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
Tegucigalpa's real estate market offers attractive opportunities for both investors and residents looking for affordable property with steady appreciation potential. The capital city combines low entry costs with solid rental yields and growing expat interest, making it an increasingly viable investment destination in Central America.
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.
Tegucigalpa property prices currently average $1,200/m² with forecasted annual growth of 3-5% through 2030, while rental yields range from 7-10% in well-located areas.
The market offers diverse property types from $50,000 basic apartments to $300,000+ luxury homes, with strong rental demand from students and young professionals driving consistent income potential.
| Property Type | Average Price Range | Target Market |
|---|---|---|
| 1-bedroom apartment | $96,000 | Students, young professionals |
| 3-bedroom apartment | $263,000 | Families, expats |
| Single-family house | $200,000-$335,000 | Long-term residents, investors |
| Luxury property | $300,000+ | High-income expats, locals |
| Gated community townhouse | $180,000-$280,000 | Security-conscious buyers |
| Development land | $50-$200/m² | Developers, custom builders |
| Commercial mixed-use | $1,500-$2,200/m² | Business investors |
What types of properties are available in Tegucigalpa right now?
Tegucigalpa offers a diverse property portfolio that caters to different budgets and lifestyle preferences.
Apartments and condominiums dominate the urban landscape, ranging from basic older units in established neighborhoods to modern complexes featuring amenities like fitness centers, swimming pools, and 24-hour security. These properties typically range from studio apartments to three-bedroom units, with many offering mountain views characteristic of the city's topography.
Single-family homes represent another significant segment, available from modest houses in affordable districts to large properties in upscale neighborhoods. Many feature gardens and take advantage of the city's scenic mountain setting. The housing stock varies considerably in age and condition, with newer developments offering modern conveniences while older properties may require renovation.
Townhouses in gated communities have gained popularity among buyers seeking a balance between cost and privacy. These developments typically offer 2-4 bedroom units with shared amenities and enhanced security features, appealing particularly to families and security-conscious expatriates.
It's something we develop in our Honduras property pack.
Is it generally better to buy or rent in Tegucigalpa in 2025?
The rent vs. buy decision in Tegucigalpa depends primarily on your timeline and financial objectives.
Renting offers lower upfront costs and greater flexibility. As of September 2025, one-bedroom apartments in the city center average $304 per month, while three-bedroom units cost approximately $656 monthly. Rental prices have increased 5-7% recently, reflecting growing demand from students and young professionals.
Buying becomes more advantageous for stays exceeding 3-4 years. With average property prices at $1,200 per square meter for condominiums and slightly lower for suburban houses, buyers can benefit from annual price appreciation of 3-7%. The relatively stable growth combined with attractive rental yields makes ownership financially beneficial for longer-term residents.
Property ownership also provides rental income opportunities, with yields typically ranging from 7-10% in well-located areas. This income potential, combined with modest appreciation, often exceeds the total cost of renting over extended periods.
For expatriates planning permanent or semi-permanent relocation, purchasing property offers stability and protection against future rent increases while building equity over time.
What are property prices like—how much did they cost before, how much do they cost now, and what's the forecast?
Tegucigalpa property prices have shown steady appreciation over the past five years with continued growth expected.
Current prices as of September 2025 average $1,200 per square meter for residential properties. The median sales price reaches approximately $306,000 for condominiums and $335,000 for single-family houses. One-bedroom apartments typically cost around $96,000, while three-bedroom properties average $263,000.
Comparing to 2020 levels, prices have increased significantly from the $800-900 per square meter range, representing nominal growth of 33-50% or real growth of 20-25% after adjusting for inflation. This appreciation reflects both local economic development and increased international interest in Central American real estate markets.
The forecast through 2030 projects continued but moderate growth of 3-5% annually, translating to cumulative appreciation of 20-30% over the next five years. Well-located properties in secure neighborhoods and those near infrastructure improvements are expected to outperform the market average. Rental yields have historically maintained the 7-10% range, making Tegucigalpa attractive for income-focused investors seeking stable returns.
Market fundamentals supporting this growth include ongoing urbanization, university expansion, and increasing expatriate interest in affordable Central American destinations.
What are the current real estate market trends in Tegucigalpa?
Several key trends are shaping Tegucigalpa's real estate landscape in 2025.
Strong demand from students and young professionals drives the rental market, particularly due to university presence and emerging technology sector growth. This demographic prefers apartments and condominiums in central locations with good transportation access and modern amenities.
Rental prices are rising faster than property prices, creating attractive yield opportunities for investors. This trend reflects limited rental supply relative to growing demand, particularly in desirable neighborhoods near educational institutions and business districts.
Market segmentation has become pronounced, with urban central districts commanding premium prices while suburban areas offer more affordable options. Gated developments have gained popularity due to security concerns and desire for community amenities, attracting both local and international buyers.
Foreign investment activity has increased notably, with expatriates and international investors actively purchasing properties in secure, upscale neighborhoods. This trend has contributed to price appreciation in premium areas while creating development opportunities in emerging districts.
Infrastructure improvements in certain suburban areas are driving speculative interest, as buyers anticipate future appreciation when transportation and utility upgrades are completed.
Don't lose money on your property in Tegucigalpa
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.
What are the best areas to consider—affordable, upcoming, and upscale—and what are their strengths and weaknesses?
| Area Category | Neighborhoods | Strengths | Weaknesses |
|---|---|---|---|
| Affordable | ComayagĂĽela, Miramontes | Central location, lower entry prices, established infrastructure | Higher crime rates, fewer modern amenities, older buildings |
| Upcoming | Emerging suburbs, Siguatepeque area | Infrastructure improvements, value growth potential, newer developments | Less central location, developing amenities, limited transportation |
| Upscale | Colonia Palmira, El Hatillo, Las Lomas | Enhanced security, international schools, luxury amenities, expat community | Higher prices, increased expat demand driving competition |
| University Areas | Near UNAH campus districts | Strong rental demand, consistent tenant base, established services | Seasonal vacancy risks, student-focused market limitations |
| Gated Communities | Various secure developments | Security features, community amenities, maintained infrastructure | Higher HOA fees, limited resale market, restricted access |
| Commercial Zones | Business district periphery | Mixed-use potential, professional tenant base, appreciation prospects | Traffic congestion, limited residential amenities, noise concerns |
| Mountain View Areas | Hillside residential zones | Scenic views, cooler climate, prestige locations | Access challenges, higher development costs, limited services |
Where can you actually find properties for sale—are real estate agencies the main way or are there other options?
Multiple channels exist for finding properties in Tegucigalpa, with varying levels of reliability and market coverage.
Local real estate agencies remain the primary source for serious buyers, offering established relationships with sellers, market knowledge, and transaction support. Major international franchises like RE/MAX operate in Tegucigalpa alongside local independent agencies, providing access to both local and international property networks.
Online platforms have gained prominence, with websites like FazWaz, Agentiz, and Realtor.com featuring comprehensive listings with photos, pricing, and contact information. These platforms often connect directly with agents and offer filtering options by price, location, and property type.
Direct sales from property owners occur but require more caution regarding legal documentation and title verification. These transactions may offer price advantages but lack professional oversight and market protection typically provided by agencies.
Large agencies increasingly maintain dedicated teams for expatriate buyers, providing English-language support and guidance through the legal process. This specialization has improved the buying experience for international purchasers while ensuring compliance with local regulations.
It's something we develop in our Honduras property pack.
What is the step-by-step buying process in Honduras if you're looking at Tegucigalpa?
The property purchase process in Honduras follows a structured legal framework requiring careful attention to documentation and verification.
- Budget Definition and Needs Assessment: Establish your financial capacity including purchase price, legal fees, taxes, and renovation costs. Define property type, location preferences, and intended use (residence vs. investment).
- Real Estate Agent Selection: Choose a licensed agent with local market knowledge, credentials verification, and experience with international buyers if applicable.
- Legal Representation: Hire a qualified real estate attorney for title searches, contract review, and legal compliance. This step is essential for protecting your interests throughout the transaction.
- Property Search and Evaluation: View properties, conduct inspections, verify utilities and infrastructure, and assess neighborhood characteristics and future development plans.
- Offer and Purchase Agreement: Submit written offers, negotiate terms, and sign a "Promesa de Venta" (purchase agreement) that must be notarized to be legally binding.
- Due Diligence Process: Complete title verification, confirm no outstanding taxes or liens, verify property boundaries, and ensure all permits and documentation are current.
- Closing with Notary: Finalize the transaction with a licensed notary, transfer ownership officially, and register the property at the local Property Office.
- Tax and Fee Payment: Pay transfer tax (1.5% of property value), notary and legal fees (1-3%), registration fees (approximately 0.2%), and any applicable municipal taxes.
What kind of properties can you get for different budgets?
| Budget Range | Property Types Available | Features and Locations |
|---|---|---|
| $50,000 | 1-bedroom apartment, buildable land plot | Basic units in older buildings, affordable districts, minimal amenities |
| $100,000 | 2-3 bedroom apartment, small house | Decent neighborhoods, parking included, basic modern features |
| $150,000 | 3-bedroom house, quality apartment | Good locations, security features, updated utilities |
| $200,000 | 3-4 bedroom house, luxury apartment | Security, amenities, central or suburban upscale areas |
| $250,000 | Large family home, gated community property | Premium security, community amenities, established neighborhoods |
| $300,000+ | Large luxury home, prime development land | Gated communities, top-end amenities, prestige locations |
| $400,000+ | Executive homes, commercial properties | Mountain views, custom features, investment-grade locations |
What are the most common mistakes buyers should avoid in Tegucigalpa?
Several critical errors can significantly impact your property investment success in Tegucigalpa.
- Inadequate Title Verification: Failing to properly verify property titles and legal documentation can result in ownership disputes or invalid purchases. Always conduct thorough title searches through qualified legal professionals.
- Underestimating Total Costs: Many buyers focus only on purchase price while overlooking taxes, legal fees, repairs, agent commissions, and ongoing maintenance costs that can add 15-25% to the total investment.
- Over-reliance on Developer Promises: Blindly trusting developer commitments, especially for under-construction projects, without verifying permits, financing, and completion timelines can lead to project delays or cancellations.
- Neglecting Infrastructure Assessment: Failing to research nearby infrastructure projects, zoning changes, or development plans that could positively or negatively impact property values and livability.
- Financial Overextension: Poor calculation of actual budget capacity, including currency exchange risks, financing costs, and emergency reserves for unexpected expenses or market downturns.
- Lack of Exit Strategy: Not planning for potential resale or rental scenarios, including market liquidity, target tenant demographics, and realistic return expectations.
- Skipping Professional Guidance: Attempting to navigate the legal and regulatory framework without experienced local legal and real estate advice, particularly for international buyers unfamiliar with Honduran property law.
What's the cost of living like if you decide to settle there?
Tegucigalpa offers a relatively affordable cost of living compared to other Central American capitals and North American cities.
A family of four can expect monthly expenses of approximately $2,160, including rent, utilities, food, transportation, and basic entertainment. This estimate covers comfortable middle-class living with occasional dining out and recreational activities.
Single individuals can maintain a comfortable lifestyle for $600-800 per month, depending on housing choices and personal spending habits. This budget allows for decent accommodation, regular meals, local transportation, and modest entertainment expenses.
Dining costs remain particularly affordable, with local restaurants offering meals for $3-8 and fresh produce available at reasonable prices in local markets. Utilities including electricity, water, and internet typically cost $80-120 monthly for a standard apartment, though power outages can occur during peak demand periods.
Transportation costs are minimal for public transport users, though many residents prefer private vehicles due to limited public transit coverage. Healthcare presents a two-tier system where public services are basic but affordable, while private medical care offers higher quality at moderate costs compared to developed countries.
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 is life as an expat in Tegucigalpa—what should someone expect?
Expatriate life in Tegucigalpa presents both opportunities and challenges that require careful consideration and preparation.
The positive aspects include a significantly lower cost of living that allows for comfortable lifestyles on modest budgets. The local culture is welcoming and friendly, with many residents eager to help foreigners navigate daily life. The city offers rich cultural experiences including museums, historic sites, and vibrant markets, while serving as a gateway to Honduras's natural attractions including national parks and mountain landscapes.
However, security concerns represent the most significant challenge for expatriates. Higher crime rates in certain areas require careful neighborhood selection and security-conscious lifestyle adjustments. Many expats choose gated communities or secure apartment complexes and avoid certain areas, particularly after dark.
Infrastructure limitations can frustrate newcomers, including occasional power and water outages, inconsistent internet service, and poorly maintained roads. Public transportation is limited and often uncomfortable, leading most expats to rely on private vehicles or taxis for reliable mobility.
Healthcare quality varies significantly between public and private options. While private medical care is available and affordable by international standards, it may not match the standards expatriates expect from their home countries. Many expats maintain international health insurance for serious medical needs.
Language barriers can impact daily life, as English proficiency is limited outside tourist areas and international business districts. Learning Spanish significantly improves the expatriate experience and integration into local communities.
If you rent out the property, what's the picture for long-term rentals and for short-term rentals?
Both long-term and short-term rental markets in Tegucigalpa offer viable income opportunities with distinct characteristics and requirements.
Long-term rentals show strong demand, particularly for 1-3 bedroom units in central locations and university districts. The typical tenant base includes students, young professionals, and small families seeking affordable housing near employment or educational centers. Rental yields typically range from 7-10% annually for well-located apartments, with consistent demand providing stable occupancy rates throughout the year.
Target areas for long-term rentals include neighborhoods near the National Autonomous University of Honduras (UNAH), business districts, and secure residential areas popular with expatriates. Properties with modern amenities, reliable utilities, and security features command premium rents and attract quality tenants.
Short-term rentals through platforms like Airbnb show steady growth, though the market remains smaller than in major tourist destinations. Apartments accommodating 2-4 guests dominate the market, primarily serving business travelers, visiting academics, and tourists exploring the city and surrounding attractions.
Daily rates for short-term rentals remain affordable for international visitors while providing attractive returns for property owners. Consistent occupancy occurs during university terms and peak tourism seasons, though seasonal variations can affect annual yields.
Local regulations generally permit short-term rentals, but property owners should verify building or homeowners association policies and any municipal requirements. Some gated communities restrict short-term rentals, while individual apartment buildings may have specific rules regarding guest access and duration limits.
It's something we develop in our Honduras property pack.
So, when you put all this together, is it actually worth buying property there in 2025—for living, for renting out, or for buying and reselling later?
Tegucigalpa presents a compelling investment opportunity in 2025, particularly for buyers seeking steady returns rather than rapid appreciation.
For residential purposes, purchasing makes financial sense for long-term residents planning to stay 3+ years. The combination of affordable entry prices, stable appreciation, and protection against rising rents provides solid value. The key advantage lies in costs and entry points that remain significantly below other Central American capitals while offering urban amenities and infrastructure.
As a rental investment, Tegucigalpa excels with yields of 7-10% that exceed many international markets. Strong rental demand from students, young professionals, and expatriates creates consistent income streams. The steady climb in rental demand, particularly in central university and professional districts, supports sustained profitability for well-located properties.
For resale investment, the market offers moderate but steady price growth with forecasted annual appreciation of 3-5%. While not suitable for rapid flipping or speculation, this represents solid long-term wealth building through gradual appreciation combined with rental income during the holding period.
The critical success factors include prioritizing safety through strategic location selection, ensuring proper legal documentation, and using trusted local professionals for guidance. Properties in secure neighborhoods with good infrastructure and proximity to universities or business districts offer the best prospects for both appreciation and rental success.
Overall, Tegucigalpa represents a viable, steady investment destination that rewards careful planning and long-term commitment while avoiding the high costs and intense competition found in more developed Central American markets.
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 real estate market in 2025 offers a balanced opportunity for investors seeking steady returns and affordable entry points into Central American property investment.
Success depends on careful location selection, proper legal guidance, and realistic expectations about moderate but consistent appreciation and rental yields in the 7-10% range.
Sources
- TheLatinvestor - Tegucigalpa Property Market
- TheLatinvestor - Tegucigalpa Price Forecasts
- TheLatinvestor - Honduras Price Forecasts
- TheLatinvestor - Tegucigalpa Real Estate Forecasts
- TheLatinvestor - Honduras Real Estate Trends
- Agentiz - Real Estate Agencies Honduras
- FazWaz Honduras
- RE/MAX Central America
- Zeyla Solutions - Property Buying Guide
- Honduras Real Estate Pro - Purchase Process