Stimulated by the post-pandemic recovery of the tourism sector and ongoing government incentives, the Belizean housing market continues to attract foreign buyers and retirees from the US and Canada.

This extended overview from the Global Property Guide covers key aspects of the Belizean housing market and takes a closer look at its most recent developments and long-term trends.

Table of Contents

• Market-Defining Features and Trends
• Real Estate Hotspots
• Rental Market
• Mortgage Market
• Socio-Economic Context

Market-Defining Features and Trends

Due to its climate, natural diversity, competitive costs, political stability, and favorable legal landscape, Belize has long been popular with a diverse audience of travelers, retirees, and investors.

"Typically, Belize attracts those who are looking to get away from the materialism of the US, free-spirited adventurers, or entrepreneurs. So if you are looking for a comfortable, fun, warm, welcoming, tropical place to live, with a ton of energy and opportunity, Belize might be right for you," - says International Living magazine in their country guide for expats.

Belize's house price annual change

In 2023, the Central Bank of Belize (CBB) reported a 7% year-on-year growth in inward foreign direct investments that reached BZD 443.4 million (USD 221.7 million) and were primarily concentrated in real estate, construction, hotel, and restaurant sectors.

Commonly pointed out by local experts and international analysts alike, the following defining features make the Belizean real estate market stand out among other Central American and Caribbean countries.

English is the country's official language, spoken by over 75% of the population and used in all official communications, legal documents, government, and banking websites.

Under Belizean law, private entities, whether foreign or local, have the right to freely establish, acquire, and dispose of interests in property and business enterprises, effectively allowing for full foreign ownership of real estate, including properties in the most lucrative beachfront areas. The US Department of State provides a well-rounded overview of foreigners' real property rights and protections in their investment climate statement on Belize.

Aiming to stimulate investment, the Belizean government has been running the Qualified Retirement Program (QRP) which offers a number of benefits to eligible expats. The program is regulated by the Retired Persons (Incentives) Act and is managed by the Belize Tourism Board (BTB), with a detailed overview available on the board's website.

Key eligibility and incentive points of the QRP:

Targeted government efforts to bring in investments combined with the country's favorable location (allowing convenient travel from the US) help maintain the country's attractivity and competitiveness among other Central American markets, despite the consistent risk during the Atlantic hurricane season from June to November and publicized cases of real estate investment scams in the past.

In July 2024, Belize was even featured in the "Best Places to Retire Abroad in 2024" by Forbes - the magazine's first foreign-retirement list since the onset of the pandemic and the first to consider climate change and natural hazard risk abroad.

At the same time, a comprehensive analysis of the Belizean housing market is complicated by the lack of statistical monitoring of supply and demand in terms of stock development, availability of offers, and price dynamics against the backdrop of notable diversity of the country's six districts.

Data Source: Statistical Institute of Belize.

According to the data from the Statistical Institute of Belize, there were around 128,300 households in the country in 2022, 53% of those living in rural areas and 47% in urban areas. The residential stock comprised mainly houses (nearly 89%), while apartments/condominiums comprised less than 6%.

Resident population and corresponding housing stock are concentrated in the central, more urbanized Belize and Cayo districts, while Stann Creek and Toledo in the south and Orange Walk and Corozal in the North are predominantly rural and experience a much higher population density in the existing dwelling stock.

Note: The 'Other' category includes structures combining residential and commercial functions, barracks, and undefined structures.
Data collection wasn't carried out in 2020. Data Source: Statistical Institute of Belize.

As for non-residents, the latest survey data shows that as of 2019, foreign visitors mainly stayed in hotels and resorts (61.7%), camping grounds (13%), rental living spaces such as Airbnb (11.2%), or guesthouses (10.4%). Villas and timeshares were used by 5.3% of guests, while 1.9% reported staying in their own vacation properties.

Traditionally popular tourist destinations in Belize include the country's largest island of Ambergris Caye, a smaller coral island of Caye Caulker, the coastal area of Stann Creek district with villages like Placencia and Hopkins, and archeological sites of the inland Cayo District.

Top tourist destinations based on number of stays in licensed accommodations, Jan-Apr 2024:

Together, these destinations makeup over 80% of all estimated visits to Belize and consistently attract a variety of tourist target groups. A pre-pandemic visitor survey, carried out by the Statistical Institute of Belize on behalf of the BTB, showed that Ambergris Caye is the top travel destination for visitors from the US, while Canadians and Europeans favor Caye Caulker, and Belize City leads among visitors from Central America and the Caribbean, as well as those arriving on business. San Ignacio in Cayo District and Placencia in Stann Creek District follow the top two cayes in popularity among leisure and wedding travelers.

In general, the tourism industry remains one of the driving forces of the Belizean economy. Primarily dependent on international visitors from the US, Canada, and European countries, it experienced a catastrophic drop in 2020 due to COVID-19-related travel restrictions but has been in gradual recovery since and is likely to reach and exceed the pre-pandemic baseline of overnight arrivals in 2024.

During the first half of the year, according to the BTB preliminary data, the country welcomed 326,057 overnight tourists - 26.5% more than during the comparable period in 2023 and 14.6% more than in 2019. Of those, the vast majority were tourists from the US (over 71%) and Canada (7%). Key European markets of origin are the UK, France, Germany, and the Netherlands, each supplying between 1% and 3% of international visitors to Belize.

Most US visitors typically arrive from the states of California, Texas, and Florida. Canadian visitors primarily come from Ontario, Alberta, and British Columbia.

Note: 2024 data is preliminary and subject to change.
Data Source: Belize Tourism Board, Statistical Institute of Belize.

The recovery in the cruise segment has not been as strong. The total number of cruise ship arrivals reported by the BTB in 2023 was still 23% below the 2019 benchmark. In the first half of 2024, about 520 thousand arrivals were reported, compared to nearly 533 thousand during the same period last year and nearly 698 thousand in 2019.

66% of arrivals were registered in Fort Street Tourism Village Cruise Port (Belize City) and 34% in Harvest Caye Cruise Port (Southern Belize). Typically, according to the BTB, cruise ship disembarkation rates are 80% for passengers and 15% for crew members.

Note: 2024 data is preliminary and subject to change.
Data Source: Belize Tourism Board, Statistical Institute of Belize.

Real Estate Hotspots:

Diverse Residential Landscape Driven by Tourism

Belize offers an array of residential real estate hotspots catering to various preferences and investment goals. Among the most popular destinations is Ambergris Caye, the largest island in the country, known for its community, beaches, and proximity to the Belize Barrier Reef. Placencia Peninsula, situated on the southern coast, is another favored location along the shoreline, recognized for its relaxed atmosphere. Caye Caulker, a smaller island, is more affordable than Ambergris Caye and Placencia, appealing to those seeking a more laid-back lifestyle. Inland, the Cayo District is gaining popularity, presenting opportunities for eco-friendly living with a wide choice of properties for different budget ranges.

Given the absence of a centralized Multiple Listing Service (MLS) or publicly accessible real estate transaction records system, submarket assessment in Belize is typically based on the compilation of data from various available sources and anecdotal evidence from local real estate professionals and agencies.

Ambergris Caye

Ambergris Caye is the leading real estate investment destination in Belize, and it is known for its dynamic market and significant growth potential. The island's appeal is underscored by its prime beachfront properties and strong rental yields supported by the steady influx of tourists. This makes Ambergris Caye a location equally well-suited for vacation rentals and retiree homes. Local real estate professionals, quoted by the Financial Times, attribute around 95% of sales in the area to American and Canadian buyers.

The real estate market here features a wide spectrum of options, including luxury resorts, private villas, and condominiums. The island boasts some of the highest property values in Belize, reflecting elevated demand and robust investment potential. Prominent development projects within Ambergris Caye include Mahogany Bay Village, areas surrounding Secret Beach, Grand Caribe Belize, and Sapphire Beach Resort.

According to research by RE/MAX Belize, in July 2024, the average listed price for condominiums in Ambergris Caye was recorded at USD 463,252, with prices ranging from USD 290,027 for a 1-bedroom unit to USD 766,915 for a 3-bedroom unit. Detached homes have an average listed price of USD 938,068, with a range from USD 640,569 for a 2-bedroom house to USD 1,402,833 for a 5-bedroom house.

Data Source: RE/MAX Belize.

Data Source: RE/MAX Belize.

Placencia Peninsula

Placencia Peninsula, located in southern Belize and represented by small villages like Placencia, Seine Bight, Cocoplum, Maya Beach, and Plantation, is the second most popular hub for real estate investment in Belize. The area, renowned for its pristine beaches and laid-back lifestyle, is an attractive tourist destination and a high-growth zone for residential development due to its unique natural appeal and developing infrastructure (including the upgrade of Placencia Airport and enhanced road connectivity).

There is a wide selection of properties with various accommodation types. Large-scale developments include Itz'ana Resort & Residences, Naia Residences, The Placencia Residences, and COVE Oceanside Resort & Residences featuring a range of residential properties, from luxury villas to beachfront condos.

Property prices are generally lower than those in Ambergris Caye. Based on RE/MAX listings available in August 2024, condo prices range from USD 199,000 to USD 895,000, while detached houses, cottages, and villas start from USD 181,500 and go up to USD 2,300,000.

Caye Caulker

Caye Caulker, situated immediately south of Ambergris Caye, is a smaller island that has increasingly attracted a diverse range of tourists, particularly backpackers and younger travelers. The island is characterized by its sandy streets, colorful wooden houses, and car-free environment, with transportation predominantly by bicycle and golf cart.

Generally, real estate options here are not as varied as those in the other regions of the country. Recent developments include Blu Zen, Fisherman's Rest, and Puesta Del Sol. In their most recent overview of the Caye Caulker market, a real estate agency Premier Realty Belize reports an average condo price of USD 355,400, ranging from USD 149,000 to USD 650,000. Detached homes are averaging USD 349,636, starting at USD 190,000 and going up to USD 749,000.

Patrick Rodriguez, a real estate professional from CENTURY 21, comments: "As a desirable tourist destination, Caye Caulker's real estate market has shown steady appreciation over time. Limited availability of land and properties on the island contributes to increasing property values, making it an attractive option for long-term investment, where investors can benefit from capital appreciation as the demand continues to grow."

Cayo District

The Cayo District, located in western Belize, is recognized as a premier inland real estate investment destination. Known for its diverse landscapes, rich cultural heritage, and eco-tourism appeal, the region is often chosen by those seeking a tranquil lifestyle away from busy coastal areas. The district's natural attractions driving tourism include the Mayan ruins of Xunantunich, the Mountain Pine Ridge Forest Reserve, and the caves of Actun Tunichil Muknal.

Popular residential areas include the towns of San Ignacio and Santa Elena, together with surrounding villages. The residential offer is varied with a selection of eco-friendly properties. Prominent developments include Chial Reserve, Olde Mill, and the Carmelita Gardens community.

Property prices here are generally lower compared to the more popular locations such as Ambergris Caye, Placencia, or Caye Caulker. Based on RE/MAX listings as of August 2024, detached houses, cottages, and villas prices range from USD 150,000 to USD 547,500. Local real estate professionals highlight the potential value growth linked to the district's continuous development and infrastructure improvements. Jim Hardesty, the author of MoneyTalkNews, lists Cayo as one of the fastest-growing destinations in the country highlighting its attractiveness for investors who seek value appreciation opportunities.

In addition to conventional real estate locations, a variety of private offshore islands are available for those seeking privacy and a distinctive lifestyle. The market provides a multitude of options, ranging from small, undeveloped islands to fully operational properties with established infrastructure.

Rental Market:

The Dual Market of Long and Short Stay Options

According to the latest Census conducted by the Statistical Institute of Belize, the homeownership rate in Belize in 2022 was estimated at 68% (up from 64% recorded during the previous Census of 2010). Further 22% of residents rented/leased accommodation for a fee, and 9% rented free of charge.

The country's rental market's diversity is rooted in the simultaneous influence of the tourism-driven economy, expat community, and local demand. There is a wide variety of property types catering to different renter groups from budget-conscious locals to affluent expatriates and tourists. Coastal areas with high demand for beachfront properties are typically more expensive, while inland zones, including cities such as Belize City and Belmopan, have a more varied selection of both high-end and affordable options.

The long-term rental market primarily serves the local working population, digital nomads, and the cohort of expatriates/retirees, who choose to rent initially upon moving to become familiar with the area and lifestyle before committing to a property purchase. Recent research carried out by the Global Property Guide in August 2024 on the national level shows an average long-term monthly rent of USD 856 for a 1-bedroom unit, USD 1,475 for a 2-bedroom unit, and USD 2,125 for a 3-bedroom unit. Average gross rental yield is estimated at 4.27%.

Another rapidly expanding market segment is short-term rentals catering to tourists. According to the most recent AirDNA data, the number of active listings on Airbnb and Vrbo platforms in Belize increased by 17% year-on-year, as of August 2024. Investment in vacation homes is also common among foreigners seeking to acquire a property in tourist-heavy regions to be able to reap the benefits of higher yield during the peak season along with retained flexibility to use the property when it's not rented out.

Prices for short-term stays vary. The highest average daily rental rate of BZD 771 (USD 385) is reported in the Stann Creek District, featuring Placencia, Maya Beach, Plantation, Hopkins, and Dangriga. Average rates in Belize and Cayo districts are recorded at BZR 576 (USD 288) and BZD 360 (USD 180), respectively. It is important to note that the quoted daily rates are averages and prices vary widely depending on the location within the district, unit size, and amenities offered.

Main short-term rental market indicators across Belizean submarkets:

Mortgage Market:

Limited Formal Lending and Consistently High Interest Rates

Consumer and personal credit (including residential mortgages) in Belize are offered by commercial banks, credit unions, regulated moneylenders, and informal lenders. As of 2023, the country's financial system included 4 domestic banks, 3 international banks (providing banking services in foreign currencies exclusively to nonresidents), 8 credit unions, and the Development Finance Corporation (DFC) - a non-commercial development bank regulated and supervised by the Central Bank under a special regime.

According to the National Financial Inclusion Strategy in place since 2019, Belizeans rely significantly on informal sources of borrowing, such as family or friends, informal savings groups, moneylenders, and pawnshops, while only about 17% of adults borrowed from a formal financial institution.

Confined by the overall prevalence of informal borrowing, as well as qualification barriers and high interest rates, the traditional mortgage market in the country remains limited. The latest data published by the Central Bank of Belize shows only 11,042 outstanding mortgage loans maintained by domestic banks, credit unions, and the DFC at the end of 2023, which corresponds to about 8.6% of all Belizean households and about 12.7% of the households owning their residence.

Data Source: Central Bank of Belize, Development Finance Corporation.

After a post-pandemic pickup in 2021, in the last two years, the total value of outstanding formal mortgages has declined from BZD 795.7 million (USD 394.4 million) in 2021 to BZD 742.4 million (USD 368 million) in 2022 (-6.7% year-on-year) and BZD 701.2 million (USD 347.6 million) in 2023 (-5.5% year-on-year). Of the cumulative formal mortgage portfolio at the end of last year, 73% was maintained by domestic banks, about 21% by credit unions, and about 6% by the DFC.

Mortgage interest rates reported by the domestic banks at the end of Q1 2024 varied between 5.50% and 7.75% and remained unchanged compared to the same period of the previous two years for all four institutions. Interest rates on mortgages offered by credit unions were generally higher, ranging between 6% to 12%, but have also mostly remained unchanged in the last two years.

DFC currently advertises a variety of home loan programs with interest rates from 7.5% on reducing balance.

Residential mortgage rate, by lending institution:

In general, the long-term trend for the average interest rates on personal loans and residential construction loans offered by the Belizean domestic banks, after a slow decline over the previous decade and fluctuations in the early 2020s, now appears to have returned to relative stability. Most recently the indicator was reported at 11.26% for personal loans (-0.22 p.p. year-on-year) and 7.15% for residential construction loans (+0.29 p.p. year-on-year) in April 2024.

For international banks, the average lending rate (all loans) in Q1 2024 was 8.69% at Belize Bank International, 7.18% at Caye International Bank, and 6.16% at Heritage International Bank & Trust - all up from the corresponding periods of 2023 and 2022.

With consistently high interest rates and strict financial qualification criteria for the applicants, accessibility of loans remains a serious issue for the Belizeans. Prime Minister John Briceno admitted the banks are not making it easy for the potential borrowers, while commenting on the matter in September 2023: "I wish they would be a bit more, would be able to loosen up a little bit more to make funding more available or quicker to our citizens because there is a lot of need, a lot of people want to invest, a lot of people want to own their homes but we need to find ways how we can do that. The DFC has been helping with that and we have been changing the cash liquidity ratio of the banks and allowing that a certain portion could be used for certain areas of the economy like housing and certain investments."

Data Source: Central Bank of Belize.

Socio-Economic Context:

Post-Pandemic Economic Resurgence and Vulnerability to External Risks

The Belizean economy has stabilized after a strong rebound from the sharp pandemic-induced decline in 2020. Following two years of rapid expansion of the real GDP (17.9% and 8.7% growth in 2021 and 2022, respectively), economic growth decelerated to 4.7% in 2023 due to contractions in the primary and secondary sectors and a slowdown in the tertiary sector as tourist arrivals neared pre-pandemic levels. While this slowdown appears to be quite dramatic, it should be taken into account that the rapid pace of expansion experienced in both 2021 and 2022 reflected a one-off rebound from the shock rather than a consistent trend. The International Monetary Fund (IMF) forecasts the real GDP growth in the country to reach 3.4% in 2024 and 2.5% from 2025 onwards as the output gap closes.

Inflation declined from 6.3% in 2022 to 4.4% in 2023 led by lower prices of transport and utilities, partially offset by higher food inflation. The IMF projects the price growth slow down further to 1.3% over the medium term, in line with the expected fall in commodity prices and global inflation.

Data Source: IMF.

The current account deficit fell sharply from 8.3% of GDP in 2022 to 2.9% in 2023 led by a rise in the services balance due to lower shipping costs, higher tourism receipts, and a fall in the primary income deficit. The IMF projects the indicator to stabilize at nearly 2.5% of GDP over the medium term, with international reserves staying above 3 months of imports and external financing needs.

Nationwide unemployment, as reported by the IMF, decreased significantly from the pre-pandemic level of 9.0% to 3.4% in 2023 with new employment created primarily in the services sector. Nevertheless, labor force participation, which had declined rapidly during the pandemic, remained depressed. The IMF forecasts the labor market to stay stable as the economy remains at full employment.

Data Source: IMF.

Belize maintains a stable currency, with the Belize dollar pegged to the United States dollar at a fixed exchange rate of BZD 2.00 to USD 1.00 since May 1976.

According to the World Bank outlook, the major risks for the country include higher global commodity prices, higher-than-expected global interest rates, high dependence on the US economy, and persistent vulnerabilities in the banking sector. In terms of weather-related risks, the country is particularly vulnerable to hurricanes, storms and associated flooding, wind damage, and storm surges, especially in Belize City.

Sources:

1. Statistical Institute of Belize
   1. National Statistical System Portal: https://sib.org.bz/
   2. Census Key Findings Launch: https://sib.org.bz/
2. Central Bank of Belize
   1. Statistics: https://www.centralbank.org.bz/
   2. Domestic Bank Financials: https://www.centralbank.org.bz/
   3. International Bank Financials: https://www.centralbank.org.bz/
   4. Credit Union Financials: https://www.centralbank.org.bz/
   5. National Financial Inclusion Strategy: https://www.centralbank.org.bz/
   6. Exchange Rates: https://www.centralbank.org.bz/
3. Belize Tourism Board
   1. Statistics: https://www.belizetourismboard.org/
   2. Cruise: https://www.belizetourismboard.org/
   3. Qualified Retirement Program: https://www.belizetourismboard.org/
4. The Attorney General's Ministry of Belize
   1. Retired Persons (Incentives) Act: https://www.agm.gov.bz/
5. International Monetary Fund (IMF)
   1. Statistical Datasets: https://www.imf.org/
   2. Belize Country Profile: https://www.imf.org/
   3. Belize: 2024 Article IV Consultation-Press Release; and Staff Report: https://www.elibrary.imf.org/
6. The World Bank
   1. Macro Poverty Outlook, Belize: https://thedocs.worldbank.org/
7. Development Finance Corporation
   1. Home Loans: https://www.dfcbelize.org/
   2. Annual Reports: https://www.dfcbelize.org/
8. US Department of State
   1. 2024 Investment Climate Statements: Belize: https://www.state.gov/
9. Federal Trade Commission
   1. Court Halts Massive "Sanctuary Belize" Real Estate Investment Scam: https://www.ftc.gov/
10. The US Embassy in Belize
    1. Hurricane Preparedness: https://bz.usembassy.gov/
11. AirDNA
    1. Data on Short-term Rentals in Belize, by district: https://app.airdna.co/
12. RE/MAX Belize
    1. Residential Listings: https://1stchoicebelize.com/
    2. Ambergris Caye Real Estate Market Analysis July 2024: https://remaxbelizerealestate.com/
13. Premier Realty Belize
    1. Caye Caulker Real Estate Market Analysis Report - Brought to You by Premier Realty: https://premierrealtybelize.com/
14. Forbes
    1. The Best Places To Retire Abroad In 2024: https://www.forbes.com/
15. Financial Times
    1. Belize's low property prices lure US buyers: https://www.ft.com/
16. International Living
    1. Belize Country Guide: https://internationalliving.com/
    2. Belize Real Estate: https://internationalliving.com/
17. MoneyTalkNews
    1. 4 Options for Buying Real Estate in Belize: https://www.moneytalksnews.com/
18. LoveFM Belize
    1. Prime Minister Speaks on Loan Access Hurdles: https://lovefm.com/
19. Patrick Rodriguez, Real Estate Agent at CENTURY 21
    1. Blog Post: https://www.linkedin.com/