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Everything you need to know before buying real estate is included in our Guatemala Property Pack
Guatemala City's Airbnb market shows solid potential for investors with careful property selection and management.
As of September 2025, the capital's short-term rental market offers moderate returns with over 2,169 active listings generating average annual revenues of $6,198, though success heavily depends on location, property type, and operational efficiency. The market benefits from a low-regulation environment and growing tourism, but requires understanding of seasonal fluctuations and competitive dynamics.
If you want to go deeper, you can check our pack of documents related to the real estate market in Guatemala, based on reliable facts and data, not opinions or rumors.
Guatemala City's Airbnb market offers moderate profitability with top-performing properties earning $1,418+ monthly while typical properties generate around $553 per month.
Success depends heavily on choosing prime locations like Zona 10 and managing seasonal demand fluctuations between peak December earnings and low May performance.
| Performance Tier | Monthly Revenue | Annual Yield Estimate |
|---|---|---|
| Top 10% Properties | $1,418+ | 5-7% |
| Top 25% Properties | $945+ | 4-6% |
| Median Properties | $553 | 3-4% |
| Typical Occupancy | 43% | 13 nights/month |
| Average Daily Rate | $53 | Peak: $64 (Dec) |
| Peak Season | December | 53% occupancy |
| Low Season | May | 35% occupancy |
What are the most popular neighborhoods in Guatemala City for short-term rentals, and why do guests choose them?
The top neighborhoods for Airbnb properties in Guatemala City are concentrated in the upscale and central zones.
Zona 10 (Zona Viva) dominates as the most popular area for short-term rentals. This upscale business and nightlife district attracts business travelers and tourists seeking modern amenities, shopping centers, restaurants, and vibrant urban experiences. The area offers excellent security and infrastructure compared to other parts of the city.
Zona 1 (Historic Center) appeals to culturally-minded visitors interested in colonial architecture, museums, and authentic local experiences. The historic center provides walking access to cultural landmarks and traditional markets, making it attractive for tourists on cultural tours.
Zona 4 has emerged as a trendy area popular with younger travelers and digital nomads. This up-and-coming creative district features hip cafes, coworking spaces, and a youthful atmosphere that attracts guests seeking a more alternative Guatemala City experience. Zona 14 and Zona 15 cater to longer-term business travelers and families, offering residential environments with modern apartment complexes and upscale amenities.
Guests choose these areas primarily for proximity to attractions, restaurants, and business centers, along with better security and modern infrastructure compared to other Guatemala City districts.
What types of properties tend to perform best on Airbnb here, and what sizes or layouts are most in demand?
Entire apartment units dominate Guatemala City's Airbnb market with the strongest booking performance.
Studios and 1-bedroom apartments represent 45% of all listings and show consistent demand from solo travelers, couples, and business visitors. These compact units offer the flexibility and privacy that short-stay guests prefer while maintaining affordable rates.
2-bedroom apartments comprise 28% of the market and attract small groups, families, and longer-term business travelers. These properties often command higher nightly rates and appeal to guests splitting costs or needing separate spaces for work and relaxation.
Apartment and condominium units make up 86% of the total inventory, with very few standalone houses or unique property types. Modern condos with building amenities like gyms, pools, and security services perform significantly better than older properties without these features. Properties with dedicated workspace areas have gained popularity since 2024, reflecting the growth in remote work and digital nomad travel.
Pet-friendly and family-friendly properties also show strong performance, particularly in the residential zones. Most successful listings offer flexible booking with minimum 1-night stays, capturing both business and leisure travelers seeking convenience.
How much does it typically cost to buy a property in these areas, and how do prices vary by size and type?
Property purchase prices in Guatemala City vary significantly by location and property type as of September 2025.
| Zone | Price per m² (USD) | Property Types |
|---|---|---|
| Zona 10 (Zona Viva) | $1,500-$2,000 | Luxury condos, modern apartments |
| Zona 15 | Up to $2,000 | Premium apartments, gated communities |
| Zona 1 (Historic) | $1,000-$1,400 | Colonial buildings, renovated units |
| Zona 4 (Creative) | $1,200-$1,600 | Modern apartments, loft-style units |
| Zona 14 | $1,400-$1,800 | Residential condos, family apartments |
| Outer zones | $915-$1,200 | Basic apartments, older buildings |
| City median | $1,403 | Mixed residential properties |
A typical 50m² studio apartment in Zona 10 costs $75,000-$100,000, while a 70m² 1-bedroom unit ranges from $105,000-$140,000. In the historic center, similar properties cost $70,000-$98,000 for the same sizes.
Property prices have been rising 4-6% annually as of 2025, driven by urbanization and foreign investment. It's something we develop in our Guatemala property pack.
What's the average nightly rate you could realistically charge in each neighborhood for different property types?
Nightly rates in Guatemala City vary significantly based on property quality, location, and seasonal demand.
Top-performing properties (top 10%) in Zona 10 command $80-$120 per night, particularly luxury condos with premium amenities and superhost status. These properties benefit from prime locations near business districts and nightlife areas.
Strong-performing properties (top 25%) across central zones typically charge $60-$80 per night. These well-managed apartments in Zona 1, 4, and 10 offer modern amenities and excellent guest reviews. Mid-range properties across all popular zones average $45-$65 per night, representing the majority of successful listings with decent locations and standard amenities.
Entry-level properties in outer zones or older buildings charge $30-$45 per night, though these face lower occupancy rates and more competition. Studios typically price 15-25% lower than 1-bedroom units, while 2-bedroom apartments command 30-50% premiums over studios in the same buildings.
Seasonal variations show December rates reaching $64 average with premium properties exceeding $100, while May low season sees average rates drop to $56 with discounting required to maintain occupancy.
How many nights per month could you expect your place to be booked on average, based on current demand?
Guatemala City's Airbnb market shows moderate occupancy rates with significant variation by property performance tier.
Top-performing properties (top 10%) achieve 80%+ occupancy rates, translating to 24+ booked nights per month. These properties benefit from excellent locations, superior management, competitive pricing, and strong guest reviews that drive repeat bookings and referrals.
Strong properties (top 25%) maintain approximately 63% occupancy, equivalent to 19 nights per month. Well-managed properties in good locations with modern amenities typically sustain this performance level through effective pricing and guest communication.
Typical properties achieve the market median of 41% occupancy, resulting in 12-13 booked nights per monthly average. This represents the standard performance for average locations with decent reviews and competitive pricing. Entry-level properties struggle with only 21% occupancy (6-7 nights monthly), often due to poor locations, limited amenities, or inadequate management.
Seasonal fluctuations significantly impact these figures, with December peak season pushing occupancy up to 53% market-wide, while May low season drops to 35% average occupancy. Smart pricing and promotional strategies during low seasons can help maintain higher occupancy rates year-round.
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What would your total monthly rental income look like before any expenses?
Monthly gross rental income in Guatemala City varies dramatically based on property performance and management quality.
Best-in-class properties (top 10%) generate $1,418+ monthly gross revenue, with some exceptional properties exceeding $1,600 during peak seasons. These properties combine prime locations, luxury amenities, dynamic pricing strategies, and superior guest experiences.
Strong-performing properties (top 25%) earn $945+ monthly, representing well-managed units in desirable locations with modern amenities and consistent high ratings. These properties typically maintain steady booking rates through effective marketing and guest service.
Typical properties generate approximately $553 monthly gross revenue, which represents the median market performance. This level reflects average locations, standard amenities, and moderate management efficiency. Entry-level properties often struggle to reach $400 monthly due to location disadvantages, limited amenities, or poor management practices.
Seasonal variations significantly impact monthly figures, with December potentially boosting revenues 25-30% above average, while May often sees 20-25% decreases. Annual gross revenue averages $6,198 across all performance tiers, though this masks the substantial differences between top performers and struggling properties.
What are the main operating costs—cleaning, utilities, maintenance, supplies, Airbnb fees, and local taxes—and how much do they typically add up to?
Operating expenses for Guatemala City Airbnb properties typically consume 30-40% of gross revenue.
| Expense Category | Monthly Cost (USD) | Notes |
|---|---|---|
| Cleaning fees | $40-$80 per turnover | Higher for frequent bookings |
| Utilities (electric, water, internet) | $50-$120 | Varies by property size and usage |
| Maintenance and repairs | $30-$50 | Regular upkeep and minor repairs |
| Supplies and amenities | $20-$40 | Toiletries, linens, cleaning products |
| Airbnb service fees | 3% of revenue | Platform commission |
| Local taxes and income tax | 5-10% of gross | Income tax and potential municipal fees |
| Total monthly expenses | $180-$250 (median property) | Scales up for luxury properties |
For a median property generating $553 monthly, total operating expenses typically range $180-$250, leaving $300-$370 in net income before taxes. Luxury properties face higher costs but also generate proportionally higher revenues.
Cleaning represents the most variable cost, potentially reaching 15% of gross revenue for properties with high turnover rates. Properties with longer average stays reduce per-booking cleaning costs significantly.
After subtracting all expenses, what's the estimated net monthly income, and how does that translate into annual net yield?
Net monthly income after all operating expenses varies significantly across performance tiers.
Top-performing properties (top 10%) generate $1,000+ monthly net income, representing annual yields of 5-7% on typical property values in prime locations. These properties justify higher purchase prices through superior revenue generation and efficient cost management.
Strong properties (top 25%) produce $600-$670 monthly net income, achieving annual yields of 4-6% depending on purchase price and location. These properties offer attractive returns for well-selected investments with proper management.
Median properties generate $320-$390 monthly net income, translating to annual yields of 3.5-5% based on typical Guatemala City property values of $1,400/m². This represents moderate but consistent returns for average market performance.
Entry-level properties often struggle to achieve positive cash flow, with net yields below 3% after accounting for all expenses and vacancy periods. Annual net yields across the market average 3.5-5% for median performers, though top properties can exceed 6% with optimal management and location selection.
It's something we develop in our Guatemala property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Guatemala 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.
If you compare this with renting the property long-term, how does the return differ in terms of income stability and profit?
Short-term versus long-term rental strategies offer distinct advantages and trade-offs in Guatemala City.
Short-term rentals provide higher gross yield potential of 3.5-6%+ for well-managed properties, compared to long-term rentals typically yielding 3-4% annually. However, this higher return comes with significantly more management work, variable income, and seasonal fluctuations.
Long-term rentals offer superior stability with 90-95% occupancy rates versus 41% median for Airbnb properties. Monthly rental income remains predictable, making cash flow planning easier for investors. Management requirements are minimal compared to the daily operations required for short-term rentals.
Income variability represents the primary trade-off. Airbnb properties experience 25-30% revenue swings between peak and low seasons, requiring financial buffers to manage cash flow gaps. Long-term rentals provide steady monthly income without seasonal volatility.
Risk profiles differ substantially. Short-term rentals face regulatory changes, platform policy shifts, and tourism disruptions. Long-term rentals primarily face tenant quality and vacancy risks when leases end. For investors seeking passive income with minimal management, long-term rentals often provide better risk-adjusted returns despite lower gross yields.
What are the local laws and regulations for running an Airbnb in Guatemala City, including any taxes or licensing requirements?
Guatemala City maintains a relatively low-regulation environment for short-term rentals as of September 2025.
Currently, no citywide licensing requirement exists for Airbnb operations, making Guatemala City more permissive than many international destinations. This regulatory environment provides operational flexibility for hosts without complex permit processes or annual fees.
Income from short-term rentals is subject to Guatemala's income tax system, with hosts required to report and pay taxes on rental earnings. Typical income tax rates range 5-7% depending on total income levels. Airbnb automatically collects VAT on service fees charged to guests.
Some individual condominium associations or building managements may impose their own restrictions on short-term rentals. Property buyers should verify building bylaws and homeowner association rules before purchasing for Airbnb purposes. Municipal authorities retain the right to implement new regulations, and hosts should stay informed about potential policy changes.
As the market grows, regulatory frameworks may evolve. Professional property managers recommend consulting with local accountants familiar with short-term rental compliance to ensure proper tax reporting and preparation for potential future requirements. The current low-regulation environment contributes to Guatemala City's attractiveness for Airbnb investment but requires monitoring for changes.
How much competition is there on Airbnb in these target areas, and what occupancy and review trends can you see from existing listings?
Guatemala City's Airbnb market shows moderate competition with over 2,169 active listings as of September 2025.
Entire home/apartment listings dominate the market at 85%+ of total inventory, creating substantial competition for standard apartment rentals. Most successful hosts maintain ratings of 4.6-4.9 stars with hundreds of reviews, establishing high service expectations for new entrants.
Competition concentration varies by zone, with Zona 10 showing the highest listing density due to tourist and business traveler demand. New developments and modern buildings face particularly intense competition, requiring differentiation through amenities, pricing, or superior service.
Review volume and Superhost status significantly impact booking rates, with established hosts holding competitive advantages over new entrants. Properties with extensive positive review histories command higher occupancy rates and premium pricing power.
The median 41% occupancy rate indicates market saturation in many segments, with only top-tier properties achieving 80%+ occupancy. Success requires either exceptional property characteristics, superior management, or competitive pricing strategies to capture market share from existing listings.
Entry barriers remain relatively low due to limited regulation, but operational excellence has become essential for profitability as competition intensifies across all major zones.
What risks or seasonal factors could impact occupancy rates and profitability over time?
Several risk factors and seasonal patterns significantly impact Guatemala City Airbnb profitability.
Major seasonality creates substantial revenue fluctuations throughout the year. December peak season can boost revenues 25-30% above average, while May low season often sees 20-25% decreases in both occupancy and rates. This volatility requires careful cash flow management and seasonal pricing strategies.
Political instability and security concerns represent ongoing risks that can rapidly impact tourism and business travel demand. Guatemala's political environment can shift unexpectedly, affecting visitor confidence and booking patterns. Crime rates in certain areas may deter tourists and impact property values.
Regulatory changes pose potential future risks as the government may implement licensing requirements, taxes, or operational restrictions as the market grows. Many international destinations have tightened short-term rental regulations, and Guatemala City may follow similar patterns.
Platform dependency creates vulnerability to Airbnb policy changes, algorithm updates, or increased competition from alternative platforms. Building restrictions from condominium associations could limit operations in desirable properties.
Economic factors including currency fluctuations, inflation, and changes in tourism patterns from key source markets (particularly the United States) can impact demand and pricing power. It's something we develop in our Guatemala 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.
Guatemala City's Airbnb market offers moderate investment potential for well-positioned properties with professional management, though success requires careful location selection and operational excellence.
While top-performing properties can achieve attractive 5-7% yields, median performers generate modest 3.5-5% returns that require realistic expectations and proper market understanding.
Sources
- AirROI Guatemala City Market Report 2025
- Guatemala City Property Price Forecasts
- Guatemala Real Estate Market Statistics
- Guatemala Real Estate Market Forecast
- Guatemala City Real Estate Trends 2025
- Airbnb Guatemala City Listings
- Hottest Real Estate Areas Guatemala 2025
- Guatemala Property Investment Data