Property for Sale in Honduras: Key Things to Consider Before Buying

Honduras is a great place to buy property. It has many advantages in property prices, property types, and investment opportunities.

Property and property prices are very liquid, and it is easy to resell property in Honduras (especially in Roatan).

Interested buyers can purchase beachfront sunset homes from $200,000 USD, ocean view properties with 5-6 acres of land for $350,000 USD, or even build their own home on a one-acre plot for $250,000 USD.

With a consistent increase in tourism over the last decade, Roatan, Honduras, and the Bay Islands have become popular destinations for those looking to buy a property or invest in real estate.

However, there are some key aspects to consider when looking at property for sale in Roatan and Honduras. We will cover some of them below for you:

Property prices in Honduras are low 

Honduras is a country with a relatively low cost of living and a strong dollar, which makes real estate prices reasonable when compared to other countries in Latin America.

This situation attracts buyers worldwide looking for affordable housing alternatives or investing in an overseas business project but cannot afford countries such as Panama or Costa Rica.

For example, the prices of condos in San Pedro Sula are very similar to those of Cancun or Barranquilla, Colombia, and Panama. However, both countries have a much higher dollar relative to Honduras.

This makes the price per square meter about $20 less than in Mexico or Venezuela; on average, for around $200 per square meter, which is 5 times cheaper than in the United States and only 2 times more expensive than in Guatemala.

The Costa Rica housing market is considered the most expensive of Central America, with prices that can reach $1,000 per square meter, or 10 times more costly than Honduras. The average price of a condo in San José in January 2015, for example, was US $836 per square meter, while the cost of an apartment in Tegucigalpa ranged between $160 and $300.

In addition, Honduras has important locations such as Roatán or Copan that offer beautiful beaches with water near 24 degrees Celsius (75 Fahrenheit), ideal for sea bathing and diving.

If we compare the prices in Tegucigalpa with those of Panama, we find that an apartment of 40 square meters with 3 bedrooms in a good location will cost $120,000 dollars. At the same time, Panama’s capital offers similar apartments at $200,000 or more.

Similarly, if we compare prices in Roatán with those of Panama, we find that the island offers apartments for as little as $50,000 while Panama’s Bocas del Toro is about 3 times more expensive; likewise, real estate in Copan compared to Guatemala or Mexico.

Therefore, Honduras can be an ideal alternative for investment because it offers security, nice weather, diversity of choices, and low cost.

In addition, Honduras is a safe country with a stable political and social situation.

Property types available in Honduras

Honduras real estate has a lot of different property types available. Depending on the property you choose, there are various factors to consider before making your purchase decision. Let’s see what options we have and compare them in terms of pros and cons.

According to its characteristics, Honduran land is classified into three categories: urban, agricultural, and industrial land.

Urban Land in Honduras

The most valuable property in Honduras is undoubtedly urban land, which also has the highest price. It can be found mainly in the country’s major cities such as Tegucigalpa, San Pedro Sula, La Ceiba and Comayagüela. The properties that are most valued for their location are those located in central areas, near shops or entertainment areas. For this type of property, there is a growing demand for land with good communications and easy access to rooftops.

It should not be forgotten that urban land can also be dedicated to other uses such as agriculture or livestock. In this case, it is not immediately evident that the land can be used for these purposes.

Industrial Land in Honduras

In Honduras, industrial land is classified into three types: residential, industrial, and agricultural. The highest values ​​are found in areas where there are large urban centers such as San Pedro Sula or Comayagüela. However, this type of property can also be found in important towns surrounding these urban centers, such as San Juan de Flores.

It is desirable to choose the industrial land in areas with good communications and easy access to roads and railways. Another factor to consider is whether there are industrial parks nearby from which this type of property can benefit.

Agricultural Land in Honduras

There are no specific factors to consider when buying agricultural land in Honduras, unlike urban or industrial land. Agricultural land is valued on its potential and its location, just like any other type of investment. Many people choose this type of property as an alternative investment that gives good returns in the long term.

If you decided on investing in residential or agricultural land, it is advisable to check any current or planned infrastructure projects nearby. In this way, you will enjoy a good location and not worry about building anything in the future.

The acquisition of industrial land should also consider the legal aspects that surround this type of investment. In fact, industrial land is governed by a special law called the Law of Industrial Area. This law regulates the sale and acquisition of this type of property and its use for different purposes.

This is why we suggest that you hire an expert professional to help you with the acquisition process and advise you on making your property more profitable or productive in the long run.

Residential land in Honduras

Residential property is the most common type of property in Honduras. Properties are subdivided into different types depending on their location and quality, according to two factors:

1. The characteristics of the plot: the land that is further away from urban centers will be less valuable than a more central one. It should be noted that this characteristic also depends on the conditions under which it is sold, such as the presence of roads, railways, and utilities.

2. The construction characteristics: better-maintained or renovated buildings have a higher value than others that need repair.

Residential land is located in urban areas and is often used for housing purposes. However, it can also be located in rural areas or remote areas. Nevertheless, these properties are valued more as an investment than for their use as a primary residence. One reason for this is that residential land development is usually limited to constructing basic structures such as homes.

Geographic location

Although it seems obvious, it should be taken into account that distances between cities and towns can still be some distance in a very small country like Honduras. This means that the price of a property in specific locations may not be as high as other less distant and thus more accessible locations. However, it would make sense to use the former for rental purposes rather than the latter.

Beachfront homes and ocean view property are two options for those looking at homes for sale in Honduras. Because they are now much more attractive to foreign investors, this type of property has become increasingly sought after by people worldwide.

Although beaches have traditionally been seen as tourist attractions, they can also be an excellent option for investment purposes due to their potential to generate income from tourism and other related activities.

An ocean view is also a sought-after type of property, especially for foreigners looking for beachfront homes on the Caribbean sea. These properties not only allow them to enjoy beautiful views by day but the same can be said at night.

An excellent feature for property in Honduras that makes it appealing to investors is that there are laws that regulate construction quality within each urban zone and residential area, allowing authorities to punish owners who do not meet these standards. This means that buyers can be sure that their investments will be profitable in the long term, both for the initial buyer and those who later purchase these properties.

Property investment opportunities in Honduras

With property prices rising, property prices in Honduras are still low compared to other countries like the United States or Canada.

There is less competition and more opportunity to make a profit when buying property in Honduras due to its location on the Caribbean coast of Central America. This makes Roatan and Honduras popular destinations for those looking to buy property or invest in real estate (especially after natural disasters).

One factor that adds to this is the high property taxes in Costa Rica. Property taxes are significantly lower in Honduras, offering tax benefits for those who buy property in Roatan or Honduras.

Honduras property investment laws

Honduras property investment laws are quite friendly to property owners. After five years, property taxes can be written off, and property sales may be tax-exempt for foreigners if the property is owned by a Honduran company or corporation.

There are a few extra requirements when buying property in Honduras as compared to other countries like Costa Rica, but they are still very easy to meet. One requirement is that property must be registered in the property owner’s name within 20 days of its purchase date, which can be easily done through a property lawyer.

Honduras property taxes

The Honduran government assesses a real estate tax at progressive rates, with the rate depending on the location of your property.

The Central District pays 5% in taxes, but other parts of Honduras can pay more or less depending on their location.

The Honduras property tax is levied at progressive rates, from HNL1.50 (US$0.07) to HNL5.00 (US$0.23) per thousand over the value of the land in urban areas.

Then from HNL1.50 (US$0.07) to HNL2.50 (US$0.12) per thousand calculated over the property value in rural areas.

Property ownership in Roatan Honduras

One benefit to property ownership is that property owners can use property in Roatan or Honduras as collateral for a property loan. Property investment loans typically have low interest rates and longer payment terms, making property in Roatan and Honduras more affordable compared to property investments outside of the country.

Property investors can make additional profit by renting out their property while they are not using it. Depending on property type and location, property prices are rising steadily for property in Roatan or Honduras. Properties are easier to sell than many other types of investments.

Maintaining property in Roatan has never been simpler. There is a growing infrastructure (including security), and property owners can hire full-time or part-time property managers for a relatively low cost.

Roatan has various property investment opportunities available, including property for sale near popular tourist areas such as West Bay Beach, Sandy Bay Beach, and the West End of the Island.

Honduras property investment opportunities are becoming available in other areas of the country as well.

For more detailed information – read our complete guide on buying property in Roatan, Honduras here.

Tourism increasing over the last decade in Honduras

With a consistent increase in tourism over the last decade, Roatan and Honduras have become popular destinations for those looking to buy property or invest in real estate.

The tourism rate is increasing steadily at approximately 10-15% every year.

There is an increase in private investment within tourism sectors such as hotels, resorts, and restaurants; much of this investment comes from international investors.

Increased amounts of direct flights from the United States to Honduras for quicker property investments or weekend getaways to Roatan or Honduras.

Honduras is beginning to compete with other Caribbean destinations when it comes to tourism, especially after Hurricane Mitch struck the country in 1998; now only 10 years later, tourism rates are higher than ever.

Investors from all over the world are moving into Honduras because of the opportunities in tourism as well as other sectors such as agriculture, fishing, and manufacturing.

Honduras property investment advice

Just like any foreign country, investors should consider that many unknown factors can affect their property investments in Roatan or Honduras – but that doesn’t mean they can’t thrive. Investors should also realize that property investment opportunities in Roatan and Honduras may not be for everyone, especially if they are looking for a retirement or vacation home.

To make the best possible investment, investors must first conduct market research to see how tourism will affect their potential property values. Investors must also determine how they can best utilize the property and whether it is a good investment for them or not.

Property owners should look into purchasing oceanfront land instead of beachfront or bay front land (if possible) because ocean views are more desirable than other views (especially when tourists have limited time in the country and want to see beaches). Proper research is necessary before purchasing property, so investors know exactly what they are getting into.

Owners should also look into hiring real estate agents or property managers to maintain their investments, especially those who live in the States and can only visit sporadically. Working with a full-time or part-time property manager might not be an option for owners looking to get away from it all. Still, it is worth considering if you plan on expanding your investment portfolio or increasing its value.

As mentioned above, not all investment opportunities are suitable for everyone; it is worth considering that the Roatan or Honduras real estate market may be perfect for some people, but other buyers might find themselves better suited elsewhere. Investors should consider how they as individuals will use their property before making any final decisions.

Read our complete guide on buying property in Rotan, Honduras, for more detailed info here.

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