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Everything you need to know before buying real estate is included in our Guatemala Property Pack
Property prices in Guatemala City are poised to continue their upward trajectory through 2026, driven by robust economic growth and sustained housing demand.
With GDP growth projected at 3.5-4.0% in 2025 and 3.7% in 2026, combined with steady population growth and limited housing supply in premium areas, Guatemala City's residential market shows strong fundamentals for continued price appreciation.
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 property prices are expected to increase 4-6% annually through 2026, continuing the trend of the past five years.
Strong economic fundamentals, population growth, and limited supply in central areas support continued price appreciation, making 2026 likely more expensive for property buyers.
| Market Factor | Current Status (2025) | 2026 Projection |
|---|---|---|
| Average Price (Central Areas) | US$1,403/m² | US$1,460-1,487/m² |
| Annual Price Growth | 4-6% | 4-6% |
| GDP Growth | 3.5-4.0% | 3.7% |
| Population | 3,230,000 | 3,260,000+ (1-2% growth) |
| Rental Yields | 5.7-8.4% | 5.5-8.0% (stable) |
| Mortgage Rates | 6-10% | 6-10% (stable) |
| Transaction Volume | +7% YoY | Continued growth expected |
What's the average price per square meter for residential properties in Guatemala City right now?
As of September 2025, residential properties in Guatemala City's central zones cost between US$1,400 and US$2,000 per square meter.
The prime central areas, particularly Zones 10, 14, and 15, command the highest prices at around US$1,403 per square meter on average. These zones represent the most desirable locations with excellent infrastructure and amenities.
Mid-range central neighborhoods offer more affordable options at US$1,000 to US$1,400 per square meter, providing good access to the city center while maintaining reasonable pricing. The broader city average ranges from US$1,000 to US$2,000 per square meter depending on location and property quality.
Suburban and outskirt areas present the most budget-friendly options at approximately US$915 to US$1,070 per square meter, making them attractive for first-time buyers or investors seeking lower entry points.
It's something we develop in our Guatemala property pack.
How has that average price per square meter changed year over year for the past five years?
Guatemala City's residential property prices have shown consistent annual growth of 4-6% over the past five years.
The cumulative price increase from 2020 to 2025 ranges from 15-25% citywide, with premium areas experiencing up to 25% appreciation. This represents an average annual appreciation rate of 3-5%, demonstrating steady market growth.
Some market analyses suggest the national residential market has seen nominal increases of nearly 60% over this five-year period due to compounding effects, though Guatemala City's growth has been more moderate and sustainable.
The consistent growth pattern indicates a stable market with predictable appreciation, avoiding the volatile swings seen in some other Latin American cities. This steady trajectory suggests similar growth patterns may continue through 2026.
What's the current average selling price for a two-bedroom apartment and a three-bedroom house in central areas?
Two-bedroom apartments in Guatemala City's central areas typically sell for US$112,000 to US$180,000 as of September 2025.
These apartments usually range from 80 to 100 square meters, with pricing dependent on specific location within the central zones, building quality, and amenities. Properties in Zones 10, 14, and 15 command premium prices at the higher end of this range.
Three-bedroom houses in the same central areas range from US$170,000 to US$300,000, covering properties between 120 and 150 square meters. Luxury properties in premium zones exceed this range significantly.
The wide price range reflects the diversity within central Guatemala City, where established neighborhoods with mature infrastructure command higher prices than emerging central areas. Modern amenities, security features, and proximity to business districts significantly influence pricing within these ranges.
What's the current average selling price for similar properties in suburban or less central areas?
Suburban and less central areas offer significantly more affordable options for both apartments and houses in Guatemala City.
Two-bedroom apartments in these areas range from US$80,000 to US$145,000, representing substantial savings compared to central locations. The exact price depends on the specific suburban area's development level and distance from the city center.
Three-bedroom houses in suburban zones cost between US$120,000 and US$200,000, offering excellent value for families seeking more space. These properties often include larger lots and more privacy than central alternatives.
The price differential between central and suburban areas provides opportunities for different buyer segments, from young professionals prioritizing location to families prioritizing space and value. Many suburban areas are experiencing infrastructure improvements that gradually increase their attractiveness and property values.
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How many new residential units are expected to be completed in 2025 and 2026, and at what price range are they being marketed?
Specific completion numbers for 2025 and 2026 are not publicly available, but transaction volume increased 7% year-over-year, indicating strong new supply entering the market.
Mid-range and upscale project launches, particularly vertical developments, are projected to remain strong in central and select suburban zones through 2026. Developers are focusing on meeting middle-class demand with projects in the US$1,000 to US$1,400 per square meter range.
New central projects, primarily high-rise condominiums, are marketed in the US$1,400 to US$2,000 per square meter range, targeting affluent buyers seeking modern amenities and prime locations. These projects often feature contemporary designs, security systems, and premium finishes.
New suburban developments are being marketed at US$900 to US$1,200 per square meter, appealing to first-time buyers and families seeking value. These projects typically offer larger units and community amenities like parks and recreational facilities.
The expanding mid-range market segment demonstrates developers' recognition of growing middle-class purchasing power and demand for quality housing options between luxury and basic offerings.
What's the projected population growth for Guatemala City through 2026, and how does it compare to housing supply growth?
Guatemala City's population is forecast to reach approximately 3,230,000 in 2025, with steady urban growth of 1-2% annually continuing through 2026.
This population growth translates to an estimated 3,260,000 or more residents by 2026, reflecting Guatemala's continued urbanization trend. With an urbanization rate of 67.3% in 2025, Guatemala maintains one of the highest urban concentration rates in Latin America.
Housing supply growth is expanding but continues to lag behind population and household formation growth in several market segments, particularly in the middle and upper-middle price ranges. This supply-demand imbalance serves as a key driver for continued price increases.
The gap between housing demand and supply is most pronounced in central areas where land availability is limited and development costs are higher. Suburban areas show better supply-demand balance, though infrastructure development influences the timing of new housing delivery.
It's something we develop in our Guatemala property pack.
What's the current annual rental yield percentage for apartments and houses, and how has it changed over the last three years?
Guatemala City rental yields remain attractive at 5.7% to 8.4% for apartments, with houses typically yielding slightly lower returns.
These yields have remained relatively stable over the past three years, fluctuating between 5.5% and 8.5%, demonstrating the market's resilience and consistent rental demand. The stability reflects robust tenant demand, economic stability, and low property taxes that don't significantly impact net returns.
Apartment yields tend toward the higher end of the range due to lower maintenance costs and higher tenant turnover that allows for regular rent adjustments. Houses require more maintenance but often attract longer-term tenants, providing stable income streams.
The consistent yield performance indicates a balanced rental market where supply and demand remain relatively matched, preventing dramatic shifts in rental returns. This stability makes Guatemala City attractive for income-focused real estate investors.
What's the current mortgage interest rate, and what have been the average rates over the past five years?
Current mortgage interest rates in Guatemala range from 6% to 10% as of September 2025, depending on borrower creditworthiness and loan terms.
Best-qualified borrowers with strong credit profiles and stable income can access rates at the lower end of this range, around 6-7%. Standard borrowers typically face rates in the 7-9% range, while higher-risk borrowers may pay up to 10%.
Over the past five years, mortgage rates have remained broadly stable within the 6-10% range, though some fluctuation occurred during the pandemic period. This rate stability has supported consistent buyer activity and market growth.
The relatively stable interest rate environment has allowed both buyers and developers to plan effectively, contributing to the steady market growth observed in Guatemala City. Rate predictability reduces financing uncertainty for property purchases and development projects.
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's the current inflation rate in Guatemala, and how has it trended in the last five years?
Guatemala's inflation rate in 2025 typically ranges between 4-5%, consistent with the country's recent monetary policy targets.
Over the past five years, inflation has primarily fluctuated between 3.5% and 5.5%, with notable spikes occurring in 2022-2023 before returning to the target range in 2024-2025. This pattern mirrors global inflation trends during the post-pandemic period.
The moderate inflation environment supports real estate as an inflation hedge while maintaining affordability for local buyers. Property prices have generally kept pace with or slightly exceeded inflation, preserving real value for property owners.
Stable inflation expectations help maintain consistent monetary policy, supporting predictable interest rates and economic planning. This environment benefits both property buyers seeking financing and investors evaluating long-term returns.
What was the total number of property transactions in Guatemala City last year, and how does that compare with previous years?
Property transactions in Guatemala City increased 7% year-over-year in 2024, signaling robust market activity and buyer confidence.
While exact transaction counts are not published in available market summaries, the 7% increase represents significant improvement compared to 2023 and the pandemic-affected years of 2020-2022. This growth indicates market recovery and sustained demand.
The transaction volume increase reflects multiple factors including improved economic conditions, stable financing availability, and continued urbanization trends. Both local and international buyers have contributed to increased activity.
This transaction growth supports continued price appreciation by demonstrating active market participation and liquidity. Higher transaction volumes also indicate market confidence and reduce concerns about market stagnation.
What's the current unemployment rate and average household income, and how have they evolved over the past five years?
Guatemala's unemployment rate remains low by regional standards, typically ranging between 2.5% and 4.1% as of 2025.
Average household income has been trending upward, supported by a strengthening formal labor market. In 2022, formal wages grew 29% year-over-year, reaching 17% above 2019 levels, with this growth trajectory continuing through 2025.
Both unemployment and income metrics have gradually improved over the past five years, reflecting economic diversification and increased formal employment opportunities. The combination of low unemployment and rising incomes supports housing demand and affordability.
The positive employment trends directly benefit the residential real estate market by expanding the pool of qualified buyers and supporting rental demand. Rising incomes also enable existing homeowners to consider property upgrades or additional investments.
It's something we develop in our Guatemala property pack.
What's the expected GDP growth rate for Guatemala in 2025 and 2026, and how might that affect property demand?
Guatemala's GDP is expected to grow 3.5-4.0% in 2025 and approximately 3.7% in 2026, indicating sustained economic expansion.
This steady economic growth underpins strong property demand by supporting rising incomes, business expansion, and construction activity. GDP growth above 3.5% typically correlates with increased real estate investment and development activity.
The projected growth rates suggest continued urbanization as economic opportunities concentrate in Guatemala City, driving residential demand from both local workers and returning migrants. Economic expansion also attracts foreign investment and expatriate residents.
Strong GDP performance supports the entire real estate ecosystem, from residential buyers to commercial tenants, creating a virtuous cycle that sustains property market growth. This economic backdrop makes 2026 likely to see continued property price appreciation in Guatemala City.
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 fundamentals and economic projections, Guatemala City properties are highly likely to become more expensive in 2026.
The combination of 3.7% GDP growth, continued population increase, limited supply in central areas, and stable financing conditions creates a supportive environment for 4-6% annual price appreciation through 2026.