Ambergris Caye Real Estate & Caribbean Construction Costs
Ambergris Caye Belize
Belize has had a record-breaking year for tourism in 2024. As a result, Ambergris Caye has emerged as a top destination in the Caribbean.
As the Caribbean & Central America region outperforms many global tourism markets. Ambergris Caye has become a top destination for Caribbean investment in 2024.
The tourism growth in 2024 has created more investment opportunities in Belize and increased interest in Ambergris Caye. The increased demand for Ambergris Caye real estate has led to greater demand for new construction.
Ambergris Caye has a small inventory of new home builds and resale listings. This makes buying undeveloped land and doing a new build very desirable.
Ambergris Caye is full of investment opportunities for new construction. However, there are some differences when building and constructing new homes in another country.
Ambergris Caye Construction in 2024
BCQS Cost Database.
Comparative ranges of average construction costs per square foot for residential construction by country and region. Covering the median cost range for residential construction, medium-quality to high-quality builds.
It’s important to recognize that there is a luxury bracket where costs may exceed the highest estimates due to the extent of design elements, higher-end finishes, and installations, which vary with individual design choices and selections.
The information focuses on locally available resources and does not explicitly account for the additional costs of specialty items, which can vary significantly with market fluctuations and geographic factors.
Ambergris Caye has become one of the hottest destinations. Construction costs in the Caribbean are higher due to limited material availability and island logistics. That said, compared with other Caribbean destinations (BCQS), the cost of medium- to high-quality builds is lower in Ambergris Caye.
Construction cost per square foot on Ambergris Caye for medium- to high-quality construction is roughly 60% of the current home price per square foot.
Ambergris Caye Real Estate in 2024
Ambergris Caye, Belize, has quickly become one of the hottest real estate markets in the Caribbean.
Ambergris Caye Real Estate Market Analysis
BCQS Cost Database.
Comparative ranges of average sales values per square foot for residential properties by country: covering the sales price of residential medium-quality to high-quality homes.
Overall, Ambergris Caye is a great destination for those looking to invest in Caribbean real estate. Ambergris Caye real estate saw an estimated 30% increase in the average sales price per square foot for residential homes from medium to high quality in 2024 compared to 2023.
Construction cost per square foot on Ambergris Caye for medium- to high-quality construction is roughly 60% of the current home price per square foot.
With such a small inventory of newly built single-family homes on Ambergris Caye, buying undeveloped land and building a home or an investment property offers much more value than purchasing a prebuilt or resale.
Mahogany Bay Village Real Estate
BCQS Caribbean & Latin America Construction
Since 2010, the BCQS Market Trend Report has been a cornerstone resource, offering detailed insights into construction costs. BCQS compiles the essential elements of construction costs, including materials, equipment, and labor, across different locations to derive the escalation figures for each market. These figures drive the calculation of construction costs on a per-square-foot basis.
Construction Cost Escalation is informed by reputable local data sources to determine the basic construction cost elements, including materials and labor.
While the BCQS data is extensive, please note that it focuses on locally available resources and does not explicitly account for the additional costs of specialty items, which can vary significantly with market fluctuations and geographic factors.
Construction Cost Escalation
When you look at the inflationary patterns and construction cost escalation, most of the Caribbean has seen increased prices for materials and labor (according to BCQS). The regional average construction cost escalation from 2022 to 2024 has been around 26%. In Belize, over the same period, there has been a 25% increase in construction cost escalation.
Caribbean Investment Opportunities
In the Caribbean, according to BCSQ, there was an average 7.25% increase in construction costs across the 15 jurisdictions surveyed over the past 12 months.
The Caribbean is recognized as the most tourism-dependent region in the world, with tourism serving as the largest economic contributor for many nations within the area. This emphasis on tourism is reflected in the significant amount of construction across the Caribbean related to this sector, underscoring the importance of analyzing the tourism industry.
The Caribbean Tourism Organization (CTO) reported that in 2023, the Caribbean exceeded its pre-pandemic tourism levels.
Early statistics for 2024, released by Caribbean Tourism, reveal that visitor numbers have continued to rise markedly, with destinations such as Belize, Curacao, Grenada, the US Virgin Islands, Aruba, and Sint Maarten reporting year-on-year increases of over 20% from Q1 2023 to Q1 2024.
The uptick in Canadian visits can be attributed to increased flights between Canada and the Caribbean. However, European visitor numbers remained relatively stagnant in 2023, likely due to limited and costly air connectivity. Meanwhile, visitors from South America showed notable growth, increasing by approximately 14% from 2022, resulting in a total of 1.7 million visitors.
The Key Performance Indicators (KPIs) of the Caribbean hotel industry have shown marked improvement throughout 2023. According to data published by STR (Smith Travel Research), encompassing 2,091 hotels and 280,000 rooms, the region’s hotel occupancy rate reached 65.5% in 2023, a 7.5% increase from 2022.
Additionally, Average Daily Rates (ADR) rose by 12% during the same period to US$329.37, whilst Revenue Per Available Room (RevPAR) grew by 20.1% in 2023, averaging US$215.97 for the year. These statistics highlight that the Caribbean hotel industry’s performance has now surpassed pre-pandemic levels.
Globally, STR’s research indicates positive growth across all hotel classes in the key performance indicators (KPIs) of occupancy, Revenue Per Available Room (RevPAR), and Average Daily Rates (ADR) in 2023. Economy class properties experienced the smallest increase in occupancy but led in ADR growth, whilst luxury properties saw minimal gains in RevPAR. Upper Upscale hotels experienced the most significant rise in occupancy rates.
Ambergris Caye Tourism
The growth of Ambergris Caye in 2024 has been largely due to increased direct flights and improved access to Belize. Belize Tourism & Investment in 2024 has reached its highest level in the country’s history. Overnight tourism in Belize is up 30% in 2024.
Belize has been ranked as the “Fastest Growing Destination in the Caribbean“.
Caribbean Tourism
In 2024, the Caribbean has far outperformed global markets and remains one of the most desirable offshore investment destinations. It is impressive to see Belize eclipse the regional tourism figures.
Top 10 Belize Construction Mistakes
We Discuss with Cooter Ramsey the Top 10 Belize Construction Mistakes and Misconceptions People Have When Building in Belize.
Cooter is the founder of Allison Ramsey Architects, with over 30 years of experience in multidisciplinary engineering, architecture, and construction. Cooter Ramsey and his firm created the master plan and community concept of Mahogany Bay Village on Ambergris Caye.
Check out the video for some great tips and information on Belize construction!
Cooter has designed and built homes in Belize, throughout the Caribbean, and in the Southern US.
Cooter Ramsey is internationally awarded for its innovative design in coastal regions (including Belize). Cooter is passionate about delivering a product that addresses the homeowner’s requirement for a precious living experience in the tropics.
