Ambergris Caye Investment & Vacation Rental Data October 2023

Ambergris Caye Vacation Rentals

Ambergris Caye has been the epicenter of the Belize tourism surge and COVID recovery. This has led to growth in the Ambergris Caye Real Estate and investment in vacation rentals.

Ambergris Caye luckily has something we like to call “Island Economics.” When investing in an island, there is only so much land available. The limitations on available land create scarcity, not only scarcity of property but also a scarcity of land and completed resale homes. There is only so much land on an island. Island economics means that you see greater property appreciation on an island due to scarcity of property and limitations on how much can be built.

Tourism growth, increased awareness, offshore residency, and improved connectivity have all led to higher investment yields on vacation rental properties on Ambergris Caye. Ambergris Caye and San Pedro Town (the municipality on the island of Ambergris Caye) are by far the top destinations in Belize. Below, we look at the updated tourism data and vacation rental investment opportunities on Ambergris Caye!

 

Ambergris Caye Tourism

Ambergris Caye has seen tourism hitting all-time highs year-over-year as we become a globally recognized destination. From 2010 to 2023 (13 years), Ambergris Caye overnight tourism (people booking rental units) has grown at an annual compounded rate of 14.8% per year increase, with overnight tourism nearly doubling from 2010 to 2023 (+81.5% increase).

 

Belize Overnight Tourism

 

 

Belize Tourism Board Overnight Arrivals

 

Ambergris Caye Vacation Rental Inventory

Even though tourism is growing, the total rooms for rentals have stayed stagnant, with limited new losing inventory and often even a decline in inventory. Tourism is growing, and this usually correlates to added supply; that said, Ambergris Caye, Belize, is at the perfect time for investment as we have unique market conditions that have led to increased demand and a decrease in supply inventory.

Rental Inventory on Ambergris Caye has dropped by -4% from 2022 to 2023. Also dropped -13.9% over the last 3 years. This is largely due to the influx of people moving to Belize and the growing expat community and people who can work remotely.

 

Ambergris Caye Vacation Rental Lodging Inventory

 

For lodging, as a point of reference, Ambergris Caye saw -4% from last year. Lodging inventory for vacation rentals on Ambergris Caye has seen a -13.9% decrease over the last 3 years.

Ambergris Caye has had a compounded annual tourism growth over 12 years at an average of 14.8% per year.

As you can see, the 3-year trend has been consistent, with many quarters witnessing a dip in rental inventory (even with an increase in demand). This creates a unique opportunity for investors. With the shortage in supply and increase in demand, there is a need for more lodging and rentals.

 

Increase in Demand + Decrease in Supply = Increase in Price & Rent

 

 

 

 

 

Many industry experts predict Ambergris Caye real estate prices and nightly rental rates will continue to increase. This will lead to greater equity appreciation and a higher cash-flow yield.

Even though demand is on the rise, the supply has remained stagnant. With increased awareness comes increased demand, but the lodging and vacation rental inventory supply does not meet the demand growth.

 

Ambergris Caye Occupancy

 

 

In 2022, Ambergris Caye had an average vacation rental occupancy of 54.8%. In 2023, the average occupancy of vacation rentals has been at 61.3%. This is an increase of +11.9% year-over-year (2022 to 2023).

 

 

Ambergris Caye Nightly Rental Rates

 

In 2023, Ambergris Caye has seen ADR (Nightly Rental Rates) for vacation rentals increase by +15% from 2022. In 2023, the average nightly rental rate on Ambergris Caye has been $284 USD per night, which is up from $262 USD per night in 2022.

 

Ambergris Caye Investment Revenue

The increase in tourism with the lodging and vacation rental supply shrinking has led to higher occupancy and higher nightly rental rates (ADR). The increased occupancy and ADR have resulted in higher revenues. On Ambergris Caye, vacation rental gross revenue is up 30% in 2023 (from 2022).

 

Annual Average Rental Revenue

 

 

What is fascinating is the renal income for detached homes over condos (and the % annual growth).

 

Detached homes on Ambergris Caye have seen an average annual gross revenue of $88,850 US in 2023 (Airbnb income). Compared to condos, which saw an average gross yearly earnings of $44,300 US. Detached homes also saw a higher % growth at 23% annual revenue growth (condos with 14%) from 2022 to 2023.

For more information on investing in Belize and Ambergris Caye rental income investment opportunities, contact us at RE/MAX Belize!

 

Belize Airbnb & Having a Top Producing Rental Income Property

Belize Airbnb & Top Rental Property

Belize Tourism has been on the rise, and the vacation rental market on Ambergris Caye has been booming!

Belize has full foreign ownership (where foreigners have the same ownership rights as locals), and when you buy a home or Belize land, you own it outright with a fee-simple title. The high occupancy and nightly rental rates make Ambergris Caye Real Estate a popular destination for Airbnb investors.

 

Rental Property Amenities

One of the driving factors of a strong Airbnb rental property is the amenities a home offers; this includes but is not limited to the following:

  1. Number of Bedrooms
  2. Private Pool
  3. Large Bedrooms with Ensuite Bathrooms
  4. King Size Beds
  5. Hot Tub or Spa
  6. High-Speed Internet

The other driving force is how well the property photographs. A well-furnished and decorated property will outperform something more standard. Take pictures that capture the character of the place, the surrounding area, and any amenities.

Below you can see the most commonly searched amenities on Airbnb based in 2023;

 

Bedroom Count for Airbnb

The units with a higher bedroom count often outperform the lower bedroom count homes. Below, you can see the inventory of rental units by bedroom count on Ambergris Caye;

From an investment standpoint, 3 or more bedrooms are a great opportunity due to the lack of inventory on the island of Ambergris Caye. There are 12 homes in the lodging inventory with 4 bedrooms. There are 9 houses with 5+ bedrooms. The lack of supply and high demand creates a high-yield rental income property.

Mahogany Bay is one of the most popular locations for development and investment in Belize (and Ambergris Caye). Mahogany Bay has a rental management program that generates hands-off passive income for owners and investors.

One of the reasons so many investors and owners love Mahogany Bay is the high degree of ownership control. You own the property outright with a fee-simple title (the strongest form of property ownership). As an owner, you have the peace of mind of having professional rental management rent out the property when it is not in use while also having unlimited use and enjoyment.

If you are considering investing in Belize and generating passive Airbnb rental income, check out the video update below;

 

Contact us to learn more about investing in Belize, the rental market, and opportunities in Belize!