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 is happening in Guatemala City’s real estate market? Are prices on the rise or decline? Is the city still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from Zone 1 to Zone 16 and beyond. Perhaps you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Guatemala City real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
1) Eco-friendly home demand will increase as buyers become more environmentally conscious
In Guatemala, there's a noticeable shift towards eco-friendly housing.
The government is actively promoting sustainable housing projects, with support from organizations like the Central American Bank for Economic Integration. This has led to a rise in eco-friendly home purchases, as more people are drawn to the benefits of green living.
There's also a growing demand for sustainable building materials. With 24 LEED accredited professionals and 19 LEED registered and certified projects, Guatemala is experiencing a boom in eco-friendly building practices, indicating a strong market trend towards sustainability.
Consumer surveys highlight a clear preference for environmentally friendly housing. For example, a survey by the National Association of REALTORS in 2024 found that nearly half of the respondents noted their clients expressed interest in sustainability, reflecting a broader societal shift towards eco-conscious living.
Media coverage on environmental issues and the benefits of renewable energy has further boosted public interest in sustainable solutions. This heightened media focus is driving the shift towards eco-friendly homes, as more people become aware of the benefits of green architecture.
As environmental awareness grows among buyers, the demand for eco-friendly homes is expected to rise, making it a smart investment for those looking to purchase property in the country.
Sources: Trade.gov, NAR Realtor, Trade.gov
2) Demand for mid-range properties with good transport links will rise due to a growing middle class
The growing middle class in Guatemala City is driving demand for mid-range properties with good transport links.
Guatemala's economy has been on a steady rise, with growth averaging 3.2% from 2014 to 2023 and expected to hit 4% in 2024. This economic stability is a sign of an expanding middle class, which is typically on the lookout for better living conditions. As more people move to the city, Guatemala City's population is projected to reach 3,230,000 by 2025, fueling urbanization and the need for more housing.
With the city's population boom, there's a growing demand for homes in areas with good transport links. The Metro Riel project, a new urban passenger rail system, and the expansion of the electric bus fleet are making public transport more accessible. These improvements make properties near these transport links highly desirable. Economic reports show that the middle class now has more disposable income, enabling more people to secure mortgages and buy homes.
Real estate trends indicate that property prices are rising in areas with established transport networks. This trend highlights the attractiveness of these locations for potential buyers. Middle-income earners are increasingly able to afford mid-range properties, especially those with good transport access, thanks to their improved financial capability.
As the city continues to grow, the demand for properties with good transport links is expected to rise. The Metro Riel and electric bus projects are not just transport improvements; they are reshaping the real estate landscape. Properties near these transport hubs are becoming hot commodities, drawing interest from both local and international buyers.
For anyone considering buying property in Guatemala City, understanding these dynamics is crucial. The growing middle class and improved transport infrastructure are key factors to watch. These elements are driving the demand for mid-range properties, making them a smart investment choice.
Sources: World Bank, Macrotrends, IDOM, Mobility Portal, Deloitte
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) Mid-range property prices will steadily rise as they gain appeal among local buyers
Guatemala City is seeing a big shift towards urban living, with 67.3% of Guatemalans expected to live in cities by 2025.
This urbanization is largely driven by young professionals and millennials who are looking for housing that fits their city lifestyle. The city is buzzing with new job opportunities, attracting people from rural areas who are in search of better prospects and living standards.
As more people move to the city, the demand for housing, especially in the mid-range segment, is on the rise. The Prosperous Neighborhoods Program is making a big difference by improving infrastructure and public services, which makes these neighborhoods even more appealing to buyers.
With these improvements, mid-range properties are becoming more attractive, and this is driving up demand. Historical data from similar urban areas shows that property values tend to go up over time, especially in places with better infrastructure and economic growth.
In Guatemala City, this trend is expected to continue, making mid-range properties a smart investment. As the city grows and develops, these properties are becoming more desirable for local buyers, leading to a steady increase in prices.
For those considering buying property in the country, mid-range options in Guatemala City offer a promising opportunity. With the ongoing improvements and economic growth, these properties are likely to see a consistent rise in value.
Sources: Prosperous Neighborhoods Guatemala, Norada Real Estate
4) Demand for large multi-family homes will drop as people choose smaller, more manageable properties
In Guatemala City, people are increasingly opting for smaller homes as household sizes shrink.
Back in 2022, the average household size was 4.77, and it's been dropping ever since. This means fewer people are sharing a home, which naturally reduces the need for larger spaces. The trend is clear: smaller families, smaller homes.
Maintaining a home in Guatemala can be pricey, costing about 1.5% of the property's value each year. This includes construction, energy, and water expenses. Larger homes come with heftier maintenance bills, pushing many to seek smaller, more affordable options.
Surveys show a growing interest in compact living, especially among the middle class and younger buyers. Urbanization is on the rise, particularly around Guatemala City, driving demand for budget-friendly, city-based housing.
The younger generation is all about experiences over big property ownership. They prefer tech-smart, energy-efficient apartments, reshaping the market towards community-oriented, efficient housing. Economic factors also play a role, as GDP per capita growth from 2014 to 2023 might not support buying larger homes.
As more people move to urban areas, the focus is on compact living spaces. Interest in large, multi-family homes is declining, with a shift towards smaller, more manageable properties.
Sources: Global Data Lab, IDOM, Euromonitor
5) Urbanization will boost demand for compact and efficient living spaces
In Guatemala City, urbanization is driving a surge in demand for compact, efficient living spaces.
As more people flock to the city for better jobs and living standards, the population density is expected to hit 171.15 people per square kilometer by 2025. This urban shift means that by 2025, 67.3% of Guatemalans will be living in urban areas, seeking the conveniences and opportunities city life offers.
The government is stepping up with sustainable housing projects, including over 4,000 eco-friendly homes in a new urban center. These initiatives are part of a larger push for green construction, aligning with the growing consumer interest in environmentally conscious living.
Young professionals and millennials, with their fast-paced lifestyles, are leaning towards modern, low-maintenance homes. This trend is fueling the creation of compact, stylish apartments that fit the urban lifestyle perfectly.
Property prices in central urban areas are on the rise, with an expected increase of 3% to 7% by 2025. This price hike underscores the importance of making the most out of available space, pushing developers to innovate in design and functionality.
Sources: World Population Review, Macrotrends
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6) Online platforms will simplify property buying, making it easier for international investors to access the market
Online platforms are revolutionizing how international investors buy property, making the process much smoother.
In recent years, especially around 2023 and 2024, Guatemala saw a 67% increase in online property purchases. This shows that people are getting more comfortable with buying real estate digitally, just like they do with other online shopping.
With e-commerce in Guatemala expected to hit $381 million by 2024, online property listings in Guatemala City are set to grow. Thanks to virtual reality, investors can now take detailed property tours from anywhere in the world, making it easier to decide on a purchase without being there in person.
Blockchain technology is also playing a big role in real estate, offering better security and transparency for international buyers. While we don't have specific numbers for Guatemala, this global trend is likely to make local transactions safer and more attractive to foreign investors.
These digital tools are not just trends; they are reshaping the real estate market, making it more accessible and secure for international buyers. Investors can now explore properties, complete transactions, and manage their investments all online.
As these technologies continue to evolve, the property buying process will only become more streamlined, opening up new opportunities for investors worldwide.
Sources: Trade.gov - Guatemala Digital Economy, Trade.gov - Guatemala Selling Factors and Techniques
7) Foreign buyers will increasingly seek properties in culturally and historically significant areas
Foreign investment is booming in areas rich in culture and history.
Take Guatemala City, for example. In 2023, it saw a record $1.35 billion in foreign investment, thanks to its growing status as a business hub and its strategic location that attracts multinational companies. This influx is not just about business; it's also about the city's vibrant cultural scene and historical significance.
Tourism is another big player here. In 2022, the Guatemalan Institute of Tourism noted over 5 million overnight trips, fueled by the country's stunning cultural and natural attractions. Places like Antigua Guatemala and Tikal National Park are not just tourist spots; they are economic powerhouses, with occupancy rates hitting 98% during peak times.
The government isn't sitting idle either. They're actively promoting cultural tourism by upgrading infrastructure, like roads and public transport, making these areas even more attractive for those looking to buy a second home. These efforts are part of a broader strategy to enhance tourism infrastructure and ramp up marketing to draw in more international visitors.
All these factors are creating a perfect storm for increased demand from foreign buyers. Areas with strong cultural and historical significance are becoming hot spots, not just for tourists but for investors looking for a slice of history and culture.
Sources: Country Reports, Travel and Tour World
8) Luxury property yields will stabilize as the market adapts to shifting buyer preferences
Guatemala City is becoming a hotspot for luxury property buyers.
Thanks to its strategic location between North and South America, the city is attracting international businesses and expats. This influx is driving up the demand for high-end housing, making it a prime spot for those looking to invest in luxury real estate.
Foreign investment is also playing a big role. In 2022, foreign direct investment in Guatemala's real estate sector hit USD 1.35 billion. This surge of capital is energizing the luxury market, setting the stage for a more stable environment for property yields.
Tourism is another factor boosting the market. With visa-free entry for 83 countries, more international tourists are flocking to Guatemala. This has led to a higher demand for luxury rentals, as visitors seek out premium accommodations.
As more tourists opt for high-end stays, rental yields in the luxury segment are expected to stabilize. This trend is likely to continue, offering a promising outlook for those investing in luxury properties.
Overall, the combination of strategic location, foreign investment, and booming tourism is creating a fertile ground for the luxury real estate market in Guatemala City. Luxury property yields will stabilize as the market adjusts to changing buyer preferences.
Sources: LATAM FDI, Travel and Tour World
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) Short-term rental yields will rise with increased tourism and business travel
Guatemala is becoming a hotspot for international tourists, with numbers set to rise by 2025.
As more visitors flock to the country, the demand for short-term rentals is climbing. Tourists are on the lookout for comfortable and convenient places to stay, making rental properties a lucrative investment. This trend is not just about leisure; business travel is also on the upswing.
In 2023, La Aurora International Airport in Guatemala City saw over 4.2 million passengers, many of whom were business travelers. These travelers often prefer luxury rentals, boosting the demand for high-quality accommodations. The airport's bustling activity is a clear indicator of the growing business travel sector.
Guatemala's appeal is further enhanced by its strategic initiatives. The country offers visa-free entry to citizens of 83 countries, making it an attractive destination for both tourists and business travelers. This policy, combined with infrastructure improvements, is a game-changer for the short-term rental market.
Investors are taking note of these developments. The combination of increased tourism and business travel is creating a perfect storm for rental property yields. With more people visiting for both work and leisure, the potential for profit in the rental market is significant.
For those considering investing in property, Guatemala presents a promising opportunity. The country's efforts to boost tourism and business travel are paying off, and the short-term rental market is poised for growth.
Sources: Travel and Tour World, Trading Economics, Guatemala Convention Bureau, Macrotrends
10) Demand for properties with sustainable features will grow due to environmental initiatives
In Guatemala City, there's been a noticeable shift towards sustainable living in recent years.
Back in 2023 and 2024, the city saw a boom in eco-friendly property developments, including a massive urban center with over 4,000 sustainable dwellings. These homes are designed with features like renewable energy and smart urban planning, making it easier for residents to walk, bike, or use public transport.
The construction materials market in Guatemala is also on the rise, with a projected growth rate of 6.6% from 2023 to 2032. This growth is fueled by the demand for eco-friendly materials like recycled products, low-carbon concrete, and sustainable timber, showing a clear interest in environmentally conscious building practices.
People are increasingly drawn to energy-efficient homes, with surveys indicating a strong preference for tech-smart, eco-friendly apartments. This isn't just a trend; it's becoming a lifestyle choice, as seen in real estate listings that now highlight green features like energy-efficient materials and renewable energy systems.
In Guatemala City, the demand for properties with sustainable features is growing, driven by a shift in consumer preferences towards more environmentally friendly living options. This trend is expected to continue, as more people recognize the benefits of living in homes that are both energy-efficient and kind to the planet.
As environmental initiatives gain momentum, the demand for properties with sustainable features is likely to increase, making it a smart choice for potential buyers looking to invest in the future of real estate.
Sources: IDOM, Expert Market Research
11) Price growth in Zona 10 will slow as luxury developments reach saturation
Zona 10 in Guatemala City is seeing a slowdown in price growth due to an oversupply of luxury developments.
With high inventory levels of luxury properties, there are plenty of homes available but not enough buyers, causing these properties to linger on the market. This oversupply is a key factor in the current market dynamics.
Real estate agencies report a plateau in demand, indicating that interest in high-end properties isn't as strong as it once was. This could be because the area is already saturated with luxury options, leaving little room for new buyers.
Consumer surveys reveal a shift in buyer interest towards more affordable or emerging zones. People are now looking for homes in areas that offer better value or growth potential, which further reduces demand in Zona 10.
As a result, the market in Zona 10 is experiencing a cooling effect, with fewer transactions and slower price increases. This trend is reshaping the landscape for potential buyers and investors.
For those considering a purchase, it's essential to understand that luxury developments in Zona 10 may not offer the same return on investment as they once did. Exploring other areas might provide better opportunities.
Sources: Global Property Guide, Skyscraper Center
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12) Rents in less developed areas will stay stable due to challenges in attracting tenants
In 2023 and 2024, less developed areas are seeing high vacancy rates due to a construction boom.
These regions have more new units than tenants, making it tough to fill properties. Many people are moving to urban areas, leaving fewer renters behind. This trend is expected to continue, further reducing demand for rentals.
Without enough infrastructure and amenities, these areas aren't very attractive to potential tenants. Noise pollution and poor quality of life are common complaints, making it hard for landlords to draw in renters.
Landlords face a tough market as they try to attract tenants. Rents in these areas are likely to stay stable because they struggle to attract enough people.
In some places, the population is either declining or growing slowly, which doesn't help the rental market. This demographic shift is a key factor in the rental challenges faced by these regions.
Overall, the lack of appeal in these areas means landlords have to work harder to fill their properties.
Sources: Loebsack Brownlee, The Latin Investor
13) Family-sized home rents will rise as more families relocate to the city
Guatemala City is seeing a surge in families moving in, boosting the demand for family-sized homes.
With the city's population growing by 2.22% from 2024 to 2025, reaching 3,230,000, more families are flocking to urban areas. This rapid urbanization is a clear sign of families seeking better opportunities and living standards.
There's a significant housing shortage of over 1.3 million homes in bustling areas like Guatemala City. This scarcity means fewer family-sized homes are available, pushing rental prices up as demand outpaces supply.
The government is rolling out policies to boost infrastructure, like roads and public transport, which are expected to raise property values in areas benefiting from these upgrades. These improvements make city living more appealing, further driving the demand for family-sized homes.
Families are drawn to the city by better job prospects and improved living conditions, adding to the pressure on the housing market. As more families settle in, the competition for suitable homes intensifies.
Expect rental prices for family-sized homes to rise as the city continues to attract more families, with urban living becoming increasingly desirable.
Sources: Macrotrends, World Population Review
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.