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
Are you considering investing in Guatemala's real estate market? Curious about the trends shaping property values in 2025? Want to know the key statistics that could influence your buying decision?
We will lay down recent insights. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Guatemala Property Pack
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) In 2025, Guatemala's residential property taxes will be 0.3% of the property's value annually
In 2025, residential property taxes in Guatemala are expected to average 0.3% of the property's value annually.
Historically, property taxes in Guatemala have varied, ranging from 0% to 0.9% of the property's cadastral value. This variation was largely influenced by economic conditions and government policies, which were set by the tax authorities. For potential property buyers, understanding this range is crucial as it reflects the flexibility and adaptability of the tax system over the years.
Although the specific rate of 0.3% hasn't been explicitly mentioned in past sources, it fits well within the historical range. This suggests that the rate is a reasonable estimate, considering past trends and the government's aim for a balanced taxation approach. For those looking to invest in Guatemalan real estate, this projected rate offers a glimpse into the potential financial obligations they might face.
In recent years, Guatemala's property tax rates have been shaped by various factors, including the country's economic health and policy changes. These elements have played a significant role in determining the tax rates, ensuring they remain within a manageable range for property owners. As a result, the projected 0.3% rate for 2025 seems to align with the government's ongoing efforts to maintain a fair and sustainable tax system.
For those considering purchasing property in Guatemala, it's important to note that the tax rate is not just a number; it reflects the broader economic and policy landscape. The projected rate of 0.3% indicates a stable and predictable tax environment, which can be appealing to potential investors. This stability is crucial for making informed decisions about property investments in the country.
Overall, the projected property tax rate for 2025 offers a reasonable expectation for future property owners. It aligns with historical trends and reflects the government's commitment to a balanced approach to taxation. This information is vital for anyone considering investing in Guatemalan real estate, as it provides a clear picture of the potential financial responsibilities involved.
Sources: The Latin Investor
2) In 2023, Quetzaltenango homes average $150,000 with a 3% yearly price rise expected
In 2023, the average cost of a residential property in Quetzaltenango was around $150,000.
This price reflects the city's unique blend of cultural and economic importance, drawing in both local and international investors. Known for its rich Mayan heritage, Quetzaltenango serves as a cultural hub, which helps maintain a stable real estate market.
The projected annual increase of 3% in property prices is driven by several key factors. Economic growth in the region and a consistent demand for housing are major contributors. Local regulations and market trends in Guatemala also support this growth, making Quetzaltenango an appealing investment choice.
By 2024, these elements continued to shape the market, ensuring the stability and growth potential of real estate in the area. The city's population, which is approximately 225,000, adds to the demand for residential properties, further bolstering the expected rise in property values.
Quetzaltenango's appeal is not just in its cultural richness but also in its economic prospects. The combination of a growing population and a thriving economy makes it a prime location for property investment.
Investors are particularly drawn to the city's potential for growth, with the real estate market showing signs of steady appreciation over the coming years.
Sources: CityMax Guatemala
Everything you need to know is included in our Property Pack for Guatemala
3) In 2025 residential property maintenance in Guatemala will cost 1.5% of the property's value annually
In 2025, the average cost of maintaining a residential property in Guatemala is expected to be around 1.5% of the property's value annually.
Construction costs are a big factor in these maintenance expenses. In Guatemala, the detailed estimates for building homes include land preparation and construction materials. If a property has high construction costs, it might mean more expensive upkeep down the line.
Energy and water costs also play a key role. The demand for these resources in 2024-2025, especially with hydroelectric power and water management, can indirectly impact maintenance costs. Efficient systems can help keep these costs down, while inefficiencies might drive them up.
Understanding these factors can help you plan better. If you're considering buying property, think about how initial construction costs might affect future maintenance. It's not just about the purchase price; it's about what comes after.
Also, consider the energy and water systems in place. Properties with modern, efficient systems might save you money in the long run. On the flip side, older systems could mean higher maintenance costs.
4) In 2023, Guatemala City residential property averages $1,200 per square meter with 5% annual price growth
In 2023, the average price per square meter for residential properties in Guatemala City is approximately $1,200, with a projected increase of 5% annually.
Guatemala City's property market is diverse, with prices varying based on location. In central areas, prices can reach around $1,403 per square meter, while in the outskirts, they might drop to as low as $915. This range highlights the importance of location in determining property value.
Factors like urbanization and foreign investments are driving the real estate market's growth. These elements are likely contributing to the projected increase in property prices, even though specific sources didn't mention a 5% annual rise.
Central areas are popular due to their amenities and security, which naturally drives up prices. Meanwhile, the outskirts offer more affordable options, appealing to those seeking lower-cost living without sacrificing too much on space.
Understanding these dynamics is crucial for potential buyers. The city's growth and investment opportunities make it an attractive option, with the potential for property value appreciation over time.
Sources: CityMax Guatemala, The Latin American Investor
5) In 2025 Guatemala's average mortgage rate for homes will stabilize at 6%
In 2025, the average mortgage interest rate for residential properties in Guatemala is expected to stabilize at around 6%.
Guatemala's economy has been on a steady rise, with an annual growth rate of 3% to 4% in recent years. This growth is largely fueled by infrastructure investments and foreign direct investment, which have increased the demand for housing. As the economy strengthens, lenders are likely to feel more confident, offering stable rates to borrowers.
The Monetary Board of the Central Bank of Guatemala has set the official interest rate at 4.75% in the past, with a long-term projection of around 4.00% by 2025. This indicates a stable economic environment that supports moderate mortgage rates, making it a favorable time for potential homebuyers.
Moreover, the Guatemalan government has been proactive in supporting first-time homebuyers by offering low-interest credits. With a budget of 750 million quetzales allocated for affordable housing, the government is creating a more favorable environment for stable mortgage rates. These credits, with terms up to 40 years, make homeownership more accessible.
Such initiatives not only help individuals but also contribute to the overall stabilization of mortgage rates around 6%. This makes it an attractive prospect for those considering purchasing property in the country.
Sources: Trading Economics, Prensa Libre, AGN
Get to know the market before you buy a property in Guatemala
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) By 2025, 30% of homes in Guatemala City will be in gated communities for better security
In Guatemala City, the demand for gated communities surged in 2023 and 2024.
With a homicide rate of 16.7 per 100,000 people, safety is a top concern, and these communities offer a secure living environment. People are drawn to the lifestyle benefits, seeking peace of mind in a city where security is a priority.
The rise of the middle class is another driving force. Thanks to a steady GDP per capita growth of 1.9% from 2014 to 2023, more families can afford suburban housing. These developments strike a balance between space, affordability, and quality of life, making them appealing to those looking for a better living environment.
Fear of crime has also spurred the creation of communities like Paseo Cayala. These areas not only provide security but also offer amenities that enhance residents' quality of life. This makes them an attractive choice for many, contributing to the trend.
By 2025, it's expected that around 30% of residential properties in Guatemala City will be part of gated communities. This reflects a shift towards enhanced security and a better lifestyle.
Gated communities are becoming a preferred option, offering a sense of safety and a range of amenities that improve daily living. This trend is reshaping the real estate landscape in Guatemala City.
Sources: The Latin Investor, The Development of Gated Communities in Guatemala City, Guatemala's Real Estate Trends
7) Guatemala City residential property prices will grow 7% annually over the next five years
The average annual growth rate of residential property prices in Guatemala City is projected to be around 7% over the next five years.
People are flocking to Guatemala City from rural areas, drawn by better job opportunities and a higher standard of living. This migration is boosting the demand for urban housing, which in turn is pushing property prices up.
Space is tight in the city, with limited land available for new developments. Developers are responding by building high-density housing projects and gated communities, which are popular for their security and modern amenities, further increasing property values.
Guatemala City's economy is on the rise, becoming a key hub for business and commerce. This growth is attracting both local and international investors, which supports the upward trend in property prices.
These factors combined make the real estate market in Guatemala City a dynamic and potentially lucrative investment opportunity. The city's transformation into a bustling urban center is a major driver of the projected 7% annual growth rate in property prices.
As the city continues to evolve, the demand for housing is expected to remain strong, ensuring that property values keep climbing. This makes now a strategic time to consider investing in Guatemala City's real estate market.
Sources: The Latin Investor, The Latin Investor
8) Residential property demand in Antigua will rise 15% yearly due to its growing popularity with expatriates and retirees
The demand for residential properties in Antigua is expected to increase by 15% annually due to its growing popularity among expatriates and retirees.
Antigua is becoming a hotspot for those looking to retire or relocate, thanks to its friendly atmosphere and beautiful surroundings. The town's vibrant expat community adds to its charm, making it an attractive destination for many. This influx of new residents is a key factor driving the real estate market upward.
Real estate trends in Antigua are on the rise, fueled by urbanization and a growing need for housing. The area's cultural richness and quality of life have made it a magnet for tourists, which in turn has boosted real estate prices. This trend is expected to continue as more people discover what Antigua has to offer.
In Antigua, the demand for housing often outpaces supply, creating a seller's market. This dynamic is a significant reason why the demand for residential properties is expected to grow. The limited availability of homes means that buyers need to act quickly, further driving up interest and prices.
Investors are also drawn to Antigua due to the strong rental yields in Guatemala, which range from 5.7% to 8.4%. These attractive returns make investing in residential properties a smart choice for those looking to capitalize on the area's growth. The potential for profit is a compelling reason for investors to consider Antigua.
Sources: Vagabond Buddha, The Latin Investor, The Latin Investor
Everything you need to know is included in our Pack for Guatemala
9) Guatemala's residential real estate deals will surge 20% by 2026 due to more foreign investment
Guatemala's economy is on the rise, boosting consumer confidence and increasing the purchasing power of potential homebuyers.
Foreign investors, especially from Europe, are drawn to Guatemala's strategic location and economic potential, injecting significant capital into the real estate market. This influx is a key factor in the rising property prices across the country.
Urbanization is another major player in this trend. As people flock to cities like Guatemala City for better job opportunities, the demand for housing has surged. This urban migration is a catalyst for the real estate boom, pushing property prices even higher.
With these dynamics at play, the number of residential real estate transactions in Guatemala is projected to rise by 20% by 2026. This growth is largely driven by increased foreign investment, which continues to fuel the market.
Guatemala's real estate market is thriving, thanks to a combination of economic growth, foreign investment, and urbanization. These factors are creating a vibrant environment for potential homebuyers and investors alike.
Sources: The Latin Investor, The Latin Investor, Statista