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
Where are the best places to invest in Guatemala right now? Is Guatemala City still the top pick, or are cities like Antigua, Quetzaltenango, and Lake Atitlán gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Guatemala and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Retalhuleu is gaining interest with its growing industrial sector and demand for housing and commercial spaces
Retalhuleu is quickly becoming a real estate hotspot thanks to its booming industrial sector.
The Guatemalan government is pouring money into infrastructure, with a big chunk of the US$1 billion investment going to areas like Quetzaltenango and Retalhuleu. This means better roads and bridges, making the area more accessible and attractive for both businesses and residents. As the industrial sector grows, job opportunities are on the rise, which naturally boosts employment rates.
With more people finding jobs, the demand for housing is climbing, especially near industrial hubs like Retalhuleu. The government is also rolling out policies to enhance property values, making it a smart choice for real estate investors. Urbanization trends are pushing more people to cities and secondary cities like Retalhuleu, driven by the need to support the growing industrial sector.
This shift is creating a higher demand for worker housing. The middle class is also eyeing suburban areas, further driving the demand for housing near industrial developments. Retalhuleu is not just about industry; it's becoming a place where people want to live. The expanding industrial sector is creating a ripple effect, boosting the local economy and making the area more appealing for real estate.
As more people move to Retalhuleu, the need for commercial spaces is also increasing. Businesses are setting up shop to cater to the growing population, which in turn is creating more job opportunities. This cycle of growth is making Retalhuleu a vibrant place to invest in real estate. The combination of government investment, job creation, and urbanization is turning Retalhuleu into a thriving real estate market.
Source: Brevitas
2) Jalapa is gaining interest from investors for its agricultural growth and potential in residential and commercial development
Jalapa is catching the eye of real estate investors thanks to its booming agricultural sector.
In recent years, Jalapa's agricultural production has skyrocketed, with a 500% increase in vegetable production back in 2020. This surge highlights a vibrant farming scene, which is a major draw for investors looking for growth opportunities.
The region isn't just about agriculture; it's also seeing major infrastructure upgrades like new roads, bridges, and hospitals. These developments make Jalapa more accessible and attractive for both living and business, pulling in even more real estate interest.
With these changes, the demand for properties in Jalapa is climbing. This is driven by the agricultural boom and improved infrastructure, which are likely to push land prices up. For investors, this means a chance to tap into the region's growing potential.
Jalapa's mix of agricultural success and infrastructure progress is creating a perfect storm for real estate growth. Investors are keen to get in on the action, seeing the potential for development in residential and commercial properties.
As Jalapa continues to evolve, it's becoming a prime spot for those looking to invest in a region with strong growth prospects and a promising future.
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) Quetzaltenango is a real estate hotspot with its educational institutions and growing economy driving demand for housing and commercial spaces
Quetzaltenango is quickly becoming a real estate hotspot.
With more students flocking to the University of San Carlos and the National Pedagogical University, there's a surge in demand for student housing. This influx is not just about dorms; it’s about creating a vibrant community with cafes, bookstores, and other student-friendly spots.
The local economy is on the rise, partly due to the USAID Creating Economic Opportunities Project. This initiative has sparked a wave of new businesses and startups, leading to a growing need for commercial spaces. Entrepreneurs are finding Quetzaltenango an attractive place to set up shop, which is great news for anyone looking to invest in office rentals.
Infrastructure upgrades are also playing a big role. The government has been busy with projects like widening the regional ring road and introducing electric buses for TRANSMETRO. These changes have made the city more accessible, which in turn has boosted its appeal for both living and business.
As Quetzaltenango becomes more connected and business-friendly, the demand for real estate is naturally climbing. The city is transforming into a hub where education, business, and lifestyle converge, making it a prime spot for property investment.
Sources: USAID, Realestate.com.au
4) Santa Catarina Palopó on Lake Atitlán is gaining interest with cultural projects and tourism boosting property values
Santa Catarina Palopó on Lake Atitlán is catching eyes in the real estate world for good reasons.
The town's transformation began with a cultural project called "Pintando El Cambio," which has painted 760 out of 850 houses in bright, lively colors. This splash of color has not only made the town more beautiful but has also drawn in tourists, making it a hot spot for potential homeowners and investors. The vibrant hues have turned the town into a living canvas, attracting art lovers and curious travelers alike.
Tourism initiatives have further boosted property values. Lake Atitlán is a major draw, being the second most visited tourist destination in Guatemala. Eco-tourists flock here for the stunning views and rich local culture. This influx of visitors has sparked a boom in new businesses, with hotels and restaurants popping up to meet the demand. The town is becoming a bustling hub, offering more amenities and opportunities for both locals and newcomers.
Real estate agents are noticing a surge in interest around Lake Atitlán, especially in Santa Catarina Palopó. The buzz is largely due to these cultural and tourism efforts. The local community and government are not resting on their laurels; they are planning more development projects to improve infrastructure and tourism facilities. This proactive approach is ensuring that the real estate market continues to grow, making it an exciting time for potential buyers.
Insider knowledge suggests that the town's unique blend of culture and natural beauty is a key selling point. The colorful houses and scenic lake views create a picturesque setting that is hard to resist. As more people discover this hidden gem, property values are expected to rise, offering a promising investment opportunity.
Santa Catarina Palopó is not just a place to visit; it's becoming a place to call home. With ongoing projects and a thriving tourism scene, the town is poised for continued growth. The combination of cultural vibrancy and natural allure makes it a standout choice for those looking to invest in a unique and dynamic location.
Sources: Passport and Pixels, Statista, Global Nature
5) Cobán in Alta Verapaz is gaining attention for its natural beauty and eco-tourism potential, boosting land and property investment interest
Cobán in Alta Verapaz is becoming a real estate hotspot thanks to its stunning landscapes and eco-tourism appeal.
Guatemala is riding a wave of tourism growth, with the Guatemalan Institute of Tourism pushing for sustainable tourism initiatives. These efforts include projects in remote villages, which are shaping the country's tourism landscape.
In Alta Verapaz, community development and conservation are gaining momentum. The Cloud Forest Conservation's "land for trees" agreement in Semesche has reforested 390 acres and created jobs, underscoring the region's dedication to sustainability.
International investors are eyeing Guatemala's real estate market, drawn to areas rich in history and culture. The entry of Keller Williams Realty into Guatemala is a sign of growing interest in the region, marking it as a promising real estate market.
With its natural beauty and eco-tourism potential, Cobán is attracting attention from those looking to invest in land and property. The region's commitment to sustainability and community development is a key factor in this interest.
As more investors look to Guatemala, Cobán's unique blend of culture, history, and natural beauty makes it a standout choice for real estate opportunities.
Sources: Think Global Health, Cloud Forest Conservation, South Florida Agent Magazine
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6) Panajachel on Lake Atitlán is in demand for its scenic beauty and growing interest in vacation homes and rentals
Panajachel on Lake Atitlán is a hot spot for property buyers, thanks to its stunning natural beauty and growing demand for vacation homes.
Imagine waking up to breathtaking views and a tranquil environment that draws both tourists and potential buyers. This charm is why property values in Panajachel are expected to rise by 3% to 7% annually.
Interest is booming, especially for luxury rentals, with impressive occupancy rates during peak holiday periods in 2023. This trend mirrors the rising property values in other popular areas like Zona 10 and Antigua Guatemala.
Panajachel is part of the Lake Atitlán region, which is the second most visited tourist destination in Guatemala. The area saw a significant tourism boost in 2023, thanks to a visa-free entry policy for 83 countries, including the USA and Schengen nations.
This influx of tourists has made vacation homes in Panajachel attractive investments, with high occupancy rates adding to their appeal.
Source: Global Nature
7) Antigua Guatemala is booming with its colonial charm and tourism appeal driving property prices and investment opportunities
Antigua Guatemala is in the midst of a real estate boom.
One big reason for this surge is the high property prices, which are largely due to the limited land availability. The city is famous for its colonial architecture and stunning natural landscapes, and strict preservation laws keep it that way. This scarcity of land makes properties more valuable and highly attractive to investors.
Looking ahead, the real estate market in Guatemala, including Antigua, is set to grow significantly. From 2024 to 2029, a 6.02% increase is expected. This growth is largely driven by foreign investments, especially from Europe. Investors are drawn to Antigua's unique charm and the potential for high returns.
Luxury rentals in tourist hotspots like Antigua are doing exceptionally well. In 2023, during peak holiday periods, occupancy rates reached up to 98%. This high demand is a clear indicator of the area's appeal as a luxury destination.
Antigua's allure attracts affluent buyers looking for vacation homes, ensuring a steady stream of buyers and driving up property prices. The city's easy visa-free entry policy for 83 countries, including the USA and Schengen nations, has also played a role. This policy has brought in a significant number of foreign visitors, boosting the local economy and increasing demand for real estate.
Sources: Brevitas, Travel and Tour World
8) Flores in Petén is gaining attention for its booming tourism and high rental yields from vacation properties
Flores in Petén is quickly becoming a real estate hot spot, and it's no wonder why.
The area is buzzing with tourists, especially since the Petén Sustainable Tourism Observatory kicked off in 2024. This observatory is a game-changer, tracking and promoting tourism, which is a big boost for local development. One of the main draws is Tikal National Park, a magnet for visitors. While we don't have the exact 2023 numbers, the general trend shows more people flocking to national parks, so Tikal is likely seeing a surge too.
More tourists mean more demand for places to stay, which is great news for the local accommodation scene. Hotels and vacation rentals are seeing a boost, and this is where real estate investors start to pay attention. The potential for high rental yields from vacation properties is becoming more apparent, especially with government support from the Guatemalan Institute of Tourism.
New businesses are sprouting up in Flores to cater to the influx of visitors. This growth in tourism-related ventures not only bolsters the local economy but also makes the area more attractive to real estate investors. They see the potential for lucrative returns on vacation properties, thanks to the steady stream of tourists.
Insider knowledge suggests that the local government is keen on maintaining this momentum. Initiatives are in place to ensure that the tourism boom translates into sustainable economic growth. This is a win-win for both the community and investors looking to capitalize on the area's rising popularity.
With the backing of government initiatives and a thriving tourism industry, Flores in Petén is poised for continued growth. Real estate investors are taking note, seeing the potential for high returns in this vibrant market.
Sources: UNWTO, National Parks Traveler, Deloitte
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Guatemala versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) Livingston in Izabal is attracting interest for its Caribbean vibe and growing eco-tourism property market
Livingston in Izabal is gaining attention for its unique Caribbean vibe and increasing interest in eco-tourism properties.
Imagine a place where the vibrant Garifuna culture fills the air with distinctive music and tantalizing food. That's Livingston for you, a town that offers an authentic Caribbean experience. Thanks to media coverage, more people are discovering these cultural gems, making it a hotspot for curious travelers.
Recently, the Izabal region, including Livingston, has seen a notable rise in tourist arrivals. This surge, especially evident in late 2024, is fueling the growth of eco-tourism. Visitors are drawn to the area's natural beauty and rich culture, and both the Guatemalan government and local communities are keen on promoting eco-tourism to preserve these treasures for future generations.
Livingston is buzzing with eco-tourism projects and investments. Initiatives like the Deforested Areas project are enhancing the region's green environment, which not only improves air quality but also meets the growing demand for sustainable tourism. The development of infrastructure, such as protected areas and biological corridors, is creating unique ecosystems for tourists to explore.
These efforts are transforming Livingston into a destination where eco-conscious travelers can enjoy the lush landscapes and diverse wildlife. The town's commitment to sustainability is evident in its ongoing projects, which aim to balance tourism with environmental preservation.
For those considering property investment, Livingston offers a chance to be part of a community that values both cultural heritage and environmental sustainability. The town's increasing popularity among tourists and eco-tourists alike makes it an attractive option for potential buyers.
Sources: Passport and Pixels, Think Global Health, Trading Economics
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.