Q1 2025 Market Report

Cayman Islands Real Estate: Q1 2025

In the first quarter of 2025, 192 property sales were recorded, amounting to an impressive US$261 million. Notably, over half of this total value stemmed from just 24 transactions exceeding US$2 million each. The luxury single-family home market played a dominant role, comprising the majority of sales over US$2 million*.

Among these high-end sales, 14 single-family homes sold for over US$2 million, with seven surpassing the US$5 million mark and four commanding prices above US$10 million.1 The most significant transaction of the quarter was a remarkable 17,000-square-foot residence at Lalique Pointe in Crystal Harbour, which changed hands for an extraordinary US$26 million. To put this into perspective, only eleven single-family homes sold above US$5 million throughout the entire year of 2024, highlighting the strong demand for luxury real estate in 2025.

The other key segment of the market, properties priced under US$2 million, accounted for US$115 million in sales across 168 transactions in the first quarter of 2025*.

“Wow, what a start to 2025. The demand for ultra-luxury properties in the Cayman Islands continues to grow, with Q1 seeing some of the most significant single-family home sales on record. The strength of this segment speaks to the desirability of Cayman as a premier destination but also the confidence high-net-worth buyers have in the market’s long-term value,” says Ewelina Cimring, Provenance Properties real estate agent.

While total for-sale inventory has declined slightly due to sales, expirations, and withdrawals, new listings continue to enter the market at a pace consistent with previous first quarters.

The slight increase in new listings this quarter can largely be attributed to the recent bulk listing of individual commercial business park units in central George Town, as well as a former multifamily building in George Town South now being sold as smaller individual units.

The sales pace has softened somewhat, with 2.6 new listings for every sale in Q1 2025 compared to 2.0 new listings per sale during the same period last year.1 This shift is largely driven by the aforementioned bulk listings rather than a broader slowdown in market activity. It is important to note that Q1 2024 experienced the highest first-quarter sales volume on record at US$271 million, resulting in a notable spike. By comparison, Q1 2025 reflects a more stable performance. Additionally, the total dollar value of sales in Q1 2025 is more in line with historical trends, underscoring the market's continued strength and consistency.

Condo Sales in Cayman

While the condo market has experienced a slowdown compared to the same period last year, with 91 sales this quarter versus 135 in Q1 2024 and total sales volume reaching US$86 million compared to last year’s US$158 million, this shift is not necessarily cause for concern.1 The 2024 figures stand out as unusually high when viewed against the trends from 2020 to 2023, suggesting that the current dip may simply reflect a market adjustment. Additionally, the anticipated reduction in borrowing costs pending the Federal Reserve’s implementation of lower interest rates could help stimulate activity in the near future.

Our condo price index, DOKHPI, recorded a 4% price increase in 2024 compared to the previous year. Looking at the broader picture, condo values are 2.4 times higher than in 2014, reflecting a strong compound annual growth rate of 9%. While early data for 2025 suggests a similar 4% increase, it’s important to view this cautiously, as the index is based on limited data at this stage and is likely to adjust as more sales are recorded throughout the year. 

Cayman Rental Market

Residential rental rates continue to rise, though at a more measured pace compared to the sharp increases seen in the immediate post-pandemic years. On average, rental prices in Q1 2025 were 3-4% higher than those recorded during the same period in 2024*. For the third consecutive year, our rental index reaffirms the return of seasonal trends in the market. As seen in previous years, the first quarter brought a decrease in available inventory and a corresponding uptick in rental prices, signaling a stabilised yet dynamic rental landscape.

“Despite global economic changes and high borrowing costs, Cayman’s real estate market remains resilient. With both rental and sales prices continuing to rise at a steady 4% growth rate, demonstrating the enduring economic strength of the jurisdiction," says Antonette Baptist, Provenance Properties sales specialist.

Continued Confidence

In Q1 2025, a total of 217 listings representing US$326 million in inventory were placed under contract, with an average time on the market of three and a half months. Although some of these transactions have already closed, more than US$200 million in pending sales is still awaiting finalization.1 While a portion of these deals may not go through, the overall volume reflects sustained buyer confidence in the Cayman real estate market, even amid global economic uncertainties.

“The first quarter of 2025 reaffirms the Cayman Islands’ position as a premier destination for luxury real estate. High-value home sales continue to lead the market, highlighted by landmark transactions and sustained buyer confidence. This momentum speaks not only to the enduring market appeal, but also to the trust that discerning buyers place in Cayman as a long-term investment and lifestyle choice,” says Kristy Rivers, Senior Vice President, Provenance Properties.

Our sales team’s exclusive access to Dart’s in-house data analysts allows us to provide up- to-date, accurate, and relevant information regarding the current sales index. This readily available market analysis enables Provenance Properties to stay ahead of industry trends and equip you with the knowledge to buy or sell with confidence. For more information on Q1 data and the latest price change estimates, contact our team today.

Citation:
*Based on data recorded by the Cayman Islands Real Estate Brokers Association (CIREBA) system.
The DOKHPI (Dimitrov O’Keeffe Home Price Index) measures annual condo price changes using a repeat-sales methodology. The index values are subject to change when additional transactions are introduced.