Belize condos: A market snapshot
July 24th, 2010
Belize condos are the mainstay of the international real estate market in Belize. We analyzed over 50 real estate developments catering primarily to foreign buyers, and found over half had condos for sale. Far fewer are selling serviced lots or single-family houses. As land is relatively expensive compared to construction costs (particularly at the ocean), it makes sense for developers to design multi-story buildings.
Ambergris Caye, the most popular tourism spot in the country is home to 44% of all condo projects in the country. Placencia on the mainland has 31%. Combined, the two purchasing destinations make up 75% of the country’s condo market.
How much for a Belize condo?
Ambergris Caye is the most expensive location for condos with a median asking price of US $273 per square foot for ocean view and beachfront locations. Placencia comes in second at US $249. The median asking price for Belize condos for sale across all other parts of the country (including inland areas) is significantly lower at $186.
What amenities are Belize condo developers offering?
A characteristic of the market for Belize real estate, when compared to other countries in Central America, is smaller master plans and a more boutique style of development. There are fewer large-scale destination resorts for example.
We looked at condo projects with completed amenities and found the most common community master plan includes a multi-story condo building (2-5 floors), swimming pool (the most common amenity), restaurant and pier or dock. For condo projects still undergoing construction, this same pattern continues with yoga/spa centers being the most frequent additional amenity planned.
Completion ratios for condos in Belize
We looked at the balance of amenities offered by condo developers and found for every 2 completed amenities, 3 were still planned or in the process of being built. This ‘completion ratio’ of 2 to 3 is higher than in Nicaragua for example where we found the ratio to be 1:4 (i.e. for every project with a completed amenity, 4 were still planned).
While this is only one data point, it does underscore the view of most market watchers that Belize is less emerging, (and probably less ’speculative’ even), as a real estate destination than Nicaragua. We’ll be reviewing completion ratios for Costa Rica and Panama in later posts. So stay tuned.
After the crisis
After a soft market in 2009 and early 2010 for Belize property, inventories are still high and vendors motivated. Buyers are treating asking prices as starting prices and are negotiating hard. Many are comparing developer-direct prices with the re-sale market (where end-user sells to end-user) to see if they can find motivated sellers with lower prices. Developers are slowly adjusting to the fact that it’s a new market for condos in Belize and the post-crisis real estate investor is here to stay.
Tags: Ambergris Caye, Belize, Belize condos, Placencia real estate
Posted in Market statistics and data | 3 Comments »
Revealed: The state of the international real estate market in Belize
September 22nd, 2009
One of the frustrating things about investing in real estate in Belize (or elsewhere in Central America for that matter) is the difficulty of getting hold of objective market data. There are no easily accessible central databases or comprehensive Multiple Listing Systems to research. Buyers are often left with information they receive from real estate vendors and promoters and not much else.
Our goal is to try and fill this data gap for Belize real estate and provide an additional layer of information to buyers to help them with their decision making. Our focus is the overseas property sector - essentially the ‘luxury’ sector of the market - comprising master planned communities, resort real estate and condo projects in Belize.
We’ve identified the major real estate developments active in Belize and aggregated listing prices across the main real estate categories (e.g. serviced lots, condos and single family homes). Then, with our baseline collected in 2008, we’re able to determine a year-on-year price trend.
So what’s the international real estate market in Belize looking like in 2009?
- As you would expect, any type of water view property commands a premium. Beachfront single family homes are the most expensive property type followed by beachfront condos (this holds for both median price and median price per square foot).
- In order to purchase prime real estate in prime areas, you’ll need to spend over $200 a square foot.
- But there is also a market-share in ‘affordable international real estate’ that’s evident as soon as you leave the prime zones such as Placencia, Ambergris Caye (and to a lesser extent Hopkins). Here the per square foot price for property falls considerably.
Belize real estate at the high end
- Six of the top 10 most expensive master planned communities in Belize by median price/sqft are located in Ambergris Caye. The Caye is also the most visited tourism destination in the country - a fact that points to the close link between tourism and real estate activity in Belize.
Looking at the year-on-year trend
- Belize has seen some price falls across the main real estate categories. The market for Belize condos is the most active in the international real estate scene, has the most data-points, and is the one to look at most closely if you’re trying to read the market.
- Although there are no double digit falls (like we have grown accustomed to seeing in many areas of the US for example), there is also a sense that few people are buying.
- Developers are holding their ‘official’ prices relatively firm but may be offering other forms of incentives and ‘discounts’ without showing price falls.
- Re-sales (i.e. sales from end-user to end-user) are not included in our figures but do in some instances undercut developer direct prices where sellers are highly motivated.
In later posts, we’ll compare the Belize property market against Panama, Costa Rica and Nicaragua to see how it stands up. But, no question, it’s still a buyers market out there, with great deals to be had if you’re willing to spend the time seeking out the opportunities.
From Reveal Real Estate - charting overseas property trends in Central America.
The real estate market in Central America: In graphics
March 28th, 2009
Whether you’re in the market for real estate in Central America, or you are selling, market data matters more than ever. Without data how can you determine fair value, track where the market is heading or feel confident that you are making the right investment decision? Trouble is, in Central America market data and comps are not readily available from property institutes, registries or central bank databases.
To try and fill this data gap, we’ve collected data from real estate developments in Panama, Costa Rica, Nicaragua and Belize and put this information online. As part of our research we also collected country-level indicators that shed light on the investment climate. Here are some highlights from what we have found:
Real estate developments targeting the international buyer
Costa Rica has the largest number of real estate developments that target the international investor, with 34% of the total in our database. No surprise really. It’s been on the international real estate map for longest. Panama follows close behind. This is largely due to the explosion in condo projects in recent years in the capital city selling Panama apartments.
The price for an ocean view condo
The order from most expensive to least expensive country to buy an ocean view condo is Costa Rica - Belize - Panama - Nicaragua. The data looks at median price per sq.ft.
The ordering is what you would expect given the different levels of maturity of the markets and level of infrastructure. But did you think the differential between Costa Rica and the other countries would be greater? We did.
The average size for an ocean view condo in Costa Rica tends to be larger than in other countries, which may explain part of this. Click here for a more in depth review of Belize condos. We’ll be publishing more data in later posts to dig into the comparatives further.
Internet searches on Google
There were more searches for ‘Costa Rica real estate’ on Google than for ‘Panama real estate’, ‘Belize real estate’ and ‘Nicaragua real estate’ combined. We predicted the order, but again were surprized by the differential between Costa Rica and the other countries - this time in the other direction.
Cost of living
Nicaragua stands out as offering the lowest cost of living. Using purchasing-power-parity (PPP) data we can determine what US$1,000 ‘adds up’ to in different countries. In the US $1,000 has the purchasing power of $1,000, but in Nicaragua it has a purchasing power equivalent to $2,629. We have to be careful not to draw too much from these averages as they don’t apply to all product categories. But for day-to-day goods and services your dollar will stretch further in all four countries than in the US.
Completed golf courses
There are several golf courses planned or under construction in the region. At least 3 in Nicaragua and 3 in Panama. The data below is for completed golf courses that can be played on. Before seeing the data, would you have guessed that there would be more than 2 completed golf courses in Nicaragua? See more on golf property.
The data is drawn from research done in 2008, see notes to the data for more information. We’ll be updating for 2009 and charting the trends. Dig into our main site, run some searches, and check out the property hotspots and country indicators for Nicaragua, Panama, Costa Rica and Belize.
What’s your reaction to this data. Any surprizes for you?
From Reveal Real Estate - charting overseas property trends in Central America.
Costa Rica tops our list coming in first and second. In fact, 3 of the 7 regions fall within Guanacaste, Costa Rica’s northern state. The data is based on our database of real estate developments in Costa Rica, Panama, Belize and Nicaragua. Nicaragua, being a cheaper destination than the other countries, did not make the list.
1. The stunning coastline of Coco, Hermosa and Papagayo in Costa Rica’s Guanacaste region tops our list. Here the median price for an ocean view condo is $340 per sqft. The region is packed with amenities from tennis clubs and marinas to championship golf courses and luxury spas. It has some epic surf breaks, good infrastructure and is very accessible from Liberia’s international airport. Celebrity purchases, major hospitality brands and top class attractions abound in the region so it’s not surprising that it tops our list.
2. Just next door, also in Guanacaste, lies Flamingo where the median price for an ocean view condo will set you back $305 per sqft. Tourists are attracted to the spectacular beaches, the world-class sport fishing (there’s an international tournament every year) and the numerous dive spots.
3. Ambergris Caye comes in third. It’s the most visited part of Belize and offers the picture postcard Caribbean experience - sparkling white sand, azure waters, swaying palm trees and a great barrier reef just off shore. Belize condos are the main draw on the island. And for a median price of $290 per sqft, you’ll be on your way to owning an ocean view condo in this important tourism area. The added bonus for many international real estate investors: you won’t have to learn another language as Ambergris Caye is English speaking.
4. Fourth on the list is Tamarindo located, wait for it, in Guanacaste Costa Rica. Long recognized by surfers for its great waves, Tamarindo now offers something for backpackers, luxury travelers and everyone in between. You can take advantage of lovely local beaches - some with turtle nesting areas, dive spots, golfing, numerous night-spots, restaurants and, of course, plenty of sunshine year round. An ocean view condo clocks in at $285 per sqft.
5. Jaco lies on a wide, grey-sand bay on Costa Rica’s Central Coast in Puntanrenas. Well known hospitality brands such as Sonesta, Ramanda and Wyndham have set up store along the beach front and you’ll lose count of the internet cafes, curio stores, tour agencies, souvenir stands, bars, restaurants and nightclubs that jostle for position on the main road. You’ll find ocean view condos here for around $280 per sqft.
6. Our second Caribbean region, Bocas del Toro, in Panama comes in 6th. If you want an ocean view condo here you’ll be looking around $275 per sqft. The cluster of islands that make up the archipelago have become a key tourist destination for visitors to Panama. Unusually for the Caribbean, you’ll not only find great local dive spots but also some good surfing waves.
7. Cosmopolitan Panama City with it’s soaring skyline of glass and steel comes in 7th. The town is a world class financial center and business hub that offers a range of exciting experiences to visitors. You’ll find a vibrancy here that is rare in Central America. Investors looking for US style infrastructure, excellent health care and a benefit-laden retirement program tend to look no further. You’ll need to lay out around $265 per sqft. for an ocean view condo. Click for a 2010 update on the Panama apartment market.
The data was collected during 2008. We’ll be updating for 2009 and tracking the trends.
So tell us, would you buy in one one of these property hotspots?
Tags: Belize, Belize condos, Costa Rica, Panama, Panama apartment
Posted in Comparison shopping, Market statistics and data | 1 Comment »