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As we reach mid-2025, Honduras property prices are experiencing steady growth across most markets, with particularly strong performance in tourist destinations and urban centers.
The Honduran real estate market is showing robust price appreciation, driven by increased foreign investment, growing tourism, and steady economic expansion. Property values in key locations like Roatán, Tegucigalpa, and San Pedro Sula have risen between 3% and 8% over the past year, with beachfront properties leading the charge.
If you want to go deeper, you can check our pack of documents related to the real estate market in Honduras, based on reliable facts and data, not opinions or rumors.
Property prices in Honduras are rising at a rate of 3-8% annually as of June 2025, with the strongest growth in beach destinations like Roatán and urban centers like Tegucigalpa.
Beachfront properties, tech-smart homes, and urban condos are experiencing the highest price increases, while Honduras remains one of the most affordable Central American markets with attractive rental yields of 7.7-10.4%.
| Property Type | Average Price (June 2025) | Year-over-Year Change |
|---|---|---|
| Apartments (National) | HNL 53,916/m² ($2,170/m²) | +4.5% |
| Houses (National) | HNL 32,681/m² ($1,264/m²) | +3.2% |
| Bay Islands Apartments | HNL 57,696/m² ($2,232/m²) | +6.8% |
| Tegucigalpa Condos | $1,200/m² | +3.0% |
| Roatán Beach Condos | $250,000-$400,000 | +8.0% |
| Beachfront Land (Bay Islands) | $350-$500/m² | +7.5% |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current average property prices in Honduras as of June 2025?
Property prices in Honduras vary significantly depending on location and property type, with the Bay Islands commanding premium prices compared to mainland areas.
As of June 2025, apartments in Honduras have a median price of HNL 53,916 per square meter (approximately USD 2,170), while houses are more affordable at HNL 32,681 per square meter (USD 1,264). The Bay Islands, particularly Roatán, show higher prices with apartments averaging HNL 57,696 per square meter (USD 2,232) and houses at HNL 42,585 per square meter (USD 1,647).
Urban condos in Tegucigalpa are priced around $1,200 per square meter, with typical units ranging between $100,000 and $200,000. Meanwhile, beach condos in Roatán command significantly higher prices, typically between $250,000 and $400,000 for mid-range units. These price variations reflect the strong demand from both foreign investors and local buyers in tourist destinations.
Beachfront land in the Bay Islands represents some of the most expensive real estate in Honduras, with prices ranging from $350 to $500 per square meter. This premium pricing reflects the limited availability of coastal property and strong international demand. The market continues to attract buyers seeking vacation homes, rental properties, and retirement destinations.
It's something we analyze in detail in our Honduras property pack.
How much have property prices increased in the past 12 months?
Honduras property prices have shown consistent growth over the past year, with annual increases ranging from 3% to 8% depending on the location and property type.
Nationally, the real estate market has experienced steady appreciation, with Tegucigalpa recording a 3% price increase in 2024 that has continued into 2025. The most impressive growth has occurred in Roatán, where beachfront properties appreciated by 8% in 2024 and are projected to rise another 3-7% through 2025. Some market analysts even forecast potential growth of up to 20% by 2026 for prime beachfront locations.
San Pedro Sula has maintained medium-high price growth, primarily driven by industrial expansion and increased commercial activity. The city's strategic location as Honduras's industrial hub continues to attract both residential and commercial investment. Other regions showing notable growth include the Yoro Department, which recorded a remarkable 17% increase in house prices during 2024.
The overall annual price growth across major Honduran markets is settling into a sustainable 3-8% range as of June 2025. This moderate but consistent appreciation reflects a healthy market that's avoiding the volatility seen in some neighboring countries while still providing attractive returns for property investors.
These growth patterns demonstrate that the Honduran property market is experiencing genuine appreciation rather than speculative bubbles.
Which cities and regions are seeing the fastest price growth?
The Bay Islands, particularly Roatán, are leading Honduras in property price appreciation, driven by tourism growth and international buyer interest.
| Region/City | Price Growth (2024-2025) | Key Growth Drivers |
|---|---|---|
| Roatán (Bay Islands) | 8% in 2024; 3-7% forecast for 2025 | Tourism expansion, foreign demand, limited beachfront supply |
| Tegucigalpa | 3% steady annual growth | Urbanization, infrastructure improvements, government presence |
| San Pedro Sula | Medium-high growth rate | Industrial expansion, commercial development |
| Yoro Department | +17% for houses in 2024 | Infrastructure projects, regional economic development |
| Comayagua | Stable with growth potential | Infrastructure investments, proximity to capital |
| Choluteca | Emerging growth market | Affordable entry prices, government development initiatives |
| Puerto Cortés | Rising steadily | Port expansion, industrial growth, beach tourism |
What property types are experiencing the biggest price increases?
Beachfront properties and modern urban developments are leading the market in terms of price appreciation as of June 2025.
Beachfront homes, especially in Roatán and Tela, are experiencing the most significant price increases, driven by both international and local demand for vacation and investment properties. These properties are benefiting from Honduras's growing reputation as a Caribbean destination and the limited supply of prime coastal real estate. The combination of natural beauty, diving attractions, and relatively affordable prices compared to other Caribbean destinations continues to fuel demand.
Tech-smart and energy-efficient homes in urban areas are emerging as another high-growth segment. These properties, featuring smart technology and energy-saving systems, appeal particularly to young professionals and tech-savvy buyers. The trend reflects global shifts toward sustainable living and remote work capabilities, with buyers willing to pay premiums for homes that offer modern amenities and lower operating costs.
Several other property types are also seeing notable appreciation:
- Eco-friendly developments with sustainable building practices
- Urban condos in smaller, more affordable units targeting first-time buyers
- Mixed-use developments combining residential and commercial spaces
- Gated communities offering enhanced security and amenities
- Agricultural land benefiting from food security concerns and investment diversification
This detailed breakdown is covered extensively in our Honduras property pack.
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How do current prices compare to 5 and 10 years ago?
Honduras property prices have shown substantial appreciation over both the 5-year and 10-year periods, significantly outpacing inflation.
Over the past five years, property prices in Honduras have risen by 59.8% in nominal terms. This represents a compound annual growth rate of approximately 9.8%, which is notably higher than the inflation rate during the same period. While exact inflation-adjusted figures aren't precisely specified, the real price increase remains substantial, indicating genuine market appreciation rather than just monetary devaluation.
The 10-year perspective shows even more dramatic growth, with property prices increasing by 122.85% in nominal terms. This means that a property worth $100,000 in 2015 would now be valued at approximately $222,850 in 2025. This long-term appreciation demonstrates the Honduran real estate market's resilience and growth potential, despite economic challenges and political uncertainties during this period.
When adjusted for inflation, the real price increases are lower but still significant. The fact that nominal growth has substantially outpaced inflation indicates that Honduras property represents a solid hedge against currency devaluation and has provided real wealth creation for property owners. This long-term trend suggests that the current price increases are part of a sustained pattern rather than a temporary spike.
These historical price trends make Honduras an increasingly attractive market for long-term property investment, particularly when compared to more mature Central American markets.
What are the property price forecasts for 2026 and beyond?
Market analysts project continued gradual price increases for Honduras real estate through 2026 and into the next decade.
For 2026, property prices in Honduras are expected to rise between 3% and 7% from their 2025 levels, with some forecasts suggesting that prime beachfront locations in Roatán could see increases of up to 20%. This would mean that a property currently valued at 1,500,000 Lempiras could be worth between 1,545,000 and 1,605,000 Lempiras by the end of 2026. The sustained growth reflects ongoing infrastructure improvements, demographic expansion, and rising foreign investment.
Looking toward 2030, gradual price increases are expected to continue, driven by several key factors. Infrastructure projects currently underway or planned will improve connectivity and accessibility to previously underdeveloped areas. Demographic growth, with the population expected to exceed 10 million by 2026, will maintain steady housing demand. The growing expatriate and retiree communities, particularly in coastal areas, will continue to support price appreciation.
While specific quantitative forecasts for 2045 aren't available, long-term trends point to continued appreciation. Regions benefiting from tourism development, climate resilience initiatives, and major connectivity projects are expected to outperform the national average. The Bay Islands, major urban centers, and areas with strong infrastructure investment are likely to remain the top performers.
You'll find more detailed forecasts in our Honduras property pack.
How are current interest rates and inflation affecting property prices?
Rising interest rates and moderate inflation are creating a complex environment for Honduras property prices as of June 2025.
Inflation in Honduras is projected at 4.95% for 2025, which is affecting construction costs and potentially moderating real price gains. While this inflation rate is manageable, it's pushing up the cost of building materials and labor, which in turn contributes to higher prices for new construction. However, the inflation rate remains below the nominal property price appreciation in most markets, meaning real estate continues to offer positive real returns.
Interest rates have seen significant increases, with policy tightening leading to a 3.5 percentage point rise in loan rates since August 2024. Mortgage rates for foreigners now range between 10% and 14%, making financing more expensive than in recent years. For local buyers, rates are slightly lower but still elevated compared to historical norms. These higher rates are slowing credit growth to below 12% year-on-year, reflecting tighter lending conditions.
Despite higher borrowing costs, property prices continue to appreciate, suggesting strong underlying demand. The impact varies by market segment: cash buyers and foreign investors are less affected, while local buyers requiring financing face affordability challenges. However, the fact that prices are still rising despite higher rates indicates robust market fundamentals and suggests that demand exceeds supply in key markets.
The combination of moderate inflation and higher interest rates is creating a more selective market where quality properties in prime locations continue to appreciate while marginal properties may see slower growth.
What impact is the 2025 minimum wage reform having on the market?
The 2025 minimum wage reform in Honduras is creating new dynamics in the property market by improving affordability for some buyers while potentially pushing prices higher.
| Impact Area | Effect on Market | Implications for Prices |
|---|---|---|
| Buyer Affordability | Higher wages improve savings capacity and loan qualification | Increased pool of potential buyers supports price growth |
| Rental Demand | Workers can afford better quality rentals | Upward pressure on rental rates and property values |
| Urban Housing | Greater demand for affordable urban units | Faster appreciation in entry-level properties |
| Construction Costs | Higher labor costs for developers | New construction prices may rise faster |
| Market Segmentation | Stronger growth in lower and middle segments | Narrowing price gap between market segments |
We made this infographic to show you how property prices in Honduras 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.
How might the November 2025 elections affect property prices?
The November 2025 elections introduce some uncertainty to the Honduras property market, though fundamental drivers remain strong.
Political stability and investor confidence are closely linked in emerging markets like Honduras. While the elections create short-term uncertainty, the country's commitment to infrastructure investment and maintaining a stable currency continues to support market confidence. Foreign direct investment reached $1.07 billion in 2023 and has maintained strong inflows through 2024-2025, particularly in real estate and tourism sectors, suggesting that international investors remain optimistic about Honduras's long-term prospects.
Historical patterns in Honduras show that property markets typically experience a temporary slowdown in transaction volumes during election periods, but prices tend to remain stable or continue modest growth. The current market fundamentals – including strong tourism growth, infrastructure development, and demographic trends – are unlikely to be significantly altered by the election outcome. Most major infrastructure projects have bipartisan support and are expected to continue regardless of which party wins.
Investor sentiment remains cautiously optimistic, though concerns about corruption, bureaucracy, and policy consistency persist. These issues may dampen enthusiasm compared to more stable neighbors like Costa Rica or Panama. However, Honduras's legal protections for property ownership, proximity to the United States, and attractive investment incentives continue to draw foreign capital, particularly to tourist destinations and urban markets.
Post-election policy signals will be crucial for sustaining investor confidence and maintaining the current growth trajectory in property prices.
What role is foreign investment playing in price trends?
Foreign investment is a major driver of Honduras property price appreciation, particularly in tourist destinations and urban centers.
With $1.07 billion in foreign direct investment in 2023 and continued strong inflows through 2025, international capital is significantly impacting the real estate market. The hotspots for foreign investment include Roatán, Tela, and Tegucigalpa, where international buyers are attracted by relatively low prices compared to other Central American countries and attractive rental yields of 5-8% in tourist areas. This influx of foreign capital is directly contributing to price appreciation in these markets.
The profile of foreign investors is diverse, including retirees seeking affordable tropical living, investors looking for vacation rental properties, and developers attracted by Honduras's growing tourism sector. North American buyers dominate, but there's increasing interest from European and other Latin American investors. The availability of direct flights from major North American cities has made Honduras more accessible, further boosting foreign investment.
Digital platforms have revolutionized how foreign investors access the Honduras market, with a 20% jump in online property listings in 2024 and 30% increase in user engagement. This digital transformation has made it easier for international buyers to research and purchase properties remotely, contributing to increased transaction volumes and price competition in popular areas.
The concentration of foreign investment in specific markets is creating price disparities, with international buyer hotspots experiencing faster appreciation than areas primarily serving local buyers.
How do Honduras property prices compare to neighboring countries?
Honduras remains one of the most affordable property markets in Central America while offering competitive rental yields.
With a cost of living index of 34.6 and rent index of 10.2, Honduras offers significantly lower prices than regional competitors. Costa Rica, with indices of 50.1 and 18.5 respectively, represents a more mature and expensive market. Panama (43.9 and 22.5) also commands higher prices due to strong expatriate demand and its position as a regional financial hub. Even El Salvador (37.9 and 15.6) and Guatemala (36.8 and 12.6) have slightly higher costs than Honduras.
Despite lower absolute prices, Honduras offers attractive rental yields of 7.7% to 10.4%, which are competitive with or exceed those in neighboring countries. This combination of low entry prices and strong rental returns makes Honduras particularly attractive for investment property buyers. The Bay Islands, especially Roatán, compete directly with Caribbean destinations while offering more affordable options than established markets like Costa Rica's Pacific coast or Panama's beach communities.
Key advantages of Honduras compared to neighbors include:
- Lower property acquisition costs, making it accessible to a broader range of buyers
- Higher rental yields in tourist areas, providing better cash flow for investors
- Less saturated market with more growth potential
- Favorable exchange rates for foreign buyers
- Similar or better infrastructure in key tourist destinations
- Growing but not yet mature tourism sector offering upside potential
This competitive positioning suggests Honduras property prices have room for appreciation to close the gap with regional peers.
How is climate change and internal migration affecting property markets?
Climate-driven displacement is reshaping Honduras property demand patterns, creating new opportunities and challenges for different market segments.
Honduras faces significant internal displacement due to climate change and natural disasters, with over 247,000 internally displaced people and an additional 123,000 at risk as of 2024. This displacement is creating increased demand for affordable urban housing and rentals, particularly in safer, climate-resilient areas. Cities like Tegucigalpa and San Pedro Sula are experiencing population growth as rural residents migrate from disaster-prone zones, driving up property prices in urban centers.
The migration patterns are creating distinct market effects. Areas perceived as climate-resilient are seeing faster price appreciation as buyers prioritize safety and stability. Highland regions and cities with better infrastructure are benefiting from this trend, while coastal areas vulnerable to hurricanes face more volatile pricing. Developers are increasingly incorporating climate resilience features into new projects, and properties with these features command premium prices.
Government and international organizations are investing in climate adaptation infrastructure, which is benefiting certain regions and supporting property values. Areas receiving these investments are becoming more attractive to both displaced populations and investors, creating localized price pressures. The trend is also driving demand for rental properties as many displaced families initially rent before purchasing.
This internal migration represents both a humanitarian challenge and a market driver that's likely to continue influencing property prices in coming years.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Honduras are definitely going up as of June 2025, with annual growth rates between 3% and 8% across major markets.
The strongest price appreciation is occurring in tourist destinations like Roatán and urban centers like Tegucigalpa, driven by foreign investment, tourism growth, and steady economic expansion. While challenges remain, including higher interest rates and political uncertainty surrounding the November 2025 elections, the fundamental drivers of demand continue to outweigh these concerns, supporting continued price growth in the Honduras property market.
Sources
- Properstar Honduras House Prices
- The Latinvestor - Honduras Property Investment Guide
- The Latinvestor - Honduras Real Estate Forecasts
- The Latinvestor - Honduras Real Estate Trends
- The Latinvestor - Honduras Price Forecasts
- The Latinvestor - Honduras Real Estate Market Analysis
- Global Property Guide - Honduras 5-Year Price Change
- Global Property Guide - Honduras 10-Year Price Change
- Numbeo - Cost of Living Rankings Central America 2025
- UNHCR - Honduras Strategy 2023-2026