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Everything you need to know before buying real estate is included in our Honduras Property Pack
Honduras offers diverse real estate opportunities across its cities and coastal regions, with home prices varying significantly by location and property type.
The Honduras residential market features single-family homes, condos, apartments, and land for development, with coastal properties commanding premium prices while inland areas remain affordable. Property prices range from $50,000 for budget homes to over $750,000 for beachfront villas, with major cities like Tegucigalpa and San Pedro Sula averaging $100,000-$400,000 for quality homes.
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.
Honduras home prices average $100,000-$400,000 in major cities, with coastal properties reaching $750,000+.
Single-family homes dominate the market, while condos are popular in urban centers and tourist destinations.
| City/Area | Average Home Price (USD) | Price per Square Meter (USD) |
|---|---|---|
| Tegucigalpa | $100,000 - $400,000 | $1,000 - $1,200 |
| San Pedro Sula | $150,000 - $300,000 | $1,000 - $1,500 |
| La Ceiba | $95,000 - $250,000 | $1,000 - $1,200 |
| Roatán | $250,000 - $750,000+ | $2,000 - $4,000+ |
| Utila | $120,000 - $300,000 | $1,500 - $2,500 |
| Choluteca | ~$49,000 | N/A |
What types of properties are most common in the Honduras market?
Single-family homes represent the largest segment of the Honduras residential market, particularly in urban and suburban areas across major cities.
Condos and apartments are gaining popularity, especially in Tegucigalpa, San Pedro Sula, and tourist destinations like Roatán and Utila. These properties attract both expatriates seeking vacation homes and investors targeting rental income from the growing tourism sector.
The Honduras land market remains strong, with significant opportunities in coastal and developing areas for both residential and commercial development. Many investors purchase land in emerging areas, anticipating future development and appreciation.
As of June 2025, there's a noticeable trend toward smaller, more affordable units with 2-3 bedrooms, driven by younger buyers and economic factors. Larger family homes are still available but represent a smaller market segment focused on affluent buyers.
It's something we develop in our Honduras property pack.
What are typical home prices in Tegucigalpa, San Pedro Sula, and La Ceiba?
Tegucigalpa home prices range from $100,000 to $400,000, with urban condos averaging around $1,200 per square meter.
In the capital's upscale neighborhoods like Lomas de Mayab and El Hatillo, single-family homes typically cost between $180,000 and $400,000. More affordable options are available in developing areas around the city, starting from $100,000 for smaller homes.
San Pedro Sula properties show a median sales price of approximately $150,000 to $250,000 for most homes, with the median around L3,650,000 (roughly $150,000). Single-family homes in desirable areas range from $150,000 to $300,000, reflecting the city's status as Honduras' industrial center.
La Ceiba offers more affordable options, with three-bedroom homes averaging around $250,000. The median sales price reaches about L11,200,000 (roughly $450,000) for larger properties, but typical family homes cost significantly less, usually between $95,000 and $250,000.
These prices reflect as of mid-2025 market conditions and vary based on neighborhood, property condition, and specific amenities.
What are the price ranges per square meter across different Honduras regions?
| City/Region | Price per Square Meter (USD) | Property Type |
|---|---|---|
| Tegucigalpa | $1,000 - $1,200 | Houses and condos |
| San Pedro Sula | $1,000 - $1,500 | Houses and apartments |
| La Ceiba | $1,000 - $1,200 | Houses near coast |
| Roatán Beachfront | $2,000 - $4,000+ | Luxury condos and villas |
| Roatán Inland | $1,200 - $2,000 | Houses and condos |
| Utila | $1,500 - $2,500 | Tourist properties |
| Choluteca | $400 - $800 | Budget family homes |
What are the total costs including fees, taxes, and commissions?
Total transaction costs in Honduras range from 9.65% to 11.65% of the property value, split between buyer and seller responsibilities.
Buyers pay a transfer tax of 1.5%, notary fees ranging from 3% to 5%, and registration fees of 0.15%. These costs are mandatory and calculated on the declared property value, which should match the actual purchase price to avoid legal complications.
Sellers bear the agent's commission of 5%, which is standard across the Honduras real estate market. Some negotiations may reduce this percentage for high-value properties or cash transactions.
Additional costs include property inspections (usually $300-500), legal fees for foreign buyers ($1,000-2,000), and potential translation services for documents. Foreign buyers should budget an extra $2,000-3,000 for specialized legal assistance to navigate residency and ownership requirements.
It's something we develop in our Honduras property pack.
How have home prices changed over recent years?
Honduras residential property prices have shown steady, inflation-adjusted growth over the past five years, particularly in tourist destinations and urban centers.
Tegucigalpa experienced a 3% price increase in 2024, continuing a trend of moderate but consistent appreciation. The capital's market benefits from government job stability and growing business sectors, supporting steady demand for quality housing.
San Pedro Sula maintained medium-high growth rates throughout 2024, driven by industrial expansion and foreign investment in manufacturing sectors. The city's strategic location and infrastructure improvements continue to attract buyers.
Roatán beachfront properties appreciated 8% in 2024, significantly outperforming mainland markets due to tourism recovery and increased expatriate interest. The Bay Islands market shows the strongest growth momentum in Honduras.
Coastal areas generally outperformed inland regions, with tourist-dependent markets showing faster recovery and growth compared to traditional residential areas focused solely on local demand.
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What are the price forecasts for the next 1, 5, and 10 years?
One-year forecasts predict continued growth across Honduras markets, with coastal areas leading appreciation rates at 3-8% annually.
Roatán properties are expected to grow 6-8% in 2025-2026, driven by tourism infrastructure investments and increased direct flights from North America. Tegucigalpa and San Pedro Sula markets should see 2-5% annual growth, supported by urban development projects and foreign business investment.
Five-year projections suggest strong appreciation in coastal and tourist areas, with Roatán potentially seeing up to 20% cumulative growth by 2030. Urban centers should experience steady 15-25% cumulative appreciation as infrastructure improvements and economic development continue.
Ten-year forecasts indicate significant potential for coastal and urban properties, assuming current tourism trends and foreign investment patterns persist. Climate change concerns may actually benefit Honduras coastal properties as they're positioned well compared to more hurricane-prone Caribbean destinations.
Economic factors including government stability, infrastructure development, and tourism industry growth will significantly influence these projections.
Which neighborhoods offer the best value, luxury, or investment potential?
1. **Most Expensive Neighborhoods:** - Lomas de Mayab and El Hatillo in Tegucigalpa (luxury family homes) - West Bay and West End in Roatán (beachfront luxury properties) - Select gated communities in San Pedro Sula (security-focused developments) - Beachfront areas in Utila (diving tourism premium locations) - Premium areas of La Ceiba near the coast (tourist and expat focused)2. **Up-and-Coming Areas:** - Siguatepeque (retirement and eco-friendly projects growing rapidly) - Choluteca (infrastructure investment creating opportunities) - Tela (developing coastal tourism potential) - East End of Roatán (emerging development with lower entry costs) - Suburban areas around Tegucigalpa (urban expansion creating value)3. **Budget-Friendly Options:** - Smaller towns within 30 minutes of Tegucigalpa - Inland areas of La Ceiba away from tourist zones - Less-developed regions of the Bay Islands - Rural areas with development potential - Older neighborhoods in San Pedro Sula suitable for renovationWhat are examples of recent property sales with specific details?
Recent Tegucigalpa sales include a 536-square-meter house with 4 bedrooms and 4 bathrooms sold for L17,100,000 (approximately $700,000), representing premium pricing for the capital's luxury market.
A more typical Tegucigalpa transaction involved a 328-square-meter house with 3 bedrooms and 3 bathrooms selling for L8,000,000 (roughly $330,000), showing the mid-market price range that attracts most buyers.
San Pedro Sula recent sales featured a 217-square-meter house with 5 bedrooms and 5 bathrooms at L9,220,000 (approximately $380,000), and a smaller 85-square-meter apartment with 2 bedrooms and 2 bathrooms for L1,350,000 (about $55,000).
La Ceiba saw a 190-square-meter house with 5 bedrooms and 3 bathrooms sell for L2,350,000 (approximately $95,000), demonstrating the coastal city's affordability compared to other major urban centers.
These transactions from early 2025 reflect current market conditions and typical buyer preferences across different price segments and regions.
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.
What are the smartest investment strategies for current market conditions?
Beachfront condos and villas in Roatán, Utila, and Tela offer the strongest investment potential due to tourism growth and limited coastal land availability.
Urban condos in Tegucigalpa and San Pedro Sula provide steady returns with professional tenants and consistent demand from the growing middle class and expatriate workers. These properties offer more stable, predictable income compared to tourist-dependent markets.
Land purchases in developing coastal and tourist areas present the highest appreciation potential, particularly in areas scheduled for infrastructure improvements or tourism development projects. However, these investments require longer holding periods and higher risk tolerance.
Gated communities in urban centers appeal to security-conscious buyers and typically maintain value better during economic downturns. These properties also offer easier resale when market conditions change.
Budget investors should consider smaller homes in up-and-coming towns like Siguatepeque and Choluteca, where infrastructure investment and economic development create appreciation opportunities at lower entry costs.
What are the best property strategies for different investment goals?
Living in your property works best with gated communities in Tegucigalpa or San Pedro Sula, offering security, amenities, and proximity to business centers and international schools.
Short-term rental strategies succeed with condos and villas in Roatán, Utila, and Tela, where high tourist demand generates strong yields. Properties near diving centers, beaches, and cruise ship ports perform particularly well for vacation rental income.
Long-term rental investments perform best with urban condos in major cities, targeting professional tenants who prefer modern amenities and reliable locations. These properties provide steady income with lower management intensity compared to short-term rentals.
Property flipping opportunities exist with undervalued homes in up-and-coming neighborhoods or land in developing areas. However, the Honduras market moves more slowly than developed countries, requiring patience and local market knowledge.
It's something we develop in our Honduras property pack.
What financing options are available for property purchases?
Foreign buyers face significant challenges obtaining mortgages in Honduras, with most banks requiring permanent residency before considering loan applications.
When available to foreigners, mortgage terms include interest rates from 12% to 35%, typically settling around 15-20% for qualified borrowers. Down payments range from 40% to 50%, significantly higher than developed market standards.
Loan terms rarely exceed 10-15 years, creating higher monthly payments that many foreign buyers find challenging. Extensive documentation requirements include income verification, tax returns, and often a Honduran guarantor with substantial assets.
Local buyers receive more favorable terms but still face high interest rates compared to Western standards. Down payment and documentation requirements remain similar to those for foreign buyers.
Most foreign property purchases in Honduras are cash transactions, making this market more accessible to investors with substantial liquid assets rather than those depending on financing leverage.
How do Honduras prices compare to neighboring countries and similar markets?
Honduras offers some of the most affordable property prices in Central America, especially in non-tourist areas where family homes cost 40-60% less than comparable properties in Costa Rica or Panama.
Compared to the United States, housing in Honduras costs approximately 46% less, making it attractive for American retirees and investors seeking affordable tropical real estate. However, infrastructure and amenity differences must be considered when making these comparisons.
Regional coastal destinations like Roatán command prices similar to other Caribbean markets, with beachfront properties reaching $2,000-4,000 per square meter. These prices compete with similar tourist destinations but offer better value than established markets like Barbados or the Cayman Islands.
Guatemala and Nicaragua offer lower prices in some areas, but Honduras provides better political stability and tourism infrastructure, justifying moderate price premiums. El Salvador's smaller size limits comparable opportunities, while Belize offers similar pricing but different legal frameworks for foreign ownership.
Within Central America, Honduras strikes a balance between affordability and market development, offering opportunities across budget ranges while maintaining reasonable accessibility and legal protections for foreign investors.
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.
Honduras offers diverse real estate opportunities with significant price variations across regions and property types.
As of mid-2025, coastal properties continue outperforming inland markets, while urban centers provide stable investment opportunities for different buyer profiles and investment strategies.