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’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities 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, 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.
How this content was created 🔎📝
1) Foreign buyers accounted for at least 20% of real estate transactions in 2024
In 2023, Guatemala experienced a notable surge in foreign direct investment, particularly in real estate.
The country's residential real estate market was thriving, with a strong demand for modern and luxurious properties. This boom was fueled by the development of gated communities and a growing economy, making it an attractive option for foreign buyers.
Guatemala's legal framework is quite accommodating, allowing foreigners to own property easily. This openness has encouraged international investors to participate actively in the market.
Investors are drawn to the strong rental yields, which range from 5.7% to 8.4%, offering lucrative returns. These figures highlight the market's potential for generating income.
Favorable lending conditions have also played a role in attracting foreign interest, making it easier for buyers to finance their investments. This has contributed to the market's overall appeal.
At least 20% of real estate transactions in 2024 were from foreign buyers, underscoring the significant role international investors play in Guatemala's real estate sector.
Sources: Statista, Lloyds Bank Trade
2) By 2025, property maintenance in Guatemala is expected to cost about 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.
We have made this infographic to give you a quick and clear snapshot of the property market in Guatemala. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Sales of properties with modern designs and amenities increased by 10% last year
In 2023, the Guatemalan real estate market experienced a 10% increase in sales for properties with modern designs and amenities.
As the middle class in Guatemala grows wealthier, their tastes are shifting towards higher quality homes with contemporary features. These homes often come with perks like swimming pools, gyms, and green spaces, making them highly desirable.
Gated communities have become a hot trend, offering not just homes but a lifestyle. They provide security and recreational facilities, meeting the demand for safety and convenience. With urban land becoming scarce, these communities are an attractive option for many buyers.
The overall demand for modern, luxurious properties is in sync with the broader growth of the real estate market in Guatemala. Factors like urbanization and tourism potential are fueling this trend, making these properties even more appealing.
Economic conditions in Guatemala have been favorable, further supporting the real estate boom. This has led to a significant boost in sales for properties that offer modern amenities and designs.
With the combination of a growing middle class, urbanization, and limited urban land, the market for modern properties is thriving. Buyers are increasingly drawn to homes that offer both luxury and practicality.
Source: Statista
4) Guatemala’s average mortgage interest rate for homes is expected to stabilize at about 6% in 2025
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
5) Demand for eco-friendly housing projects rose by 25% last year
In 2023, the real estate market in Guatemala saw a 25% increase in demand for eco-friendly housing projects.
This shift reflects a growing awareness of environmental issues, with more people wanting to live in harmony with nature. It's not just local residents; international buyers are also drawn to sustainable living options in Guatemala.
In cities like Guatemala City, the urban landscape is evolving as developers focus on projects that blend luxury with sustainability. These new housing projects are about more than just comfort and style; they emphasize eco-friendly living as a key feature.
Developers are responding to this demand by creating innovative designs that incorporate green technologies. This includes solar panels, rainwater harvesting systems, and energy-efficient appliances, making these homes attractive to environmentally conscious buyers.
The trend is part of a broader movement towards sustainable living, which is reshaping the real estate market. As more people prioritize environmental responsibility, the demand for eco-friendly homes continues to rise, influencing future developments.
Guatemala's real estate market is becoming a leader in sustainable housing, setting an example for other countries in the region. This focus on eco-friendly projects is not just a trend but a significant shift in how people view their living spaces.
Sources: GPI Article, Construction Industry Insights
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6) Rental yields in major cities like Guatemala City range from 5% to 8% annually
In Guatemala City, rental yields range from 5% to 8% annually, making it an attractive option for property investors.
Properties in the city center offer a higher gross rental yield of about 9.05%, compared to 6.62% for those outside. This is largely because central locations are closer to amenities and business districts, which boosts rental income potential.
For a 1-bedroom apartment in the city center, rental prices range from $570 to $900 USD, while outside the center, they drop to $340 to $600 USD. This price gap highlights why city center properties are more appealing to investors looking for better returns.
Investors are drawn to central properties not just for the higher yields but also for the convenience they offer to tenants. Proximity to work, shopping, and entertainment makes these locations more desirable, thus justifying the higher rental prices.
Outside the city center, while the rental yields are lower, the initial investment cost is also reduced. This can be a strategic choice for those looking to enter the market with a smaller budget, though the returns might not be as high.
Overall, the choice between city center and outskirts depends on your investment strategy. If you're aiming for higher immediate returns, the city center is your best bet. However, if you're looking for a more affordable entry point, properties outside the center might suit your needs.
Sources: Numbeo, The Latin Investor, The Latin Investor
7) Short-term rental listings on platforms like Airbnb increased by 18% last year
In 2023, short-term rental listings on platforms like Airbnb grew by 18%.
This surge is partly due to Airbnb's strategic expansion, especially in Latin America. In the last quarter of 2023, bookings in this region jumped by 22%, drawing more hosts to list their properties. This growth reflects a broader trend of increased travel and interest in unique accommodations.
Airbnb also introduced innovative services like "Noches y Experiencias" (Nights and Experiences), which offer guests the chance to engage in local activities. This addition made the platform more appealing, encouraging both hosts and travelers to participate. As a result, the platform became more attractive, leading to a rise in listings.
These changes have made Airbnb a more dynamic option for travelers seeking authentic experiences. The introduction of local activities not only enhanced the guest experience but also boosted the platform's popularity among potential hosts.
For those considering property investment in the country, this trend indicates a growing market for short-term rentals. With more travelers seeking unique stays, the demand for diverse accommodations is on the rise.
Investors can capitalize on this trend by offering properties that cater to the evolving preferences of travelers. As Airbnb continues to expand and innovate, the potential for profitable short-term rentals increases.
Source: America Economia Report
8) Residential property prices in Guatemala rose by an average of 5% in 2024
In 2024, residential property prices in Guatemala rose by an average of 5%.
This increase is largely due to a shift in buyer preferences towards modern and luxurious homes. The rise of gated communities and a booming rental market have also fueled demand, especially in urban areas. Many people are moving from rural regions to cities, seeking better job opportunities and a higher standard of living.
Guatemala's economy has been growing steadily, and its stable political climate has created a favorable environment for investment. This has attracted both local and international investors to the real estate market, pushing demand and prices higher.
Urban areas have become hotspots for real estate activity, with more people looking for properties that offer modern amenities and security. This trend is evident as more individuals and families seek to improve their quality of life by relocating to cities.
Investors are particularly interested in these urban developments, seeing them as lucrative opportunities. The combination of economic growth and political stability makes Guatemala an attractive destination for real estate investment.
As a result, the real estate market in Guatemala is thriving, with property prices reflecting the increased demand and investment interest. The country's urban centers continue to evolve, offering more options for those looking to buy or invest in property.
Sources: Statista Market Forecast, Statista Residential Real Estate Market
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.
9) Foreign investment in residential real estate increased by 15% last year
Foreign investment in residential real estate in Guatemala rose by 15% last year.
Guatemala's real estate market is booming, with a noticeable shift towards modern and luxurious properties. This trend is evident in the rise of gated communities, which offer security and exclusivity, making them highly attractive to investors.
The rental market is also expanding, providing investors with lucrative opportunities for steady income. This growth is fueled by an increasing demand for rental properties, particularly in urban areas where people are moving for work and lifestyle reasons.
Urbanization is a key factor, as more people are flocking to cities, boosting the demand for housing. Additionally, Guatemala's tourism potential is drawing attention, with its rich culture and natural beauty making it a desirable location for vacation homes and rental properties.
On a larger scale, Guatemala's economic growth and favorable lending conditions are making it easier for foreign investors to enter the market. These macroeconomic factors create a stable environment for investment, encouraging more international buyers to consider Guatemalan real estate.
While specific data on the 15% increase isn't detailed, the overall market dynamics clearly indicate a rise in foreign investment. The combination of local and macroeconomic factors makes Guatemala an appealing destination for real estate investors.
Source: Statista
10) Real estate transactions in Guatemala rose by 7% in 2024 compared to 2023
The real estate market in Guatemala experienced a 7% increase in transactions in 2024 compared to 2023.
This growth is largely due to economic expansion and urbanization, with more people moving to cities, especially the capital. As urban areas expand, the demand for housing and commercial spaces has naturally surged, driving up real estate activity.
Foreign investors are also playing a significant role. Attracted by Guatemala's natural beauty and favorable investment climate, they are buying properties, which boosts transaction numbers. The country's relatively low property prices compared to other regions make it an appealing choice for international buyers.
The residential real estate market is on a promising path, projected to reach US$0.41 trillion by 2025. This growth is fueled by a preference for modern, luxurious homes and the development of gated communities, alongside a thriving rental market.
Guatemala's real estate market is not just about numbers; it's about the lifestyle and opportunities it offers. The combination of affordable prices and a growing economy makes it an attractive option for both local and international buyers.
As the market continues to evolve, the focus remains on meeting the demands of a diverse clientele, from those seeking luxury to those looking for investment opportunities. The ongoing urbanization and foreign interest are key factors shaping this dynamic landscape.
Sources: Statista Market Forecast, Statista Residential Real Estate Market Forecast
11) Luxury residential developments made up 15% of all new projects in 2024
In 2024, luxury residential developments accounted for 15% of all new projects in Guatemala.
The rise in luxury projects is closely linked to the growing affluence of the middle class, who are increasingly seeking homes with modern amenities. This shift in demand reflects a broader trend in the Guatemalan real estate market, where buyers are prioritizing quality and comfort.
Features such as swimming pools, gyms, and green spaces have become highly desirable, driving the market towards more upscale properties. These amenities are not just luxuries but are now seen as essential components of a modern lifestyle, appealing to those looking to invest in their living environment.
Gated communities have emerged as a popular choice, offering a range of amenities and services that cater to the needs of residents. This development trend has significantly contributed to the demand for luxury residential projects, as they provide a sense of security and exclusivity.
The combination of these factors has led to a substantial increase in luxury residential developments, making them a prominent feature of the new projects landscape in 2024. The market's evolution is a testament to the changing preferences of buyers who value both comfort and convenience.
As the middle class continues to grow, the demand for high-quality homes is expected to rise, further solidifying the position of luxury developments in the real estate market. This trend highlights the importance of understanding buyer preferences and adapting to meet their expectations.
Source: Statista
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12) Properties near popular tourist spots appreciated by at least 12% in 2024
In 2024, properties near popular tourist attractions in Guatemala appreciated by at least 12%.
This surge is largely due to the booming tourism sector, which has been expanding rapidly. As more tourists flock to Guatemala, the demand for vacation properties and rental units has increased, naturally driving up property prices in these sought-after areas. The allure of owning a piece of paradise close to attractions is undeniable, and investors are keen to capitalize on this trend.
Moreover, the Guatemalan residential real estate market is experiencing a significant upswing. Buyers are increasingly drawn to modern and luxurious properties, and the development of gated communities is on the rise. This shift in consumer preferences is pushing property values higher, as people are willing to pay a premium for comfort and security.
Urban areas like Guatemala City are also seeing a spike in housing demand. The city is becoming a hub for a growing middle class with more disposable income, which is fueling urbanization. This influx of potential buyers is contributing to the upward trend in property prices, making urban real estate a hot commodity.
All these factors are creating a perfect storm for property appreciation near tourist hotspots. The combination of a thriving tourism industry, a booming real estate market, and urban growth is making these areas highly desirable for both investors and homebuyers.
For those considering investing in Guatemalan real estate, the current market conditions present a promising opportunity. With property values on the rise, especially near tourist attractions, now might be the perfect time to make a move.
Sources: The Latin Investor, The Latin Investor, Statista
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.