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Tegucigalpa's housing market in September 2025 shows steady growth with apartment prices averaging USD 1,200 per square meter and houses around USD 1,264 per square meter.
Property prices have increased by approximately 3% annually over the past year, with rental rates rising 5-7% in 2024. The market remains attractive for both investors and residents, with rental yields reaching 6-10% in prime locations near universities and the city center. Popular neighborhoods like Colonia Palmira and Lomas del Mayab continue to drive demand, while affordable options exist in suburban areas.
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Tegucigalpa's property market shows consistent 3% annual growth with strong rental demand from students and professionals.
City center apartments command premium prices while suburban areas offer affordable entry points with good growth potential.
| Property Type | Average Price (USD/m²) | Rental Yield |
|---|---|---|
| City Center Apartments | 1,200 | 6-8% |
| Suburban Houses | 1,264 | 6-9% |
| Student Housing | 1,200 | 8-10% |
| Land Plots | Under 1,200 | N/A |
| Premium Neighborhoods | Above 1,400 | 5-7% |
What are the current average housing prices in Tegucigalpa?
As of September 2025, apartments and condos in Tegucigalpa average USD 1,200 per square meter.
Typical urban apartments range from $100,000 to $200,000 depending on size, location, and amenities. A standard 1-bedroom apartment in the city center costs around $100,000-$120,000, while a 3-bedroom unit can reach $180,000-$200,000.
Houses follow the national average of approximately USD 1,264 per square meter, though Tegucigalpa houses are generally priced slightly below urban condos. Detached houses in suburban areas typically cost $80,000-$150,000, offering more space but fewer amenities compared to modern apartment complexes.
Land prices vary significantly but usually stay below $1,200 per square meter. Plots in fringe areas and developing suburbs present the most affordable entry points, with some lots available for $20,000-$50,000 depending on size and location.
Premium properties in sought-after neighborhoods like Colonia Palmira and hillside locations with scenic views command prices above $1,400 per square meter.
How have property prices changed over the past 6 to 12 months?
Tegucigalpa's property market has experienced steady annual growth of approximately 3% over the past year.
This growth aligns with national trends, which show property price increases ranging from 3% to 8% depending on the specific area and property type. The city center and popular neighborhoods have seen the higher end of this range, while suburban areas have experienced more modest appreciation.
Rental rates have outpaced property price growth, rising 5-7% in 2024 and continuing this upward trend into 2025. This rental growth has been driven by increased demand from students attending the National Autonomous University and young professionals moving to the capital for work opportunities.
The consistency of this growth reflects stable economic conditions and steady urbanization, with more people migrating from rural areas to Tegucigalpa for education and employment opportunities.
What's the price outlook for the next 1 to 3 years?
Property price forecasts predict annual increases of 3-5% through 2028 in the Tegucigalpa market.
Several factors support this growth projection, including continued urbanization as young people move to the capital, ongoing infrastructure investments, and sustained demand from both local and foreign buyers. The city's role as Honduras's economic and educational center ensures consistent population growth and housing demand.
The November 2025 general elections may cause short-term transaction slowdowns as buyers and sellers adopt a wait-and-see approach. However, this political uncertainty is expected to be temporary, with market activity resuming normal patterns by early 2026.
Longer-term growth drivers remain robust, including wage increases in key sectors, planned infrastructure projects, and the ongoing trend of youth migration to urban areas. These fundamentals suggest the 3-5% annual growth rate is sustainable through the forecast period.
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Which neighborhoods are currently the most in-demand?
Colonia Palmira leads as the most sought-after neighborhood in Tegucigalpa, known for its central location and modern developments.
Lomas del Mayab ranks as another highly desirable area, attracting buyers who value established infrastructure and good connectivity to the city center. These neighborhoods command premium prices due to their reputation, security, and amenities.
El Centro, the historic and cultural core of Tegucigalpa, maintains high rental demand especially from students and professionals. The area's proximity to universities, government offices, and cultural attractions makes it particularly attractive for renters, resulting in strong investment potential for property owners.
New gated communities in the suburbs are gaining popularity among buyers seeking security and modern amenities at more affordable prices than central locations. These developments often feature shared facilities like pools, gyms, and security services.
Areas near the National Autonomous University consistently show strong demand due to the large student population requiring housing, making them attractive for investors focused on rental income.
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Are there areas where prices are still relatively affordable compared to the city average?
Suburban neighborhoods and less-central areas remain significantly below city center prices, offering attractive entry points for buyers.
Outlying districts provide some of the best value propositions, with properties and land plots available at substantial discounts compared to central Tegucigalpa. These areas often cost 20-30% less than the city average while still offering good growth potential as urban expansion continues.
Older residential districts that haven't undergone recent development also present affordable options. While these areas may lack some modern amenities, they often provide larger properties at lower per-square-meter costs.
Emerging neighborhoods on the city's periphery offer the most affordable land prices, with some plots available for under $30,000. These areas may require patience as infrastructure develops, but they represent significant upside potential for long-term investors.
Properties requiring renovation in established neighborhoods can also provide below-market entry points for buyers willing to invest in improvements.
What's the difference in pricing between apartments, houses, and land?
| Property Type | Average Price (USD/m²) | Typical Price Range |
|---|---|---|
| Modern Condos/Apartments | 1,200 | $100,000 - $200,000 |
| Detached Houses | 1,264 | $80,000 - $180,000 |
| Suburban Houses | 900 - 1,100 | $60,000 - $120,000 |
| Land Plots (Central) | 800 - 1,200 | $30,000 - $80,000 |
| Land Plots (Suburban) | 400 - 800 | $15,000 - $40,000 |
| Premium Properties | Above 1,400 | $200,000+ |
How quickly are properties selling on average in different parts of the city?
City-center condos and apartments near universities sell fastest, typically within 2-4 months of listing.
Properties in new gated communities also move quickly due to high demand from buyers seeking security and modern amenities. These developments often sell units before construction completion, indicating strong market confidence.
Suburban areas and established neighborhoods see moderate selling times of 3-6 months, depending on pricing and property condition. Well-maintained homes in desirable suburban locations generally sell within this timeframe.
Larger houses and land plots in peripheral districts take longer to sell, often 6-12 months, as they appeal to a smaller buyer pool. However, competitive pricing can accelerate sales in these areas.
Properties requiring significant renovation or those priced above market rates may take over a year to sell, regardless of location.
What kind of rental yields can you expect in the main residential areas?
Tegucigalpa rental yields typically range from 6% to 10% gross annually, with the highest returns in optimal locations.
Student housing near the National Autonomous University delivers the strongest yields at 8-10%, with stable occupancy rates due to consistent enrollment. These properties benefit from reliable demand and the ability to charge premium rents for proximity to campus.
Central apartments targeting young professionals yield around 6-8%, offering good returns with the added benefit of easier tenant replacement due to high demand in these areas. Professional tenants also tend to be more stable and pay higher rents.
Suburban rental properties generally achieve 6-9% yields, with lower rental rates offset by reduced property acquisition costs. These areas attract families and long-term tenants, providing stable income streams.
It's something we develop in our Honduras property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Honduras 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.
How stable is demand for long-term rentals versus short-term rentals like Airbnb?
Long-term rental demand remains consistently strong, bolstered by the ongoing influx of students and young professionals to Tegucigalpa.
The student population provides particularly stable demand, with academic years creating predictable rental cycles. Professional tenants working in government, finance, and services also contribute to steady long-term rental demand throughout the year.
Short-term rental opportunities exist, particularly in El Centro and around universities, but face increasing competition as more property owners target this segment. Areas near tourist attractions and business districts see some Airbnb demand, though Tegucigalpa isn't primarily a tourist destination.
Long-term rentals generally offer more predictable income and lower management requirements compared to short-term rentals. They also avoid the regulatory uncertainties that sometimes affect short-term rental platforms.
Investors should consider that long-term rentals provide steadier occupancy rates, typically 90-95% annually, compared to short-term rentals which can fluctuate significantly based on seasonal demand and local events.
What budget range makes the most sense for buying now if the goal is to live in the property?
For residents planning to live in their property, the optimal budget range is $50,000 to $130,000 for 1-3 bedroom apartments or homes.
This range provides access to secure, amenity-focused complexes in well-connected areas, particularly valuable for buyers planning to stay 3+ years. Properties in this range typically include modern features, security systems, and good connectivity to employment centers.
First-time buyers should target the $50,000-$80,000 range for 1-2 bedroom apartments in established neighborhoods. This provides good value while building equity in appreciating markets.
Families requiring more space should consider the $100,000-$130,000 range for 3-bedroom properties, either apartments with amenities or houses in secure suburban developments. These properties offer better long-term livability and strong resale potential.
Buyers should prioritize locations with good infrastructure, security, and connectivity over maximum space, as these factors significantly impact both daily life quality and future resale value.
What budget range is attractive if the goal is rental income?
For rental income investors, the attractive entry range is $80,000 to $180,000 for city-center condos, student housing, or small homes near major employers.
Properties in the $80,000-$120,000 range typically deliver the highest yields, especially when located near universities or in areas with high professional tenant demand. These properties often provide 8-10% gross returns with good appreciation potential.
The $120,000-$180,000 range allows access to modern apartments or townhouses with security and amenities, which command higher rents and attract quality tenants. These properties typically yield 6-8% but offer better long-term stability and resale prospects.
Student housing investments should focus on the lower end of this range to maximize yields, while properties targeting professionals can justify higher acquisition costs for better locations and amenities.
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Which property types and locations are best positioned for future resale value?
Newer, centrally located condos represent the best positioning for future resale value in Tegucigalpa's market.
Townhouses in developments near key infrastructure like universities, hospitals, and major employers consistently show strong appreciation potential. These properties benefit from ongoing demand growth and infrastructure improvements.
Properties incorporating modern features such as energy-efficient systems, smart home technology, or environmentally friendly designs are increasingly attractive to younger buyers and command premium resale values.
Areas where infrastructure improvements are planned or underway offer significant upside potential. Properties near proposed transportation projects, new commercial developments, or expanding university facilities typically see above-average appreciation.
Student housing properties maintain strong resale value due to consistent demand, while properties in emerging suburban areas with good connectivity to the city center offer the best combination of affordability and growth potential for long-term appreciation.
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.
Tegucigalpa's property market offers attractive opportunities for both residents and investors, with steady growth and strong rental demand.
The combination of affordable entry points, consistent appreciation, and good rental yields makes it an appealing market for various investment strategies.