Guatemala: Price History

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Guatemala (pop. 13 million, GDP/cap US$2,100) is the Mayan heartland of Central America, and its indigenous culture is alive and well. That culture survives in the ancient ruins of Tikal, in the Mayan/Catholic rituals of Chichicastenango, and the blazing colors of everyday Mayan dress.

Emerging from a 36 year civil war in 1996 in which horrendous human rights abuses were committed, Guatemala has yet to fully recover.

Buyers may find Guatemalan property cheap, but then, Guatemala does not have a great variety of ‘purchase destinations’ to offer.

There are no good beaches. Foreigners buy in Antigua and on Lake Atitlan – and that is just about that (tourism destinations abound, including Tikal and the whole Paten area around Rical.  But a tourism destination is not always a living destination).

“I don’t see any other places coming up, where one could say, this is something that will really emerge in the future,” notes Edward Pearce of Gateway to Antigua.

Charming Antigua

Antigua (pop 22,000) is a charming Spanish colonial town. Though earthquakes have done much damage over the centuries, there is much Spanish heritage. It is a refuge for elite Guatemalans, being only 45 minutes’ drive from Guatemala City, the capital, which is highly polluted and congested.

“We do get quite a lot of impulse buyers,” says Brian Wilson of Casa Nova Real Estate. “They keep coming back to Antigua.  Eventually, they reckon they might as well buy.”

In Antigua prices have been rising continuously – perhaps by around 20% per annum.

An authentic 3-4 bedroom colonial home in central Antigua with a fountain and yard in the central area with 1-2 kitchens, 2 living rooms and 2 bathrooms plus maids’ quarters, would cost about $600,000. This same house would have cost $300,000 five years ago, and about $100,000 10 years ago.

For a well-maintained, larger footprint, greater scale home, the price tag could rise dramatically to around $2,000,000. A newly built, slightly out of town starter home would cost about $300,000.

Sky rocketing

“Rental prices have sky-rocketed in the past ten years,” says Peter Glover of the Bamboo Group. He says that a basic Antigua lodging (2 bedroom house, private parking, basic amenities) costs approximately $800 a month for basic comforts, (i.e. central hot water, small garden, basic furnishings). The same lodging would have cost $150 10 years ago.

Antigua’s climate is pleasant, around 72 degrees Fahrenheit, so no air conditioners are needed, and no fires (though December is a little chilly). Antigua’s full-time foreign community is small, at around 200 people, but many more come and go. The Antigua market is around 25% foreigners, 75% locals, escaping Guatemala City.

Guatemala City is a completely different market. “In Guatemala City over 10 years, you wouldn’t have made much money owning property,” says Wilson. “The market is really very slow, not a lot of activity. The people who make money are those who buy apartments pre-contract, and then flip them over. They might buy 5-6 units, ending up with one for free.”

Foreign buyers beware

Under Guatemalan law, foreigners can acquire, maintain and dispose of real property with very few restrictions. Foreigners cannot own land directly next to rivers, oceans or international borders.

Foreign investors must realize that corruption is a fact of life in Guatemala and be prepared to encounter it at all levels. Political violence has abated, but crime is high.

In 2001, Congress passed a law allowing the use of foreign currencies in all transactions. Most real estate transactions are quoted and concluded in US dollars.

Guatemala - more data and information

• Guatemalan house prices, rents, and letting income - real data!
• How expensive are houses in Guatemala, compared to the rest of Latin America?
• How much rent can be earned from Guatemalan property, compared to the rest of Latin America?

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