Real estate sector contracts in Guatemala
Since the beginning of the health crisis caused by COVID-19 in March, all projections made in the real estate sector for 2020 have been modified with respect to consumer behavior, since there was a general contraction in Guatemala’s economy.
In Guatemala there are approximately 20 thousand housing units available, of which 30% are available for sale, having an absorption of housing sales in about 700 units per month.
According to sales projections for February 2020, it was estimated that the units would be sold out within 10 months. In this regard, it should be noted that the units for sale are in the department of Guatemala with a percentage of 59% and in the department of Sacatepéquez with 41%, so the population in these departments would increase.
According to the real estate market and marketing research firm, Inmosight, “However, given the economic analyses that indicate that we are facing a constriction in the world economy, the optimistic scenarios speak of an economic recovery in 6 to 9 months. That in developed countries with very strong government support. In developing countries, it may take 36 months to recover”
With the perspective of economic reactivation and recovery in Guatemala and the world, investors and construction companies, the main actors in this sector, are hopeful that the numbers will turn 180° by the end of 2020.
Paúl Rodríguez Medina
Associate
García & Bodán
Guatemala
*This article was written with the support of Marvin Cantoral, Law Clerk.