The commercial real estate market in Belize was hit hard during the 2008 recession. The recent 8.7 percent growth increase in the local economy indicates a recovery will soon occur in the commercial market. Belize is a popular tourist hub and retiree destination. As a result, the demand for commercial operations, like hotels and restaurants, continues to increase, year after year. Foreign investors are already eyeing this tropical paradise as a potential location for excellent returns on their investments. Investors can prepare for their entrance into this market. We can help you better understand the current state of commercial real estate in Belize.
Commercial Property Demand Remains Low
Uncertainty about Belize’s economic recovery has kept the demand for commercial property fairly low in recent years. With the downward trend ensuing, the perceived risk of investment kept real estate moguls from purchasing commercial sites in this region. As the market gradually recovers, however, demand will likely kick into high gear as investors purchase properties. One of the most popular tourist locations and exclusive hotspot is Ambergris Caye.
Mortgage Interest Rates Continue Rising
The low commercial real estate demand, and restrictions on mortgages for foreign investors, triggered an increase in mortgage interest rates. Foreign investors are regulated to cash-only purchases. Local investors will continue to grapple with interest rates hovering about five percent higher than rates found in the United States. Therefore, demand may only start to kick into overdrive once foreign investors divert their funds to the real estate market in this region.
Prices Stagnant Due to Custom Construction Options
Custom construction is very affordable in Belize. Many investors choose to create a personalized structure rather than buy existing properties. As a result, available commercial properties remain on the market for an extended period of time. This only serves to keep prices relatively stagnant as a result. Investors can use this to their advantage by purchasing existing commercial structures at a fair price.
Popular Tourist Hubs Attract Commercial Operations
Two of the most popular tourist hubs in Belize are Caye Caulker and Ambergris Caye. This demands additional commercial operations to support the growing tourist industry. Tourists want to remain in close proximity to shopping, dining and entertainment venues while enjoying their time in paradise. Investors must make purchases in the most popular tourist regions of Belize before the upturn swing moves forward at full force to see great returns on their investments. With limited space on the islands, high demand will trigger an increase in price for each commercial property for sale in this region.
Foreign Investor Interest Increasing Every Year
With the recovery in full swing, foreign investor interest increases every year as the promise of great returns rises. Properties with gorgeous views and nearby amenities can rent for hundreds of dollars a night, for example, which allows investors to net excellent returns every year. Early investors must pay close attention to the location to obtain high earning commercial properties in the most popular locales, such as the Placencia peninsula.
Investors looking to expand their portfolio with top-performing commercial properties in Belize may benefit from acting before the market recovery attracts attention worldwide. To acquire an excellent commercial property for sale, investors can contact the team at RE/MAX Island Real Estate today.