The full-year data from the real estate company Provenance Properties shows that total transactions in Cayman’s residential property market topped US$1 billion for the first time. Yet various indicators, from rental yields to discounts, suggest the rate of growth is slowing as the market matures.
The increase in transaction value to US$1 billion was US$42 million higher than the previous record set in 2021 and mainly driven by the luxury segment. Properties priced above US$2.4 million accounted for approximately 12% of transactions but nearly 50% of total sales value. For example, the highest condo sales price in 2025 was US$9.1 million for a top floor unit at The Residences at Seafire on Seven Mile Beach.
The supply of residential property inventory was steady, with the report noting “new inventory across all property types remains in line with 2022 to 2024 levels, although new condo supply declined for a third consecutive year.”
“Grand Cayman is a small jurisdiction compared to the rest of the Caribbean with a lot to offer such as being tax-free,” said Athena Nicole, founder of MOD Realty. “Cayman will always be resilient regarding real estate holding its equity because there’s a lot of demand but not a lot of inventory.”
Maturing market
But despite the record level of transactions there were signs of a maturing market.
Condo prices increased by 5% year over year, which was broadly in line with the 4% gain seen in 2024 but well below the double-digit growth seen between 2018 and 2023.
“Price growth on Seven Mile Beach underperformed the broader market, a pattern typically observed as a market moves further into maturity,” said the report.
Rents increased by approximately 2%, while land prices edged up by 1%. That’s broadly in line with Cayman’s inflation figure for 2025, which the Economics and Statistics Office currently estimates at 1.9%. Those relatively modest rent and land price increases are good news for Cayman residents following significant increases in the cost-of-living in recent years.
The rent slowdown is less welcome for landlords as it means lower yields. “For the fifth year in a row this yield has been below 6% and currently stands at a median rate of 5.6% across the whole condo market,” said the report.
Another key indicator that Cayman’s real estate market is maturing is the average number of days it takes to sell a property, which rose to 147 days from 133 days last year. One reason for that may be that sellers are initially listing their properties at levels that assume the market is still moving higher annual price growth rate of the 2018 to 2023 era, said Nicole. “It’s important that sellers list their property [at levels that] compete with the market.”
Editor’s Note: The Cayman Compass is a subsidiary of Dart Media and Entertainment. Provenance Properties is also part of the Dart Group of companies.
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