CAYMAN ISLANDS Law and Practice Contributed by: Adam Johnson, Appleby
1. General 1.1 Main Sources of Law
to increased prices for end-buyers, a more innovative approach to value-engineering and a rise in private financing clubs to replace or supplement traditional bank borrowing. 1.3 Proposals for Reform At the time of writing, there are proposals to reform the law applicable to mortgage enforcement, which will create a more consumer-friendly environment for those securing financing over Cayman Islands real estate. Secondary legislation required to implement and flesh out this framework is awaited. There are also longstanding proposals to modernise the Strata Titles Registration Act (2013 Revision) and update the Development Plan 1997. The Cayman Islands Land Registry continues its work to implement e-conveyancing, and plans to propose a number of legislative initiatives to further streamline the land registration process and reduce the reliance on physical documentation. An increase in stamp duty applicable to higher value real estate transactions was implemented on 1 Janu - ary 2026. Real property can be held as freehold (held by the registered proprietor indefinitely) or leasehold (held by the registered proprietor for the term of the lease). The Strata Titles Registration Act (2013 Revision) allows for the registration of a strata plan against a freehold or leasehold land parcel to create individual strata lots, each of which is registered with its own derivative title and the remainder held as “common property” by a strata corporation. Strata titles are often used as a mechanism to govern multi-unit devel - opments such as office buildings, shopping centres and condominium developments. The Registered Land Act (Revised) allows for the reg - istration of a volumetric plan against a land parcel, 2. Sale and Purchase 2.1 Categories of Property Rights
Real estate in the Cayman Islands is primarily gov - erned by legislation and case law, although decisions in commonwealth jurisdictions may be considered in circumstances where there is no relevant local legisla - tion or case law. 1.2 Main Market Trends and Deals While market activity had been reduced due to high borrowing costs coupled with global economical and political uncertainty, the Cayman Islands real estate market has recently seen increased activity both in terms of domestic and international investment. Luxury condos along the famous Seven Mile Beach continue to attract overseas investment, at increasing prices. Several major projects are nearing completion. The leisure and tourism sector remains active, with several projects underway. Developments of note include: • Mandarin Oriental resort and residences at Beach Bay; • Grand Hyatt resort and residences along Seven Mile Beach, which nears completion; • ONE | GT hotel and residences located in George Town, a project that seeks to kick-start rejuvena - tion of the capital, recently completed, with resi - dence sales and hotel opening slated for 2026; • Watermark residences, a premium luxury condo - minium complex along Seven Mile Beach nears completion; • Lacovia, a premium luxury condominium complex along Seven Mile Beach sees construction well underway; and • Prisma, a luxury townhome and condominium complex located in the Crystal Harbour develop - ment, nears completion of its first phase. In addition, the Cayman Islands’ largest developer, Dart Realty, nears completion of its new ten-story office building within in its self-sufficient town known as Camana Bay. Continued high inflation and associated high interest rates have certainly impacted developers. This has led
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