Cayman Islands Property Market
$9,392,316
$1,295,841
Average Price Per SqFt for Commercial Leased Spaces
IRG Outperforms Market Amid Global Challenges
The Cayman Islands real estate market in Q1 2025 reflected expected global and regional trends, with a natural slowdown driven by evolving global economic conditions and shifting buyer sentiment According to LIS data, total transaction volume dropped by 18%, and the number of sales declined by 21% compared to Q1 2024 IRG, by contrast, defied market trends with a 44% increase in transaction volume in Q1, a 129% increase in average transaction value compared to market average and listings selling 39% faster than the market average Interestingly, the average transaction value continued to rise for the market as a whole, reaching one of the highest monthly averages in over five years in March 2025 indicating ongoing interest in high-value properties.
This is primarily driven by the luxury sector, where several high-value transactions were recorded, influenced in part by the UK’s recent changes to non-domicile tax rules driving wealthy buyers offshore IRG represented 50% of these high-value transactions Although luxury market activity dipped overall, the average transaction value in this segment jumped 52% year-over-year, underscoring the continued appeal of premium real estate among international buyers. Inventory, however, remains a limiting factor
The mid-end residential market remained steady, supported by strong local demand and a positive response to recent stamp duty reforms Meanwhile, the commercial sector suffered most, largely due to investor hesitation in the current global climate. It's worth noting that Q1 2024 included a large commercial land sale that skewed comparisons and that Q1 2025 activity actually surpassed Q1 2023 levels, suggesting stability in this sector.
YEARS OF IRG NAVIGATING UNCERTAINTY
As the market response aligns with global economic uncertainty, changes in international tax regimes, and geopolitical instability, all of which are influencing buyer and seller behaviour, IRG is well positioned to help While many buyers are understandably more cautious, they continue to seek out secure, stable markets like Cayman that offer long-term value, lifestyle benefits, and tax neutrality In this sense, Cayman’s appeal often peaks during times of heightened global instability.
Both buyers and sellers are adjusting their strategies in response to this recalibrated market. Buyers are taking a longer-term view, drawn to Cayman’s consistent growth in average transaction values and its appeal as a safe, highquality destination Sellers, in turn, are revisiting pricing and timelines, and leaning on experienced advisors such as IRG, to position their properties effectively in a more selective environment
This is where IRG’s deep market insight and strategic advisory capacity becomes crucial We’ve been here before –whether it be in the aftermath of Hurricane Ivan, the global financial crisis of 2007-2012, or the COVID-19 pandemic Each time, our team has delivered clear guidance, resilient strategies, and exceptional results for our clients and customers In moments like this, partnering with a team that understands both global dynamics and local nuance is essential
Lean on IRG and our 30 years of real estate expertise to help you navigate the best route to real estate success in a complicated market.
If you ’ ve found this information helpful and would like a more in-depth market analysis, contact one of our real estate specialist today and we can tailor our services to meet your specific needs
