The Hidden Jewel

Real Estate Markets in Bay Islands Honduras

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As U.S. Baby Boomers head for retirement, a look at the dreams of their parents bring back memories of the hundreds of thousands who retired to far off “promised lands” like Florida and Arizona. Pioneer developers like Walt Disney created fantasy worlds and helped shape an adventurous mindset for that generation and their children. They sought warm climates during winter months, low or no income taxes, golf, fishing, and numerous other benefits tailor-made for a budget-minded generation.

Where, now, does the retirement thinking process lead for the Boomers themselves? This is the generation that came of age in the seventies—the generation that brought technology from an idea to a staple of everyday life. These are the people who colored outside the lines, forging new frontiers, substituting world travel—their version of the same adventure—for a trip to Florida and, in the process, shrinking the world.

Central America is steadily becoming “Florida” for retiring Boomers from around the world. Increasing numbers of them are turning to this part of the world to explore their retirement adventure. The more they look, the more real evidence they find that this just may be their place to find the same dream as their parents in retirement—warm climates and economic advantages such as very large income tax advantages for those who choose residency, negligible property taxes, reasonable medical care and prescription medication costs, and affordable housing—all within a couple of flight hours from the U.S.

At the heart of Central America lies Honduras, a country that, today, is emerging from a “Banana Republic” image in the 1950s and 1960s, and border wars with Nicaragua and Salvador in the 1970s and 1980s. Currently, it has caught the eye of many investors seeking commercial and resort opportunities for retirement and second home markets. Although most of the buyer traffic is from North America, buyers from Europe are becoming commonplace.

In 1991, the Honduran government, in an effort to attract foreign investment, passed laws allowing foreign nationals to own property in the country. While many countries, such as Mexico or China, begin the process of attracting foreign investment by permitting long term leases, Honduras allows real foreign ownership by foreigners.

The Bay Islands are a group of 62 islands and cays, the largest of which are Roatan, Guanaja, and Utila. They are just off the coast of Honduras and have British roots. The people are generally English speaking, in contrast to their fellow countrymen whose primary culture and language is Spanish. Many have been attracted to what “International Living Magazine” has called the “Last Caribbean Frontier.” Roatan has an international airport with service from both the U.S and Canada. Roatan is currently the most developed of the three main islands.

Much has changed since 1991. There are now ‘modern innovations’ like cell phones, internet, paved roads and a couple of cruise ship ports. Unlike many Caribbean Islands although Roatan has miles of beautiful beaches it is not a small ‘mound’ in the sea but has considerable elevation allowing for spectacular views for miles and miles.

The Beginning of the Boom
There is no doubt Honduras will attract, as have many other developing countries, a percentage of the Boomer retirees who are expanding their horizons to experience the world rather than simply going where everyone else is going as their parents did. One thing, however, is certain. As the world grows smaller, the innovators of the 1970s—the same generation that made “coloring outside the lines” an everyday occurrence—are journeying to new horizons across the globe.