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
Property prices in San Pedro Sula are expected to continue rising in 2026, driven by ongoing infrastructure investments and steady population growth.
The city's real estate market has shown consistent growth with annual price increases of 3-8% over recent years, and several factors suggest this trend will continue into 2026.
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 San Pedro Sula will likely increase in 2026 due to continued infrastructure development, population growth, and foreign investment.
The residential market shows strong fundamentals with high rental yields, ongoing construction projects, and major infrastructure improvements scheduled for completion.
| Market Factor | Current Status (2025) | 2026 Projection |
|---|---|---|
| Average Property Price | $600-$1,200 USD/m² | 3-8% increase expected |
| Population | 1,034,000 residents | 1,060,000 (2.58% growth) |
| Rental Yields | 15-19% (city center) | Stable to slightly declining |
| Vacancy Rate | 5.0% | Expected to stabilize |
| Mortgage Rates | 11.2% | Possible stabilization/decline |
| Infrastructure Investment | $800M+ ongoing | Projects completion boost |
| Foreign Investment | $1.8B (2023 Honduras total) | Continued strong interest |
How many properties were sold in San Pedro Sula over the past five years?
Specific annual property sales volumes for San Pedro Sula are not publicly disclosed by local authorities.
However, the residential property market in Honduras, including San Pedro Sula, has experienced steady growth over the past several years. This growth is fueled by urbanization trends, infrastructure investment, and increasing development of mixed-use and vertical projects.
The market has shown consistent activity with average annual property price increases of 3-8%, which reflects growing transaction volumes and market activity. The construction boom, particularly in vertical residential projects, indicates strong sales performance supporting new development.
As of September 2025, the market continues to show robust activity with multiple new projects launching, suggesting sustained buyer demand and sales volumes.
What has been the trend in average property prices per square meter from 2018 to 2025?
Property prices per square meter in San Pedro Sula have steadily risen throughout this period.
In 2025, average prices for city-center and upscale zones range from $600 to $1,200 USD per square meter. Nationwide, urban Honduras averages around $1,264 to $2,170 USD per square meter for houses and apartments respectively.
The annual increase in property prices has been consistent, ranging between 3% and 8% in recent years. This steady appreciation reflects the city's growing appeal, infrastructure development, and increasing urbanization.
The upward trend has been particularly strong in premium locations and newly developed areas with modern amenities.
How many new housing units were built in San Pedro Sula each year since 2020?
San Pedro Sula has experienced a significant construction boom in recent years.
| Year | New Projects Registered | Project Type |
|---|---|---|
| 2020 | 23 projects | Apartment buildings and townhouses |
| 2021 | 55 projects | Apartment projects registered |
| 2022-2025 | Multiple major projects | Four 16-story towers and mid-rise complexes |
| 2026 (projected) | Continued high development | Mixed-use and residential projects |
Projections for 2026 point to continued high development activity, as urban demand and infrastructure spending drive new housing launches.
What is the current vacancy rate for residential properties?
The vacancy rate for residential properties in San Pedro Sula reached 5.0% by the end of 2023.
This increase in vacancy rates resulted from a construction surge that led to temporary oversupply in certain market segments. The rapid development of new residential projects outpaced immediate absorption in some areas.
This recent oversupply has created a competitive rental market, with landlords reducing prices to improve occupancy rates. However, this situation is expected to stabilize as population growth and infrastructure improvements drive demand.
It's something we develop in our Honduras property pack.
What percentage of households can currently afford the average-priced property?
Less than 10% of households in San Pedro Sula can afford the average-priced property without dual or supplementary incomes.
The median price for homes ranges from $120,000 to $140,000 USD. Given the local average monthly net salary of approximately 14,575 Lempiras (about $590 USD), affordability remains a significant challenge for most local buyers.
This affordability gap creates opportunities for investors, as it drives strong rental demand from households who cannot purchase but need quality housing. The rental market benefits from this dynamic, supporting investment returns.
Foreign buyers and investors with higher income levels represent a significant portion of the purchasing market.
Don't lose money on your property in San Pedro Sula
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How have mortgage interest rates evolved since 2020?
Mortgage interest rates in Honduras have fluctuated significantly since 2020.
Rates ranged from 7.0% in 2020 to around 11.2% in 2025 for fixed-rate loans. The rates rose throughout 2022 and 2023, peaking in early 2025 due to inflation concerns and monetary policy adjustments.
Projections for 2026 suggest possible stabilization or a slight decline if inflation moderates. This potential easing could make property purchases more attractive and affordable for qualified buyers.
The high interest rate environment has actually benefited investors by reducing competition from local buyers and maintaining strong rental demand.
How much foreign investment has flowed into San Pedro Sula's real estate sector?
Honduras overall saw foreign direct investment bounce from $920 million in 2022 to $1.8 billion in 2023.
While detailed figures for annual FDI specific to San Pedro Sula are not publicly available, the volume and scale of new vertical and mixed-use projects suggest sustained international interest in the city's real estate market.
Major project investments have targeted mixed-use and residential developments, especially in large cities like San Pedro Sula. The significant construction activity and development quality indicate substantial foreign capital participation.
This foreign investment trend is expected to continue into 2026, supporting property values and market development.
What is the current population growth rate and projections for 2026?
San Pedro Sula's population reached 1,034,000 residents in 2025 with an annual growth rate of 2.58%.
The projected population for 2026 is 1,060,000 residents, representing an increase of approximately 26,000 new residents. This consistent population growth creates ongoing demand for housing and supports property value appreciation.
The population growth is driven by urbanization trends, economic opportunities, and the city's role as Honduras' industrial center. This demographic pressure ensures continued demand for both rental and purchase properties.
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 have rental yields changed in the last five years?
Rental yields in San Pedro Sula remain exceptionally attractive for investors.
Gross rental yields in the city center averaged 15-19% in 2025, though there's some competitive pressure from the recent oversupply situation. Long-term rental yields typically range from 4-6%, while short-term vacation rentals have seen higher returns.
The high yields reflect the affordability gap that keeps rental demand strong, even as property prices appreciate. The temporary oversupply has created opportunities for investors to negotiate better purchase prices while maintaining strong rental income potential.
These yields are expected to stabilize or decline slightly as the market balances, but remain attractive compared to international standards.
What are the current construction costs compared to 2020?
Construction costs in San Pedro Sula have increased modestly since 2020.
Current indicative local construction costs for residential projects in 2025 are often below $1,200 per square meter. While detailed historical data is limited, overall building costs have risen due to material price increases, particularly for cement and steel.
Rising demand for construction services and ongoing urban expansion have also contributed to cost increases. Construction costs are projected to continue rising through 2026 alongside ongoing infrastructure development and urban expansion.
Despite these increases, construction costs remain competitive compared to other Central American markets, supporting continued development activity.
How has inflation affected real estate prices historically?
Inflation in Honduras has contributed to steady real estate price appreciation over recent years.
Expected inflation in 2026 is projected to be moderate, which should sustain or slightly increase property prices. Real estate has served as an effective hedge against inflation, with property values typically rising in line with or above inflation rates.
The inflation impact has been particularly evident in construction costs and property values, contributing to the annual 3-8% price increases observed in recent years. This trend supports the case for continued property price appreciation in 2026.
It's something we develop in our Honduras property pack.
What infrastructure projects are scheduled for completion by 2026?
Major infrastructure investments are driving property demand and value appreciation in San Pedro Sula.
1. **Siglo XXI Urban Renewal Project** - $80 million investment in city center revitalization2. **Extensive Road Upgrades** - Multiple highway and street improvement projects throughout the metropolitan area3. **Ramón Villeda Morales International Airport Upgrades** - Enhanced connectivity and capacity4. **Commercial Development Projects** - New shopping centers and business districts5. **Utility Infrastructure Improvements** - Enhanced water, electricity, and telecommunications networksOver $800 million has been invested in the Sula Valley and San Pedro Sula for roads, highways, and commercial spaces through 2026. These projects are expected to boost property demand significantly and add value to adjacent residential and mixed-use developments.
The completion of these infrastructure projects by 2026 will likely create positive momentum for property values across the city.
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.
Property prices in San Pedro Sula are positioned for continued growth in 2026, supported by strong fundamentals including population growth, infrastructure investment, and foreign capital interest.
While short-term factors like oversupply may create buying opportunities, the long-term outlook remains positive for both investors and residents considering property purchases in the city.
Sources
- The LatinVestor - Honduras Real Estate Market
- 1West Realty - Vertical Real Estate Investment
- The LatinVestor - San Pedro Sula Property
- The LatinVestor - Honduras Price Forecasts
- Mordor Intelligence - Honduras Construction Market
- The LatinVestor - Honduras Property Investment
- The LatinVestor - Honduras Real Estate Trends
- Numbeo - Property Investment San Pedro Sula
- FNB - Lending Rates
- The LatinVestor - San Pedro Sula Real Estate Trends