The Post-Recession Development Market in Belize

 

As the post-recession real estate development market begins to unfold, it is revealing some dynamic parameters that, if taken advantage of, are expected to lead to enhanced stability, sustainability, and profitability in future resort community development endeavors. While the recession caused financial stress for many real estate developers and their clients, it also appears to have created an entirely new composition for both the supply and demand sides of the resort development market.

Pre-recession financial markets often allowed upstart developers who lacked experience, credentials and proper capitalization, to achieve financing that at least enabled them to get their projects to the initial sales launch stage. This led to numerous fledgling projects saturating the supply side of the resort market and when the "easy money" available for investments dried up, the projects crashed, too, and became part of a burgeoning "distressed property" supply. Meanwhile, the easy consumer credit terms led numerous speculative buyers on the demand side to participate in the second home or vacation home market, often leaving them in default when their ability to get credit disappeared.

-Geoffrey de Sibert

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