Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Guatemala

Guatemala

In Guatemala, the revenue of the Residential Real Estate Leases market market is estimated to reach US$8.03bn in 2024.
House Leases hold the largest market share with a projected market volume of US$7.04bn in 2024.
Over the period of 2024-2029, the revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 8.78%, leading to a market volume of US$12.23bn by 2029.
The demand for residential real estate leases in Guatemala has been steadily increasing due to a growing population and urbanization.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Guatemala has been experiencing significant growth in recent years.

Customer preferences: One of the main customer preferences driving the growth of the Residential Real Estate Leases market in Guatemala is the increasing demand for affordable housing. With a growing population and limited supply of housing, many Guatemalans are turning to renting as a more affordable option compared to purchasing a home. Additionally, renting provides flexibility for individuals who may need to relocate frequently for work or personal reasons.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Guatemala is the development of new residential complexes and apartment buildings. These modern and well-equipped properties are attracting a wide range of tenants, from young professionals to families. The availability of amenities such as swimming pools, fitness centers, and communal spaces is also a major draw for renters. Landlords are recognizing the demand for these types of properties and are investing in their construction to meet the growing market needs. Another trend in the market is the rise of online platforms and real estate agencies that specialize in connecting landlords with potential tenants. These platforms make it easier for both parties to find suitable matches, streamlining the rental process and increasing efficiency in the market. Additionally, the use of online platforms allows for greater transparency in terms of pricing and property information, giving renters more options and information to make informed decisions.

Local special circumstances: Guatemala's high urbanization rate is a special circumstance that is impacting the Residential Real Estate Leases market. As more people move to urban areas in search of better job opportunities and access to amenities, the demand for rental properties in these areas is increasing. This has led to a concentration of rental properties in urban centers, with higher rental prices in these areas compared to rural or suburban locations.

Underlying macroeconomic factors: Several underlying macroeconomic factors are contributing to the development of the Residential Real Estate Leases market in Guatemala. The country's economic growth and stability have created a favorable environment for investment in real estate. Additionally, low interest rates and government incentives for real estate development have encouraged both local and foreign investors to enter the market. These factors have led to an increase in the supply of rental properties, providing more options for potential tenants. In conclusion, the Residential Real Estate Leases market in Guatemala is experiencing growth due to customer preferences for affordable housing and flexibility. The development of new residential complexes and the use of online platforms are key trends in the market. The high urbanization rate and favorable macroeconomic factors are local special circumstances that are driving the growth of the market.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.