Yields are high for beach area properties in Honduras
Last Updated: Oct. 19, 2005 | |||||
TEGUCIGALPA Centrre - Apartments | COST (US$) | YIELD (p.a.) | PRICE/SQ.M. (US$) | ||
TO BUY | MONTHLY RENT | TO BUY | MONTHLY RENT | ||
100 sq. m. | 80,000 | 400 | 6.00% | 800 | 4.00 |
150 sq. m. | 140,000 | 500 | 4.29% | 933 | 3.30 |
200 sq. m. | 200,000 | 800 | 4.80% | 1,000 | 4.00 |
250 sq. m. | 250,000 | 1,000 | 4.80% | 1,000 | 4.00 |
300 sq. m. | 300,000 | 2,000 | 8.00% | 1,000 | 6.70 |
TEGUCIGALPA Suburbs - Houses | |||||
100 sq. m. | 60,000 | 300 | 6.00% | 600 | 3.00 |
150 sq. m. | 100,000 | 500 | 6.00% | 667 | 3.30 |
200 sq. m. | 150,000 | 1,000 | 8.00% | 750 | 5.00 |
400 sq. m. | 300,000 | 1,500 | 6.00% | 750 | 3.80 |
500 sq. m. | 320,000 | 2,000 | 7.50% | 640 | 4.00 |
Bay Islands (Roatan, Guanaja, Utila) - Houses | |||||
100 sq. m. | 120,000 | 3,500 | 35.00% | 1,200 | 35.00 |
150 sq. m. | 175,000 | 3,000 | 20.57% | 1,167 | 20.00 |
200 sq. m. | 300,000 | 4,000 | 16.00% | 1,500 | 20.00 |
250 sq. m. | 350,000 | 5,000 | 17.14% | 1,400 | 20.00 |
300 sq. m. | 500,000 | 6,000 | 14.40% | 1,667 | 20.00 |
400 sq. m. | 600,000 | 7,000 | 14.00% | 1,500 | 17.50 |
500 sq. m. | 700,000 | 7,500 | 12.86% | 1,400 | 15.00 |
Source: Global Property Guide |
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A 100 sq. m. house along the a Bay island beach can earn very healthy yields of perhaps 35%. The figure is calculated for weekly rentals and an estimated 3 months vacancy each year. Yields for other sized properties range from 12% to 21%, with bigger places earning generally lower yields.
Apartments in Honduras' capital and other major cities have much lower rental yields of around 4% to 6%; however, 300 sq. m. apartments might typically yield up to 8%. Houses in major cities' suburbs might typically yield from 6% to 8%.