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Everything you need to know is included in our Guatemala Property Pack
Are you considering buying real estate in the land of Mayan Ruins? Are you pondering if it's the right time to make a move?
Market timing is a subject where opinions vary among individuals. Your Guatemalan acquaintance might suggest that now is the opportune time to buy property, whereas your spouse, who is originally from Guatemala City, might have a different view and recommend waiting for more stability.
At TheLatinvestor, when we create articles or update our pack of documents related to the real estate market in Guatemala, we rely on reliable data and statistics instead of personal opinions or rumors when we work.
We've done extensive research on official reports and government website statistics, resulting in a comprehensive database. Here's what we've learned, which can provide valuable insights for your decision-making process regarding real estate purchase in Guatemala.
Have a nice read!
How is the property market in Guatemala now?
Guatemala is, today, a relatively stable country
Neutral
Stability is a necessary condition when investing in real estate because it fosters a thriving market environment. It is an information you need as a foreigner buying a property in Guatemala.
In recent times, Guatemala has achieved a certain level of stability. The last Fragile State Index reported for this country is 74.9, which is a decent score.
Guatemala's relative stability today can be attributed to its democratic governance structure, which has been gradually strengthened since the end of its civil war in 1996, fostering political participation and institutional development. Additionally, international support and economic diversification, particularly in sectors like agriculture and textiles, have contributed to a more resilient economy, helping to mitigate some social tensions.
Now, let's examine additional data to determine if it's the right time to invest in property in this country.
Guatemala is poised for strong growth
Positive
It's better to check the country's economic viability before deciding on a property purchase.
In line with IMF predictions, Guatemala will, in 2024, grow by 3.5%, which indicates the country is heaidng in the right direction. Regarding 2025, the experts say 3.7%.
Besides that, the economy will keep growing since Guatemala's economy is expected to increase by 16.5% during the next 5 years, resulting in an average GDP growth rate of 3.3%.
The expected sustainable growth rate in Guatemala indicates a stable and expanding economy, which can lead to increased demand for real estate as more people and businesses seek properties. This growth can drive property values up, offering potential investors the opportunity for good returns on their real estate investments.
Nonetheless, GDP growth is not the only metric to look at.
Guatemala's population is growing and getting richer
Positive
When you're in the market for real estate, it's important to give due consideration to population growth and GDP per capita because:
- a growing population means more people needing homes
- a higher GDP per person means people have more money to spend on housing (which can lead to increased property value over time)
In Guatemala, the average GDP per capita has changed by 8.2% over the last 5 years. It's a solid number. Furthermore, the Guatemalan population is growing (+13% in 5 years).
This means that, if you purchase a cozy cottage in Antigua and rent it out, you will find that each year, you'll attract more tenants with sufficient funds to cover the rent.
If you're considering purchasing and renting it out, this trend is a good thing. Then, there might be an increase in rental demand in Guatemalan cities like Guatemala City, Antigua, or Quetzaltenango in 2025.
Rental yields are really attractive in Guatemala
Positive
If you're wondering about the financial gains of a property investment, consider the expected rental yields.
Rental yield is the indicator of the rental income potential of a property, showing how much you can earn compared to the property's worth.
According to Numbeo, rental properties in Guatemala offer gross rental yields ranging from 5.7% and 8.4%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Guatemala.
Yields like these are rare to come by.
Everything you need to know is included in our Guatemala Property Pack
In Guatemala, inflation is expected to be minimal
Neutral
In two words, inflation is when values inflate.
It's when your favorite plate of pepián costs 30 Guatemalan quetzals instead of 25 Guatemalan quetzals a couple of years ago.
If you're considering investing in a property, high inflation can bring you several advantages:
- Property values tend to increase over time, potentially leading to capital appreciation.
- Inflation can result in higher rental rates, increasing the property's cash flow.
- Inflation decreases the real value of debt, making mortgage payments more affordable.
- Real estate can act as a hedge against inflation, helping preserve the investment's value.
- Diversifying into real estate provides stability during periods of inflation.
As projected by the IMF, over the next 5 years, Guatemala will have an inflation rate of 1.0%, which gives us an average yearly increase of 0.2%.
This data is telling us that Guatemala will likely experience almost no inflation. If you buy a property now, you may experience lower appreciation potential and reduced returns on investment.
Is it a good time to buy real estate in Guatemala then?
Now it's time to draw our conclusions.
2025 is shaping up to be a promising year to invest in property in Guatemala, thanks to the country's relative stability. Over the years, Guatemala has managed to maintain a stable political and social environment, which is a crucial factor for any real estate investment. A stable country means fewer risks for property buyers, as it reduces the likelihood of sudden policy changes or economic disruptions that could negatively impact property values. This stability provides a solid foundation for making long-term investments in the real estate market.
Moreover, Guatemala's economy is on an upward trajectory, with an expected growth of 16.5% over the next five years, translating to an average GDP growth rate of 3.3%. This sustainable economic growth suggests a stable and expanding economy, which is likely to increase demand for real estate. As more people and businesses look for properties, the value of real estate is expected to rise. For potential investors, this means there is a good chance of seeing substantial returns on their investments as property values appreciate over time.
Another factor making 2025 an attractive time to buy property in Guatemala is the country's growing and increasingly affluent population. As the population grows and becomes wealthier, the demand for housing and commercial spaces is likely to increase. This demographic trend can lead to higher property values and rental income, making real estate investment a lucrative opportunity. According to Numbeo, rental properties in Guatemala currently offer gross rental yields ranging from 5.7% to 8.4%, indicating a healthy rental market that can provide steady income for property owners.
Finally, the outlook for inflation in Guatemala is expected to be minimal, which is good news for property investors. Low inflation helps maintain the purchasing power of money, meaning that the real value of rental income and property prices is less likely to be eroded over time. This economic environment allows investors to plan with greater confidence, knowing that their investments are less likely to be adversely affected by inflationary pressures. All these factors combined make 2025 a potentially excellent time to consider buying property in Guatemala.
We wish this article has been of help!. If you need to know more, you can check our our pack of documents related to the real estate market in Guatemala.
-Will real estate prices go up in Guatemala?
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.