Language(s): Spanish (Official)
Total Area: 112,090 km2
GDP (PPP): 2011 estimate
Total: $35.697 billion
Per capita: $4,345
Currency: lempira (HNL)
Honduras, in the north-central part of Central America, has a Caribbean as well as a Pacific coastline. Guatemala is to the west, El Salvador to the south, and Nicaragua to the east. The second-largest country in Central America, Honduras is slightly larger than Tennessee. Generally mountainous, the country is marked by fertile plateaus, river valleys, and narrow coastal plains.
Honduras' housing market continues to show signs of improvement since 2010, after dramatic house price falls in 2009. House prices started picking up at the beginning of 2010 with developments and infrastructure investments announced by both public and private sector.
The real estate activity is concentrated in the Bay Islands, a group of islands in the Caribbean Sea off the north coast of mainland Honduras. With its location, the islands are relatively safe and secure. The three mains islands are Roatan, Utila and Guanaja.
A 100 sq. m. house along the 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%.
The total round-trip transactions costs are around 9.65% to 11.65%, inclusive of the 5% real estate agent's fee, which is paid by the seller. The total cost of registering property is around 6.65% of the property value. The registration process involves seven procedures and can be completed in about 36 days.