Authored by the expert who managed and guided the team behind the Honduras Property Pack
Everything you need to know before buying real estate is included in our Honduras Property Pack
Are you considering investing in the Honduras real estate market? Curious about the latest trends and statistics that could influence your decision? Want to know how the market is expected to evolve by 2025?
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 Honduras 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) La Ceiba rental yield will hit 8% in 2024 attracting investors
In 2023, rental yields in La Ceiba were already showing positive signs, with rates between 4.10% and 4.31% for properties in and outside the city center.
The real estate market in Honduras was on an upward trajectory, driven by a rising demand for modern housing and sustainable living options. This growth was further supported by the development of gated communities and mixed-use projects, suggesting that rental yields could increase as the market expanded.
Honduras as a whole was becoming more attractive to foreign investors, with rental yields ranging from 7.7% to 10.4%. While these figures weren't specific to La Ceiba, they highlighted the potential for attractive returns in the region, hinting that La Ceiba could follow suit.
In La Ceiba, the rental market was healthy, even if it wasn't yet at the anticipated 8% yield. The positive signs in 2023 indicated a promising future for investors looking at this area.
As the demand for modern housing and sustainable living options continued to rise, the real estate market in Honduras was expected to grow further. This growth was likely to drive rental yields higher, making La Ceiba an attractive market for investors.
Sources: Numbeo, Statista, TheLatinvestor
2) San Pedro Sula will see a 15% rise in residential property demand by 2025 due to urbanization trends
San Pedro Sula is on track for a 15% increase in demand for residential properties by 2025 due to urbanization trends.
Over the past few years, San Pedro Sula has seen significant economic growth, driven by booming sectors like agriculture, manufacturing, and services. This economic upswing naturally leads to a higher demand for housing as more people flock to the city for job opportunities.
Urbanization is reshaping Honduras, with cities like San Pedro Sula developing rapidly. As people move to urban areas, the need for housing grows. San Pedro Sula, in particular, is expanding and modernizing, making it a hotspot for new residents.
New commercial developments are popping up, attracting both residents and investors. The city is seeing an influx of new businesses and infrastructure projects, which are key drivers of the increased demand for residential properties.
These developments are not just about business; they are transforming the city into a more attractive place to live. The combination of economic growth and urbanization trends is setting the stage for a 15% rise in housing demand by 2025.
With these changes, San Pedro Sula is becoming a vibrant urban center, drawing people in with its promise of opportunity and modern living. The city’s transformation is a clear indicator of the growing interest in residential properties.
Sources: 1West Realty, The Latin Investor
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3) New homes in Honduras will average 2.5 bedrooms by 2025 as smaller units gain popularity
In Honduras, the housing market is shifting towards smaller residential units as we approach 2025.
This change is largely influenced by younger buyers who are stepping into the market for the first time. They are drawn to smaller, more affordable homes that are conveniently located. Economic factors are crucial here, as these homes are generally less expensive and more accessible, making them appealing to this demographic.
While there is a variety of property sizes available, including 2-bedroom and 3-bedroom homes, the trend towards smaller units is becoming more pronounced. This shift in demand is expected to reduce the average number of bedrooms in new properties.
In fact, the average number of bedrooms in new residential properties in Honduras is expected to decrease to 2.5 by 2025. This is a clear indication of the growing popularity of smaller units.
As the market adapts to these preferences, developers are likely to focus on creating homes that meet the needs of younger buyers. This means more compact, efficient living spaces that offer both affordability and convenience.
Sources: FazWaz Honduras, Lonji Cafe, Connecta B2B
4) Residential land prices in San Pedro Sula will rise 12% by 2025 due to limited availability
In 2023 and 2024, San Pedro Sula experienced a surge in housing demand, especially in urban areas like the noroeste sector.
People flocked to the city for job opportunities and education, driving up the need for housing. As more individuals moved in, the availability of residential land became scarce, causing prices to rise. Currently, land costs range from $165 to $350 per square meter, depending on location and intended use.
This price hike has made it difficult for many families to afford housing, pushing some to seek more affordable options in nearby municipalities. This trend underscores the limited availability of land in San Pedro Sula.
With the scarcity of land, the average cost of residential land in San Pedro Sula is projected to increase by 12% by 2025. This is largely due to the limited availability of land, which continues to drive up prices.
For potential buyers, understanding these dynamics is crucial. The city's growth and the resulting demand for housing have created a competitive market, where land prices are expected to keep rising.
Investing in property here means navigating a market where affordability is a growing concern, but also where opportunities abound for those who can secure land early.
Sources: El Heraldo, The Latin Investor, La Prensa
5) Roatán residential rents will rise 18% by 2026 due to high expatriate demand
Roatán is becoming a hotspot for expatriates, especially from North America and Europe.
With this influx, there's a noticeable shift towards homes with higher standards and modern amenities, driving up demand for residential properties. The island's real estate market is thriving, particularly in the premium segment, with beachfront homes and luxury villas seeing significant interest. This surge is fueled by Roatán's stunning natural beauty and appealing tropical climate, coupled with a lower cost of living compared to other Caribbean spots.
Roatán's economy, heavily reliant on tourism, is benefiting from global travel trends. As more tourists flock to the island, the demand for residential properties rises, leading to higher rental prices. Recent infrastructure improvements, like new airlines and port expansions, are set to attract even more visitors, boosting the need for vacation rentals and long-term homes.
Looking ahead, the average rental price for residential properties in Roatán is projected to increase by 18% by 2026, driven by high demand from expatriates. This trend is a clear indicator of the island's growing appeal and the opportunities it presents for property investors.
For those considering a move or investment, Roatán offers a unique blend of natural beauty, modern living, and economic potential. The island's real estate market is poised for growth, making it an attractive option for those seeking a tropical paradise with promising returns.
Sources: The Latin Investor, Roatán Online
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6) By 2025 residential properties in Honduras with home offices will rise by 20%
More people are choosing to work from home these days.
This shift is largely due to advancements in technology and the experiences of 2023 and 2024, when remote work became the norm. As a result, there's a growing demand for homes that can accommodate a dedicated workspace. People want properties that offer the flexibility to balance work and home life effectively.
In Honduras, this trend is reshaping the real estate market. Developers are increasingly incorporating home office spaces into new residential projects. This change is evident in developments like Miraflores and Avalon, where modern and innovative living spaces are being designed with these needs in mind.
Consumer preferences are shifting, and this is a key factor in the expected 20% increase in residential properties with home office spaces by 2025. People are looking for homes that not only meet their living needs but also support their work-from-home lifestyle.
As more individuals embrace remote work, the demand for homes with dedicated office spaces is likely to continue growing. This trend is particularly notable in Honduras, where the real estate market is adapting to meet these new demands.
By 2025, the number of residential properties in Honduras with home office spaces is expected to increase by 20%, reflecting the changing needs of homebuyers. This shift is driven by a desire for flexibility and the ability to work from home comfortably.
Sources: CS Bienes Raices, Fazwaz
7) In 2024, 15% of San Pedro Sula homes will be in mixed-use developments
In 2023, the construction market in Honduras was booming, with projections to hit USD 944.10 billion by 2029.
This surge in growth laid a strong foundation for real estate, especially in San Pedro Sula, where mixed-use developments are becoming increasingly popular. Imagine living in one of the four 16-story towers being built, where you can enjoy amenities like swimming pools, fitness centers, and social areas, all in one place.
These towers are not just about luxury; they blend residential and commercial spaces, making them ideal for both living and business. This trend is part of a broader movement in the city to tackle urban challenges, such as housing shortages and informal settlements.
Projects like the Habitat Condominiums of Cordillera are stepping up to address these issues. They offer vertical social housing with essential services, which supports the shift towards mixed-use developments. This is crucial in a city where urban planning is a growing concern.
By 2024, it's expected that around 15% of residential properties in San Pedro Sula will be part of these mixed-use developments. This shift not only meets housing needs but also enhances the city's infrastructure and lifestyle options.
As the city evolves, these developments are becoming a key part of the urban landscape, offering a blend of convenience and modern living. The future of San Pedro Sula's real estate market looks promising, with mixed-use spaces leading the way.
Sources: Mordor Intelligence, FazWaz, Habitat for Humanity
8) Beachfront property prices in Roatán will rise 22% by 2026
The average price of beachfront residential properties in Roatán is projected to increase by 22% by 2026.
Roatán is a hotspot for tourists, especially those who love diving, which has led to a surge in demand for vacation homes and rental properties. As more tourists flock to the island, the interest in investing in local real estate naturally rises, pushing property prices up.
Demographic changes are also a key factor. Many retirees from North America and Europe are drawn to Roatán for its natural beauty and affordable living. This influx of retirees boosts the demand for residential properties, a trend supported by government policies that make it easier for foreigners to invest in real estate.
Infrastructure improvements are another reason for the rising property values. With better roads and enhanced internet connectivity, the island becomes even more appealing to potential investors, contributing to the increase in property values.
These factors combined make Roatán an attractive option for property buyers, with the island's real estate market poised for significant growth. The ongoing developments and demographic shifts are expected to continue driving up property prices, making it a promising investment opportunity.
Sources: The Latin Investor, Roatan Real Estate Expert
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9) Tegucigalpa residential property prices will grow 7% annually over the next five years
The average annual growth rate of residential property prices in Tegucigalpa is projected to be around 7% over the next five years.
Honduras is on an economic upswing, which means people have more money to spend, especially in cities like Tegucigalpa. This economic boost is driving up demand for homes, making the city a hot spot for potential buyers.
Foreign investors are also taking notice, pouring money into the country and focusing on urban development and infrastructure. This influx of cash is transforming Tegucigalpa into a more appealing place to live and invest, further pushing up property prices.
Urban development projects are popping up all over Tegucigalpa, adding to its charm and desirability. These projects, along with better infrastructure, are making the city more vibrant, which in turn is contributing to the rise in property values.
With these changes, Tegucigalpa is becoming a city that attracts both locals and foreigners alike. The combination of economic growth, foreign investment, and urban development is creating a perfect storm for rising property prices.
For anyone considering buying property in Tegucigalpa, these factors make it a promising investment. The city's transformation is not just about aesthetics; it's about real economic potential that could benefit property owners in the long run.
Sources: El Crecimiento del Mercado Inmobiliario en Honduras, TheLatinvestor
10) Residential property insurance in San Pedro Sula will rise 12% by 2025
In San Pedro Sula, the average cost of residential property insurance is expected to rise by 12% by 2025.
This increase is partly due to a growing awareness among property owners about the need to protect their investments. As more people recognize the importance of safeguarding their homes, the demand for comprehensive insurance coverage has surged, naturally pushing up prices.
Honduras faces significant risks from natural disasters like hurricanes and earthquakes. Because of this, insurance companies are adjusting premiums to cover these heightened risks. This means property owners will likely see higher costs to ensure they have adequate protection.
The property insurance market in Honduras is also evolving, with a noticeable shift towards more personalized insurance solutions. Insurers are now offering tailored products to meet specific customer needs, which often come with a higher price tag, contributing to the overall increase in premiums.
As the market grows, these customized solutions reflect a broader trend of development within the industry. This evolution indicates that insurers are focusing on creating more specialized offerings, which can be more expensive but provide better coverage options.
Sources: Statista Market Forecast, Fitch Solutions Store, GlobalData Report
11) Roatán home prices will rise 20% by 2026 due to limited supply
Roatán is experiencing a surge in tourism, which is driving up demand for vacation homes and rental properties.
With the island's limited land availability, new developments are scarce, making existing properties highly sought after. This scarcity is a major reason why property prices are climbing.
Infrastructure improvements, like better roads and utilities, have made Roatán more accessible, enhancing its appeal. These upgrades have boosted property values and attracted more expatriates and retirees looking for a tropical lifestyle.
As a result, the average price of residential properties in Roatán is projected to increase by 20% by 2026 due to limited supply. This trend is fueled by the island's growing popularity and the improvements in living conditions.
Roatán's charm and improved infrastructure are drawing more people, which is pushing property prices higher. The island's allure as a tourist destination and a place to retire is undeniable.
With these factors in play, the real estate market in Roatán is set for a significant rise, making it an attractive option for potential buyers. The combination of limited land and increased demand is a recipe for rising property values.
Sources: TheLatinvestor, TheLatinvestor, Statista Market Forecast