Is it worth it buying property in Guatemala City in 2025?

Authored by the expert who managed and guided the team behind the Guatemala Property Pack

Everything you need to know before buying real estate is included in our Guatemala Property Pack

Who is the author of this content?

THE LATIN INVESTOR

A team specialized in real estate investing in Latin American countries (Guatemala, Mexico, Colombia, Chile, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Guatemala. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The Latin Investor, we explore the Guatemala real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Guatemala City, Antigua, and Quetzaltenango. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties can you actually buy in Guatemala City in 2025?

Guatemala City offers a diverse range of property types suitable for different budgets and investment strategies.

Condos and apartments dominate the central zones, particularly in Zona 10, 14, and 15, where modern high-rise buildings feature amenities like gyms, pools, and 24-hour security. These properties typically range from 50 to 200 square meters and attract young professionals and expats seeking urban convenience.

Houses are available throughout the city, from compact family homes in suburban areas to luxury mansions in gated communities. The housing market includes both older colonial-style properties and new constructions with modern designs and energy-efficient features.

Land purchases offer flexibility for custom construction projects. Urban lots are available in established neighborhoods, while suburban and peripheral areas provide larger parcels at lower prices per square meter. Many investors buy land in developing areas anticipating future appreciation.

New developments are booming, with vertical housing complexes and mixed-use projects transforming the skyline. These projects often include retail spaces on ground floors and residential units above, creating integrated living environments that appeal to modern buyers.

It's something we develop in our Guatemala property pack.

Is it generally smarter to rent or buy in Guatemala City right now?

Buying property in Guatemala City is generally the smarter financial choice for long-term residents and investors as of June 2025.

Property prices are rising 4-6% annually, significantly outpacing inflation and providing steady capital appreciation. The Guatemala City residential market shows strong fundamentals with limited supply meeting growing demand from urbanization and economic development.

Rental yields of 6-10% gross make buy-to-let investments attractive, often covering mortgage payments while building equity. The rental market remains robust with consistent demand from professionals, students, and expats who prefer central locations.

Renting makes sense for newcomers who want flexibility to explore different neighborhoods before committing to a purchase. Short-term renters avoid property taxes, maintenance costs, and the 4.15% transaction fees associated with buying.

However, rental costs have increased alongside property values, making long-term renting less economical. Monthly rent for a decent 2-bedroom apartment ranges from $400-800, meaning annual rent could equal 10-15% of a property's purchase price.

What were property prices like in Guatemala City a few years ago, how are they now, and what are experts forecasting?

Guatemala City property prices have experienced consistent growth over the past several years, with acceleration since 2020.

Time Period	Price Change	Average Price per m²
2020-2022	15-25% cumulative growth	$800-1,200
2023-2024	8-12% annual growth	$1,000-1,500
2025 Current	4-6% annual growth	$1,200-2,000
2026 Forecast	4-6% projected growth	$1,250-2,100
Prime Zones Current	Above average growth	$1,500-2,500
Emerging Areas Current	Higher growth potential	$800-1,200
Long-term Outlook	Continued appreciation	Sustainable growth expected

Currently, prime areas in Zona 10, 14, and 15 command $1,500-2,500 per square meter, while mid-range neighborhoods average $1,000-1,400 per square meter. Central houses average $1,403 per square meter, reflecting the market's maturity.

Experts forecast continued annual growth of 4-6% through 2026, driven by infrastructure improvements, economic stability, and increasing foreign investment. This moderate growth rate suggests a healthy market without bubble concerns.

What are the key trends in Guatemala City's real estate market?

Guatemala City's real estate market shows several distinct trends shaping investment opportunities in 2025.

Demand continues growing due to urbanization reaching 67.3% nationally, with Guatemala City attracting migrants from rural areas seeking employment and education opportunities. The expanding middle class and increased foreign investment further boost demand for quality housing.

Supply focuses on vertical development and mixed-use projects, particularly in central zones where land scarcity drives upward construction. New projects emphasize modern amenities, sustainability features, and integrated retail-residential concepts that appeal to contemporary buyers.

Construction activity remains high with government investment in infrastructure and affordable housing programs. Private developers concentrate on mid-to-luxury segments, creating supply gaps in affordable housing that present investment opportunities.

Price movements show steady appreciation across all segments, with luxury and mid-range properties outperforming budget categories. Emerging neighborhoods experience higher growth rates as buyers seek value in up-and-coming areas.

Market preferences favor eco-friendly, technology-integrated properties with outdoor spaces and modern security systems. Post-pandemic, buyers prioritize home offices, larger living spaces, and buildings with health-conscious features like air filtration and contactless access.

How does the buying process work step by step for foreigners?

Foreign property buyers face minimal restrictions and can complete purchases through a straightforward legal process.

Foreigners can buy most property types without residency requirements, except properties near borders or coastlines where special rules apply. These restricted areas require using a Guatemalan corporation or trust structure, which adds complexity but remains achievable.

The buying process begins with property selection and price negotiation, followed by signing a purchase agreement that outlines terms and conditions. Due diligence includes title searches, legal verification, property inspections, and confirming all taxes are current.

Legal documentation requires a notarized deed of sale, title certificate, tax declarations, and valid identification. Both parties must appear before a notary public to execute the final transfer documents and complete the legal requirements.

Financial obligations include registration fees (0.15%), notary costs (varies by property value), legal fees (1%), and stamp duty (3%), totaling approximately 4.15% for buyers. These fees are typically paid at closing through certified bank transfers or cashier's checks.

The timeline averages 1-3 months depending on due diligence complexity, financing arrangements, and legal processing. Cash purchases generally close faster than financed transactions, which require additional banking procedures and approvals.

Where can you actually find properties for sale?

Guatemala City properties are available through multiple channels, each offering different advantages for buyers.

Local real estate agencies provide the most comprehensive service, with established firms like RE/MAX, Century 21, and Marbensa offering professional guidance, market knowledge, and legal support. These agencies maintain extensive property databases and can arrange viewings, negotiations, and closing assistance.

Online platforms offer convenient browsing with detailed photos, descriptions, and pricing information. Popular sites include Realtor.com, Properstar, Agentiz, and Century 21 Global, which list properties from multiple agencies and private sellers across different price ranges and neighborhoods.

Off-market deals exist but require local connections through brokers, property managers, or real estate networks. These opportunities often arise from personal relationships and may offer better pricing, though they're less accessible to foreign buyers without established local contacts.

Social media platforms, particularly Facebook groups and Instagram accounts, feature property listings from individuals and smaller agencies. While these can offer good deals, buyers should verify legitimacy and conduct proper due diligence before proceeding with transactions.

It's something we develop in our Guatemala property pack.

What kind of property can you expect for different budgets?

Budget Range	Property Type	Location & Features
$50,000	Small apartments/studios	Outer zones, emerging neighborhoods, basic amenities
$100,000	1-2 bedroom apartments	Mid-range areas, suburban houses, standard features
$150,000	2-bedroom apartments/small houses	Good neighborhoods, modern amenities, security
$200,000	2-3 bedroom apartments/houses	Central or quality suburban areas, good finishes
$300,000+	Luxury apartments/large houses	Prime zones, premium finishes, full amenities
$500,000+	Luxury houses/penthouse condos	Zona 10/14/15, gated communities, luxury features
Land Investments	Development lots	Various zones, prices vary by location and size

Budget properties under $100,000 typically require compromise on location or size, with options mainly in developing neighborhoods or smaller units in established areas. These properties offer good appreciation potential as neighborhoods improve over time.

Mid-range budgets of $100,000-200,000 provide access to quality apartments in decent neighborhoods or suburban houses with modern amenities. This range offers the best balance of value, location, and potential returns for most buyers.

Luxury budgets above $200,000 open access to prime locations, high-end finishes, and comprehensive amenities including pools, gyms, and 24-hour security. These properties typically appreciate well and command higher rental rates.

Which neighborhoods are best for buying?

Guatemala City's neighborhoods offer distinct characteristics affecting investment potential and lifestyle quality.

Upscale areas including Zona 10, 14, and 15 represent the premium market with modern infrastructure, safety, and proximity to business districts, shopping centers, and restaurants. These zones command higher prices but offer stable appreciation, strong rental demand, and quality amenities that justify the premium.

Up-and-coming neighborhoods like Zona 4, 13, and 18 provide better value propositions with lower entry prices and higher growth potential. These areas benefit from urban renewal projects, improving infrastructure, and gentrification trends that drive property values upward over time.

Affordable zones including outer areas and suburban developments offer the lowest prices but require longer commutes and may lack some amenities. These neighborhoods attract first-time buyers and investors seeking maximum appreciation potential, though they carry higher risk if development doesn't progress as expected.

Safety considerations vary significantly by neighborhood, with upscale areas generally offering better security through private guards, gated communities, and regular police presence. Emerging areas may have mixed safety profiles requiring careful research and local knowledge.

Infrastructure quality affects daily life and property values, with central zones offering better public services, utilities, and transportation access. Suburban areas may require private solutions for security, utilities, and transportation, adding to ownership costs.

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 it like to live in Guatemala City as a foreigner?

Guatemala City offers a vibrant urban lifestyle with cultural richness, affordable living costs, and growing expat communities.

Safety varies significantly by neighborhood, with upscale areas like Zona 10 and 14 maintaining good security through private measures and police presence. Foreigners should exercise normal urban precautions, avoid certain areas at night, and stay informed about local conditions through expat networks and embassy resources.

The lifestyle combines Latin American culture with modern amenities, featuring excellent restaurants, active nightlife, cultural events, and proximity to natural attractions like volcanoes and lakes. The city's elevation provides a pleasant climate year-round, avoiding extreme heat common in other Central American capitals.

Healthcare offers quality private services at affordable costs, with modern hospitals and clinics staffed by English-speaking professionals. Most expats use private insurance costing $50-100 monthly, providing access to excellent care including specialists and dental services.

Expat communities are active and welcoming, organizing social events, networking opportunities, and support systems for newcomers. Facebook groups, meetups, and international organizations provide connections with other foreigners navigating similar experiences.

Daily life operates at a relaxed pace with traffic congestion during peak hours but generally manageable conditions. Public transportation is improving with new bus systems, though many expats prefer private vehicles or ride-sharing services for convenience and safety.

What's the cost of living like?

Guatemala City offers one of Central America's most affordable cost of living for expats while maintaining good quality of life.

1. **Housing costs**: Rent ranges $400-800 monthly for decent 1-2 bedroom apartments in safe neighborhoods, with utilities adding $50-100. Purchasing provides better long-term value given rising rents and property appreciation.2. **Food expenses**: Local markets offer fresh produce at very low costs, with weekly groceries for one person costing $30-50. Restaurant meals range from $2-7 for local food to $15-25 for upscale dining.3. **Transportation**: Public buses cost under $1 per ride, while taxis charge $5-10 for short trips. Private car ownership adds $200-400 monthly including fuel, insurance, and maintenance.4. **Healthcare**: Private insurance averages $50-100 monthly with doctor visits costing $30-50. Dental care and specialists remain very affordable compared to developed countries.5. **Education**: International schools charge $3,000-8,000 annually, while local private schools cost significantly less. University tuition for foreigners ranges $2,000-5,000 per year at quality institutions.

Most expats live comfortably on $1,000-1,500 monthly, including housing, food, transportation, and entertainment. Higher budgets of $2,000-3,000 monthly provide luxury lifestyles with premium housing, dining, and travel options.

If I buy to rent out long-term, what should I focus on?

Long-term rental investments in Guatemala City require strategic location selection and understanding tenant preferences.

Prime rental areas include Zona 10, 14, and 15 for high-end tenants willing to pay premium rents for security, amenities, and central locations. These zones attract executives, diplomats, and affluent professionals seeking quality housing near business districts and international amenities.

Emerging neighborhoods like Zona 18 and certain suburban areas offer better yields on lower initial investments, attracting middle-class families, young professionals, and students. These markets provide steady rental income with good appreciation potential as areas develop.

Tenant demographics typically include young professionals seeking modern apartments with amenities, families preferring houses with outdoor space and good schools nearby, and expats requiring furnished units with international standards and reliable utilities.

Property features in high demand include modern security systems, reliable utilities, internet infrastructure, parking spaces, and proximity to shopping, schools, and healthcare. Properties with generators, water reserves, and modern appliances command higher rents.

Rental yields generally range 6-10% gross annually, with higher yields possible in emerging areas and lower yields in prime locations that appreciate faster. Net yields after taxes, maintenance, and management typically range 4-8% depending on property type and location.

It's something we develop in our Guatemala property pack.

If I buy to rent short-term, what are the opportunities?

Short-term rental markets in Guatemala City show strong potential, particularly for business travelers and tourists.

Regulations generally allow short-term rentals, though property owners should verify building rules and local ordinances before operating. Some gated communities and condominiums restrict short-term rentals, making research essential before purchasing for this purpose.

Best performing areas include Zona 10 and 14 for business travelers attending conferences, meetings, or extended work assignments. These locations offer proximity to offices, restaurants, and entertainment while providing security and amenities business guests expect.

Tourist-focused rentals perform well near Zona 1 (historic center), cultural attractions, and transportation hubs connecting to popular destinations like Antigua and Lake Atitlán. Properties near the airport also attract transit passengers and tour groups.

Guest profiles include business travelers seeking furnished apartments for extended stays, tourists wanting authentic local experiences over hotel stays, and digital nomads requiring reliable internet and workspace areas.

Earnings potential often exceeds long-term rentals during peak seasons, with daily rates of $40-120 depending on property quality and location. Occupancy rates vary seasonally, with business travel providing year-round demand while tourism peaks during dry season (November-April).

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.

Sources

1. Current Trends in Guatemala Real Estate Market
2. Guatemala City Real Estate Trends Guide
3. Guatemala City Price Forecasts
4. Guatemala City Property Investment
5. Guatemala Property Investment Data
6. Guatemala Property Buying Guide
7. Guatemala City Expat Guide
8. Guatemala City Cost of Living