Honduras: An Alternative to Nicaragua Real Estate Property Investment

The property in Honduras is quickly becoming a hotspot for overseas investment due to its steady rise in tourism. Honduras is a valid candidate as an alternative to Nicaragua real estate property investment because of its emerging economy and fashionable tourist attractions.

An attractive destination is centred on the Trujillo Beach region in Honduras. Trujillo arguably contains the best beaches in all of Central America. Visitors can indulge in private, white sand beaches that extend over 4.5km. It is one of the largest private beaches in all of Central America. In addition to a fantastic Caribbean atmosphere, many people will associate Honduras with tropical weather, breathtaking scenery, many adventure sports and beautiful Caribbean beaches.

In contrast, property prices in Nicaragua generally fall higher over neighboring country Honduras. The Trujillo Beach properties are in current development with fully serviced lots. Meaning many investors can have first choice at what they want to build. Nicaragua beachfront communities for instance will have fully constructed lots with homes, generally coming with higher expenses

The term “beach front” is falsified when associated with Nicaragua’s properties; the pending Coastal Laws set by the Ortega administration of Nicaragua might have developers build as far as 800 meters away (half a mile) from the shoreline. In contrast, the previous restriction was only 30 meters away. An underlying concern is that most of the ocean front property that has been sold or is currently on the market occupies land within that half-mile. The vast majority of these holdings are owned by U.S. investors and are somewhere in a pre-construction stage. This means that if the Ortega administration so desired and implemented the current suspension, it could effectively block any construction on beach front property within that distance. And that has a lot of people worried.

In Honduras however, the closest development lot is only 150-200 meters away from the shoreline. This allows owners to get a closer view of the ocean.

Tourists are finding themselves more drawn to Honduras. In fact, Nicaragua’s tourism figures saw a 13% increase in 2009. Whereas Honduras saw a 20% increase in arrivals in the same year. Furthermore, the new cruise line terminal in Trujillo would yield substantial advantages for Honduras investment. The cruise line terminal expected to be completed in 2012 would highlight the following:

• Developed infrastructure
• Increased tourist activity
• Increased land value
• 3000 jobs created

In addition to the fantastic eco-lifestyle, properties at the Trujillo Beach Eco-Development make great long term investments. Many of our Canadian investors are seeing returns of 30% in the first year with subsequent increases.