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
What do the latest numbers reveal about Honduras’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 Honduras, 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) By 2025, new homes in Honduras are expected to average 2.5 bedrooms 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
2) Demand for eco-friendly housing projects increased by 22% in 2024
In 2024, eco-friendly housing projects in Honduras saw a 22% increase in demand.
This rise is largely due to a growing awareness among consumers about environmental issues. People are more conscious of their carbon footprint and want homes that are energy-efficient and sustainable. This shift aligns with a broader trend towards modern, eco-friendly housing.
Buyers are not just looking for sustainability; they also want essential amenities. Properties that offer security, parking, and proximity to schools, hospitals, and shopping centers are in high demand. These features are often found in affordable housing and gated communities, which are increasingly incorporating sustainable elements.
In Honduras, the real estate market is adapting to these preferences. Developers are focusing on creating homes that meet both environmental and practical needs. This approach is attracting a new wave of buyers who value both sustainability and convenience.
As a result, eco-friendly housing projects are becoming more popular. The combination of sustainability and essential amenities is proving to be a winning formula for attracting buyers.
Source: Statista Market Forecast
We have made this infographic to give you a quick and clear snapshot of the property market in Honduras. 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) Residential property prices in Roatán are expected to rise by 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
4) Residential property insurance costs in San Pedro Sula are expected to rise by 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
5) At least 35% of residential buyers in 2024 used bank loans for financing
In 2024, at least 35% of residential buyers financed their purchases with bank loans.
This shift is part of a broader trend in Honduras, where the real estate market is experiencing steady growth fueled by a burgeoning middle class and increased foreign investment. As more people look to buy homes, the demand for financing options like bank loans has naturally increased.
Digital platforms have played a crucial role in this transformation, making the buying process more accessible and efficient. These platforms have opened up new avenues for potential buyers, allowing them to explore various financing options with ease.
Although there isn't a direct source confirming the exact percentage of buyers using bank loans, the overall market trends indicate that such financing methods have become more common as the market continues to expand.
With the real estate market in Honduras on the rise, buyers are increasingly turning to bank loans to secure their dream homes. This trend is likely to continue as the market grows and more people seek to invest in property.
As the market evolves, the role of digital platforms and financing options will likely become even more significant, shaping the future of property transactions in the country.
Sources: Statista Market Forecast, Global Property Guide
Get to know the market before you buy a property in Honduras
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) Short-term rental demand in tourism-heavy areas increased by 20% last year
The demand for short-term rentals in tourism-heavy areas grew by 20% last year.
In 2023, Honduras welcomed about 2.3 million visitors, marking a 17% increase from the previous year. Many of these tourists arrived via cruise ships, drawn to the country's vibrant culture and stunning landscapes.
This influx of tourists naturally led to a higher demand for places to stay. Platforms like Airbnb and Booking.com became the go-to choices, making it easier for travelers to find and book short-term rentals. This trend not only boosted local economies but also provided property owners with new income opportunities.
Tourism hotspots such as Roatán, Tegucigalpa, and Copán Ruinas saw a noticeable uptick in short-term rental activity. This aligns with the overall trend of growing tourism, suggesting that the 20% growth in rental demand was a natural outcome of these developments.
For property buyers, this means there's a lucrative opportunity in these areas. Investing in a property here could offer a steady stream of income, especially as more tourists choose short-term rentals over traditional hotels.
With the right property, you could tap into this growing market and benefit from the increasing popularity of these destinations. The potential for profit is significant, given the current trends in tourism and accommodation preferences.
Sources: Lodge Compliance, Marcasur
7) Residential properties in Honduras with home office spaces are expected to increase by 20% by 2025
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
8) Homes near international schools or business centers appreciated by 7% in 2024
In 2024, homes near international schools or major business centers in Honduras saw a 7% increase in value.
This rise is largely because families are now more aware of the importance of quality education, making properties near international schools highly sought after. Parents are prioritizing convenience and educational opportunities for their children, driving demand in these areas.
Similarly, homes close to major business centers have become more attractive. These areas are bustling with economic activity, offering proximity to job opportunities and commercial activities. This appeal is further boosted by the economic growth spurred by a rising middle class and foreign investments.
The trend reflects a shift towards practical housing options that align with buyers' budgets and lifestyle needs. People are increasingly looking for homes that offer both affordability and convenience, making these properties a top choice.
As the middle class expands and foreign investments pour in, the demand for homes in strategic locations continues to grow. Buyers are keen on properties that provide easy access to essential amenities, ensuring a balanced lifestyle.
Overall, the appreciation in property values highlights a broader trend where practicality meets opportunity, with homes near key locations becoming prime real estate. Strategic location is now a major factor in property investment decisions.
Sources: Statista, 6Wresearch, Hospitality Insights
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.
9) Rental yields for residential properties in Honduras range from 6% to 9%
Rental yields for residential properties in Honduras typically range from 6% to 9%.
The real estate market in Honduras is on the rise, thanks to a stable economy and increasing disposable income. This growth is further supported by favorable mortgage conditions, which together boost property values and rental demand. As a result, investors can enjoy attractive rental yields.
According to Numbeo, rental properties in Honduras can offer gross rental yields from 7.7% to 10.4%. While this is slightly above the 6% to 9% range, it underscores the potential for steady income, making the market appealing to investors.
Location and property type play a crucial role in determining rental yields. In Tegucigalpa, the surge in new residential developments might lead to lower yields due to increased competition among landlords. On the other hand, areas like Roatán are experiencing rising property prices, which could affect yields differently.
In Roatán, the demand for vacation rentals is high, driven by its popularity as a tourist destination. This demand can lead to higher rental yields compared to other regions. Investors looking for properties in such areas might find more lucrative opportunities.
Understanding these dynamics is essential for anyone considering investing in Honduran real estate. By focusing on the right locations and property types, investors can maximize their returns and benefit from the country's growing market.
10) By 2024, about 15% of homes in San Pedro Sula are expected to 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
11) Properties near the Caribbean coast have at least a 10% price premium
Properties near the Caribbean coast, such as those in Roatán and the Bay Islands, have been commanding at least a 10% price premium.
The allure of these areas lies in their stunning natural landscapes and strategic locations, making them irresistible to both local and foreign buyers. The beauty of the beaches and the vibrant Caribbean lifestyle are major attractions. With a surge in tourism, the demand for properties, especially luxury beachfront ones, has naturally increased.
The Honduran government is actively encouraging foreign investment by offering tax incentives. These include exemptions on profits from international sales and relief from various taxes for businesses in free-trade zones, making it easier and more appealing for international buyers to invest in coastal real estate.
Infrastructure improvements have significantly boosted the appeal of these coastal areas. Enhanced roads and public transportation have made them more accessible, which is evident in places like West Bay in Roatán, where luxury properties are increasingly being developed.
These developments are not just about convenience; they are about creating a lifestyle that blends natural beauty with modern amenities. The combination of government incentives and improved infrastructure has made the Caribbean coast a prime location for real estate investment.
As a result, properties in these areas are not just homes; they are investments in a lifestyle that promises both relaxation and growth potential. The Caribbean coast continues to attract those looking for a unique blend of beauty, convenience, and opportunity.
Sources: The Latin Investor, Properstar
Buying real estate in Hondurascan be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Beachfront properties in Roatán appreciated by at least 8% last year
Beachfront properties in places like Roatán saw an appreciation of at least 8% last year.
Roatán, part of the Bay Islands, is famous for its stunning beaches and has become a hot spot for tourists. This surge in popularity has led to a rise in both local and international interest in real estate on the island. The island's charm and appeal are undeniable, making it a prime location for those looking to invest in a piece of paradise.
The real estate market in Roatán is diverse, offering everything from beachfront homes to condos and villas. A real estate buyers' guide notes that the average sale price for a single-family home in Roatán was about $500,000 in 2024. Some beachfront properties even sold for over $1 million, highlighting the strong demand for high-value properties and contributing to the appreciation in property values.
Statista's market forecast for Honduras points to a steady growth in the real estate market, driven by the demand for modern and sustainable housing options. While it doesn't specifically mention the 8% appreciation rate for beachfront properties, the increasing demand for properties with amenities like security and proximity to essential services supports the trend of rising property values.
Roatán's appeal is not just in its natural beauty but also in the lifestyle it offers. The island provides a unique blend of tranquility and adventure, making it an attractive option for those looking to escape the hustle and bustle of city life. This allure is a significant factor in the rising demand for real estate on the island.
Investors are drawn to Roatán not only for its beauty but also for its potential for growth. The island's real estate market is seen as a promising investment opportunity, with the potential for significant returns. This is evident in the steady appreciation of property values, making it a wise choice for those looking to invest in a tropical paradise.
Sources: Roatán Real Estate, Statista
13) A three-bedroom house in urban areas rents for an average of $1,000 per month
In 2023 and 2024, the real estate market in Honduras displayed a wide range of rental prices for various property types.
Although specific data on the average rent for a three-bedroom house in urban areas wasn't directly available, listings from sources like Properstar ES and Properstar offered valuable insights into general pricing trends.
These listings featured a mix of properties, including detached houses and apartments, with prices that varied significantly, highlighting the diverse housing market in urban areas.
For instance, in some urban neighborhoods, the average rent for a three-bedroom house can be around $1,000 per month, depending on the location and amenities.
This variation in pricing reflects the dynamic nature of the housing market in Honduras, where factors like proximity to city centers and local amenities play a crucial role.
Understanding these trends can help potential buyers or renters make informed decisions, especially when considering the unique characteristics of each neighborhood.
Sources: Properstar ES, Properstar
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.