Belize isle quietly booms
The island of Ambergris Caye, Belize’s most popular tourist destination, has more than quadrupled in population — from 2,500 to 12,000 — since 1993. The location has been transformed from a quiet home to divers and fishermen to
a second home or retirement spot for Americans and Canadians. High-end residential development dots the island. Its main town, San Pedro, has seen major retail improvements.
The island recently gained two supermarkets, several restaurants and paved roads to San Pedro.
Two factors have protected the island from being overrun by tourism: Shallow waters surrounding the island prevent it from becoming a cruise-ship stopover, and a lack of all-inclusive resorts have helped it fend off spring breakers.
Government restrictions on Ambergris Caye, which is 25 miles long and about 4.5 miles wide, keep waterfront buildings no taller than three or four stories, the International Herald Tribune reported.
Agents said that despite significant growth in home value — as much as 20 to 30 percent in recent years — homes remain inexpensive relative to similar Caribbean locations for expatriates. Waterfront condos sell for between $300,000 and $500,000, compared to prices in excess of $1 million seen for comparable properties on islands like St. Barts.
Because much of the island’s undeveloped land is swamp, however, the price for waterfront development sites has spiked at a sharper rate, almost doubling from $3,500 to over $6,000 per linear foot of coastal land.
European slowdown seen at biggest industry show
Discussions at the largest real estate show in the world, Salón Inmobiliario Internacional de Madrid, centered on bad news from European housing markets, while hopes were higher for developers in South America and Asia.
The number of exhibitors at SIMA declined 25 percent to 600 this year, from 800 in 2007, representing the event’s first downsize since it began 10 years ago. Attendance was down around 6 percent from its record 160,000 last year.
Several Asian investors made their first appearance at the event this year, and some European companies arrived to market second-home developments in Asia, according to the International Herald Tribune. For example, Swiss-owned Siam Royal View was marketing Thai vacation homes, priced from around $393,000 to $2.4 million.
During a panel discussion at the event, Tobias Just, an analyst with Deutsche Bank, called recent price increases in Eastern European housing markets — including Bulgaria, Russia and Croatia — “unsustainable.” He said a correction in those markets is “very likely.”
High-end apartments in Russia are hovering around $2,336 per square foot, compared to $650 to $750 per-square-foot prices seen in most large cities.
U.S. finance firms boost London rental market
U.S. financial institutions are increasing staff in London to manage European and Asian operations, giving the high-end rental market there a boost, real estate experts told the International Herald Tribune.
Leasing activity for rentals of $1,950 to $3,880 per week was up 10 percent in the first quarter, compared to the first quarter of 2007. About half the city’s luxury rentals are leased by individuals, with the remainder by companies; most leases are for at least a year.
Despite help from the increase in U.S. tenants, high-end rental prices in London are expected to increase a modest 5 percent in 2008, according to Newmark Knight Frank, after a leap of 15.4 percent the previous year.