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Everything you need to know before buying real estate is included in our Guatemala Property Pack
Guatemala's rental property market offers some of the highest yields in Latin America, with apartment investments in Guatemala City delivering gross returns between 9.6% and 16.5% annually. The country's stable demand from professionals, expats, and tourists creates attractive opportunities for property investors seeking strong cash flow returns.
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 apartments generate the highest rental yields at 9.6-16.5%, while vacation properties in tourist areas like Antigua offer lower but stable returns of 4-8%. Purchase prices average $1,600 per sqm in city centers with 4.15% closing costs, and ongoing ownership expenses typically consume 1.5-3% of property value annually.
| Location | Property Type | Gross Rental Yield | Average Price per sqm |
|---|---|---|---|
| Guatemala City Center | Apartments | 9.6-16.5% | $1,600 |
| Guatemala City Suburbs | Apartments | 8.7-8.9% | $990 |
| Guatemala City | Houses | 8-11% | $1,200-1,400 |
| Antigua Guatemala | Houses | 4-8% | $1,300-1,550 |
| Lake Atitlan/Coast | Houses | 7.5-10.5% | $1,300-1,550 |
| Short-term Rentals | All Types | 10-12%+ | Varies |
What types of rental properties can you invest in across Guatemala?
Guatemala's rental market offers diverse property types suitable for different investment strategies and tenant profiles.
In Guatemala City, apartments ranging from 1-3 bedrooms dominate the rental landscape, particularly in prime zones like Zona 10 and Zona 14. These units typically range from 40-150 square meters and attract young professionals, expats, and small families seeking urban convenience.
Single-family houses represent another major category, spanning from modest suburban homes to luxury properties in gated communities. These typically range from 150-500 square meters and cater to established families, high-income professionals, and diplomatic personnel.
Tourist areas like Antigua and Lake Atitlan feature vacation homes and villas designed primarily for short-term rentals. These properties serve foreign tourists, digital nomads, and business travelers seeking temporary accommodations.
Additional rental options include serviced apartments, condos in modern developments, and specialized properties like B&Bs and guest houses in tourist zones.
How do rental returns differ between Guatemala's major cities and regions?
Rental yields vary significantly across Guatemala's different cities and regions, with urban centers generally outperforming tourist destinations.
| Location | Property Type | Gross Rental Yield Range |
|---|---|---|
| Guatemala City Center | Apartments | 9.6-10.4% |
| Guatemala City Suburbs | Apartments | 8.7-8.9% |
| Guatemala City | Large Apartments (200sqm) | Up to 16.5% |
| Guatemala City | Houses | 8-11% |
| Antigua Guatemala | Houses | 4-8% |
| Lake Atitlan/Pacific Coast | Houses | 7.5-10.5% |
Guatemala City delivers the strongest rental yields, with city center apartments achieving 9.6-10.4% gross returns and some larger units reaching 16.5%. Suburban apartments in the capital generate slightly lower yields of 8.7-8.9% but remain attractive for investors.
Tourist destinations like Antigua offer more modest returns of 4-8% for houses, reflecting higher property prices and seasonal demand fluctuations. Coastal areas and Lake Atitlan provide middle-ground yields of 7.5-10.5%, balancing tourist appeal with reasonable acquisition costs.
What are the total acquisition costs for rental properties in Guatemala?
Property acquisition costs in Guatemala include both purchase prices and mandatory fees that add approximately 4.15% to your total investment.
In Guatemala City's center, apartment prices average 12,614 quetzales per square meter ($1,600/sqm), while suburban areas cost around 7,625 quetzales per square meter ($990/sqm). Properties in Antigua and Lake Atitlan typically range from $1,300-$1,550 per square meter.
Closing costs consist of stamp duty (3% of property value), legal fees (1%), and registration fees (0.15%), totaling 4.15% of the purchase price. For a 100-square-meter city center apartment priced at $1,600 per square meter, your total investment would be approximately $166,640 including all fees.
Houses generally command slightly lower per-square-meter prices than apartments but require larger total investments due to their size. A typical 200-square-meter house in a desirable Guatemala City neighborhood might cost $280,000-$320,000 including closing costs.
It's something we develop in our Guatemala property pack.
How does property size affect rental yields in Guatemala?
Property size inversely correlates with rental yields in Guatemala, with smaller units typically generating higher percentage returns.
Apartments demonstrate this trend clearly: 100-square-meter units in Guatemala City achieve yields around 12.6%, while larger 250-square-meter apartments yield approximately 10.4%. This pattern reflects higher per-square-meter rental rates for compact, efficiently designed units.
The yield compression for larger properties becomes more pronounced in tourist markets like Antigua, where luxury homes command premium purchase prices but attract limited rental demand. Smaller vacation rentals often achieve better occupancy rates and higher yields per dollar invested.
However, larger properties may offer advantages in absolute rental income and tenant stability. A 300-square-meter family home might generate $2,500 monthly rent versus $1,200 for a 100-square-meter apartment, providing higher cash flow despite lower percentage yields.
For optimal returns, focus on 1-2 bedroom apartments (50-100 square meters) in urban areas or modest vacation homes (150-250 square meters) in tourist zones that balance efficiency with marketability.
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What ongoing costs reduce your net rental returns in Guatemala?
Annual ownership costs typically consume 1.5-3% of your property's value, significantly impacting net rental yields.
Maintenance expenses vary by property age and type, generally ranging from 0.5-1.5% of property value annually. Older colonial properties in Antigua often require higher maintenance budgets, while modern Guatemala City apartments need less ongoing work. Luxury homes and vacation properties typically demand the highest maintenance percentages.
Property management fees range from 5-10% of gross rental income, depending on services provided and property type. Full-service management for short-term rentals costs more than basic long-term rental management.
Property insurance typically costs 0.2-0.5% of property value annually, though coverage varies significantly by location and property type. Earthquake and natural disaster coverage may increase premiums in certain areas.
Additional costs include HOA fees for condos and gated communities, utility connections, and periodic renovations to maintain competitiveness in the rental market.
How do taxes impact your rental property profits in Guatemala?
Guatemalan taxes reduce net rental yields by approximately 1.5-3 percentage points annually through various levies on property ownership and rental income.
Property taxes range from 0.2-0.3% of the property's registered value, varying by municipality. Guatemala City typically charges toward the higher end of this range, while rural areas may assess lower rates.
Rental income taxes significantly impact returns, with non-residents paying 5-7% on gross rental income. Residents may face higher rates if rental income pushes them into higher personal income tax brackets. This tax applies to all rental income regardless of expenses or mortgage payments.
Transaction taxes include the 3% stamp duty paid during purchase, which affects your initial investment but not ongoing returns. However, if you sell the property, capital gains taxes may apply depending on holding period and profit margins.
These tax obligations are mandatory and reduce gross yields accordingly. A 10% gross yield effectively becomes 7-8.5% after taxes, making accurate net yield calculations essential for investment decisions.
How do financing costs affect rental property profitability in Guatemala?
Mortgage financing significantly impacts rental property returns due to Guatemala's relatively high interest rates and conservative lending practices.
Current mortgage rates range from 8.5-9% for standard 20-year fixed loans, though rates can vary from 6.5-18% based on borrower profile, property type, and down payment size. These rates are substantially higher than many developed markets, creating a significant drag on leveraged returns.
Banks typically require 20-30% down payments for investment properties, with stricter requirements for foreign buyers. Larger down payments reduce leverage benefits but may secure better interest rates.
High financing costs mean mortgaged properties often generate lower net returns than cash purchases. A 10% gross yield property might deliver only 2-4% net returns after mortgage payments, taxes, and expenses. Cash buyers enjoy the full benefit of Guatemala's attractive gross yields.
Financing works best for long-term investment horizons (10+ years) where property appreciation can offset high borrowing costs and provide total returns through both rental income and capital gains.
Should you choose short-term or long-term rental strategies in Guatemala?
Short-term and long-term rental strategies offer different risk-return profiles, with short-term rentals providing higher potential yields but greater management complexity.
- Short-term rental advantages: Higher gross yields (10-12%+) during peak occupancy periods, particularly in tourist destinations like Antigua and Lake Atitlan
- Short-term rental challenges: Occupancy rates typically range 30-45%, meaning effective vacancy periods of 50-70% depending on season and location
- Long-term rental stability: More predictable income streams with yields typically 7-10% in prime urban areas like Guatemala City
- Management considerations: Short-term rentals require substantially higher management costs for cleaning, guest services, and marketing
- Market dynamics: Guatemala City's Airbnb market shows average monthly revenue of $6,417 with 41% occupancy rates and $56 average daily rates
Long-term rentals suit investors seeking steady cash flow with minimal management, while short-term rentals appeal to those willing to actively manage properties for potentially higher returns in tourist markets.
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.
What are current vacancy rates across Guatemala's rental markets?
Vacancy rates vary significantly by location, property type, and target market, directly affecting your rental income projections.
Guatemala City center maintains relatively low vacancy rates of 5-8% for well-maintained apartments and houses, reflecting strong demand from professionals, expats, and established families. This stability makes urban investments attractive for consistent cash flow.
Tourist markets experience much higher effective vacancy rates, particularly for short-term rentals. Vacation properties typically achieve 30-45% occupancy rates, meaning 50-70% vacancy periods depending on seasonal patterns and property management quality.
Property quality significantly impacts vacancy rates across all markets. Well-located, properly maintained properties command premium rents and maintain higher occupancy, while outdated or poorly managed properties suffer extended vacancy periods regardless of location.
Seasonal variations affect tourist destinations more severely, with peak demand during dry season (November-April) and reduced occupancy during rainy months. Urban markets show less seasonal variation but may experience vacancy increases during economic downturns.
Who are the typical tenants in Guatemala's rental markets?
Understanding tenant profiles helps optimize your property selection and marketing strategy for different market segments.
Urban apartment tenants primarily consist of young professionals working in Guatemala City's business districts, international expats employed by multinational companies, and small families seeking modern amenities and convenient locations. These tenants typically seek 1-2 bedroom units with reliable utilities and security.
Large house and suburban property tenants include established Guatemalan families, high-income professionals requiring space for home offices, and diplomatic personnel with housing allowances. These renters often prefer gated communities or prestigious neighborhoods with good schools and services.
Vacation property guests encompass foreign tourists exploring Guatemala's cultural and natural attractions, digital nomads seeking temporary bases in scenic locations, and short-stay business travelers attending conferences or conducting business. These tenants prioritize unique experiences and tourist-friendly amenities.
Upscale areas like Zona 14 in Guatemala City and central Antigua attract tenants from diplomatic missions, international organizations, and executive-level business professionals, often with generous rental budgets and long-term housing needs.
How have rental yields changed recently and what's the outlook for Guatemala?
Guatemala's rental market has shown remarkable stability over the past five years, with modest but consistent growth patterns continuing into 2025.
The past five years saw rental yields remain broadly stable in major urban centers, with only moderate growth reflecting steady but not excessive demand increases. This stability contrasts favorably with more volatile markets in neighboring countries.
Post-pandemic recovery has brought slight upticks in yields for short-term rentals as tourism rebounds to pre-2020 levels. Airbnb and vacation rental properties experienced improved occupancy rates throughout 2024 and into 2025.
Current forecasts project 2-4% annual rent growth in cities and 1-2% property price appreciation through 2026-2027. These growth rates suggest yields may compress slightly if purchase prices rise faster than rental rates.
The 5-10 year outlook indicates higher inflation could erode real returns, but Guatemala's fundamentals remain attractive relative to other Latin American markets. Political stability and economic growth should support continued rental demand.
As of September 2025, market conditions favor well-located properties in established areas, with new supply remaining limited and demand from both local and international tenants staying strong.
How do Guatemala's rental yields compare globally and where should you invest?
Guatemala offers exceptional rental yields compared to global markets, positioning itself among the world's most attractive emerging market investment destinations.
Guatemala City's 10% average yields significantly exceed most major Latin American cities, which typically deliver 4-8% returns. These yields also compare favorably to developed markets like the United States (3-6%) and Europe (2-5%), though with different risk profiles.
| Investment Strategy | Recommended Location | Expected Yield |
|---|---|---|
| Urban Cash Flow | Guatemala City Zona 10/14 | 9-12% |
| Tourism Short-term | Antigua Historic Center | 6-10% |
| Balanced Investment | Lake Atitlan Properties | 7.5-10.5% |
| High-Yield Apartments | Guatemala City Center | 10-16% |
| Stable Long-term | Guatemala City Suburbs | 8-9% |
The smartest investment choices focus on well-proportioned 1-2 bedroom apartments in Guatemala City's prime zones (Zona 10, Zona 14) and modest homes in emerging tourist markets that balance occupancy potential with reasonable per-square-meter costs.
Key success factors include choosing properties serving the strongest demand segments (urban professionals, short-term tourists, expats) while maintaining manageable costs and risk exposure relative to your investment goals and timeline.
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's rental property market offers some of the highest yields in Latin America, with careful property selection and location choice being crucial for maximizing returns.
Success requires balancing high-yield opportunities with manageable risks, focusing on properties that serve strong tenant demand while maintaining reasonable acquisition and operating costs.
Sources
- Realtor.com International Guatemala Rentals
- VRBO Guatemala Vacation Rentals
- Real Estate in Antigua - Rentals
- Numbeo Guatemala Property Investment
- Global Property Guide Guatemala Yields
- Numbeo Guatemala City Investment
- Global Property Guide Guatemala Buying
- AirROI Guatemala City Report
- Global Property Guide Rent Yields
- Global Property Guide Square Meter Prices