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
Why is Guatemala City emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the vibrant cultural scene, or the competitive pricing compared to other urban centers? What makes it a compelling choice for investors?
We often encounter these questions because we are actively engaged with local developers, real estate professionals, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a detailed article for everyone's benefit.
Our aim is to present a strong case for investing in Guatemala City's real estate market, drawing from our direct experience and in-depth market understanding.
If you feel we've overlooked an important aspect or wish to learn more, please reach out to us (we respond very quickly). Your feedback enhances the quality of our content.
Lastly, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We highly recommend conducting comprehensive research and consulting with a qualified financial advisor before making any investment decisions.
1) Guatemala City’s historic areas are being revitalized, making them more attractive for real estate investment
Guatemala City's historic zones are becoming hot spots for real estate investment.
Thanks to increased government investment in infrastructure, these areas are seeing a fresh wave of interest. The Inter-American Development Bank has been a major player, backing projects that breathe new life into the historic downtown. This has made the area not just more functional, but also more attractive to potential buyers.
Property values are on the rise in popular zones like Zona 10, Zona 14, and Zona 4. These areas are buzzing with activity as both residents and investors flock in, driving up demand and prices. The ongoing gentrification and urban regeneration projects are key reasons why these zones are becoming more desirable.
Restoration projects are also making a big impact. In places like Antigua Guatemala, there's a focus on preserving the historical integrity of buildings. By using period-appropriate materials, these projects not only maintain cultural heritage but also boost the area's real estate charm.
Incentives for restoring historic buildings are another draw. These efforts are not just about keeping the past alive; they’re about making these areas vibrant and appealing for modern living. The blend of old-world charm with new-world amenities is a winning combination for many buyers.
With all these changes, the historic zones are not just surviving; they’re thriving. The mix of government support, rising property values, and thoughtful restoration is turning these areas into prime real estate opportunities.
Sources: AARCH, Inter-American Development Bank
2) With the airport expanding, Guatemala City is becoming more connected and appealing to investors
The expansion of La Aurora International Airport in Guatemala City has significantly boosted connectivity.
In 2023, the airport welcomed 4,733,000 passengers, and by May 2024, it had already seen 1,997,000 travelers. This surge shows how the airport's enhanced capacity is turning it into a more attractive hub for international flights. With new routes popping up, it's easier than ever to fly in and out of Guatemala.
Take, for example, the new direct flights. Alaska Airlines now offers a direct service from Los Angeles, and Avianca Airlines has started flights from Chicago, both launched in December 2023. These additions are not just about convenience; they open doors for business and tourism, making travel smoother and more appealing.
On the investment front, the airport's expansion is a game-changer. Foreign direct investment (FDI) is on the rise, with Guatemala expected to close 2024 with USD 1.65 billion in FDI. The target for 2025 is even higher at USD 1.815 billion. This uptick in FDI is a clear sign that improved connectivity is drawing investors who see the region's potential for growth.
Investors are particularly interested because the airport's expansion aligns with the country's economic ambitions. The improved infrastructure is not just about handling more passengers; it's about creating a gateway for economic opportunities. This makes the region more appealing for those looking to invest in a growing market.
With these developments, La Aurora International Airport is not just a travel hub; it's becoming a catalyst for economic transformation. The new routes and increased passenger capacity are paving the way for a brighter economic future, attracting both tourists and investors alike.
Sources: Trade.gov, Latam FDI, Trade.gov
We made this infographic to show you how property prices in Guatemala compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Guatemala City’s growing retail and commercial sectors are driving up nearby home values
Guatemala City's booming retail and commercial scene is making nearby residential properties more valuable.
In Zone 10, mixed-use projects are popping up, blending vertical housing with offices and amenities like gyms and pools. This mix makes the area a hot spot for living and working, pushing property values higher.
Infrastructure is getting a facelift too, with a new urban subway line and highway upgrades in places like Mixco. These improvements boost accessibility and quality of life, turning these areas into real estate goldmines.
Neighborhoods near new commercial hubs, like Zona 10 and Zona 4, are seeing a rise in luxury housing and gentrification. These spots are becoming prime real estate, drawing international buyers and driving up prices.
The strategic location and modern amenities in these zones are a magnet for buyers, making them highly desirable places to live.
As these areas continue to develop, property values are expected to climb, offering a promising investment opportunity.
4) In Guatemala City, you’ll find a more stable property market compared to other Latin American capitals
Guatemala City's real estate market is less volatile than many other Latin American capitals.
One reason for this stability is the steady growth in property prices over recent years. From 2023 to 2024, prices rose consistently, and experts predict a 6.12% increase from 2025 to 2029. This kind of growth is appealing for anyone looking to invest in a reliable market.
Guatemala also enjoys lower inflation rates compared to its neighbors, which helps keep the real estate market predictable. Inflation can wreak havoc on property values, but here, the consistent demand for rentals, fueled by urbanization and population growth, keeps things stable.
Political stability is another key factor. Guatemala's relatively calm political scene boosts investor confidence, making the market attractive to both local and international buyers. This stability is crucial for anyone considering a long-term investment.
The government is also proactive in encouraging foreign investment. With incentives like infrastructure development projects, they are drawing in more capital, which in turn boosts property values. This makes the market even more appealing for potential buyers.
For those considering a property purchase, these factors make Guatemala City a promising option. The combination of steady price growth, low inflation, political stability, and government incentives creates a reliable investment environment.
Source: Statista
5) In Guatemala City, the property market has plenty of room to grow due to low saturation
Guatemala City's real estate market is far from saturated, offering plenty of room for growth.
With a population of 3,159,630 residents expected in 2024, the city is bustling with life and opportunity. This growth, at an annual rate of 2.08%, means more people are looking for homes and businesses need more space. It's a city on the move, and that movement is driving demand for real estate.
The government is stepping up with infrastructure improvements, like better roads and public transport. These changes are not just about convenience; they’re set to boost property values and draw in more investors. Imagine a city where getting around is easier and property is becoming more valuable.
Compared to other big cities in the region, property prices in Guatemala City are still affordable. This affordability makes it a hot spot for investors looking for a good deal. It's like finding a hidden gem in a bustling market.
The middle class in Guatemala is growing, and with more disposable income, they’re eyeing real estate as a solid investment. This shift is pushing up demand and supporting higher property prices. It's a sign of a healthy, expanding market.
Urbanization and economic growth are fueling the need for both residential and commercial spaces. Yet, this demand is not fully met, indicating there's still plenty of potential for growth in the real estate market. It's a dynamic environment with opportunities waiting to be seized.
Sources: Nearshore Americas, World Population Review, Statista
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6) Guatemala City’s fast-growing population means property values are rising
Guatemala City is bustling with around 2.5 million people due to rapid migration and urbanization.
As more folks flock to the city, the demand for housing is skyrocketing, but the supply just can't keep up. The housing shortage has grown by 39% over the past six years, especially in urban hotspots like Guatemala City.
The construction industry is struggling to catch up with the need for new homes. This lag is a big reason why the housing shortage persists, making it tough for the market to meet the needs of the city's growing population.
On top of that, inefficient institutions and weak policies are making things worse, widening the gap between what's needed and what's available.
In Guatemala City, the housing crunch is particularly intense, with a significant chunk of the population feeling the squeeze. The city's growth is outpacing the housing supply, driving up property values and making it harder for people to find affordable places to live.
For those considering buying property here, it's crucial to understand that the market is tight, and prices are on the rise. The city's vibrant growth is exciting, but it also means competition for housing is fierce.
Sources: Habitants.org, Time, Global Americans
7) With better healthcare facilities, Guatemala City is becoming a top choice for retirees and medical tourists
Guatemala City is becoming a hotspot for retirees and medical tourists due to improvements in healthcare facilities.
One major boost comes from the INFRAIGSS Project, an initiative by the Guatemalan Social Security Institute. This project is all about modernizing hospital infrastructure and equipment, which means better healthcare coverage for millions. It's a game-changer for the city, making healthcare more accessible and efficient.
Private hospitals and clinics are popping up all over the city, offering high-quality treatments at lower costs compared to other countries. This is a big draw for medical tourists looking for affordable yet top-notch healthcare. Many of these facilities have international accreditation, so they meet global standards, giving patients peace of mind.
Another factor is the return of medical professionals trained abroad. These skilled experts are bringing their knowledge back home, significantly boosting the quality of care available. This influx of talent is a win-win for both locals and visitors seeking reliable healthcare options.
For retirees, the city's healthcare improvements mean they can enjoy their golden years with access to excellent medical services. It's not just about the cost savings; it's about having quality care right at their doorstep.
With these advancements, Guatemala City is positioning itself as a prime destination for those seeking both a vibrant lifestyle and top-tier healthcare.
Sources: Medical Tourism, Proyectos Guatemala
8) Guatemala City’s economic stability makes it a top choice for investors in Central America
Guatemala City stands out for its economic stability, making it a magnet for investors compared to its Central American neighbors.
In 2022, the country's GDP saw a healthy growth of 4.1%, and it's on track to maintain a 3.5% growth rate by the end of 2024. This steady climb paints a picture of a strong economy that investors find hard to resist.
Foreign Direct Investment (FDI) hit a record high, reaching 3.8% of GDP in 2023. This boost was largely thanks to a big telecom acquisition, showing the trust international investors have in Guatemala's market. Plus, Fitch Ratings gave a nod to this confidence by upgrading Guatemala’s ratings to 'BB' from 'BB-' in early 2023, underscoring the country's macroeconomic and financial stability.
Inflation has been kept in check, with only a slight uptick to 1.70% in December 2024. This low inflation is key for keeping purchasing power steady and the economy predictable, both of which are big draws for investors.
The real estate market is also on the rise, with property prices expected to climb between 3% to 7% in 2025. This growth is fueled by the country's economic expansion and the influx of foreign investment.
Sources: Atlantic Council, Trading Economics, World Bank
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.
9) Guatemala City’s mild climate all year is attractive to both locals and foreigners
Guatemala City is famous for its mild climate, attracting both locals and foreigners.
With an average temperature of around 66°F (19°C) all year, the city offers a comfortable living environment. Nights are cooler, while days are pleasantly warm, making it ideal for those who enjoy a stable climate.
People love the consistent weather here, with May being the warmest month at about 69°F (21°C). From October to January, temperatures dip slightly to 65°F (19°C), but the change is minimal.
Expatriates often praise Guatemala City for its perfect weather, which complements the city's rich history and vibrant culture. This combination makes it a desirable place to settle down.
Locals and newcomers alike appreciate the pleasant temperatures that allow for outdoor activities year-round. Whether you're exploring the city or relaxing at home, the climate is always inviting.
Guatemala City's weather is a key factor in its appeal, offering a comfortable lifestyle that many find hard to resist.
Sources: Trip Report, International Citizens, Clime Chart
10) In Guatemala City, foreign investors benefit from a favorable legal framework for property ownership
Guatemala City offers a favorable legal framework for foreign property investors.
Foreigners can own property outright, with few restrictions near coastlines and borders. This clarity in ownership rights helps investors feel secure. The city is dotted with foreign-owned properties, showing a warm legal environment for international buyers.
International real estate agencies often mention how easy property transactions are for foreigners in Guatemala. The system is designed to be straightforward, with legal oversight ensuring smooth processes. The Guatemalan government is also proactive, launching initiatives like the National Strategy to Attract Foreign Direct Investment in 2024, which boosts economic activity and opens new opportunities.
Legal reforms have made the property acquisition process simpler for foreigners. By involving local attorneys and notaries, the process ensures compliance with both Guatemalan and home country regulations. This makes it easier for foreign investors to navigate the legal landscape and acquire property in Guatemala City.
These reforms and initiatives reflect a commitment to creating a welcoming environment for international investors. The combination of clear legal provisions and supportive government policies makes Guatemala City an attractive destination for property investment.
Sources: Global Property Guide, Latam FDI, Central America
11) Guatemala City’s strategic location draws international companies and expats, boosting property demand
Guatemala City is a hotspot for international companies and expatriates because of its strategic location as a regional business hub.
The city enjoys a boost in Foreign Direct Investment (FDI) thanks to its stable economy and favorable trade agreements like CAFTA-DR. This makes it a prime spot for investors eyeing the North American market.
Big names like Tata Consultancy Services and Everise have set up shop here, drawn by the city's strategic perks and business-friendly vibe. Their presence underscores the growing interest in the region.
Guatemala City has also ramped up its infrastructure and transportation, with projects like the Transmetro enhancing connectivity. This makes it easier for businesses and expatriates to settle and thrive.
With its strategic location, the city is a magnet for international companies seeking regional influence. This attracts a diverse expatriate community, adding to its cosmopolitan appeal.
Sources: Nearshore Americas, Atlantic Council
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12) In Guatemala City, you’ll find diverse neighborhoods with investment options from luxury to affordable
Guatemala City is a hotspot for property investment, offering a mix of luxury and affordable options across its diverse neighborhoods.
In Zona 10, property values are on the rise thanks to luxury housing projects and a surge in interest from international buyers. This area has become a magnet for high-end investments, especially as travel has picked up post-pandemic.
Over in Zona 14, the scarcity of housing and plans to renovate heritage buildings are pushing property prices up. This makes it a prime spot for those looking for central, high-value properties in Guatemala City.
Zona 4 is seeing a wave of gentrification and new transport links, which are expected to boost property values. This neighborhood offers great opportunities for both investors and renters looking to capitalize on the area's transformation.
The upcoming Metro Riel project, a 21 km light rail system, is set to enhance property values near transit hubs. This development mirrors successful projects in other Latin American cities, making these areas attractive for rental properties.
With international real estate investors and a growing expatriate community, there's a strong interest in the city's real estate potential, indicating a promising future for property investments in Guatemala City.
Sources: The Latin Investor
13) With a growing middle class, Guatemala City is seeing more demand for quality housing
Guatemala City's middle class is on the rise, driving up demand for quality housing.
As the city's GDP per capita has increased, the purchasing power of the middle class has improved, making home buying more feasible. This economic boost is encouraging more people to move to urban areas, with the urban population in Guatemala City expected to hit 67.3% by 2025. This trend shows a clear preference for city living, where opportunities and amenities are more accessible.
Gated communities and suburban housing developments are seeing a surge in sales. These areas are popular because they offer better security and lifestyle amenities, which are highly attractive to the middle class. The rise of vertical housing is also notable, as it addresses the urgent need for more housing options and is drawing international real estate investors to the city.
Surveys show that the middle class is increasingly interested in homes with modern amenities. Suburban living is particularly appealing, offering more space and affordability. Government projects, like the Metro Riel, are expected to enhance property values and make certain areas even more desirable.
These infrastructure improvements are not just about convenience; they are strategic moves to make urban living more attractive. The middle class is looking for a better lifestyle, and these developments are meeting that demand.
As the city continues to grow, the demand for quality housing is only expected to increase, making it a promising market for potential buyers and investors.
Source: World Bank Blog
14) Foreign investors in real estate can benefit from government incentives in Guatemala City
The Guatemalan government is rolling out the red carpet for foreign real estate investors with attractive incentives.
In 2023, they launched the "Guatemala Investment Plan 2023-2027," offering tax breaks to make investing more appealing. This plan is all about creating a friendly tax environment, encouraging international investors to dive into the Guatemalan market.
Another key player is the Act for Promotion of Investment of Foreign Capital, which came into play in 2022. This act is designed to smooth the path for foreign investments, ensuring that the process is straightforward and enticing for international investors.
Guatemala's real estate market is on the rise, with foreign investment expected to hit $1.6 billion in 2024, up from $1.5 billion in 2023. This growth is fueled by the country's strategic location and economic potential, making it a hot spot for investors.
The government's initiatives, like the "Guatemala Investment Plan 2023-2027," underscore their commitment to drawing in foreign capital. These efforts highlight the country's dedication to boosting its economy through international investments.
For those considering a property purchase in Guatemala, these incentives and the market's upward trend make it a compelling opportunity to explore.
Sources: Central America, Latam FDI, Kluwer Arbitration Blog
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.
15) Guatemala City’s closeness to volcanoes and lakes makes it a desirable place to buy property
The city's proximity to natural attractions like volcanoes and lakes makes it a highly desirable place to live.
In early 2023, tourism saw a 15% increase, highlighting the magnetic pull of these natural wonders. This trend likely continued into 2024, showing that the allure of these attractions is not fading anytime soon. The rise in eco-tourism and adventure tourism is a testament to people's growing interest in experiencing nature up close.
The Guatemalan Institute of Tourism is actively promoting sustainable tourism practices, which not only draws visitors but also benefits the local community. By involving locals in managing these resources, new jobs are created, and migration is reduced, making the area more appealing for both tourists and potential residents.
Investment in infrastructure is on the rise, aimed at improving access to these stunning sites. This includes the development of recreational facilities and parks, which enhance the overall experience for everyone. Media coverage often highlights the breathtaking beauty of places like Lake Atitlan, further boosting their appeal.
Local communities are playing a crucial role in this transformation, as their involvement ensures that tourism growth is both sustainable and beneficial. This community-driven approach not only preserves the environment but also enriches the cultural experience for visitors.
With these developments, the city is becoming a hotspot for those seeking a blend of natural beauty and cultural richness. The combination of improved infrastructure and community involvement makes it an increasingly attractive option for property buyers looking to invest in a vibrant and sustainable environment.
Sources: Trade.gov, Think Global Health, Grow Your Own Cure
16) With the tech sector growing, Guatemala City is attracting tech workers who need homes
Guatemala City's tech scene is booming with new opportunities.
One big reason for this surge is the rise of tech startups, especially in fintech, which saw a lot of growth from 2017 to 2021. This lively startup vibe is backed by places like Campus TEC Guatemala, a tech hub with over 100 high-tech local companies that are making waves internationally.
Foreign investment is also pouring into the digital economy, boosting the tech sector. For example, e-commerce in Guatemala is on track to hit $381 million by 2024, and the cybersecurity market is growing fast, drawing in more foreign investment and expertise. This influx is key to the tech industry's expansion and the arrival of tech professionals.
The government is stepping up too, with initiatives that support tech innovation and entrepreneurship. They've set up important institutions to shape digital economy policies and are working with Campus TEC Guatemala as part of their Competitivity agenda, creating a friendly environment for tech growth.
With all these elements in play, the tech sector is not just expanding; it's transforming the city. The demand for housing is rising as more tech workers move in, looking for places to live close to where they work. This shift is changing the real estate landscape in Guatemala City.
For anyone considering buying property here, it's a good time to explore the market. The tech boom is not just about business; it's about creating a vibrant community where innovation thrives. This makes Guatemala City an exciting place to be, with plenty of potential for growth in the coming years.
Sources: Trade.gov, Wikipedia, LiquidSpace
17) With tourism on the rise, Guatemala City is perfect for short-term rental investments
Guatemala City's tourism industry is booming, drawing more international visitors each year.
In 2024, the city saw a noticeable increase in international tourist arrivals, with 228,321 tourists visiting in June, up from 216,677 in May. This rise shows that more people are discovering the charm of Guatemala City as a travel destination.
Short-term rentals, especially luxury ones in hotspots like Antigua, are thriving. During peak holiday periods in 2023, occupancy rates soared to 98%, indicating that tourists prefer these cozy stays over traditional hotels.
Getting around the city has become easier thanks to the expansion of the Transmetro bus rapid transit system. This, along with efforts from the Guatemalan Institute of Tourism, is making the city more tourist-friendly and boosting local development.
Guatemala City's rich cultural and historical sites, like the National Museum of Archaeology and Ethnology, continue to attract visitors. The city's growing reputation as a must-visit spot is further enhanced by increased media coverage and more airline routes, making it easier for international travelers to visit.
Sources: Trading Economics, Travel and Tour World
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.