Authored by the expert who managed and guided the team behind the Honduras Property Pack
Yes, the analysis of Roatan Island's property market is included in our pack
Roatan Island's housing market has experienced remarkable growth over the past decade, with property values more than doubling since 2015.
Foreign buyers continue to drive demand in this Caribbean market, where beachfront properties command premium prices and tourism growth sustains both sales and rental yields. Current market conditions suggest sustained appreciation rather than price declines, though financing remains challenging with high interest rates for international buyers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Honduras, based on reliable facts and data, not opinions or rumors.
House prices in Roatan Island are unlikely to decline in the near term, with market fundamentals supporting continued appreciation of 3-7% annually through 2028.
Foreign buyer demand, limited beachfront inventory, and robust tourism growth create a seller's market that favors price stability and growth over corrections.
| Market Factor | Current Status (Sept 2025) | Price Impact |
|---|---|---|
| Average Price per Sq Ft | $353 per square foot | Positive (Premium pricing) |
| 10-Year Price Growth | More than doubled since 2015 | Strong Historical Appreciation |
| Foreign Buyer Share | Majority of purchases | Positive (Sustained demand) |
| Tourism Trend | Booming since 2020 | Positive (Rental demand) |
| Inventory Levels | Tight beachfront supply | Positive (Limited supply) |
| Rental Yields | 5-10% depending on location | Positive (Investment appeal) |
| Expert Forecast | 3-7% annual appreciation | Positive (Continued growth) |
How have house prices in Roatan Island changed over the past 10 years?
House prices on Roatan Island have more than doubled over the past decade, showing exceptional growth for Caribbean real estate.
Properties that sold for $200,000-$300,000 in 2015 now command prices of $500,000-$600,000 as of September 2025. This represents a 100-150% appreciation over ten years, significantly outpacing most international markets.
The most recent five-year period has seen particularly strong growth, with home prices rising 30-40% since 2020. Waterfront and ocean-view properties experienced the sharpest increases, driven by limited supply and high demand from foreign buyers seeking Caribbean investment opportunities.
This sustained appreciation reflects Roatan Island's emergence as a premier Caribbean destination for both retirement and investment purposes.
What is the current average price per square foot for homes in Roatan Island?
As of September 2025, the average price per square foot for homes in Roatan Island is approximately $353.
The average price per square meter is about $3,800, reflecting the island's positioning as a premium Caribbean market. The average single-family home price is $500,000, though this varies significantly based on location and proximity to beaches.
Condos and inland properties typically trade at lower price points, while beachfront homes command substantial premiums. Recent listings include a 4-bedroom condo at $336 per square foot and a luxury 6-bedroom home at $211 per square foot, showing the range within the market.
These prices position Roatan Island as more affordable than many established Caribbean markets while offering similar amenities and investment potential.
How many properties are currently listed for sale, and how long do they typically stay on the market?
The Roatan Island property market shows high activity levels with multiple new listings, but beachfront inventory remains notably tight.
Average days on market for Roatan Island properties typically ranges between 100-180 days, with highly desirable units in prime locations like West Bay selling even faster. This timeframe reflects a balanced market where quality properties move at reasonable speeds.
Market activity remains robust with strong buyer interest, particularly for waterfront properties. The limited beachfront inventory creates competitive conditions for the most sought-after properties, often resulting in quicker sales for well-priced listings.
For vacation rental properties, the average booking lead time is about 66 days, indicating robust rental demand that supports the overall property market.
What is the annual number of home sales on the island, and is it trending up or down?
While precise annual sales volumes are not publicly reported, market indicators strongly suggest growing transaction volumes, particularly for mid- and high-end homes.
Robust foreign demand and consistent price appreciation signal healthy and increasing transaction activity through 2025. Market reports confirm continued growth each year, with particular strength in properties priced above $400,000.
The seller's market conditions, especially for waterfront properties, indicate that demand routinely exceeds current supply. This imbalance supports both transaction volume growth and price appreciation.
Foreign buyer activity remains the primary driver of sales volume, with North American and European buyers accounting for the majority of transactions in the residential market.
What percentage of purchases are made by foreign buyers versus local buyers?
The Roatan Island real estate market is predominantly driven by foreign buyers, who represent the majority of home purchases.
North American buyers, primarily from the United States and Canada, constitute the largest segment of foreign purchasers. These buyers are typically retirees, digital nomads, or investors seeking Caribbean property exposure.
A growing contingent of European buyers has emerged, adding diversity to the foreign buyer base. Local Honduran buyers represent a smaller portion of the market, primarily due to the premium pricing that caters to international wealth levels.
This foreign buyer dominance provides stability to the market, as international demand is less dependent on local economic conditions and more driven by lifestyle and investment considerations.
It's something we develop in our Honduras property pack.
How much has tourism increased or decreased in Roatan Island over the past five years, and how does that affect demand for homes?
Tourism in Roatan Island has experienced significant growth since 2020, creating a strong foundation for real estate demand.
The tourism boom has been driven by new hotel investments, infrastructure improvements, and increasing arrivals through both air and cruise ship channels. Ocean activities and diving remain key attractions, with average visitor stays of 10-11 days.
This tourism growth directly amplifies rental demand for residential properties, particularly homes suitable for vacation rentals. The sustained visitor flow supports both property price appreciation and rental yield potential.
Tourism growth has become a fundamental pillar underpinning the real estate market's strength, sustaining both sales activity and rental returns for property investors.
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What is the current rental yield on long-term and vacation rentals, and is it rising or falling?
Rental yields in Roatan Island remain attractive, with long-term rentals typically averaging 5-7% depending on property location and condition.
Vacation rental yields are often higher, particularly for beachfront units, ranging from 6-10% during peak tourist seasons. The specific yield depends heavily on property location, with West Bay and Sandy Bay commanding premium rental rates.
Rental yields are currently rising alongside sustained tourism demand and limited supply in key rental areas. The combination of growing visitor numbers and tight inventory creates favorable conditions for property owners.
The strong tourism foundation supports both rental rate growth and occupancy levels, making Roatan Island properties competitive with other Caribbean rental markets.
How have construction costs and new housing developments impacted supply in the past few years?
Construction costs in Roatan Island have increased 5-7% in the past year, consistent with global trends driven by supply chain issues and robust building demand.
Current building costs range from $125-$200 per square foot for wood construction and $180-$250 per square foot for concrete construction. These elevated costs impact both new development feasibility and existing property values.
As of 2025, ongoing luxury hotel construction and new apartment projects are particularly active in West Bay and French Harbour areas. These developments are adding inventory while simultaneously raising quality standards and price expectations.
The higher construction costs create a floor for new property prices, supporting appreciation in existing homes while ensuring that new supply comes at premium price points.
What are the local economic indicators, such as employment, wages, and business growth, that affect housing affordability?
Roatan Island's economy is heavily tourism-dependent, with local wages significantly below international buyer capacity.
| Economic Indicator | Current Level (2025) | Housing Impact |
|---|---|---|
| Minimum Wage (Construction) | ~HNL17,557/month (~$710 USD) | Limited local buying power |
| Primary Economic Driver | Tourism and hospitality sector | Seasonal employment variations |
| Business Growth | Tourism and infrastructure investment | Supports service sector wages |
| Employment Sectors | Hotels, restaurants, real estate services | Tied to tourism cycles |
| Local Affordability | Very limited for average wages | Market depends on foreign buyers |
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 have interest rates and availability of financing changed for property buyers in Roatan Island?
Financing conditions in Roatan Island remain challenging for foreign buyers, with high interest rates and restrictive lending terms.
Mortgage rates for foreigners range from 10-14% for 20-year terms, while local rates can exceed 16%. These high rates make financing less attractive compared to cash purchases.
Down payments for foreigners typically require 30-40% of purchase price, with residence status often required for most bank loans. Seller financing has become common, offering 5-7% interest over 3-7 years with 30-50% down payments.
Cash remains the preferred transaction method, with foreign purchases predominantly cash-based due to tight and costly local credit markets. This financing environment favors wealthy international buyers over leveraged investors.
What government policies, taxes, or regulations are in place that could influence property values?
Roatan Island maintains favorable policies for foreign property investment, with low taxes and clear ownership rights.
Property taxes are exceptionally low at roughly $4 per $1,000 of assessed value annually. Land transfer tax is 1.5% of purchase price, making transactions cost-effective compared to many international markets.
Foreign buyers can legally own property up to 3,000 square meters for residential use, providing clear ownership rights. Gated communities often have additional restrictive covenants focusing on environmental protection and design standards.
As of September 2025, there are no major new restrictions targeting foreign investors. Total closing costs typically amount to 4-4.5% of purchase price, remaining competitive with regional markets.
It's something we develop in our Honduras property pack.
What are real estate experts and local agents forecasting for Roatan Island property prices over the next 3 to 5 years?
Real estate experts forecast continued appreciation of 3-7% annually for residential properties in Roatan Island through 2028.
Beachfront homes may double in value by 2030 if current trends continue, driven by limited coastal supply and sustained international demand. The market is expected to remain robust due to fundamental supply constraints and ongoing foreign buyer interest.
Luxury and eco-friendly homes are expected to lead growth segments, while sustained tourism ensures buoyant vacation rental returns. Infrastructure investments and improved connectivity support positive long-term outlook.
Expert consensus indicates that Roatan Island will continue outperforming many Caribbean markets while remaining more affordable than established destinations like Barbados or the Cayman Islands.
It's something we develop in our Honduras property pack.
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 shows little indication of price declines, with strong fundamentals supporting continued appreciation.
Foreign buyer demand, tourism growth, and limited beachfront supply create conditions favoring sellers and investors over the next 3-5 years.
Sources
- The LatinVestor - Roatan Island Price Forecasts
- Roatan Life Real Estate MLS
- AirROI - Roatan Rental Market Report
- The LatinVestor - Honduras Real Estate Forecasts
- The LatinVestor - Roatan Island Property
- Roatan Tourism Bureau - 2025 Investment Updates
- Roatan Real Estate - Average House Costs
- Wage Indicator - Honduras Minimum Wage
- Caribbean Real Estate MLS - Roatan Guide
- About Roatan Real Estate - FAQ