Real Estate Market Overview
Belize real estate is currently emerging as it steadily attracts a more upscale clientele by people on vacation and real estate investors and developers.
As an English speaking Caribbean country that is within a 2.5 hour direct flight from the USA, people from all over the world are taking notice. Once investors visit this beautiful destination, experience the friendly culture and natural beauty, see the quality homes available and feel confident in the ease of real estate transactions in Belize, they feel confident in their investment choice.
In 2015, Caye Chapel in Northern Belize was sold for over $20,000,000US to a group out of Mexico. It is anticipated that the first 5-star flag hotel will be developed on this private paradise, located just a few short miles from Ambergris Caye. http://www.travelpulse.com/news/destinations/belize-government-sells-caye-chapel-for-luxury-resort-development.html
In April 2015, Leonardo DiCaprio announced that along with a very impressive team, they are developing Blackadore Caye into a luxury eco-resort where 35 private estate homes will be sold for $12,000,000 USD each. The island is located a few miles to the West of Ambergris Caye. This development will incorporate ecologically conscious technology, wellness and sustainability. It will set Belize on a world stage for cutting-edge development.
The BTB’s (Belize Tourism Board) latest numbers show a 16.9% increase in overnight tourist international arrivals, making the country the fastest-growing Caribbean tourist destination so far in 2016!
Hilton hotel announced in August 2016 that they now have their first ever hotel property in the country of Belize. Hilton selecting Belize confirms the strength of tourism in the country and that more big brands will be coming.
The infrastructure on the island of Ambergris Caye is gaining significant improvement. Road pavement construction is currently in progress north of San Pedro Town. This will not only create access to properties that were only accessible by water, but will also raise the property values of the non-beachfront properties along the new paved road. In addition, there is a sewer and water project to bring these services to the northern part of Ambergris Caye.
Driving Factors to Strong Real Estate Growth
Real Estate value in Belize is exceptional. The prices of real estate in Belize compared to the prices in the eastern Caribbean and in Mexico are significantly lower. Investors will certainly see appreciation in their real estate assets as Belize continues to develop. In addition, property taxes are extremely low, there is no capital gains tax, no estate tax, and real estate transactions are relatively easy to complete.
The diverse landscape that Belize offers is another driving factor for strong real estate growth in Belize. This emerging country offers island living, jungle living, beachfront land, reef front land, river front land, farm land which are all very appealing and attract a diverse clientele.
Short Economic Overview and How This is Impacting the Real Estate Sector
The economy in Belize is stable and growing. It is impacted significantly on the US market trends as most investors come from the USA. As the USA real estate market improves, more investors come to Belize for 2nd home and vacation home investment. Many are also looking to diversify their investment dollars and Belize is a safe place to invest. Property in Belize will continue to appreciate as more investors are attracted and larger, quality developments are built.
Best Performing Asset Classes
In the recent past, the homes and condos in the $200,000 – $300,000 USD range performed very well. We are now seeing the sale and construction of homes from $400,000- $2,000,000 USD as the market continues to attract a more affluent buyer.
Attractive Investment Opportunities
There are many attractive land development opportunities in Belize. Whether it is for a waterfront home or large development project, Belize will see an increasing amount of construction and value going forward.
Is the Retirement or Second Home Trend Changing?
Belize’s proximity to the US combined with the increase in direct flights makes it a great second home market for both Americans and Canadians. Direct flights to Belize are now available from Los Angeles, Houston, Dallas, Denver, Atlanta, Charlotte, Chicago, Miami, Newark and Toronto. The majority of these second homeowners rent their properties out on a short or long-term basis when they are not present. With the tourism market on the rise in Belize, homeowner’s are seeing more rental income with their property.
In addition to second homebuyers, we are seeing a trend of individuals relocating to Belize for full-time living. Many are coming down to simplify their lives, change professions and open new businesses. The quality of life that Belize offers is something that many people are looking for and the fact that Belize is an English-speaking country is a huge benefit for those relocating to the country. In addition, Belize has a very entrepreneurial spirit and welcomes new business ideas, which improves service and further improves quality of life for residents.
Belize most certainly has a very bright future! The opportunities available are endless and the amount of development that we will see over the next several years will be quite impressive! The current developments discussed above will all have extremely positive effects on the economy of Belize in many ways.
It’s the right timing for Belize Sotheby’s International Realty’s to provide professional real estate services for this growing area.
Kristin Fisher is the exclusive agent representing the Belize real estate market as a member of the Haute Residence Real Estate Network. View all of Kristin Fisher’s listings in Belize here.
Images courtesy of Kristin Fisher