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Roatan Island's real estate market offers diverse opportunities for both investors and those looking to relocate to this Caribbean paradise. Property prices vary significantly based on location, with beachfront and tourist areas commanding premium rates while inland properties remain more affordable for budget-conscious buyers.
As of September 2025, residential properties on Roatan Island range from $150,000 for basic inland homes to over $1 million for luxury beachfront villas. The market has experienced substantial growth over the past decade, with property values more than doubling in many areas, making it an attractive destination for real estate investment.
If you want to go deeper, you can check our pack of documents related to the real estate market in Roatan Island, based on reliable facts and data, not opinions or rumors.
Roatan Island's residential real estate market offers properties ranging from $150,000 inland homes to $1+ million beachfront villas, with average prices of $175 per square foot in tourist areas. The market has shown strong appreciation with property values doubling over the past decade and vacation rental yields reaching up to $6,124 monthly for top-performing properties.
| Property Type | Tourist/Beachfront Areas | Inland/Local Areas |
|---|---|---|
| Price per sqft (condos) | $175 | $132 |
| One-bedroom condo | $200k-$320k | $150k-$200k |
| Two-bedroom beachfront villa | $500k-$1M+ | N/A |
| Three-bedroom home | $450k-$650k | $150k-$250k |
| Undeveloped land per acre | $350k-$500k+ | $1k-$3k |
| Monthly rental income | $3,239+ (top 25%) | $1,548 (median) |
| Annual maintenance costs | $3,000-$3,600 | $2,500-$3,000 |
What's the average price per square foot for residential properties on Roatan Island?
Residential properties on Roatan Island average $175 per square foot in main tourist areas like West Bay and West End, while properties outside the tourist core cost approximately $132 per square foot.
The island-wide average shows a broader range when converted from local currency data, with houses averaging $1,647 per square foot and apartments reaching $2,232 per square foot. This significant variation reflects the premium placed on location, with beachfront and tourist-adjacent properties commanding the highest prices.
Tourist areas including West Bay, West End, and Sandy Bay consistently show price premiums of 20-30% compared to inland locations. Properties with ocean views or direct beach access can exceed these averages substantially, sometimes reaching $250+ per square foot for luxury developments.
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What's the typical cost of a one-bedroom condo in tourist areas versus local neighborhoods?
One-bedroom condos in Roatan Island's main tourist areas (West Bay, West End, Sandy Bay) typically cost between $200,000 and $320,000, while similar properties in local or non-tourist neighborhoods range from $150,000 to $200,000.
The price difference represents a 20-30% premium for tourist area locations, driven by proximity to beaches, restaurants, diving centers, and established tourism infrastructure. Tourist area condos often include amenities like pools, security, and beach access that justify the higher pricing.
Local neighborhood condos, while more affordable, may require additional transportation costs to reach main attractions but offer better integration with the local community. These properties also tend to have lower ongoing maintenance costs and property taxes.
New developments in tourist areas are pushing the upper end of this range higher, with some luxury one-bedroom units reaching $350,000-$400,000 when they include premium finishes and direct oceanfront locations.
How much does a two-bedroom beachfront villa typically sell for?
Two-bedroom beachfront villas on Roatan Island start at approximately $500,000 and can exceed $1,000,000 for luxury properties with premium locations and high-end finishes.
The wide price range reflects variations in property size, beachfront footage, construction quality, and specific location within the island's beachfront areas. Villas in West Bay with direct beach access and established rental histories command premium prices in the $750,000-$1,000,000+ range.
Properties on the island's less developed beaches or those requiring renovation typically fall in the $500,000-$650,000 range. These can offer significant value for buyers willing to invest in improvements or those seeking more secluded locations.
Luxury beachfront villas with features like infinity pools, high-end appliances, and extensive outdoor living spaces routinely exceed $1,000,000, with some premium properties reaching $1,500,000+ in prime locations.
What's the typical cost of a three-bedroom single-family home inland versus near the beach?
| Location Type | Price Range | Typical Features |
|---|---|---|
| Inland/Local Areas | $150,000-$250,000 | Basic finishes, local neighborhood, larger lots |
| Near Beach (not beachfront) | $300,000-$450,000 | Walking distance to beach, tourist amenities |
| Beachfront/Prime Coastal | $450,000-$650,000 | Ocean views, beach access, premium location |
| Luxury Beachfront | $650,000-$900,000+ | High-end finishes, direct beach access, pools |
| Gated Communities | $400,000-$800,000 | Security, shared amenities, maintained grounds |
How much does undeveloped land cost per acre on Roatan Island?
Undeveloped land prices on Roatan Island vary dramatically based on location, with inland properties ranging from $1,000-$3,000 per acre while waterfront parcels command $350,000-$500,000+ per acre.
Inland properties offer the most affordable entry point for development, with some bulk purchases showing prices as low as $861 per acre for larger tracts. These properties typically require infrastructure development including road access, utilities, and drainage systems.
Waterfront land represents the premium segment of the market, with prime beachfront parcels reaching extreme valuations. Standard waterfront lots with good access and development potential typically range from $350,000-$500,000 per acre, while exceptional sites can exceed $1,000,000 per acre.
It's something we develop in our Honduras property pack.
Hillside properties with ocean views fall between these extremes, typically ranging from $25,000-$75,000 per acre depending on elevation, access, and view quality. These locations offer a compromise between affordability and development potential.
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What's the range of monthly rental income for vacation rentals on Roatan Island?
Vacation rental income on Roatan Island varies significantly by property type and location, with monthly earnings ranging from $1,548 for median properties to $6,124+ for top-performing vacation rentals.
The top 10% of vacation rental properties generate $6,124 or more per month, while strong performers in the top 25% average $3,239 monthly. These high-performing properties typically feature beachfront locations, luxury amenities, and professional management.
Seasonal variations significantly impact rental income, with peak season (March) averaging $3,500 per month across all property types, while low season drops to approximately $1,929 monthly. Properties in prime tourist areas show less seasonal variation than those in secondary locations.
Median vacation rental income of $1,548 per month represents typical performance for well-located properties with standard amenities. This figure provides a realistic baseline for investment calculations, though individual results vary based on marketing, management, and property condition.
How much are annual property taxes on homes valued at different price points?
Property taxes on Roatan Island are relatively low compared to North American standards, with rates approximately $2 per $1,000 of assessed value, translating to an effective rate of 0.2% annually.
A $200,000 home typically incurs annual property taxes of $350-$400, while a $500,000 home pays approximately $700-$800 annually in property taxes. These rates make Roatan Island attractive for property ownership compared to many other Caribbean destinations.
Property tax assessments on Roatan Island often lag behind market values, meaning actual tax bills may be lower than calculations based on purchase prices. However, buyers should budget for potential reassessments that could increase future tax obligations.
Local municipalities may impose additional fees for services like garbage collection or security, typically adding $100-$300 annually to total property-related taxes and fees.
What are the average closing costs and legal fees as a percentage of purchase price?
Closing costs and legal fees for property purchases on Roatan Island typically range from 4.5% to 7% of the purchase price, with buyers responsible for most of these expenses.
These costs include title searches, legal representation, property registration, transfer taxes, and notary fees. The wide range depends on property value, complexity of the transaction, and choice of legal representation.
Foreign buyers should budget for additional costs including due diligence investigations, survey work, and potential environmental assessments. These services, while optional, are strongly recommended for international investors unfamiliar with local property conditions.
Legal fees alone typically account for 2-3% of the purchase price, while government fees and taxes make up the remainder. Working with experienced local attorneys familiar with foreign investment regulations is essential for smooth transactions.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Honduras versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How much does it typically cost to maintain a property annually?
Annual property maintenance costs on Roatan Island typically range from $2,500 to $3,600 for a three-bedroom home, including HOA fees, utilities, insurance, and basic upkeep.
HOA fees average $60-$70 monthly ($720-$840 annually) for most residential properties, with higher fees for condominiums or gated communities that include additional amenities like pools, security, and landscaping.
Utility costs represent a significant portion of annual expenses, with electricity averaging $200-$400 monthly ($2,400-$4,800 annually) due to air conditioning needs and higher rates of $0.22 per kWh. Water costs are more modest at $20-$40 monthly ($240-$480 annually).
Property insurance typically costs $150-$300 monthly ($1,800-$3,600 annually), while internet service averages $50-$100 monthly ($600-$1,200 annually). Additional maintenance for pool cleaning, landscaping, and routine repairs should be budgeted separately.
What's the cost difference between newly built properties versus older resale homes?
Newly built properties on Roatan Island typically carry premiums of 20-30% compared to older resale homes, with the premium varying based on location and property type.
New construction in prime beachfront locations commands the highest premiums, often 25-30% above comparable resale properties due to modern amenities, energy efficiency, and warranty protection. These properties often feature contemporary designs and updated infrastructure.
Older resale homes generally cost 10-20% less than new construction but may require immediate improvements or updates to electrical, plumbing, or structural systems. However, established properties often include mature landscaping and proven rental histories for investment buyers.
The premium for new construction reflects not only modern features but also compliance with current building codes and hurricane resistance standards, which can be particularly important for insurance and safety considerations.
How much do construction costs per square foot run for building new properties?
Construction costs on Roatan Island range from $100-$135 per square foot for wood construction and $180-$200 per square foot for concrete construction, depending on finishes and materials.
Wood frame construction represents the more affordable option, suitable for many residential applications and offering faster construction timelines. However, concrete construction provides superior hurricane resistance and longevity, making it preferred for beachfront locations.
The general range for quality builds spans $100-$200 per square foot, with luxury finishes, imported materials, and complex designs pushing costs toward the upper end. Site preparation, utilities, and permit costs add additional expenses beyond base construction.
It's something we develop in our Honduras property pack.
Labor costs on Roatan Island remain competitive compared to North American markets, but imported materials and equipment transportation add to overall construction expenses. Local materials and skilled trades help control costs while maintaining quality standards.
What's the historical trend in property values over the last 5-10 years?
Property values on Roatan Island have shown strong appreciation over the past decade, with average home prices increasing 30-40% over the last five years, representing annual appreciation of 6-8%.
The ten-year trend shows even more dramatic growth, with property values more than doubling in many areas. Properties that sold for $200,000-$300,000 in 2015 now command $500,000-$600,000, particularly in prime oceanfront locations.
Beachfront properties have experienced the strongest appreciation, often outpacing inland properties by 2-3% annually. This trend reflects increasing demand from international buyers and limited supply of premium beachfront land.
Vacation rental yields have also improved, with top-performing Airbnb properties achieving 7% annual yields combined with 5% property appreciation, creating potential total returns of 12% for well-positioned investment properties.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Roatan Island's real estate market offers compelling opportunities for both investors and residents, with strong historical appreciation and diverse property options across different price points.
Whether seeking affordable inland properties starting at $150,000 or luxury beachfront villas exceeding $1 million, the island provides options for various budgets while maintaining relatively low carrying costs through minimal property taxes and reasonable maintenance expenses.
Sources
- Live and Invest Overseas - Roatan Guide
- The LatinVestor - Honduras Price Forecasts
- The LatinVestor - Roatan Island Price Forecasts
- Roatan Real Estate - Average House Costs
- Roatan Real Estate - Cost Drivers
- Roatan Real Estate - Property Listings
- AirROI - Roatan Rental Analysis
- About Roatan Real Estate - Economy Report
- The LatinVestor - Roatan Island Property
- International Living - Roatan Honduras