Is Belize the new property investment hotspot?
Is Belize the new real estate investment hotspot?
Belize may be a well-known holiday destination for north-Americans, but for the rest of the world, Belize remains a hidden gem. But things are about to change. More and more people from all over the world discover Belize as their preferred holiday destination. Tourism overnight arrivals have been on a steady climb for many years. While almost 295,000 overnight tourists visited the country in 2013, 503,000 did so in 2019. Most tourist arrivals still come from the United States, but tourism from other parts of the world is on the rise. Looking at European tourist arrivals, most visitors come from the UK, followed by Germany, France and the Netherlands.
Tourism drives the fast-growing real estate investment market in Belize
Obviously, the pandemic in 2020 made a halt to the growth of tourism in Belize. But in 2021, Belize was the first Caribbean country to allow fully vaccinated visitors to enter the country without PCR-test. The government understands very well how tourism not only generates income, but also builds confidence in their country among foreign investors. As a matter of fact, the government of Belize has made the tourism industry its main priority after agriculture. There is absolutely no reason why Belize wouldn't continue to grow in terms of tourist arrivals once all travel restrictions across the world are lifted.
The country was able to attract the largest hotel groups to the country. Four Seasons, Hilton and Marriott are among the names that chose the Caribbean coast of Belize as their newest expansion of their hotel portfolio. The fact that Leonardo DiCaprio is opening its first fully self-sufficient eco-resort in Belize will only add more fame to Belize as a luxury tourism destination.
Real estate investors always look closely at tourism growth, because no other industry is able to drive real estate prices as much as the tourism industry does. Growing tourism means more demand for accommodation and housing. Property prices in emerging tourist destinations are typically growing very fast because growth of supply never can keep up with the growth of demand.
A safe country with a democratically elected and business-minded government
The safety of doing business is also driving foreign investment in Belize. Foreign business owners and owners of property in Belize have the same rights as Belizean citizens. Property taxes are very low and there is no capital gains tax and no estate tax in Belize. The country has a stable government and last, but not least, English is the official language, taking many of the cultural barriers away for doing business in Belize.
These ingredients make Belize also very popular among private investors and retirees looking for their second home in a sunny country. The government of Belize even launched a Qualified Retirement Program to facilitate eligible persons who have met the income requirements, to permanently live, retire and relax in Belize.
Real Estate and property investment programs for individual investors
High net-worth individuals and professional investors alike can step on Belize's train of success quite easily. Several resorts and hotel management companies have recently purchased land (or islands) to build their latest addition to their hotel portfolio. Some of them are selling shares of their projects to private investors, allowing them to benefit from the very high returns and capital growth Belize's success in tourism generates. The Mexican boutique hotel group KASA is one of them. By acquiring shares of their newest project, the KASA Hotel Belize, investors benefit from annual returns of 15% and more, and this with the security that real estate offers as an asset, as well as an organized exit strategy. These investment opportunities have become very popular over the last years. They provide a lot of security to the investor, and include lifestyle improving add-ons such as yearly free-stays in the resorts.
For private and corporate investors alike, as well as hotel and tour operators, Belize right now offers once-in-a-lifetime opportunities. Feel free to get in touch with us for more information about how you can invest in Belize's thriving real estate and tourism market.