Real Estate Sector in an Election Year
The real estate sector in Honduras has experienced a consistent growth trend in recent years, with a notable recovery after significant challenges such as the global pandemic and contentious general elections. For 2025, an expansion scenario was projected, driven by the construction of significant residential projects.
In fact, this year there has been a 64% increase in the construction of apartment buildings in the main cities of the country, thanks to the support of the banking system that has financed a large part of these initiatives. However, this dynamism has not been reflected in the overall market, as housing construction at the national level has decreased.
The reasons behind this decline are multiple: the scarcity of financing for users interested in building, the rise in bank interest rates, and, above all, the political instability that the country is experiencing. Despite the fact that primary elections were held in March 2025, the proximity of the general elections in November keeps many investors in suspense, waiting for more clarity in the political landscape before proceeding with new projects.
This context is further complicated by a determining factor for foreign investment: the formal exit of Honduras from the International Centre for Settlement of Investment Disputes (ICSID) in 2024. This decision has created legal uncertainty and distrust among potential international investors, directly affecting the development of the real estate sector.
Consequently, the expected growth for 2025 has not materialized in all its magnitude, despite ongoing investments and projects. However, there is a horizon for recovery: it is expected that after the general elections in November and with a more defined political landscape, 2026 will mark the reactivation of real estate investments in Honduras.
The immediate challenge for the sector is to regain investor confidence and ensure a stability framework that allows for the continuity of the sustained growth recorded in previous years.
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