notably, total residential transaction value reached $1 billion in 2025—the highest annual
total on record. This marks the first time the residential market has surpassed the $1 billion threshold, exceeding the previous record set in 2021 by $42 million.

Properties priced above $2.4m accounted for approximately 12% of transactions but nearly50% of total sales value. For the third consecutive year, Provenance Properties agent Ewelina Cimring ranked as the leading buyer’s agent by total sales value.

Price growth on Seven Mile Beach underperformed the broader market, a pattern typically observed as a market moves further into maturity. Market liquidity softened modestly, with average days on market rising from 133 to 147 and sales-to-list discounts widening from 4.2% to 5.0%.

New inventory across all property types remains in line with 2022 to 2024 levels, although new condo supply declined for a third consecutive year. The ratio of units sold to units listed held steady at 0.59, almost identical to the prior year, pointing to a further normalization in the balance between supply and demand.

Rental yields (net of strata and insurance) remained below 6% for the fifth consecutive year.

Looking ahead, the outlook is nuanced. Falling interest rates provide support, with forecasts pointing to a single 25 basis-point rate cut next year. Cayman’s long-standing appeal— underpinned by climate, infrastructure and its business-friendly environment remains intact. Offsetting this, higher stamp duty, slower employment growth and rising regulatory pressures present headwinds. The key uncertainty is how these forces compare with conditions in the US, Europe and other competing markets. Over the long term, our view of the Cayman real estate market remains positive.