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Everything you need to know before buying real estate is included in our Guatemala Property Pack
House prices in Guatemala are not expected to go down in the foreseeable future.
The Guatemalan residential market has shown consistent growth over the past five years, with property values increasing by 59.8% nationally since 2020. Current market conditions indicate continued upward pressure on prices, driven by strong domestic demand, increasing foreign investment, and limited housing inventory in key urban areas.
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Guatemala's housing market shows strong fundamentals with consistent price growth, stable mortgage rates, and increasing foreign investment participation.
The market is characterized by tight inventory, attractive rental yields, and continued economic stability supporting further price appreciation.
| Market Indicator | Current Status (2025) | Trend |
|---|---|---|
| National Price Growth | 3-7% annually | Upward |
| Guatemala City Average Price | $1,403-$1,643/m² | Rising |
| Mortgage Interest Rates | 6-10% | Stable |
| Foreign Investment Share | Over 20% | Increasing |
| Rental Yields | 5.7-10.3% | Attractive |
| Housing Inventory | Tight supply | Limited |
| Currency Stability | Stable vs USD | Steady |
What have house prices in Guatemala done over the past 5 years?
House prices in Guatemala have increased significantly over the past five years, with a cumulative growth of 59.8% nationally between 2020 and 2025.
The strongest price gains occurred in 2021, when urban and tourist centers experienced growth of 7-8%. This was followed by steady increases of 6-7% in 2022, 5-6% in 2023, and 5% in 2024.
Guatemala City has seen particularly strong performance, with premium areas like Zona 10 and Zona 15 experiencing cumulative price increases of 15-25% since 2020. Tourist destinations and lakefront properties have also benefited from post-pandemic demand shifts.
As of 2025, the growth trajectory continues with urban areas experiencing 3-7% annual increases, while tourist zones maintain higher growth rates of up to 12% in some locations.
This consistent upward trend reflects the underlying strength of Guatemala's economy and the growing attractiveness of the country to both domestic and international property buyers.
What is the current average price per square meter for houses in Guatemala's major regions?
Property prices in Guatemala vary significantly by location, with Guatemala City commanding the highest prices and coastal areas offering the most affordable options.
| Region | Average Price per m² (USD) | Annual Growth Rate |
|---|---|---|
| Guatemala City (central) | $1,403-$1,643 | 4-6% |
| Guatemala City (outskirts) | ~$915 | 3-4% |
| Zona 10/15 (luxury) | $1,500-$2,000 | 5-7% |
| Antigua Guatemala | $500-$800 | 5-8% |
| Lake Atitlán | $150-$600 | 3-7% |
| Coastal Areas | $50-$150 | 3-5% |
How many homes are currently on the market in Guatemala compared to last year?
The Guatemalan housing market has experienced increased transaction volumes in 2025, with activity up 7% compared to 2024 in Guatemala City alone.
Inventory levels remain tight across premier locations, creating a seller's market environment. The number of homes available for sale has actually increased in 2025 compared to August 2024, but this increase has been offset by even stronger demand from both local and foreign buyers.
The tight inventory situation is particularly pronounced in Guatemala City's premium zones and popular tourist destinations like Antigua and Lake Atitlán. This supply-demand imbalance continues to support upward pressure on property prices.
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Market participants report that quality properties in desirable locations often receive multiple offers, sometimes above asking price, particularly when foreign buyers are involved in the bidding process.
What is the current mortgage interest rate in Guatemala and how has it changed?
Current mortgage interest rates in Guatemala range from 6-10% for a 20-year fixed mortgage as of September 2025.
These rates have remained remarkably stable over the past 12 months, fluctuating only slightly within the established 6-10% band. This stability reflects Guatemala's sound monetary policy and overall economic management.
The consistency in mortgage rates has been a positive factor for the housing market, providing predictability for both buyers and lenders. Unlike many other markets that have experienced significant rate volatility, Guatemala's banking sector has maintained steady lending conditions.
For international buyers, these rates remain competitive compared to many developed markets, particularly when combined with Guatemala's relatively stable currency and growing economy.
The stable rate environment has supported continued mortgage penetration in the market, with an increasing number of buyers choosing financing over cash purchases.
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How many months of housing inventory are available right now compared to the past 3 years?
The Guatemalan housing market is currently characterized as a seller's market with tight inventory levels, particularly in urban and premium locations.
While specific months of inventory data is not readily available, market conditions indicate significantly reduced inventory compared to the past three years. This reduction has been driven by accelerating demand from both domestic buyers and increasing foreign investment.
The inventory shortage is most pronounced in Guatemala City's desirable neighborhoods, Antigua Guatemala, and lakefront properties around Lake Atitlán. Properties in these areas often sell quickly, sometimes within weeks of listing.
Compared to 2022-2023, when inventory levels were more balanced, the current market strongly favors sellers due to the supply-demand imbalance. This trend has contributed to sustained price growth and competitive bidding situations.
New construction has increased to meet demand, but developers report challenges in keeping pace with buyer interest, particularly in the luxury and mid-range segments.
What has been the annual change in household incomes in Guatemala over the past 5 years?
Guatemala has experienced gradual but consistent household income growth over the past five years, supported by stable economic expansion and low inflation.
The country's GDP growth of approximately 3-4% annually has translated into modest real income gains for the middle class. While exact yearly household income data is limited, economic indicators suggest steady improvement in purchasing power.
Inflation has remained exceptionally low and stable, registering just 1.47% in 2024 and 1.69% in May 2025. This low inflation environment has helped preserve and enhance the real value of household incomes.
Remittances from Guatemalans living abroad, particularly in the United States, continue to be a significant source of income for many families and contribute to overall household purchasing power in the real estate market.
The combination of moderate income growth and low inflation has supported the domestic demand for housing, contributing to the sustained price appreciation seen across the country.
What percentage of home purchases in Guatemala are made with cash versus financed with loans?
Approximately 30-40% of home purchases in Guatemala are funded through cash, with the remaining 60-70% relying on mortgage financing.
The high cash purchase rate is particularly prominent in the luxury market and among expatriate buyers, who often have access to foreign currency savings or investment funds. Foreign buyers frequently prefer cash transactions to simplify the purchase process and avoid local lending requirements.
Mortgage penetration has been rising in recent years as Guatemala's banking sector has expanded lending programs and middle-class income growth has supported loan qualification. The stable interest rate environment has also encouraged more buyers to consider financing options.
Cash purchases are most common in premium areas like Zona 10 and Zona 15 in Guatemala City, as well as in tourist destinations where international buyers are active. In contrast, first-time local buyers in outlying areas more commonly use mortgage financing.
The relatively high cash purchase rate compared to developed markets reflects both the significant expat buyer presence and the traditional preference for cash transactions in Latin American real estate markets.
What is the current unemployment rate in Guatemala and how has it shifted in the last 2 years?
Guatemala maintains a low unemployment rate, consistently ranging between 3-4% in recent years, including 2025.
The unemployment rate has remained stable or slightly decreased compared to 2023, reflecting the country's ongoing economic growth and job market stability. This low unemployment environment has been a key factor supporting housing demand and affordability.
The stable employment situation has provided confidence for potential homebuyers to make long-term financial commitments, including mortgage obligations. Many sectors of the economy continue to show growth, particularly services, tourism, and agriculture.
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The combination of low unemployment and moderate wage growth has created favorable conditions for sustained housing demand, contributing to the upward pressure on property prices across the country.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Guatemala 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 many new housing units are expected to be built in Guatemala in the next 12 months?
Construction activity in Guatemala is accelerating, particularly in Guatemala City and tourist destinations, driven by strong demand from expatriates and urban professionals.
While precise nationwide figures for new housing unit construction are not available, industry reports indicate a significant increase in development projects across major urban areas. Guatemala City is experiencing the most robust construction activity, with multiple residential developments in various stages of planning and execution.
Tourist destinations like Antigua Guatemala and areas around Lake Atitlán are also seeing increased construction activity, much of it targeting the growing expat and vacation home markets. These projects range from individual luxury homes to small-scale residential developments.
Despite the increased construction activity, developers report that new supply is struggling to keep pace with demand, which continues to support price appreciation. The construction boom is expected to continue through 2025 and into 2026.
Environmental and zoning regulations in some tourist areas may limit the pace of new construction, helping to maintain the supply-demand imbalance that has characterized the market in recent years.
What has been the trend in foreign investment in Guatemalan real estate over the past 3 years?
Foreign investment in Guatemalan real estate has shown a strong upward trend over the past three years, with international buyers now representing over 20% of all transactions in 2025.
This represents a significant increase from previous years and reflects Guatemala's growing reputation as an attractive destination for both lifestyle migration and real estate investment. The trend has been particularly pronounced in tourist areas and premium locations.
American and Canadian buyers make up the largest segment of foreign purchasers, attracted by Guatemala's proximity to North America, favorable climate, and relatively affordable property prices. European buyers have also shown increasing interest, particularly in the Antigua Guatemala area.
The foreign investment surge has been concentrated in specific market segments, including luxury homes in Guatemala City's premium zones, colonial properties in Antigua, and lakefront properties around Lake Atitlán. This investment has contributed significantly to price appreciation in these markets.
Government policies that allow foreign property ownership and the country's stable political environment have facilitated this investment trend, which shows no signs of slowing in the near term.
What is the current rental yield for residential properties in key Guatemalan cities?
Guatemala offers some of the most attractive rental yields in Central America, with returns significantly higher than many developed markets.
Guatemala City delivers rental yields ranging from 5.7% to 10.3%, making it particularly attractive for investors seeking steady income returns. The higher end of this range is typically achieved in well-located apartment buildings and condominiums in central areas.
Antigua Guatemala offers rental yields of 6-10%, with properties targeting both long-term expat residents and short-term tourist rentals. The colonial charm and UNESCO World Heritage status of the city support strong rental demand.
Lake Atitlán properties generate rental yields of 7-8.4%, particularly for properties that can serve both the expat rental market and vacation rental demand. The stunning natural setting and growing tourism help support these strong returns.
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These rental yields are particularly attractive when compared to yields in developed markets, which often range from 2-4%, making Guatemala an compelling destination for income-focused real estate investors.
How has the Guatemalan currency performed against the US dollar over the past 24 months?
The Guatemalan Quetzal (GTQ) has maintained remarkable stability against the US dollar over the past 24 months, supported by strong macroeconomic management and consistent remittance flows.
This currency stability has been a significant factor in attracting foreign investment to the Guatemalan real estate market. Unlike many emerging market currencies that have experienced volatility, the Quetzal has provided predictability for international investors.
The stability is underpinned by Guatemala's conservative fiscal policies, substantial foreign exchange reserves, and the continuous flow of remittances from Guatemalans living in the United States. These remittances provide a steady source of US dollars to the local economy.
For foreign property buyers, this currency stability reduces exchange rate risk and makes financial planning more predictable. It also supports the preservation of asset values when measured in foreign currency terms.
The stable currency environment, combined with the country's political stability and economic growth, continues to support confidence in the Guatemalan real estate market among both domestic and international investors.
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.
Based on all available market indicators, house prices in Guatemala are not expected to decrease in the foreseeable future.
The combination of strong foreign investment, limited inventory, stable economic conditions, and attractive rental yields creates a supportive environment for continued price appreciation in the Guatemalan residential market.