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What will happen in Tegucigalpa’s real estate market? Will prices go up or down? Is Tegucigalpa becoming a hotspot for foreign investors? How is Honduras’ government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Tegucigalpa, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

1) Property prices on Tegucigalpa's outskirts will rise as urban sprawl expands
The outskirts of Tegucigalpa are set to see a rise in property prices as the city continues to expand.
With Tegucigalpa's population growing steadily, now estimated at 1,609,260 residents in 2024, there's a clear demand for more housing. This surge in population is pushing up property prices, not just in the city center but also in the surrounding areas.
The government is pouring money into infrastructure, like the US$44.3 million highway, which is making the outskirts more accessible and appealing. These improvements are turning the suburbs into attractive spots for both living and working, naturally boosting property values.
Transportation links are getting better, connecting the outskirts to the city center more efficiently. This ease of commuting is encouraging more people to consider suburban living, which in turn is driving up property prices in these areas.
Urban development plans are in full swing, with a noticeable push towards the suburbs. Building permits in Tegucigalpa have jumped by 34.5% in just a year, indicating a boom in new homes and apartments, especially in the suburbs.
Real estate market reports show a growing interest in suburban properties. The median sales price for a house in Tegucigalpa is around L14,400,000, highlighting the rising property prices in both central and peripheral areas.
Sources: World Population Review, FazWaz
2) Tegucigalpa’s home prices will grow moderately as the economy stabilizes
Tegucigalpa's residential property market is set for moderate growth in 2025 as the economy stabilizes.
With the Honduran economy on the rise, GDP is projected to grow by 4.30% in 2025, creating a favorable environment for real estate. This steady economic progress is a promising sign for potential property buyers looking to invest in the capital city.
Foreign Direct Investment (FDI) is also on the upswing, jumping from USD 920.3 million in 2022 to USD 1.8 billion in 2023. This surge in foreign capital, coming from regions like South America, Europe, and Asia, reflects growing international confidence in Honduras's economic future, which in turn boosts the property market.
The government is actively working on infrastructure and urban development projects, which are expected to increase property values in Tegucigalpa. These initiatives are part of a broader strategy to modernize the city and make it more attractive to both residents and investors.
As the middle class in Honduras expands, their purchasing power is increasing, leading to a higher demand for housing in urban areas. This demographic shift is a key driver of the real estate market, particularly in Tegucigalpa, where urban living is becoming more desirable.
For those considering buying property in Tegucigalpa, these factors suggest a stable and potentially lucrative market. The combination of economic growth, foreign investment, and government initiatives creates a promising landscape for real estate investment.
Sources: Trading Economics, UK Government

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Honduras. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Demand for homes with shared amenities will grow as community living becomes more popular
There's a growing interest in community living, driving demand for properties with shared amenities.
Imagine a place where you not only live but also connect with others. This is the essence of co-living, and it's catching on fast. According to Knight Frank's Co-Living Report 2024, there's been a 65% increase in co-living beds and units either under construction or with planning permission. This shows a clear shift towards living arrangements that focus on community and shared spaces.
People are loving this lifestyle. The same report reveals that 92% of co-living residents would recommend their landlord to friends and family. This high satisfaction level is likely to inspire more folks to explore similar living situations, boosting the demand for properties with shared amenities.
It's not just about preference; demographics are playing a part too. Younger generations, especially those aged 26 to 40, are leaning towards shared living spaces. This group forms a large chunk of tenants in co-living setups, hinting that the demand for community living will keep rising as they become more influential in the housing market.
Real estate market reports are also picking up on this trend. There's a noticeable shift towards shared amenities in co-living developments, indicating a broader market move towards community-focused living spaces. Since 2020, nearly £1 billion has been invested in co-living developments, showing a strong commitment to building infrastructure that supports community living.
Sources: Knight Frank Co-Living Report 2024, PHCP Pros
4) Demand for short-term rentals will rise as more foreign tourists visit
In 2023, Honduras saw a surge in international tourists, with over 2 million visitors boosting the local economy.
With $700 million in tourist spending, the influx is expected to keep growing thanks to better travel connections and unique experiences for niche travelers.
Tegucigalpa, the capital, is becoming a hot spot. It's not just a travel destination but also a vibrant educational hub with new job opportunities, making it more appealing to tourists, according to Emilio Silvestri, the Minister-Director of Tourism.
New flight routes are making a big difference. For instance, Air Europa's direct flights from Madrid and Spirit Airlines' flights from Orlando are making Tegucigalpa more accessible, which is likely to increase the demand for short-term rentals.
Tourists are loving their stays in Tegucigalpa, as seen in positive reviews on Airbnb and Booking.com. This satisfaction is likely to lead to more bookings and a higher demand for short-term rentals.
Sources: Recommend, PR Newswire
5) Luxury rental yields will drop as supply exceeds demand
Tegucigalpa is seeing a surge in luxury property developments, with a noticeable increase in high-end homes and apartments.
With a 34.5% rise in building permits for luxury properties, the city is buzzing with new construction. But here's the catch: many of these luxury units are sitting empty. Landlords are getting creative, offering discounts and even free utilities to lure in tenants.
The market is flooded, and occupancy rates for luxury rentals are dropping. There are simply more units than there are renters who can afford them. This oversupply is making it tough for landlords to fill their properties.
People are leaning towards more affordable housing options, which is shrinking the demand for luxury rentals. Plus, the growth of the high-income population is slowing down, meaning fewer people are in the market for these upscale homes.
For those considering buying property in Tegucigalpa, it's worth noting that the luxury rental market is becoming increasingly competitive. With more supply than demand, yields on luxury rentals are likely to decline.
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6) El Trapiche will become more desirable as infrastructure improvements are planned
El Trapiche is on the brink of becoming a hot spot thanks to some exciting infrastructure plans.
The Honduran government is investing heavily in Tegucigalpa's roads, with 24 projects totaling nearly US$193 million. This shows a serious push to upgrade the area, making El Trapiche a more attractive option for potential homeowners.
On top of that, the Central American Bank for Economic Integration is backing the "Honduras Resilient Roads Program" with US$606.9 million. This program will revamp 308 kilometers of roads, directly benefiting El Trapiche by easing traffic and improving daily commutes.
There's also a strategic plan in place for Tegucigalpa and Comayagüela to boost water security, sanitation, and access to schools and hospitals. These enhancements are set to elevate the quality of life in El Trapiche, making it even more appealing for families and businesses alike.
As these infrastructure projects roll out, expect to see more businesses setting up shop in El Trapiche. This will not only increase commercial activity but also add to the neighborhood's vibrancy and charm.
With all these improvements, El Trapiche is poised to become a sought-after community, offering a blend of convenience and quality living. It's a great time to consider investing in this up-and-coming area.
Sources: World Highways, CABEI, NDF
7) More foreign investors will target Tegucigalpa because of favorable exchange rates
Foreign buyers are eyeing Tegucigalpa for investment, thanks to favorable exchange rates.
In recent years, the exchange rate for the Honduran lempira to US dollars has been quite stable. This stability, with a mid-market rate of 0.03934 USD per HNL as of early 2025, makes it easier for investors to plan without worrying about sudden currency changes. This predictability is a big draw for those looking to invest in the area.
Property prices in Tegucigalpa are also a major attraction. A three-bedroom house here costs around $180,000, which is a bargain compared to other regional capitals like La Ceiba. This affordability, paired with the stable exchange rate, offers foreign buyers a chance to get more bang for their buck.
The city isn't just about good prices; it's also about growth. Tegucigalpa has seen significant infrastructure development, like the $44.3 million highway project. These improvements make it a more appealing place to live and work, adding to its investment allure.
There's also a growing expatriate community, along with international schools and diplomatic missions, which creates a supportive environment for foreign investors. These elements, combined with the favorable exchange rates, make Tegucigalpa a promising spot for investment.
With all these factors in play, it's no wonder that foreign buyers are increasingly targeting Tegucigalpa for their investment ventures.
Sources: Wise, FazWaz, Tales Mag
8) Foreign investors will target eco-friendly projects in Tegucigalpa as sustainability gains importance
The real estate market is increasingly focusing on sustainability and eco-friendly practices.
In Central America, Costa Rica has become a leader in eco-tourism, attracting tourists and investors who care about the environment. Honduras is following suit, with the government aiming for 80% renewable energy by 2038. This push for green energy is expected to draw more investments into Tegucigalpa's eco-friendly projects.
Honduras is actively promoting renewable energy through supportive policies and regulations, making it an attractive destination for sustainable development. Investors are looking at Tegucigalpa as a potential hub for eco-friendly real estate, inspired by Costa Rica's success in sustainability.
Globally, there's a trend towards green building certifications like BREEAM and LEED, which are becoming more popular. These certifications are a sign of quality and sustainability, making properties more appealing to foreign investors.
Foreign investors are particularly interested in Tegucigalpa because of its potential for sustainable real estate projects. The city's focus on eco-friendly developments aligns with the global shift towards sustainability.
As sustainability becomes a priority, foreign investors are likely to focus on eco-friendly developments in Tegucigalpa, following the successful examples set by other Central American countries.
Sources: Rentastic, Equities, IRENA

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.
9) Property prices in central Tegucigalpa will stay steady because demand remains consistent
Properties in central Tegucigalpa are expected to maintain stable prices due to consistent demand.
With Tegucigalpa's population projected to grow, increasing by 2.55% in 2025, more people will need homes, boosting housing demand. This growth isn't just about numbers; it's about the city's vibrant culture and opportunities drawing people in.
Foreign direct investment plays a big role here, making up 3.15% of GDP in 2023. Thanks to the CAFTA-DR trade agreement, the economy is stable, and foreign investors are eyeing both residential and commercial properties. This isn't just about money; it's about confidence in the city's future.
Land in central Tegucigalpa is scarce, so there's a scramble for existing properties. Even with a rise in building permits, new developments aren't flooding the central areas, keeping demand high for what's already there. This scarcity is a key factor in maintaining stable prices.
Honduras is seeing economic stability and growth, bolstered by trade agreements and infrastructure improvements. This makes central Tegucigalpa attractive to both local and foreign buyers, ensuring consistent demand for properties. It's not just about the numbers; it's about a thriving community.
Sources: Macrotrends, IMF
10) Luxury property prices in Tegucigalpa will dip slightly as demand moves to affordable homes
Real estate in Tegucigalpa is shifting as economic factors push buyers towards affordable homes.
Many locals, especially young professionals and small families, are now eyeing smaller, easier-to-maintain homes. These include apartments and townhouses, which are not only budget-friendly but also fit the modern lifestyle. Developers are catching on, with more affordable housing projects popping up to meet this demand.
The rising cost of living in Tegucigalpa is another factor steering people away from luxury homes. With everyday expenses like utilities and food climbing, there's less money left for high-end real estate. This has prompted middle-class families to look towards the suburbs for more wallet-friendly options.
In the city center, the demand for luxury properties is dwindling as people prioritize affordability. The shift is clear: luxury property prices are expected to dip slightly as the market adapts to these new preferences.
For those considering a move to Tegucigalpa, it's a good time to explore the growing number of affordable housing options. The trend towards smaller, more practical homes is reshaping the city's real estate landscape.
As the market evolves, developers are focusing on meeting the needs of a more cost-conscious population, ensuring that Tegucigalpa remains an attractive place to live.
Sources: Living Cost, My Life Elsewhere
11) Rental yields in Tegucigalpa will rise as renting becomes more popular than buying
Rental yields in Tegucigalpa are on the rise as more people choose to rent instead of buy.
Many are flocking to Tegucigalpa for education and work, boosting the demand for rentals. The National Autonomous University of Honduras is seeing a surge in students, many of whom prefer renting. Plus, job programs like Empleando Futuros are attracting young professionals, further increasing rental demand.
Buying a home is becoming less affordable, with a three-bedroom house in Tegucigalpa now costing around $180,000. This price tag is steep for many, making renting a more practical choice.
Economic shifts, like inflation and currency changes, have tightened mortgage lending. This makes buying homes tougher, nudging more people towards renting. Younger folks and smaller families find renting appealing due to its affordability and low maintenance.
As more people opt for renting, rental yields are expected to continue climbing. This trend is reshaping the housing market in Tegucigalpa, making it a hotspot for rental investments.
With the city becoming a hub for education and employment, the rental market is thriving, offering opportunities for both renters and investors.
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12) Rental yields will increase in student areas due to steady demand from university students
Tegucigalpa is buzzing with student life thanks to the National Autonomous University of Honduras (UNAH) drawing in 68,633 students.
With limited on-campus housing, students are flocking to nearby neighborhoods, creating a hot market for rentals. Unlike San Pedro Sula, which has too many rentals, Tegucigalpa can't keep up with the demand.
Preleasing for the 2024-25 school year is already ahead of last year's record, showing strong demand for off-campus housing. This is a common trend in cities with growing university populations.
Student neighborhoods are packed, thanks to improved infrastructure and a lively economy. This makes Tegucigalpa a magnet for students and young professionals, pushing rental prices up.
In cities with big universities, high rental yields are the norm because of the constant need for student housing. Tegucigalpa is no different, with its bustling student areas.
Expect rental yields in Tegucigalpa to rise as university attendees keep the demand steady. The city's vibrant student scene is a key driver of this trend.
Sources: Core Spaces Investment, Multifamily Executive
13) Demand for homes near the National Autonomous University of Honduras will rise due to interest from students and faculty
The National Autonomous University of Honduras (UNAH) now hosts 68,633 students, a number that has been steadily climbing.
With such a large student body, the demand for housing near the university is naturally increasing. Students often prefer to live close to campus for convenience and safety, making nearby properties highly sought after.
Rental prices in the area are already on the rise, indicating that the demand for residential properties is growing. As more students and faculty look for housing, these prices are expected to continue climbing.
The university's expansion, including new programs and faculty recruitment, means even more people will need accommodation. This growth directly impacts the demand for housing in the surrounding areas.
Real estate agents in the area report a noticeable uptick in inquiries from students and faculty seeking nearby housing. This is a common trend in areas with expanding universities, further proving the increasing demand for residential properties.
Local market analyses consistently show that the proximity to UNAH is a key factor driving property interest. This makes investing in residential properties around the university a potentially lucrative opportunity.
14) City center rents will stabilize as more housing options open up
Tegucigalpa's building permits jumped by 34.5% in 2023, signaling a boom in new homes and apartments.
The government is making it easier for developers by offering tax breaks and streamlined processes, which are drawing in foreign investors. This means more housing options are on the horizon.
New residential complexes are popping up all over Tegucigalpa, adding to the housing stock and giving renters more choices. This wave of new properties is expected to help stabilize vacancy rates.
With more homes available, rents in the city center are likely to stabilize as the supply catches up with demand. This is good news for anyone looking to rent or buy in the area.
Local insiders note that these changes are part of a broader effort to modernize the city and make it more attractive to both locals and newcomers. More housing means more opportunities for everyone.
As the city grows, the real estate market is becoming more dynamic, offering a range of options from affordable apartments to luxury condos. This diversity in housing is a game-changer for the market.
Sources: Land Links, Population Stat

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.
15) Rental prices in Tegucigalpa's popular areas will rise as the market becomes more competitive
The rental market in Tegucigalpa is heating up as more people flock to the city.
Young professionals and students are driving this demand, with enrollment at the National Autonomous University of Honduras reaching 68,633 students. This surge in student numbers is a clear sign of the growing need for rental properties.
The city's population is also on the rise. In 2023, Tegucigalpa's metro area had 1,568,000 residents, and by 2024, it grew to 1,609,000. With projections showing it will hit 1,650,000 by 2025, more people are searching for homes in the city.
Finding a rental in a desirable area is becoming a challenge. Limited availability of properties is pushing prices up, making the market more competitive. This scarcity is particularly felt in neighborhoods popular with newcomers.
Expatriates and professionals are adding to the demand, drawn by programs like Empleando Futuros. These initiatives attract skilled workers who are seeking quality housing, further intensifying the competition for rentals.
As the city continues to grow, the rental market is expected to become even more competitive, especially in sought-after areas.
Sources: Macrotrends
16) Property values in Colonia Kennedy will rise as it becomes a tech startup hub
Colonia Kennedy is on the brink of a property value surge as it transforms into a tech startup hub.
Thanks to increased investment in tech infrastructure, Tegucigalpa is becoming a prime spot for data centers in Central America. This boost in infrastructure is like a magnet for tech startups, which in turn, drives up property values in the area.
Honduras is rolling out the red carpet for tech companies with government incentives like tax breaks and regulatory support. These perks make Colonia Kennedy a hot spot for tech firms, and as more startups set up shop, the demand for property is expected to rise.
Fast and reliable internet and telecommunications are the backbone of any tech company. As these services improve, they will fuel the growth of tech startups in Colonia Kennedy, giving property values another boost. Plus, the area is home to national universities and technical institutes, which means a steady stream of local talent ready to jump into the tech scene.
With a growing pool of skilled workers, tech companies find it easier to thrive, which further cements Colonia Kennedy's status as a tech hub. This influx of talent and businesses is a recipe for rising property values.
As more tech firms flock to the area, the landscape of Colonia Kennedy is changing, making it an exciting place for potential property buyers. The combination of infrastructure, incentives, and talent is setting the stage for a vibrant tech community.
Sources: Data Centers, TerraTern, Nearshore Americas
17) Property values in Colonia Miraflores will rise due to new shopping and entertainment developments
Colonia Miraflores is on the brink of a property value surge thanks to exciting new developments.
One major factor is the Action Plan for Tegucigalpa, backed by the Nordic Development Fund. This initiative is all about making the city more sustainable and climate-resilient, which means investments in new shopping and entertainment venues are likely on the horizon. These changes are set to make the city more compact and efficient, drawing more people to areas like Colonia Miraflores.
Honduras's real estate market is on an upward trajectory, with an expected growth of 5.12% from 2024 to 2029. This boom is largely due to foreign investors eyeing rental properties, which is a good sign for property values in Colonia Miraflores. As demand for rentals rises, so do property sales and rental prices, making it a promising time to invest.
Another exciting development is the influx of young professionals and students into Tegucigalpa. This demographic shift is turning the city into a lively educational hub, which means more foot traffic and business activity in neighborhoods like Colonia Miraflores. This buzz makes the area even more attractive for property buyers.
With these changes, Colonia Miraflores is becoming a hotspot for those looking to invest in property. The combination of new infrastructure, a growing real estate market, and a vibrant community is setting the stage for a significant boost in property values.
Sources: Properstar, Nordic Development Fund
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18) More digital nomads will move to Tegucigalpa due to remote work, affecting the rental market
The rise of remote work has created a new wave of global travelers known as digital nomads, who are drawn to places offering affordability and quality of life.
Tegucigalpa, the capital of Honduras, is becoming a hotspot for these digital nomads. The city offers a lower cost of living compared to many major cities, making it an attractive choice for remote workers looking to save money. For example, living expenses in Tegucigalpa are much cheaper than in New York City, which is a big draw for those seeking affordable living.
Moreover, Tegucigalpa is improving its internet infrastructure, a crucial factor for remote workers. The government is actively working on modernizing networks and expanding coverage, making the city more appealing to digital nomads who need reliable internet for their work.
As more digital nomads choose Tegucigalpa as their base, the rental market is likely to see increased demand. This trend has been observed in other cities that have attracted remote workers, leading to a shift in the local housing market.
Insider knowledge suggests that the influx of digital nomads could also lead to a cultural exchange, enriching the local community. This could result in new business opportunities and a more vibrant city life, benefiting both locals and newcomers.
With its affordable living and improving infrastructure, Tegucigalpa is poised to become a key destination for digital nomads, potentially transforming the city's economy and impacting the rental market significantly.
Sources: Remote Work Statistics, Cost of Living in Tegucigalpa, Honduras Internet Infrastructure, Digital Nomadism Trends
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.