The Cayman Islands are a British Overseas territory comprising of three islands: Grand Cayman, Cayman Brac and Little Cayman. Home to 66,500 people, the islands saw approximately 1,000 immigrants per annum prior to the pandemic. An important financial and insurance centre, ranking 67th in the Global Financial Centres Index, the Cayman Islands have a particularly high GDP per capita of nearly $85,000. Tourism is the other major economic driver, and the sector was largely responsible for the Cayman Islands economic bounce-back after the pandemic.

The islands’ prime property market remained buoyant during the pandemic, and prices have risen by more than 10% in the past three years. They are expected to grow by a further 5% in 2023. Price growth is underpinned by a fundamental lack of supply, with new delivery further compounded by material shortages and rising costs. During the pandemic, there was significantly increased demand for single family homes with water access. More recently demand for beachfront condos has returned. No annual property tax, income or withholding tax is levied, and a stamp duty of 7.5% of the purchase price or market value is paid on property sales, creating a comparatively attractive property purchase market.

There are several developments in the pipeline which should help to mitigate – but not alleviate – the situation. Most of the new schemes are located along Seven Mile Beach (in fact 6.3 miles long), the most popular stretch of Grand Cayman. Future developments include The Watermark, a luxury beachfront condominium development with over 90% of units sold; Aqua, a development of large four-bedroom lateral residences; and Seacrest, which launched in 2018 and offers 20 beachfront condominiums.

The Cayman Islands offers a programme to attract digital nomads for short-term residency. The Cayman Islands Global Citizen Concierge Program allows people employed for companies outside of the territory to relocate to the islands for up to 24 months, though there are some income restrictions.

Since 2015, just under a billion dollars has transacted in commercial property ($991 million). The majority of this activity has been in the hotel segment, notably the sale of the Ritz Carlton Grand Cayman, while $4 million of offices transacted have transacted, including the sale of Bermuda House which is occupied by the Cayman Islands Government. It is the second largest commercial real estate market in the Caribbean for transactions, after Puerto Rico.