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Everything you need to know before buying real estate is included in our Guatemala Property Pack
Guatemala's residential real estate market in June 2025 presents a unique opportunity for property buyers.
With steady growth, attractive rental yields, and increasing foreign investment, the market offers compelling investment prospects for both local and international buyers seeking value in Central America.
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.
| Factor | Status | Does it make it a good time to buy? |
|---|---|---|
| Economic Growth | 3.7% GDP growth projected | ✅ Yes - Strong economic fundamentals |
| Mortgage Rates | 6-10% for 20-year terms | ✅ Yes - Moderate and stable rates |
| Rental Yields | 5.7-8.4% gross yields | ✅ Yes - Exceptional by global standards |
| Price Growth | 3-7% forecast for 2025 | ✅ Yes - Steady appreciation expected |
| Foreign Investment | 20%+ of transactions | ✅ Yes - Growing international interest |
| Market Direction | Seller's market transitioning | ⚠️ Neutral - Moving toward balance |
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.
As of June 2025, are there more buyers or sellers in Guatemala's residential property market?
The Guatemala residential property market in June 2025 remains primarily a seller's market, though it's showing signs of transitioning toward a more balanced environment.
Transaction volumes increased by 7% in 2024, with at least 20% of real estate transactions coming from foreign buyers. The market is experiencing sustained demand, particularly in urban centers like Guatemala City, Antigua, and Lake Atitlán.
Unlike mature markets experiencing oversupply, Guatemala's residential market continues to see strong buyer interest driven by several factors. The growing middle class with increasing disposable income is fueling domestic demand, while the urbanization rate reaching 67.3% in 2025 creates concentrated demand in major cities.
Foreign investment from U.S. and European buyers adds another layer of demand, particularly in tourist-friendly areas and expat communities. Limited urban land availability is also creating scarcity that supports seller advantages.
This market dynamic suggests that while sellers still have leverage, buyers are beginning to find more negotiating room as inventory gradually increases in certain segments.
What are the current mortgage rates for property buyers in Guatemala in June 2025?
Mortgage rates in Guatemala for June 2025 have stabilized around 6% for the most qualified borrowers, with rates typically ranging from 6% to 10% for 20-year terms.
The Central Bank of Guatemala's policy rate stands at 4.50%, supporting these moderate mortgage rates. Local banks offering mortgages include Banco Industrial, Banco G&T Continental, and Banco de los Trabajadores, each with slightly different terms and requirements.
For foreign buyers, the mortgage landscape presents both opportunities and challenges. Down payment requirements are substantially higher at 35-40% minimum for foreigners, compared to lower requirements for local buyers. Documentation requirements include 6 months of bank statements, employment verification, and credit reports from the buyer's home country.
The government has allocated 750 million quetzales for affordable housing programs with low-interest credits, though these are primarily targeted at local first-time buyers. Foreign investors typically rely on commercial lending options or cash purchases.
It's something we develop in our Guatemala property pack.
What types of properties offer the best value in Guatemala today?
In June 2025, several property types offer exceptional value for different buyer profiles in Guatemala's diverse real estate market.
Gated communities are experiencing high demand due to security concerns and amenity preferences, particularly in Guatemala City. These properties offer controlled access, maintenance services, and community facilities that appeal to both local families and foreign buyers seeking peace of mind.
| Property Type | Key Advantages | Typical Yields |
|---|---|---|
| Gated Communities | Security, amenities, family-friendly | 5.7-6.5% |
| Urban Apartments | Strong rental demand, young professionals | 6.0-7.2% |
| Eco-friendly Properties | 25% demand increase, premium pricing | 6.5-7.8% |
| Lake Atitlán Properties | Tourism-driven, scenic location | 7.0-8.4% |
| Infrastructure-adjacent | Future appreciation potential | 5.5-7.0% |
Properties with modern amenities and sustainable features command premium prices but offer better long-term appreciation potential, especially as environmental consciousness grows among Guatemalan buyers.
Are Guatemala City condos regarded as a safe investment today?
Guatemala City condos represent a relatively safe investment in June 2025, supported by several positive fundamental factors.
The city's population is projected to reach 3,230,000 by 2025, creating sustained housing demand. The new Metro Riel urban rail system is improving connectivity across the city, making previously less accessible areas more attractive for development and investment. Growing demand from middle-class professionals drives the rental market, with average yields ranging from 5.7% to 8.4%.
A 10% increase in sales for modern properties was recorded in 2023, and this trend has continued into 2025. However, investors should consider several risk factors. Maintenance costs average 1.5% of property value annually, and building maintenance funds are often inadequate in older developments.
Properties can look dated quickly without proper upkeep, affecting both rental appeal and resale value. The best appreciation typically occurs in the first years after construction, with newer buildings commanding premium prices.
Zone 14 and Zone 15 remain the most desirable areas for condo investments, offering proximity to business districts, shopping centers, and international schools.
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What are the acquisition costs for buying a $200,000 property in Guatemala today?
For a $200,000 property purchase in June 2025, buyers should budget for total acquisition costs ranging from $232,300 to $234,300.
The largest additional cost is VAT at 12%, adding $24,000 to the purchase price. Stamp duty adds another 3% or $6,000, while registration fees are relatively modest at 0.15% or $300. Legal fees typically range from 1% to 2% of the property value, translating to $2,000 to $4,000 depending on the complexity of the transaction.
These costs are standard across Guatemala and represent approximately 16-17% above the purchase price. Unlike some countries, there are no additional municipal transfer taxes or notary fees beyond those listed. Foreign buyers face the same acquisition cost structure as local buyers, with no additional taxes or fees based on nationality.
Buyers should also budget for property inspection costs (typically $300-500) and potentially translation services for documents if needed. Title insurance, while not mandatory, is recommended for foreign buyers and costs approximately 0.5% of the property value.
Cash buyers can sometimes negotiate small discounts on the purchase price that can offset some acquisition costs.
How are short-term rental properties performing in Guatemala as of June 2025?
Short-term rental properties in Guatemala show mixed but generally positive performance in June 2025, with significant variations by location and property type.
The average occupancy rate across Guatemala stands at 41%, which while moderate, translates to profitable operations given the relatively low property prices. The average daily rate of $55 generates monthly revenue potential averaging $4,219 for well-managed properties. December remains the peak season with highest revenue potential, while May represents the low season.
Guatemala City leads in listing volume with 2,169 active properties and a median nightly rate of $42. Lake Atitlán commands premium rates with some properties achieving 8.4% annual yields, among the highest in Central America. Antigua maintains strong year-round tourist demand, offering consistent occupancy rates above the national average.
The market benefits from low regulation compared to many countries, with no licensing requirements or occupancy limits for short-term rentals. This regulatory environment makes it attractive for investors seeking rental income flexibility.
Property management services are readily available in tourist areas, typically charging 20-25% of rental income for full-service management including cleaning, maintenance, and guest communication.
What are the latest price forecasts for Guatemala's residential properties?
Property price forecasts for Guatemala remain positive through 2025 and beyond, supported by strong economic fundamentals.
Short-term forecasts for 2025 project price growth between 3% and 7%, with urban properties and those near new infrastructure likely to achieve the higher end of this range. The residential market volume is projected to reach $0.52 trillion by 2029, representing an annual growth rate (CAGR) of 6.47% from 2024 to 2029.
Long-term outlook factors include GDP growth projected at 3.7% for 2025 and 16.5% cumulative economic growth expected over the next five years. Continued urbanization is driving demand in major cities, while infrastructure investments are boosting regional property values.
The market shows resilience compared to other Central American countries, with less volatility and more consistent growth patterns. Foreign investment continues to support premium property segments, particularly in tourist destinations and expat-friendly communities.
It's something we develop in our Guatemala property pack.
Are there currently favorable conditions for foreign property buyers in Guatemala?
June 2025 presents highly favorable conditions for foreign property buyers in Guatemala, with minimal restrictions and growing support infrastructure.
Guatemala imposes no restrictions on foreign property ownership except in coastal and border areas, where corporate structures can be used to facilitate purchases. The residency-through-investment program requires a minimum investment of $100,000, making it accessible for property buyers. Growing expat communities in key areas provide social support and local knowledge for newcomers.
Foreign buyer activity accounts for over 20% of all real estate transactions, demonstrating the market's international appeal. U.S. and European investors show particularly strong interest, driven by favorable exchange rates and the search for higher yields than available in their home markets. These buyers typically prefer luxury apartments and eco-friendly homes in secure, well-serviced areas.
The legal framework protects foreign ownership rights equally to local ownership, with established processes for property registration and transfer. English-speaking real estate agents and lawyers are readily available in major markets.
Banking services for foreigners have improved, though mortgage requirements remain stricter than for locals.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Guatemala. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Guatemala locations offer the best property investment opportunities today?
Top investment locations in June 2025 offer diverse opportunities based on different investment strategies and buyer preferences.
Guatemala City remains the economic powerhouse, with over 3 million residents and the new Metro system enhancing connectivity. Zones 14 and 15 attract premium buyers, while emerging zones near Metro stations offer appreciation potential. The city suits investors seeking steady rental income from professionals and families.
Antigua's UNESCO World Heritage status ensures consistent tourist flow and strict development controls that protect property values. The colonial city attracts retirees and vacation home buyers, with strong short-term rental potential year-round. Limited new construction maintains scarcity value.
Lake Atitlán delivers the highest rental yields at 8.4%, driven by natural beauty and spiritual tourism. Towns like Panajachel and San Marcos la Laguna offer different market segments, from backpackers to luxury travelers. Environmental regulations protect the lake's appeal while limiting overdevelopment.
Retalhuleu benefits from industrial growth and the new $154 million highway connection, positioning it for long-term appreciation. The area attracts investors seeking value and future growth rather than immediate rental returns.
What impact do current infrastructure projects have on Guatemala's property values in 2025?
Major infrastructure projects are significantly boosting property values in affected areas throughout Guatemala.
The $154 million Suchitepequez-Retalhuleu highway, opening in late 2025, is already driving property appreciation along its route. Early investors have seen 10-15% value increases in anticipation of improved accessibility. The $125 million Puerto Quetzal expansion enhances the country's logistics capabilities, benefiting industrial and commercial properties in the surrounding region.
Guatemala City's Metro Riel urban rail system represents the most transformative project, with property values near stations increasing 15-20% since construction began. The system will connect previously isolated neighborhoods to employment centers, fundamentally changing the city's real estate dynamics. Areas within walking distance of Metro stations command premium prices for both residential and commercial properties.
The electric bus fleet expansion improves air quality and public transport reliability, making urban living more attractive. Properties along new bus routes benefit from improved accessibility without the noise and pollution of traditional diesel buses.
It's something we develop in our Guatemala property pack.
As of today, is Guatemala's property market suitable for buy-to-let investments?
Guatemala's property market in June 2025 is highly suitable for buy-to-let investments, offering some of the best rental yields in Latin America.
Gross rental yields ranging from 5.7% to 8.4% significantly exceed those available in most developed markets. Growing rental demand is driven by urbanization reaching 67.3%, with young professionals preferring rental flexibility over homeownership. Tourism growth supports short-term rental markets in Antigua, Lake Atitlán, and Guatemala City's business districts.
| Investment Type | Typical Yield | Best Locations |
|---|---|---|
| Long-term Residential | 5.7-6.5% | Guatemala City, Quetzaltenango |
| Short-term Tourist | 6.5-8.4% | Antigua, Lake Atitlán |
| Student Housing | 6.0-7.0% | Near universities in capital |
| Executive Rentals | 5.5-6.8% | Zones 14-15, Guatemala City |
The stable 41% average occupancy for short-term rentals provides predictable income streams, while long-term rentals offer even greater stability with typical 12-month lease terms.
What tax implications should property buyers consider in Guatemala today?
Current tax considerations for property buyers in June 2025 require careful planning to optimize investment returns.
Purchase taxes include VAT at 12% on property value, stamp duty at 3%, and registration fees at 0.15%. These upfront costs total approximately 15.15% of the purchase price and must be factored into investment calculations. Unlike some countries, these rates apply equally to all buyers regardless of nationality or residency status.
Ongoing tax obligations include annual property tax at 0.9% of declared value, which is often conservatively assessed. Rental income tax varies based on residency status, with non-residents typically facing higher rates. Capital gains tax of 10% applies on property sales, calculated on the difference between purchase and sale prices.
Tax planning strategies can significantly impact returns. Corporate ownership structures can minimize capital gains tax exposure and provide estate planning benefits. Conservative property valuations are common practice and generally accepted by tax authorities. Professional tax planning is strongly recommended for foreign buyers to ensure compliance while optimizing tax efficiency.
Double taxation treaties with several countries can reduce tax burdens 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.
Based on current market conditions in June 2025, yes, it's rather a good time to buy property in Guatemala. The combination of steady economic growth, moderate mortgage rates, exceptional rental yields, and sustained price appreciation creates favorable conditions for property investment.
While not without risks, Guatemala's residential market offers better value and growth potential compared to many regional alternatives, particularly for investors seeking rental income or long-term appreciation. The market's accessibility to foreign buyers, coupled with growing infrastructure investments and urbanization trends, positions it well for continued growth through 2025 and beyond.
Sources
- TheLatinvestor - Guatemala Real Estate Market Statistics 2025
- TheLatinvestor - Is 2025 a Good Time to Buy Property in Guatemala
- Statista - Guatemala Residential Real Estate Market Forecast
- TheLatinvestor - Hottest Real Estate Areas in Guatemala 2025
- TheLatinvestor - Guatemala Property Investment Guide
- TheLatinvestor - Guatemala City Real Estate Trends 2025
- TheLatinvestor - Real Estate Forecasts Guatemala 2025
- AirROI - Guatemala City Airbnb Market Analysis
- Focus Economics - Guatemala Interest Rate Forecast
- TheLatinvestor - Buying Property in Guatemala as a Foreigner