When considering investment and personal use property in Central America, several countries and regions stand out for their real estate opportunities.
Central America has a very strong tourism sector which is also becoming a retirement destination for peoples from across the globe.
Central America properties, and its related residency programs, are sought after, with residency programs in Central America varying by country, but several nations offer attractive residency options for retirees, investors, remote workers, and others.
Generally the region has seen stable or appreciating values in the property markets, and relatively affordable real estate when compared to North America and parts of Europe or Asia.
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Resort Development in Belize
Location
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Property Type
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Bedrooms
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Price
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Central America Luxury Properties and Investments - popular areas:
Still room for property value growth in Central America
In Central America as a whole, the investment property focus has been on rental markets, commercial real estate, or land banking which is held for appreciation. The attraction for the tourism industry fueling the rental market is the access to beaches, rain forests and mountains.
As a buyer looking for personal property that can also be used for vacationing as well as investment, there is the option of renting out the property when not being used, and vacation homes, retirement homes, or second homes used for part of the year are all options.
If considering an investment or personal use property purchase, the areas that are popular in Central America include but are not exclusive to are Costa Rica, Panama, Belize, Nicaragua, Guatemala and Honduras - in short all of Central America.
In Costa Rica foreign ownership is easy and protected
Costa Rica is politically stable, an eco-tourism leader, and a very strong expat community, plus has a great healthcare system. Popular areas with international buyers and investors are Tamarindo, Nosara, and Santa Teresa.
Plus San José suburbs including Escazú and Santa Ana, which provides buyers with city living and high-end amenities, with Arenal and Monteverde being a more eco-friendly area.
In Costa Rica property types that can be found include condos, jungle lodges, beach villas, and eco-retreats, plus foreign ownership is easy and protected.
In Panama the focus is on this being a major financial hub
Panama is a U.S. dollar economy, a major financial hub, and provides tax incentives for investors and those retirees seeking a warmer climate.
The leading locations that attract international interest are Panama City with its array of skyscrapers, modern condos, and high rental demand from business types and professionals. Boquete is a popular expat and retirement destination, and Bocas del Toro is a tourist centre and offers rental investments.
Within Panama the types of property range from condos to mountain homes, villas and bungalows, plus accessing the market is a relatively simple process.
Nicaragua is an undervalued emerging market
Nicaragua, compared to many other options in Central America, offers relatively low cost of living and is deemed to be an emerging market.
Leading locations of interest are San Juan del Sur, which is a renowned surfers town, with expat growth and tourism potential, plus Granada offering long-term expat appeal, as well as Popoyo and Tola that are focussed on new resorts and eco-developments.
In Belize foreign ownership is easy via simple property ownership laws
Belize is good for international buyers and investors, as it is an English speaking country, with added benefits including a growing tourism market and simple property ownership laws.
The leading areas in Belize for investments and personal use properties are Ambergris Caye, a very popular tourism and expat location, with added benefits of good short-term rental potential.
Plus Placencia, which is a rapidly emerging resort area with luxury development projects, and Cayo District which is inland Belize, with jungle eco-living and all that goes with the lifestyle.
Typical properties that investors looks for in Belize are beachfront condos, eco-lodges and of course island homes.
In Guatemala there are low real estate costs compared to many other locations
Guatemala is a culturally rich country with amazing landscapes, and benefits to buyers and investors are the low real estate costs compared to many other locations.
Popular locations with investors and private use buyers in Guatemala are Antigua, a colonial town and UNESCO site with a strong expat presence, and Lake Atitlán which has good rental demand attractive to investment opportunities.
Property types to be found in Guatemala include colonial homes, boutique hotels and lakefront cabins, but investors need to do full due diligence as land titles and indigenous rights can be complex.
Honduras has a healthy tourism sector
In Honduras Central America, especially Roatán, offers low prices and a healthy tourism sector, plus a good return on investment potential, especially on the Honduran islands.
As mentioned, a popular location for buyers and investors would be Roatán, which is a Caribbean island with a growing cruise and scuba tourism market, offering beachfront homes, condos and resorts.
It should be noted that foreigners can own property under 0.7 acres outright with larger plots available if purchasing through a corporation, so full due diligence is essential.
The future of Central America Real Estate
In Central America there is a growing trend towards the development of eco-resorts and sustainable living communities, and as many countries allow property owners to apply for residency this adds to the long-term options for both private buyers and investors.
