Ambergris Caye, Belize: Vacation Rental Investment Market Analysis
Ambergris Caye Vacation Rental Investment
The vacation rental market in Ambergris Caye, Belize, saw high growth in 2024 and the start of 2025, making it an attractive destination for real estate investors and Belize real estate investment.
The combination of strong rental income potential, rising occupancy rates, and property value appreciation makes Ambergris Caye an attractive market for vacation rental investment. Strategic investments—especially in detached homes or branded vacation rentals—stand to benefit the most from current market trends.
The Ambergris Caye vacation rental market presents a dynamic investment landscape. Belize and Ambergris Caye experienced record-breaking tourism growth in 2024, which bodes well for investment in 2025. Belize significantly outperformed regional competitors in tourism arrivals, driven by enhanced air connectivity and effective marketing, with Ambergris Caye remaining the country’s top destination.
Vacation rentals on Ambergris Caye achieved a high ROI in 2024, with notable increases in occupancy, average daily rates (ADR), and average annual revenue compared to the previous year. This surpassed pre-pandemic benchmarks and outperformed other vacation rental markets.
Real Estate Investor Takeaways
- High Yields: 8–15% net yields are attractive, especially when combined with property appreciation.
- Rising Demand: Tourism growth and limited supply are pushing up occupancy and nightly rates.
- Asset Growth: Both rental income and capital appreciation offer dual value for investors.
Ambergris Caye Real Estate Investment in 2025
Ambergris Caye Real Estate Investment 2025
Ambergris Caye is the prime location for tourism-related investment, particularly in accommodations and vacation rentals. Belize anticipates continued growth in tourism in the future. This is indicated and supported by significant infrastructure investments, particularly the expansion of the international airport (BZE) and road improvements on Ambergris Caye, such as the paving of Secret Beach and San Pedro Road.
The foundation of Ambergris Caye’s vacation rental market is Belize’s national tourism. Ambergris Caye attracted nearly 28% of visitors to Belize in 2024. This surge in tourism has heightened the demand for short-term vacation rentals.
Real estate trends show that property values are appreciating, fueled by strong demand and a limited supply of inventory, especially in desirable locations, thanks to Island Economics. Investment opportunities vary by property type and location. Larger villas offer higher revenue potential but face more significant seasonality fluctuation. Investments in mid-sized luxury villas provide a balanced profile, with consistent occupancy and year-round high average daily rental rates (ADR). Smaller units offer lower-cost options and a more affordable entry point for investment.
Developing areas like North Ambergris Caye and Secret Beach offer appreciation potential tied to infrastructure. More established areas in or near San Pedro offer convenience, and managed communities like Mahogany Bay Village provide rental management and streamlined returns.
Ambergris Caye Vacation Rental Investment
Ambergris Caye captured the majority share of Belize’s tourism boom, making it the most logical place to invest in vacation rentals, aiming to capitalize on high visitor volumes.
With continued tourism growth, limited rental inventory, and favorable investment conditions, Ambergris Caye’s vacation rental market is poised for sustained growth in 2025. Investors can expect strong rental income potential and property appreciation, especially in high-demand areas.
- Occupancy Rates: In 2024, vacation rental occupancy rose to 68%, up 10.9% from 2023. Early 2025 data indicates a further increase to 71% occupancy from January to March.
- Average Daily Rates (ADR): The average nightly rental rate increased by 15% in 2025, reaching $284 USD.
- Annual Rental Revenue: The average annual rental revenue for vacation rentals in Ambergris Caye was $43,200 USD in 2024, representing a 17% increase from 2023.
- RevPAR Growth: Revenue per available room (RevPAR) has seen a compounded annual growth rate of over 12%, outperforming the Caribbean average of 5.9% and the U.S. average of 2.4%.
Ambergris Caye Vacation Rental Occupancy
In 2024, vacation rental occupancy rose to 68%, up 10.9% from 2023. Early 2025 data indicates a further increase to 71% occupancy from January to March.
Occupancy Rates (based on available rental days):
- 2023: Average occupancy was 61.3%.
- 2024: Rose to 68%, a 10.9% increase from the previous year.
- 2025 (Year-to-Date): Increased further to 71%, indicating continued upward momentum in demand
The average occupancy rate of Ambergris Caye vacation rentals shows that 2024 occupancy rates (average) range from 59% to a projected higher average of 68%. Occupancy in 2024 on Ambergris Caye was up 10.9% from a reported 61.3% in 2023. The trend in vacation rental occupancy indicates strong demand and improved performance over the previous year and pre-pandemic levels.
Peak monthly occupancy reached as high as 82% in February 2024, while the lowest point was observed in the traditional low season month of September at 39%.
Peak Occupancy
- 82% in March 2024
- 77% in February 2025
Ambergris Caye Occupancy
- Average Occupancy Based on Available Rental Days 2024: 68%
- Average Occupancy 2024: 59%
- Average Occupancy YTD 2025: 71%
- Peak Monthly Occupancy 2024: 82% in March
- Low Monthly Occupancy 2024: 39% August
- Occupancy Increase Over 12 months: +4%
- 2024 Occupancy Increase: +10.9%
Ambergris Caye Vacation Rental Rate (ADR)
The highest monthly average ADR for 2024 was $264 per night, and the lowest was $221 per night.
Average Daily Rates (ADR)
Similar to occupancy, ADR figures show positive growth. The average ADR was $245 USD per night for 2024, a +2% increase from 2023.
The average nightly rental rate in 2025 has increased by 15%, reaching $284 USD, reflecting both increased demand and pricing power for property owners.
The average nightly rate climbed by 15%, reaching USD $284 in 2025 YTD, reflecting both increased demand and pricing power for property owners.
In 2025, the ADR and rental rates on Ambergris Caye increased by over $50 USD compared to 2019 levels. The data shows rising nightly rates, reflecting strong demand and potentially an increasing quality of rental offerings.
Monthly Revenue from Vacation Rentals, Ambergris Caye
Annual Investment Revenue
Annual Rental Revenue
The average annual rental revenue for vacation rentals in Ambergris Caye was $43,200 USD in 2024, representing a 17% increase from 2023.
The growth in occupancy and ADR resulted in a substantial increase in average revenue per property. The 2024 average ADR of $245 calculated an average annual rental revenue per unit of $42,800 USD to $43,200 USD for vacation rentals in Ambergris Caye in 2024.
This is a significant 17% increase compared to the average revenue generated in 2023. The peak month for revenue generation was March 2024, with an average monthly revenue per unit of $4,640 USD.
Detached homes generate higher annual gross revenues than condos, with a 23% increase in rental income for detached single-family homes between 2022 and 2023.
Ambergris Caye RevPAR
RevPAR, calculated as ADR (average daily rental rates) multiplied by Occupancy Rate (RevPAR = ADR × Occupancy Rate), is a critical metric that combines both rate and occupancy performance. The strong performance in both occupancy and ADR throughout 2024 shows that RevPAR likely reached record highs during the year.
RevPAR Growth
Revenue per available room (RevPAR) has seen a compounded annual growth rate of over 12%, outperforming the Caribbean average of 5.9% and the U.S. average of 2.4%.
RevPAR is revenue per available room. It measures a market’s per-unit growth and combines the average daily rate (ADR) and the occupancy rate into a single metric.
RevPAR (Revenue Per Available Room) is one of the most significant factors in vacation rental investment and performance. RevPAR factors in rental rates (ADR), occupancy, and overall trends to determine a destination’s growth.
RevPAR represents the revenue generated per available room, regardless of whether they are occupied. It helps investors measure their revenue-generating Return on Investment (ROI). Since it’s such a widely used metric, RevPAR can help investors and markets measure their success and see opportunities.
Calculating RevPAR
There are two primary ways to calculate RevPAR:
- RevPAR = Average Daily Rate (ADR) x Occupancy Rate
- RevPAR = Total Room Revenue / Total Available Rooms
If RevPAR is positive or increases, rental units are profitable.
Ambergris Caye Investment KPI’s
The growth in these KPIs indicates strong market fundamentals for Ambergris Caye vacation rentals and the investment potential.
Comparing RevPAR Ambergris Caye, Belize
Ambergris Caye’s 2024 performance was strong when compared to Tulum, Mexico, another popular regional destination in the region. During the same period, Tulum reportedly experienced slight decreases across the board: average occupancy fell to 46% (-1% YoY), average ADR dipped to $199 USD (-1% YoY), and average annual rental revenue decreased to $28,500 USD (-1% YoY). This comparison highlights Ambergris Caye’s positive momentum and stronger market fundamentals.
RevPAR Growth: Revenue per available room (RevPAR) has seen a compounded annual growth rate of over 12%, outperforming the Caribbean average of 5.9% and the U.S. average of 2.4%.
Vacation Rental Performance Metrics (Occupancy, ADR, Revenue/RevPAR)
The strong tourism growth translated directly into robust performance for the Ambergris Caye vacation rental market in 2024. Key Performance Indicators (KPIs) showed significant positive trends. The KPIs include;
- Occupancy
- Nightly Rental Rates, Average Daily Room Rates (ADR)
- Average Annual Revenue
- Comparative Market Analysis
- Revenue Per Available Room (RevPAR)
The metrics, numbers, and growth in these KPIs indicate a strong investment market in Ambergris Caye vacation rentals.
Ambergris Caye Investment Vacation Rentals
Ambergris Caye 2024 Vacation Rental Key Performance Indicators (KPIs)
Comparative Analysis of Ambergris Caye Investment Locations & Property Types
Ambergris Caye Rental Market Data Video
Ambergris Caye Tourism & Vacation Rental Market Overview 2024
2024 was a benchmark year for tourism in Belize. Belize had a record 562,405 overnight arrivals, a 21% increase from 2023. Overnight tourism arrivals in 2024 also exceeded the previous benchmark year of 2019 (pre-pandemic levels) by 11.8%, indicating a full recovery and the start of a new phase of growth.
The tourism numbers and arrivals were consistent throughout 2024, with 11 out of 12 months setting new arrival records compared to 2019. March 2024 was the peak month for overnight tourism, with a total of 69,202 overnight visitors. Q1 2024 arrivals were an early indication, as tourism was already 27.9% higher than Q1 2023 and 17.5% above Q1 2019.
Belize’s tourism growth in 2024 far exceeded that of the Caribbean region. While overall Caribbean tourism grew by 13%, Belize’s 21% year-over-year increase significantly outpaced many regional competitors, positioning it as one of the fastest-growing destinations in the Caribbean. This success can be attributed to several factors, including a strategic expansion of direct international flights, with connections established from 28 airports worldwide. New routes, such as Southwest from BWI and JetBlue from JFK, further enhanced accessibility.
The largest source market for tourism in Belize in 2024 was the United States, accounting for approximately 69% of international overnight arrivals, followed by Europe (around 9.7%) and Canada (around 6%). Ambergris Caye attracts honeymooners, families, retirees seeking a Caribbean lifestyle, and a growing number of digital nomads looking for a “work-from-paradise” location.
The economic impact of the tourism boom is substantial, with the sector generating approximately $1.4 billion in revenue for Belize in 2024, reinforcing its role as a primary economic driver.
Ambergris Caye Tourism & Vacation Rental Market Forecast
2025 and Beyond
Building on the record-breaking performance of 2024, the outlook for Belize’s tourism sector and the Ambergris Caye vacation rental market remains positive for 2025 and the near future. The improved accessibility, tourism, favorable real estate dynamics, and significant infrastructure investments support the projected growth.
This upward trend is expected to persist as Belize leverages its natural beauty, rich culture, and enhanced accessibility to attract more visitors. Looking to the future, considering transformations in consumer behavior, industry trends, and development needs, Belize anticipates continued growth in tourism.
Tourism is forecasted to grow by an additional 11% due to increased infrastructure and continued sector expansion.
Travel & Tourism Trends
Global travel reports suggest a potential trend towards smaller travel groups in 2025, which could influence demand dynamics for different property sizes and bedroom counts.
Several emerging global travel trends align well with Belize’s core offerings, further supporting the positive outlook. These travel trends include;
- Sustainable and Eco-Tourism
- Adventure Travel
- Luxury Tourism
- Niche Travel like Health & Wellness
The offerings and appeal of Belizean tourism align with global travel trends. This is an indicator that future demand is likely going to increase as Ambergris Caye appeals to evolving traveler desires. This strengthens the foundation for sustained future growth.
Investment Opportunity 2025
Investment opportunities vary depending on the type of property and its location. With a future outlook and travel trends in mind, vacation rental investment opportunities should be considered:
- Larger villas offer higher revenue potential but face more significant seasonality fluctuation.
- Investments in mid-sized luxury villas provide a balanced profile, with consistent occupancy and year-round high average daily rental rates (ADR).
- Smaller units offer lower-cost options and a more affordable entry point for investment.
In 2025, travel trends also show smaller travel groups and fewer group trips (bookings or reservations of 4 or more people). Larger villas (5+ bedrooms) can generate high rates in peak seasons but have lower occupancy rates in slower seasons due to lower volumes of family or group travelers.
Investment Opportunity Summary
- For the highest nightly rental income: 5+ bedroom
- For steady rental rates, occupancy & resale value: 3-4 bedroom luxury villas.
- For lower risk & minimal upkeep: 2 bedrooms.
Ambergris Caye Real Estate Investment
Ambergris Caye Real Estate Market
The positive tourism outlook directly influences the Ambergris Caye real estate market, which was strong in 2024. Key drivers include steady economic growth in Belize, the thriving tourism industry, rental demand, sustained interest from international buyers and investors, favorable property ownership laws for foreigners, and relative affordability compared to other Caribbean destinations.
A dominant trend within Ambergris Caye is property value appreciation, particularly in prime locations. Limited land availability, combined with consistently rising demand from both tourists and relocating expats/retirees, contributes to this steady real estate appreciation.
Specific areas like Secret Beach have witnessed remarkably rapid appreciation, with some reports indicating double-digit annual increases in land value in recent years.
Ambergris Caye market forecasts indicate further growth for Belize’s residential real estate sector. Ambergris Caye real estate is expected to appreciate by 4% to 5% annually between 2025 and 2029.
Investment in Ambergris Caye Vacation Rentals
With continued tourism growth, limited rental inventory, and favorable investment conditions, Ambergris Caye’s vacation rental market is poised for sustained growth in 2025. Investors can expect strong rental income potential and property appreciation, especially in high-demand areas.
The tourism boom continues to fuel the demand for short-term vacation rentals (e.g., Airbnb, VRBO), making well-located and well-managed properties potentially lucrative investments.
The vacation rental market on Ambergris Caye appears to be evolving, with a noticeable shift towards higher-end and more sustainable properties. Belize real estate investments targeting these segments may be better positioned to capture premium rates and align with both discerning traveler preferences and potential future regulatory directions emphasizing sustainability.
