ENCOURAGING 2026 OUTLOOK FOR CAYMAN’S REAL ESTATE MARKET

IRG REVIEW: PART TWO

By Staff Writer

Cayman’s real estate market remains attractive for buyers, sellers, and investors seeking long-term stability and strategic opportunity, says top real estate firm IRG.

It says this outlook for 2026 is underpinned by a strong appeal and an equally regulatory environment.

In a new report titled ‘2025 in Review, 2026 Opportunities’, IRG paints an optimistic picture of the resilience of the sector in Cayman, highlighting strong growth potential based on current conditions and trends.

POLICY AND REGULATION

Looking at local policy and regulatory changes in the real estate sector, 2025 saw the launch of the Cayman Islands’ first Residential Property Price Index (RPPI) by the Lands & Survey Department in September 2025, marking a major step forward in market transparency and data-driven decision-making.

According tothe IRG report, early findings confirm Cayman’s long-term residential strength, with the index up approximately 460% since 1998, and growth accelerating in recent years. District-level data reinforces the role of Seven Mile Beach as the premium-led market indicator, with George Town demonstrating strong long-term performance as a key residential and commercial hub.

STAMP DUTY

Stamp duty is a one-time government tax payable on real estate transfers in the Cayman Islands. In 2025, it became a key topic as the Government introduced new Caymanian concessions and later proposed higher rates for high-value transactions, creating both opportunity and urgency among buyers.

Hiva Akhatri, Residential Sales Associate, observes that “over the past 10 years, the number of properties sold above CI$2 million has risen 214%, highlighting how the market has evolved since the government implemented a similar rate increase in 1995, which it later retracted.” She says that, considering Cayman has no ongoing property taxes, the rate increase is not anticipated to have a dampening effect on 2026 market activity.”

Regarding the impact of interest rates on the market, Andrew Gilbert, Commercial Sales Associate, indicates that “as interest rates continue to ease, investors may be willing to accept lower yields on commercial property. This typically supports higher capital values for well-leased assets and may encourage increased transaction activity within the commercial investment market during 2026.”

LOOKING AHEAD

Coupled with favourable fundamentals, including population and household growth, and lifestyle appeal, IRG says Cayman’s real estate market remains attractive for buyers, sellers, and investors seeking long-term stability and strategic opportunity.

“The Cayman Islands real estate market in 2025 demonstrated its ability to adapt and thrive amidst global economic changes and evolving local policies. Historical trends, from the spikes in 2011, 2016, and 2021, underscore the market’s resilience, whilst the introduction of the Residential Property Price Index reinforces its transparency and data-driven evolution.”

For 2026, it says “the market is expected to maintain its strength and stability, with activity increasingly influenced by inventory levels, new development activity, improved financing conditions and global mobility trends.”

IRG concludes that the Cayman Islands continues to attract a broad buyer base, including expatriates here on business, returning Caymanians and international high-net-worth investors(HNW), positioning the market for sustained long-term growth even as conditions normalise.

“Overall, Cayman’s real estate landscape will continue to balance supply constraints, evolving policy, and global economic dynamics, supporting confidence in pricing, long-term value, and the jurisdiction’s enduring appeal as the prime destination and economy both within the Caribbean region and beyond.”