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 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 international markets? 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's real estate sector, supported by 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.
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1) With low property taxes and ownership costs, this country is a financially smart choice for long-term investment
Guatemala is a great place to invest in property because of its notably low property taxes.
In Guatemala, property taxes are based on the cadastral value, with rates usually up to 0.5% of the property's value. This is much lower than in places like Argentina, where taxes can be as high as 1.5%. If you're considering buying property, this means less financial strain on your investment.
For properties valued up to GTQ2,000,000 (around US$261,438), the tax rate is just 0.5%. This low rate makes owning property in Guatemala financially appealing for long-term investors, as it keeps more money in your pocket.
Another perk is the low cost of maintaining a property in Guatemala. This is especially beneficial if you own a property that isn't occupied all the time. With lower utility costs than neighboring countries, your overall expenses are reduced, making it easier to manage your investment.
Vacant home insurance is also affordable, offering financial protection against damage or loss. This is a smart move for anyone with unoccupied properties, as it provides peace of mind without breaking the bank.
Overall, the combination of low property taxes and maintenance costs makes Guatemala a financially attractive option for property investors looking for long-term gains.
Sources: Global Property Guide, Tax Foundation, Biz Latin Hub
2) Guatemala’s location as a gateway between the Americas attracts expats and businesses, increasing housing demand
Guatemala's strategic spot as a gateway between North and South America makes it a hot spot for expats and international businesses, driving up housing demand.
Foreign direct investment is on the rise, thanks to Guatemala's favorable business climate and prime location. Investors are flocking here, drawn by the country's shift towards more pragmatic political policies.
Expats are increasingly choosing Guatemala, attracted by its affordable cost of living, great weather, and vibrant culture. Cities like Antigua are especially popular, offering a welcoming community and plenty of activities.
Guatemala is turning into a business hub, partly due to improved air connectivity. New routes from airlines like Alaska and Avianca make it easier for businesses and tourists to visit, boosting the country's appeal.
With its strategic location, Guatemala is a natural choice for international businesses looking to tap into both North and South American markets. This has led to a surge in housing demand as more professionals move in.
As air travel options expand, expect even more growth in business and tourism, further enhancing Guatemala's attractiveness. The country's strategic position continues to be a major draw for those looking to relocate or invest.
Sources: Trade.gov, Expat Exchange, YouTube
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.
3) With tourism booming, you’ll find high demand for short-term rentals in Guatemala’s hotspots like Antigua and Lake Atitlán
Guatemala's tourism is booming, especially in hotspots like Antigua and Lake Atitlán.
Thanks to a visa-free entry policy for 83 countries, more international tourists are discovering Guatemala's charm. This policy has made it easier for travelers to explore the country's rich cultural and eco-tourism offerings, leading to a surge in visitors in 2023.
With more tourists visiting, the demand for short-term rentals has skyrocketed. In Antigua, for instance, occupancy rates for short-term rentals hit 98% during peak seasons. This is largely due to the area's unique cultural appeal, attracting travelers who crave authentic experiences.
Lake Atitlán is also seeing a boom in Airbnb listings, which is driving up property prices. Tourists are increasingly opting for short-term rentals over hotels, enjoying the flexibility and home-like atmosphere they provide. This trend is evident in the glowing reviews on travel platforms.
In Antigua, short-term rentals are in high demand, with properties being booked for an average of 197 nights a year. This reflects a strong preference among tourists for these types of accommodations.
As tourism continues to grow, investing in short-term rental properties in these areas could be a lucrative opportunity. The combination of cultural allure and increasing visitor numbers makes Antigua and Lake Atitlán prime spots for property investment.
Sources: Travel and Tour World, Trade.gov
4) Guatemala offers diverse climate zones, giving you options from coastal homes to highland retreats for any lifestyle preference
Guatemala's diverse climate zones offer a wide range of real estate options, catering to various lifestyle preferences.
On the Pacific Coast, there's a growing buzz around eco-tourism, making beachfront properties a hot commodity. Monterrico, with its unique black sand beaches and sea turtle reserves, is catching the eye of foreign buyers. They're drawn to the idea of vacation rentals or simply enjoying a laid-back coastal lifestyle. The demand for these properties spikes during the dry season, which means there's potential for solid rental income.
Head to the highlands, and you'll find a completely different vibe. Lake Atitlán, surrounded by majestic volcanoes and traditional Mayan villages, is a haven for those craving peace and stunning natural beauty. The area is perfect for tranquility seekers who want to immerse themselves in the local culture and breathtaking views.
Then there's the Cuchumatán Highlands, which offer something unique. With its varied climate zones, this area supports diverse agricultural practices. This diversity provides resilience to climate change, making it an appealing choice for those considering larger home investments.
Guatemala's real estate market is as varied as its landscapes, offering something for everyone. Whether you're drawn to the coast or the highlands, there's a property that fits your lifestyle. From eco-friendly beach homes to serene highland retreats, the options are as diverse as the climate itself.
For those looking to invest, the opportunities are ripe. The country's unique blend of natural beauty and cultural richness makes it a compelling choice. Guatemala's real estate market is emerging as a hotspot for both personal and investment purposes.
Sources: Focus on Geography, Brevitas
5) With new highways and airport expansions, property access and value are improving
The government's recent infrastructure upgrades, like new highways and airport expansions, are making properties more accessible and valuable.
In 2024, Guatemala's budget for infrastructure investments saw a significant boost, highlighting a strong commitment to improving the road network. This includes major projects like widening key stretches of the regional ring road to four lanes, which enhances connectivity across the region. Such improvements are not just about roads; they are about making life easier and more connected for everyone.
Departments like Guatemala and San Marcos are focusing on projects worth billions of quetzales, ensuring that various regions benefit from improved transportation links. This broad focus makes these areas more attractive for investment, as better roads mean easier access to everything from schools to markets.
On the airport front, La Aurora International Airport is undergoing renovations through a private-public partnership. This aims to tackle infrastructure issues and meet the ongoing demand for better airport services, as seen by the high passenger traffic in 2023 and early 2024. The modernization plans are set to kick off by the end of 2024, promising to enhance the airport's capacity and efficiency.
These infrastructure improvements are not just about convenience; they are about boosting the economy and making the country more appealing to investors. With better roads and airports, property values are likely to rise, offering a great opportunity for those looking to invest in real estate.
For anyone considering buying property in the country, these developments mean easier access and potentially higher returns on investment. The government's focus on infrastructure is a clear signal that they are serious about growth and development.
Sources: Mayora & Mayora, Trade.gov, BNamericas
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6) With more international schools and healthcare facilities, Guatemala is becoming a top choice for families moving from abroad
Guatemala is becoming a hotspot for families moving from abroad, thanks to more international schools and healthcare facilities.
In cities like Guatemala City and Antigua, new healthcare facilities are popping up, making medical services more accessible and reliable for expatriates. Hospitals like Hospital Privado Hermano Pedro and Centro MĂ©dico Antigua are known for their high-quality care, which is a big plus for families thinking about relocating.
Schools such as the International School of Guatemala and the American School of Guatemala are part of a growing list of international educational options that cater to the expatriate community. These schools are expanding, showing a strong demand for international education.
Government incentives are also in play, offering tax breaks to attract foreign investment in education and healthcare. This has led to partnerships between local and international institutions, ensuring that the education provided meets international standards.
Many schools and hospitals in Guatemala have received international accreditation, like the International Baccalaureate (IB) and Joint Commission International (JCI), which adds to their appeal for families from abroad.
Expatriate families often share positive experiences, highlighting their satisfaction with both the education and healthcare services available in the country. This feedback is crucial for those considering a move.
Sources: UNESCO Institute for Statistics, Insured Nomads, World Bank
7) With a growing middle class, Guatemala has increasing demand for modern homes and city living spaces
Guatemala's middle class is expanding, and it's reshaping the housing market.
With more disposable income, people are looking for better homes, as the poverty rate is expected to drop slightly from 55% in 2023 to 54.3% in 2024. This means more families can afford to invest in modern living spaces.
Urban areas are growing fast, with the urban population growth rate at 2.2159% in 2023 and projected to hit 67.3% by 2025. This boom is driven by folks moving to cities for better jobs and living conditions. The government is also on board, working to include informal settlements in city planning.
Surveys show that the middle class loves suburban life, wanting homes that offer a mix of space, affordability, and quality. Younger buyers are especially keen on compact, tech-smart, and energy-efficient homes. This trend is clear in the real estate market, with more sales in urban areas and a rise in vertical housing in Guatemala City.
Guatemala City is seeing a surge in vertical housing developments, catering to the demand for modern, efficient living spaces. This shift is not just about preference but also about practicality, as more people seek homes that fit their lifestyle and budget.
As the middle class grows, so does the need for housing that meets their evolving tastes and needs. This is a golden opportunity for those looking to invest in the property market, as the demand for modern, urban living spaces continues to rise.
Sources: Trading Economics, World Bank Document
8) In Guatemala, you’ll find more growth opportunities in a less crowded real estate market than other Central American countries
Guatemala's real estate market is a hidden gem, less saturated than other Central American countries, offering more room for growth and appreciation.
One of the main attractions is the relatively low property prices, even in sought-after spots like Antigua and the Pacific Coast. This affordability makes it a magnet for investors hunting for budget-friendly opportunities.
Foreign investment is on the rise, with Guatemala pulling in USD 1.35 billion in foreign direct investment in 2022, surpassing pre-pandemic levels. This surge in capital is expected to energize the market, potentially driving up prices and creating a fertile ground for growth.
The government is also stepping up with infrastructure projects, like better roads and public transport. These improvements are likely to boost property values, especially in areas directly benefiting from these upgrades.
Adding to the appeal is the growing number of expatriate communities in popular areas, which further fuels the demand for properties. This trend is a strong indicator of a vibrant and expanding market.
With these factors in play, Guatemala's real estate scene is poised for exciting developments, offering a unique blend of affordability and potential for investors.
Sources: UNCTAD's World Investment Report 2023
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.