Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Transactions - Guatemala

Guatemala

In Guatemala, the market segment for Residential Real Estate Transactions market is anticipated to witness a significant increase in transaction value, projected to reach US$2.54bn by 2024.
Moreover, it is expected to exhibit a steady annual growth rate (CAGR 2024-2029) of 4.53%, leading to a market volume of US$3.17bn by 2029.
The residential real estate market in Guatemala is experiencing a surge in demand, with an increasing number of foreign investors seeking properties in popular tourist destinations.

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Analyst Opinion

The Residential Real Estate Transactions market in Guatemala has been experiencing steady growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Guatemala, there is a strong cultural emphasis on homeownership, with many individuals and families aspiring to own their own homes. This has led to a high demand for residential real estate transactions, as people look to invest in properties that they can call their own. Additionally, there is a growing desire for modern amenities and spacious living spaces, which has fueled the demand for new residential developments.

Trends in the market: One of the key trends in the residential real estate transactions market in Guatemala is the increasing popularity of gated communities and condominium complexes. These types of developments offer security, amenities, and a sense of community, which are highly valued by buyers. As a result, developers are focusing on creating these types of properties to meet the demand. Another trend in the market is the rise of sustainable and eco-friendly housing options. With growing awareness of environmental issues, there is a demand for homes that are energy-efficient, use sustainable materials, and incorporate green technologies. Developers are responding to this trend by incorporating eco-friendly features into their projects, such as solar panels, rainwater harvesting systems, and green spaces.

Local special circumstances: Guatemala is a country with a large rural population, and there is a significant urban-rural divide. Many individuals and families from rural areas are migrating to urban centers in search of better job opportunities and a higher standard of living. This has led to an increased demand for housing in urban areas, particularly in the capital city, Guatemala City. The influx of people into the cities has put pressure on the housing market, driving up prices and creating a competitive environment for buyers.

Underlying macroeconomic factors: The Guatemalan economy has been growing steadily in recent years, with a stable GDP growth rate. This has created a favorable environment for the residential real estate transactions market, as people have more disposable income to invest in properties. Additionally, low interest rates and favorable mortgage lending conditions have made it easier for individuals to finance their home purchases, further stimulating the market. In conclusion, the Residential Real Estate Transactions market in Guatemala is experiencing growth due to customer preferences for homeownership, trends such as gated communities and sustainable housing, local special circumstances such as urbanization, and underlying macroeconomic factors including economic growth and favorable lending conditions. This combination of factors is driving the demand for residential properties and shaping the market in Guatemala.

Methodology

Data coverage:

Figures are based on total and average revenue of residential real estate transactions (sales).

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.