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15 strong trends for 2025 in the Tegucigalpa property market

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Authored by the expert who managed and guided the team behind the Honduras Property Pack

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What is happening in Tegucigalpa’s real estate market? Are prices on the rise or decline? Is the city still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?

These are the questions we hear every day from professionals, buyers, and sellers across Tegucigalpa and beyond. Maybe you’re curious about the same things.

We know this because we stay closely connected with local experts and people like you, exploring the Tegucigalpa real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.

Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.

How this content was created 🔎📝

At The Latinvestor, we study the Tegucigalpa real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These trends are originally based on what we’ve learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources, like the UK Government, the OECD, and the IMF (among many others).

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded. For the "trends" meeting our standards, we go and look for more insights from real estate blogs, industry reports, and expert analyses, alongside our own knowledge and experience. We believe it makes them more credible and solid.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make forecasts accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Foreign buyers will increasingly target Tegucigalpa for favorable exchange rates and investment opportunities

Foreign buyers are increasingly eyeing Tegucigalpa for property investments.

One big draw is the favorable exchange rates, making it cheaper for foreign investors to buy property in Honduras. When the local currency is weaker, your money goes further, making Tegucigalpa's real estate more affordable and appealing.

There's also been a huge jump in Foreign Direct Investment in Honduras, from $920.3 million in 2022 to $1.8 billion in 2023. This surge shows that investors see potential for growth and profit, especially in Tegucigalpa, which is becoming a hotspot for investment.

The city's economy is on the rise, with a 3.6% growth rate in 2023, adding to its appeal as a stable place to invest. Economic stability is a key factor for investors looking for reliable returns.

The Honduran government is also stepping up, improving infrastructure and offering incentives to attract foreign investment. Initiatives like the National Investment Council and a focus on tourism and manufacturing are creating a welcoming environment for investors.

With the real estate market expected to grow and property prices on the rise, Tegucigalpa is becoming a prime spot for profitable investments. These factors make it an attractive option for those looking to invest in the country.

Sources: Trading Economics, UK Government, The Latin Investor

2) Eco-friendly home demand will increase as buyers become more environmentally conscious

In recent years, 78% of homebuyers have started prioritizing environmental sustainability in their purchasing decisions.

People are increasingly choosing eco-friendly homes, driven by a shift in mindset towards greener living. This change is fueled by the growing market for sustainable building materials, which is expected to hit $322.81 billion by 2025. This surge is largely due to heightened environmental awareness and supportive government policies.

Among younger generations, the preference for eco-friendly homes is even more pronounced. A global survey revealed that 75% of millennials consider sustainability when buying a home, compared to 66% of all respondents. This shows that the demand for eco-friendly homes is more than just a trend; it's a significant movement among younger, environmentally conscious buyers.

As environmental awareness grows, the demand for homes built with sustainable materials is expected to rise. This trend is supported by the fact that government regulations are increasingly favoring sustainable construction, encouraging more builders to adopt eco-friendly practices.

In the real estate market, this shift is becoming evident as more buyers seek homes that align with their values. The push for sustainability is not just about reducing carbon footprints; it's also about creating healthier living environments. Eco-friendly homes often offer better air quality and energy efficiency, making them attractive to health-conscious buyers.

With the market for sustainable building materials booming and younger generations leading the charge, the future of real estate is looking greener. Builders and developers are taking note, increasingly incorporating sustainable practices to meet this growing demand.

Sources: The Business Research Company, Constructive Voices, The Madrona Group

infographics map property prices Tegucigalpa

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) Tegucigalpa’s property prices will rise moderately due to limited supply and increasing demand

Residential property prices in Tegucigalpa are on the rise, and it's catching the attention of potential buyers.

One big reason for this is the limited supply of homes. According to FazWaz.com.hn, there just aren't enough houses to go around, which naturally pushes prices up. It's a classic case of supply and demand—when there's not much to choose from, what is available becomes more expensive.

Adding to the mix is the steady stream of people moving into the city. Tegucigalpa has been a magnet for urban migration for decades. Back in 1961, the city had a population of just 164,941, but by 2001, it had ballooned to over 850,227. This influx continues today, keeping the demand for housing high.

Economic factors are also at play. As Honduras experiences economic growth, more people have higher disposable incomes. This is especially true for the growing middle class, who are increasingly interested in buying homes. With more people able to afford homeownership, the competition for available properties intensifies, driving prices up.

Then there's the geography of Tegucigalpa. The city is hemmed in by mountains, which limits the land available for new developments. This natural barrier means that as more people want to live in the city, the existing properties become even more valuable, further pushing up prices.

Sources: FazWaz, ALAP, CEPAL

4) Colonia Kennedy will see rising demand as new infrastructure projects enhance connectivity

Colonia Kennedy is on the brink of a real estate boom thanks to new infrastructure projects enhancing connectivity.

In the south of Tegucigalpa, a major highway project valued at US$44.3 million is underway, aiming to link with the CA-5 highway and ease traffic congestion. This construction, which kicked off in 2024, is a game-changer for the area, making it more accessible and appealing.

Tegucigalpa isn't stopping there; the city is buzzing with 24 road projects totaling nearly US$193 million. These include a new flyover on Suyapa Boulevard and upgrades to the Anillo Periferico ring road. Such improvements are set to make neighborhoods like Colonia Kennedy more desirable for both living and business, as they promise to cut down travel times and smooth out traffic.

The buzz around better connectivity is catching the eye of property developers. With these infrastructure projects in the pipeline, developers are increasingly drawn to the area, seeing it as ripe for residential and commercial growth. Local media often spotlight the perks of these projects, like less congestion and better traffic flow, adding to the area's allure.

As these developments unfold, Colonia Kennedy is becoming a hotspot for investment, with its enhanced accessibility making it a prime location for future growth. The anticipation of these changes is already stirring interest among potential buyers and investors.

With all these upgrades, Colonia Kennedy is poised to transform into a vibrant community, attracting new residents and businesses eager to capitalize on the improved infrastructure.

Sources: BNamericas, World Highways

5) Boulevard Morazán area will grow in desirability with enhanced security and community initiatives

The area around Boulevard Morazán is becoming increasingly attractive due to improved security measures.

In December 2022, the Honduran government made a bold move by deploying 20,000 police officers to combat gang issues in cities like Tegucigalpa. This significant increase in police presence has been a game-changer, creating a safer environment around Boulevard Morazán.

Throughout 2023, Tegucigalpa saw a 23% drop in violence-related fatalities, highlighting the success of these security efforts. This decline in crime has fostered a sense of safety, making the area more appealing to both residents and investors.

The local government's 2023-2025 action plan focuses on strengthening justice and enhancing transparency. This commitment is expected to further enhance the desirability of areas like Boulevard Morazán, attracting more interest and investment.

New businesses are popping up, and investments are flowing into the area, reflecting increased confidence in its safety and growth potential. This trend is a clear sign that Boulevard Morazán is on the rise.

With these ongoing improvements, Boulevard Morazán is set to become a prime location for living and business, thanks to the combined efforts of security enhancements and community initiatives.

Sources: ACLED Data, Open Government Partnership

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buying property foreigner Tegucigalpa

6) Virtual tours and online property management will grow as technology adoption rises

In Honduras, internet and smartphone usage have surged, transforming how people engage with real estate.

With 6.44 million internet users and 76.1% smartphone penetration, the stage is set for digital solutions to thrive. This tech boom is reshaping the real estate market, making virtual tours a must-have for property listings. Imagine browsing homes from your couch, with listings offering 87% more views thanks to these immersive experiences.

Virtual tours aren't just a novelty; they're a necessity. By 2023, 75% of buyers relied on virtual tours to make decisions, spending more time exploring properties online. It's like having an open house at your fingertips, anytime you want. This shift is not just about convenience; it's about making informed choices without stepping outside.

Buyers are clear about their preferences. A whopping 67% of home buyers demand virtual tours, and over half won't even consider a property without one. This trend underscores a growing appetite for digital solutions, pushing traditional photography to the sidelines.

On the management side, property software and apps are gaining traction. These tools, designed for a mobile-first world, streamline transactions, making them quicker and more efficient. Government initiatives are also playing a role, promoting digital transformation and further boosting the adoption of these technologies.

As technology becomes more ingrained in daily life, expect virtual tours and online property management to become even more prevalent. The convenience and efficiency they offer are hard to ignore, especially in a world where time is of the essence.

Sources: PhotoUp, DataReportal, AscendixTech, LLC Buddy

7) Mid-range property prices will steadily rise as they become more accessible to the middle class

Honduras has been experiencing steady economic growth, thanks to stronger public investment and reforms.

This growth is boosting middle-class incomes, making mid-range properties more accessible to them. As the middle class expands, their purchasing power increases, leading to a higher demand for these homes.

More mortgage options are now available, making it easier for families to buy homes. While we don't have specific data for Tegucigalpa, lower interest rates generally make mortgages more affordable, encouraging middle-class families to purchase homes and driving up demand and prices for mid-range properties.

Government policies are also helping. The OECD's 2023 review of Honduras highlights efforts to improve economic outcomes for vulnerable groups, including initiatives to promote home ownership. Although not directly targeting the middle class, these policies support housing initiatives that benefit them.

Urban development in Tegucigalpa is enhancing infrastructure and amenities, especially in areas with mid-range properties. These improvements make these areas more attractive, increasing property values. Demographic trends show an expanding middle class in Tegucigalpa, eager to own property, further driving demand and prices.

Sources: IMF, OECD, Global Urban Development

8) More foreign retirees will buy properties in Central America for affordable living options

Foreign retirees are increasingly choosing Central America for its affordable living options.

Panama stands out as a top choice, thanks to its modern infrastructure and retiree-friendly policies like the pensionado program. This program offers perks such as discounts on healthcare and entertainment, making it a magnet for those looking to stretch their retirement savings.

Honduras is catching up with a real estate boom, especially in Tegucigalpa, where property values are rising. The city is becoming more attractive due to urbanization and infrastructure upgrades, drawing in retirees who want a vibrant yet affordable lifestyle.

Costa Rica and Belize are also on the radar for their lower cost of living compared to the U.S.. Costa Rica is a favorite among North American retirees, while Belize's retirement visa program simplifies the process for those looking to settle down.

The growing expatriate communities in these countries are a testament to their appeal. In Tegucigalpa, for instance, the surge in the rental market reflects the increasing demand from foreign retirees.

With retirement-focused services and amenities becoming more available, it's no wonder that more foreign retirees are purchasing properties in Central America. The trend is clear: retirees are seeking out places where their money goes further, and Central America fits the bill.

Sources: Travel Noire, Transitions Abroad

infographics rental yields citiesTegucigalpa

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) Foreign buyers will increasingly purchase properties for short-term rentals as tourism grows

Tourism in Honduras is booming, especially in Tegucigalpa.

With more international visitors flocking to the country, foreign buyers are snapping up properties for short-term rentals. Tegucigalpa, in particular, is seeing a surge in demand as it transforms into a lively center for education and employment. This shift is drawing in young professionals and students, making it a hot spot for rental properties.

Occupancy rates for short-term rentals in Tegucigalpa are climbing, reflecting the city's growing popularity. Investors are keen to tap into this trend, recognizing the potential for lucrative returns. The city's vibrant atmosphere and increasing job opportunities are key factors driving this demand.

The government is also playing a role in this trend. Through initiatives like the "Honduras 2020" plan, efforts are underway to boost tourism and attract investors. By enhancing tourism infrastructure and offering incentives, Tegucigalpa is becoming even more appealing to both tourists and property buyers.

These developments are not just about numbers; they represent a shift in how Tegucigalpa is perceived. The city is evolving, and with it, the opportunities for investment are expanding. Foreign investors are taking note, seeing the potential for growth in the short-term rental market.

As Tegucigalpa continues to grow, the trend of foreign buyers investing in short-term rentals is expected to rise. The combination of government support, increasing tourism, and a vibrant local economy makes it an attractive option for those looking to invest in the property market.

Sources: Recommend, Trading Economics

10) Foreign investors will target luxury developments, viewing them as safer investments

Foreign investors are zooming in on luxury developments because they see them as safer bets.

Since 2023, there's been a noticeable uptick in foreign direct investment in Honduras, especially in the luxury real estate market. Investors poured $1.8 billion into the country, with a keen interest in high-end properties in coastal hotspots like Roatán and Tela. These areas are not just beautiful but also offer a lifestyle that appeals to affluent buyers.

Luxury properties are seen as stable investments due to their consistent rental yields. Even though rental yields have generally dipped because of more properties on the market, the luxury segment has held its ground. This is because high-end properties attract tenants who are willing to pay top dollar for modern amenities and secure locations, such as private pools, gyms, and saunas.

Government incentives sweeten the deal for foreign investors eyeing luxury developments. Policies like tax breaks on profits from international sales and relief from import taxes, VAT, and income tax for businesses in free-trade zones make luxury real estate investments more appealing. These incentives, along with infrastructure improvements, boost the allure of luxury properties.

Experts foresee continued growth in the luxury real estate market, fueled by rising demand for high-end properties and supportive government policies. This is evident in projects like the Próspera project, which caters to the tastes of upscale buyers. Positive media coverage portraying Honduras as a luxury destination also enhances the perception of luxury properties as safer investments.

Sources: Esales International, FazWaz

11) Rental yields in central Tegucigalpa will rise with growing demand for urban living among young professionals

Rental yields in central Tegucigalpa are set to rise as young professionals flock to the city for urban living.

With the urban population now at 1,609,260, a 2.63% increase from last year, the city is buzzing with new energy. This growth is largely due to the influx of students and young professionals, making the demand for rental properties soar. The National Autonomous University of Honduras is a key player here, with enrollment numbers hitting 68,633, turning Tegucigalpa into a lively educational hub.

Programs like Empleando Futuros, backed by USAID, are boosting youth employment, making the city a hotspot for emerging talent. Young professionals are drawn to the city not just for jobs but for its improved infrastructure and vibrant economy. The government is pouring money into projects like a US$44.3 million highway, enhancing accessibility and making city life more appealing.

As suburban property prices climb, more people are looking for affordable and accessible housing in central areas. This shift is driven by the need for convenience and the desire to live comfortably in the heart of the action. Tegucigalpa is becoming not just a place to work but a place to truly live.

Sources: World Bank, TimeCamp

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12) Rental yields in suburban areas will drop as city living becomes more popular for its convenience

In Tegucigalpa, more people are choosing city life over suburban living.

Urban areas are becoming more popular, with the population jumping from 1,568,020 to 1,609,260 between 2023 and 2024. This trend is expected to continue, with projections showing the urban population reaching over 2 million by 2035. The city is buzzing with new infrastructure, like the $44.3 million highway, making it easier and more appealing to live there.

Young professionals are flocking to the city for its career opportunities and vibrant lifestyle. The government’s investment in infrastructure has made city living not just convenient but also attractive. This shift is also fueled by a booming rental market in city centers, driven by a growing middle class and a thriving tourism sector.

Rental prices in city centers are climbing, while suburban areas are seeing a rise in vacancy rates due to an oversupply of rental properties. In San Pedro Sula, for instance, the vacancy rate hit 5.0% by the end of 2023. This indicates a clear preference for urban living, where everything is within reach.

For those considering buying property, the city offers a dynamic environment with plenty of opportunities. The convenience of city life, combined with the ongoing development, makes urban areas a smart choice for investment. As more people move to the city, suburban areas are likely to see a decline in rental yields.

Sources: Living Cost, World Population Review

13) Luxury property yields will stabilize as supply and demand reach a balance

Luxury property listings in Tegucigalpa have noticeably increased, catching the eye of potential buyers.

Websites like FazWaz.com.hn are showcasing a wide range of luxury properties, hinting at a growing supply in the market. This uptick in listings means more options for buyers, which is crucial for balancing supply and demand.

There's also been a 34.5% jump in building permits over the past year, signaling a boom in new residential developments, including luxury homes. This surge is essential as it helps meet the demand for high-end properties, paving the way for more stable property yields.

As more luxury homes hit the market, Tegucigalpa is seeing a shift towards a more balanced state. This adjustment is a typical market response, ensuring that both buyers and sellers find equilibrium.

Experts often predict that markets will naturally adjust to balance supply and demand. In Tegucigalpa, this means that as the supply of luxury properties increases to meet demand, the yields on these properties are likely to stabilize.

With more properties available, the market can adjust, leading to stabilized luxury property yields as supply and demand find their balance.

Sources: Properstar, FazWaz

14) Government incentives will boost affordable housing yields by attracting more investors to this segment

Government funding for affordable housing has surged recently, making it a hot topic for potential investors.

Take Honduras, for example, where the Central American Bank for Economic Integration has approved a $150 million loan to support housing for vulnerable families. This kind of financial backing is a game-changer, directly addressing the need for affordable homes and making the sector more appealing to investors.

Tax incentives and support programs like the Low Income Housing Tax Credit have historically been successful in encouraging private investment. While not specific to Tegucigalpa, this program has created millions of housing units since 1986, showcasing the potential impact of similar incentives in the region. Investors are drawn to these government-backed opportunities, seeing them as a safety net with promising returns.

International investors are increasingly eyeing Tegucigalpa's real estate market, thanks to favorable economic indicators and government incentives. This growing interest can lead to increased competition, which in turn drives up property values and rental yields, benefiting early investors.

As more investors enter the market, the landscape becomes more competitive, potentially boosting property values. This trend is particularly beneficial for those who invest early, as they can capitalize on the rising demand and increased rental yields.

With government incentives attracting more investors, the affordable housing sector is poised for growth. This influx of investment not only addresses housing needs but also offers promising returns for those willing to take the plunge.

Sources: Local Housing Solutions, Central American Bank for Economic Integration

statistics infographics real estate market Tegucigalpa

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) Buyers prioritizing sustainability will make older, less energy-efficient properties less appealing

Homebuyers are increasingly prioritizing energy-efficient properties due to rising energy costs.

In places like Honduras, where fossil fuels dominate energy emissions, people are keen on homes that cut down on energy bills. Governments worldwide are offering incentives to make energy-efficient upgrades more accessible. For instance, the U.S. has programs like the Inflation Reduction Act, which makes it easier and cheaper for homeowners to adopt energy-efficient solutions. This isn't just a trend; it's a smart financial move.

According to the National Association of REALTORS' 2024 report, nearly half of homebuyers are interested in sustainability. This awareness is driven by climate change concerns and its impact on property values, making energy-efficient homes more appealing. Buyers are not just looking for a place to live; they want a home that aligns with their values and offers long-term savings.

Energy-efficient homes often have higher resale values, which is a big draw for buyers. New building codes and regulations are pushing for homes that meet these energy standards, making them a wise investment. Real estate listings are catching up, too, with more emphasis on energy-efficient features, making it easier for buyers to find what they want.

In Honduras, the shift towards renewable energy, especially biomass, is making energy-efficient homes even more attractive. Certifications like LEED or Energy Star are gaining traction, showing that eco-friendly homes are not just a passing trend but a valuable asset. This is a clear sign that the market is moving towards sustainability.

Energy-efficient homes can lead to significant utility cost savings. Programs like the U.S. Department of Energy's home energy rebate programs are expected to save households up to $1 billion annually on energy bills. This financial benefit, combined with the influence of younger, eco-conscious buyers, is driving the demand for sustainable living.

Sources: City of Ashland Incentives, NAR 2024 Sustainability Report, Renewable Energy in Honduras, DOE Home Energy Rebates

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.