Roatan Island Property is Hotting Up

Country:  Cayman Islands, Caribbean; Honduras; Turks and Caicos Islands, Caribbean

Honduras may conjure up images of dense and verdant jungles and long lost Indian civilizations but there's a side of it that is distinctly Caribbean - and it's called Roatan Island. Lying 56 kilometres off the mainland coast, which is visible on the horizon and only a 20-minute plane 'hop' away, Roatan is known for having the best diving reefs in the region, great sandy beaches and for a piratical legacy.

In the 16th and until the latter decades of the 17th century, Roatan Island was not governed by the Spanish, British, or any other colonialists who held sway in the Caribbean, but ruled over by outlaw pirates, including the notorious Henry Morgan. Today, a legacy of the island's piratical past is to be found in local place names - such as Coxon's Hole - and a copy of the ship Black Pearl, used in the film Pirates of the Caribbean, starring Johnny Depp, which is moored at Oakridge Bay.

These days, the locals - who are of Paya Indian, Garifuna (originally from Africa), British and Spanish colonial stock - are as welcoming as any in the Caribbean. Most speak English despite Spanish being the native tongue. There's almost no hostility to foreigners and virtually no crime on the island despite the locals being relatively poor. Of course, it does help that an upsurge in development on the island is providing much needed employment.

The largest project underway is the 700-unit Oceano Village, which is located in the centre of the 53-kilometre long island. The first buildings are due for completion in November 2008 and the Canadian developers employ local labour over imported where skills are available and practice a programme of social responsibility as one facet of a broad sustainable ethos that has been adopted.

Lead architect Dan Jenkins, whose brainchild the resort is, sees Oceano as a small piece of paradise that is his responsibility to develop in a sustainable way. "We are stewards of this place, and the aim is to create a village resort where human beings are part of the eco-system and not at odds with it," he says. "I've been looking for a pristine place like this on which to develop all my life. The challenge is to build in a way that is harmonious with the environment and not to mess it up."

To achieve Jenkins' avowed aim, the village is being developed with a mix of different house types - detached, linked and condominiums - and in various architectural styles, with an emphasis on energy conservation. The properties are orientated to take advantage of prevailing winds to cool the homes naturally rather than rely on air conditioning, and all appliances are high-energy efficiency rated. Prices of property in Roatan start from US$238,000 (£120,000) for a one-bedroom  apartment.

Bart Jan Hin of realtors RE/MAX Roatan says that environmental considerations are at the forefront of thinking on the island. "Our newest activity on Roatan is golf, at the Pete Dye-designed 18-hole PGA certified golf course. Together with EDSA (a well known landscape architecture company) Pete Dye will implement the philosophy for which the Dye family is known, namely eco-sensitive golf courses."
For leisure pursuits, currently the island is probably best known internationally for its spectacular underwater diving sites - there are around 50 acknowledged world-class dive sites in the immediate waters surrounding the island - located along the world's second largest coral reef. (The Great Barrier Reef is number one.) Hin also points to Roatan's burgeoning reputation as a fishing destination.

"Just recently Roatan has been voted 'top 10 locations for Permit' by Fly Fishing in Salt Water Magazine," he said. "The three main species that are known to be targeted by fly fisherman (bonefish, tarpon and permit) are found in large quantities in our turquoise waters. But even if water and beach is not really your thing Roatan has amazing nature trails tracking through the lush tropical mountain ridges that stretch along the centre of the island from the West End all the way to the East End."

One of the most popular and cosmopolitan corners of the island is the West End, where Thai and other restaurants serving good quality international foods are to be found. In the neigbourhood RE/MAX Roatan is selling two-bedroom, one-bathroom luxury condominiums at Sandal Wood, which is located next to the prestigious Half Moon Bay resort. At the time of going to press, completion was scheduled for October 2008. Prices start from $199,000 (£105,000). Hin says depending on the price range and the location rental yields of four to ten per cent are being achieved on Roatan.

Capital appreciation reportedly has been strong on the island for the past half decade. Hin said: "Over the last five years there has been an average growth of 15 to 20 per cent per year with some properties for sale even doubling or tripling in value. After the sub-mortgage crisis in the US, we have seen a small adjustment in the growth rate. But still we feel the island is doing comparatively good compared to other housing markets."

Hill Top Villa, located inside the gated community of Blue Ocean Reef/Nikki Beach Resort, is just the sort of property that has doubled in value in the last five years. Priced for sale at $850,000 (£430,000) through RE/MAX Roatan, the four-bedroom, three-bathroom, three-storey villa has a pool, reef views over the turquoise coloured waters and beachfront access.

Mangrove Dock is a new development with strong letting potential underway on the edge of the desirable West End. Comprising only nine three-bedroom, two-bathroom condos, the boutique concept properties each have a boat slip. All units come fully decorated with the option of a luxury furniture package for $50,000 (£28,000). Prices start from $450,000 (£230,000) with RE/MAX Roatan.

High-quality projects like Mangrove Dock and the investment in infrastructure reassure Hin that the future looks bright for Roatan's property market. He said: "The new golf course in combination with six international flights direct to the island and 450,000 cruise ship passengers annually, will bring Roatan into 'a whole new ball park'. Furthermore the prices on the island are still very reasonable in relation to property in Turks and Caicos Islands and property in Cayman Islands."
 

First published in November 2008.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.

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