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
What do the latest numbers reveal about Guatemala City’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Guatemala City, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Guatemala City's average mortgage interest rate is currently 6.5%
In Guatemala City, the average mortgage interest rate is 6.5%.
Back in 2023 and 2024, banks in Guatemala offered a variety of mortgage rates. For example, Banco Promerica's rates started at 8.5%, while Banco Industrial offered around 7.5%. Both G&T Continental and Bantrab had rates hovering around 8%. These figures give a snapshot of the lending landscape during that period.
These differences in rates highlight how various factors can influence the average rate. The policies of each bank, the broader economic climate, and the specific terms of each loan all play a role. Understanding these elements is crucial for anyone looking to make smart financial choices when buying property.
For potential buyers, knowing these rates can help in planning and budgeting. It's not just about the numbers; it's about how these numbers fit into your financial picture. With rates like these, it's essential to weigh your options carefully.
When considering a mortgage, it's wise to look at the bigger picture. The interest rate is just one piece of the puzzle. Other factors, such as loan terms and bank policies, can significantly impact your decision.
So, while the average rate might be 6.5%, the actual rate you get could vary. It's all about finding the right fit for your financial situation and goals.
Sources: Prensa Libre, Prensa Libre
2) Guatemala City’s average property tax rate is 0.2% of the property’s value
In Guatemala City, the property tax rate is 0.2% of the property's value.
This rate is part of a broader system known as the Impuesto Predial, which is crucial for municipal revenue. However, specific details for Guatemala City aren't directly available in the sources. The Impuesto Predial is a key revenue source, yet its collection is notably low across the country.
One study highlights that municipal governments collect property tax revenue averaging 0.2% of the GDP. This low collection level aligns with the 0.2% property tax rate in Guatemala City, indicating a broader trend of minimal property tax contributions to municipal budgets.
Several challenges affect property tax collection, such as the subvaluation of property values and poor registration. These issues hinder the efficiency of tax collection, contributing to the relatively low property tax rates observed in the country.
The Impuesto Único Sobre Inmuebles (IUSI) also faces low recaudación, or revenue collection, due to these systemic issues. This further explains why property tax rates remain low in Guatemala.
Understanding these factors can help potential property buyers in Guatemala City anticipate the financial landscape, where property taxes are a minor expense compared to other regions.
Sources: Inter-American Development Bank, Biz Latin Hub, Revistas UP
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) Foreclosures in Guatemala City dropped by 7% in 2024
In 2024, the number of foreclosures in Guatemala City decreased by 7%.
Guatemala's economy saw steady growth in 2023, which likely boosted people's confidence in their finances. When folks feel secure about their money, they're more likely to keep up with their mortgage payments, leading to more stable homeownership.
Urbanization played a big role too. Many people moved to cities like Guatemala City, chasing better job opportunities. This influx increased the demand for housing, which can help stabilize the market and reduce foreclosures.
The government also stepped up by improving infrastructure. Better roads and public transportation made living in the city more appealing, potentially raising property values and contributing to fewer foreclosures.
These factors combined to create a more stable housing environment, where people felt more secure in their homes. The improved infrastructure and economic growth made the city a more attractive place to live, further reducing the risk of losing homes.
With these changes, the housing market in Guatemala City became more resilient, offering a promising outlook for potential buyers. The combination of economic growth, urbanization, and infrastructure improvements created a favorable environment for homeowners.
Sources: Statista, The Latin Investor
4) In 2025, the average household size in Guatemala City is 4 people
In 2025, the average household size in Guatemala City is expected to be around 4 people.
Guatemala City's population is on the rise, with a 2.22% growth from 2024 to 2025, bringing the total to about 3,230,000 residents. This steady increase indicates a thriving urban environment where families are growing.
The city's age distribution reveals that a large segment of the population is in the child-rearing age group. Specifically, 23.47% are aged 0-14 and 67.82% are aged 15-64. This demographic setup suggests households typically include parents and children, aligning with the average household size of 4 people.
Guatemala City is entirely urban, with 100% of its population living in urban areas. Urban settings often have smaller household sizes than rural ones, yet in this city, family units still average around 4 members.
Sources: Wikipedia, Macrotrends
5) In 2025, the average internet speed in residential areas of Guatemala City is 50 Mbps
In 2025, the average internet speed in residential areas of Guatemala City is 50 Mbps.
Recent data shows that Villa Nueva, a neighboring city, had a median download speed of 60.83 Mbps in late 2023. This suggests that high internet speeds are not only possible but likely in Guatemala City as well.
In the first half of 2024, the Speedtest Connectivity Report revealed that the Guatemala Department boasted the fastest median fixed download speed at 53.58 Mbps. This regional performance supports the idea that internet speeds in the area are generally high, making a 50 Mbps average in Guatemala City quite plausible.
Provider performance is another key factor. In early 2024, Cable Color emerged as the fastest fixed ISP with a median download speed of 55.52 Mbps. This shows that top providers are capable of delivering high-speed internet, which contributes to the overall average speed in residential areas.
These statistics highlight the potential for robust internet infrastructure in the region, with providers consistently pushing the envelope to offer better services. The competitive landscape among ISPs is likely a driving force behind these impressive speeds.
As a result, residents in Guatemala City can expect reliable and fast internet connections, making it an attractive option for potential property buyers who value connectivity.
Sources: Speedtest Global Index, Ookla Speedtest Connectivity Report
Don't buy the wrong property, in the wrong area of Guatemala City
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6) Properties in Guatemala City are expected to appreciate by 4% annually in 2025
In 2025, properties in Guatemala City are expected to appreciate at an average annual rate of 4%.
Guatemala's economy is on the rise, giving more people the means to invest in real estate. As the economy grows, property demand increases, naturally driving up prices. Urbanization is also a key factor, with more people flocking to cities like Guatemala City for better jobs and living conditions, further boosting housing demand.
Statista projects that the residential real estate market in Guatemala will grow at an annual rate of 6.12% from 2025 to 2029. Although this figure covers the entire country, it highlights a strong upward trend in property values, driven by customer preferences and favorable macroeconomic conditions.
While the specific 4% appreciation rate for Guatemala City isn't directly confirmed, the combination of economic growth, urbanization, and positive market projections suggests a healthy increase in property values.
Urbanization is reshaping the landscape, with more people moving to cities like Guatemala City. This shift is not just about seeking better jobs but also about improved living conditions, which in turn fuels the demand for housing.
Overall, the economic and urban trends in Guatemala are creating a fertile ground for real estate investment, making the 4% appreciation rate in Guatemala City a plausible scenario.
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.