Guatemala’s construction industry maintained its growth rate in 2023, representing 4% of the national GDP and a project pipeline contained in the “Guatemala No Se Detiene” Plan focuses particularly in the transport infrastructure sector. The market benefits from a healthy macroeconomic growth and the demographic trends drives demand for residential and non-residential developments. However, it is necessary to continue promoting laws, reforms, and regulations for the development of the country’s strategic infrastructure.
The construction sector in Guatemala continues being one of the main engines of the economy in the short term. The construction sector’s contribution to GDP increased to $950 million in the fourth quarter of 2022, from $870 million in the third quarter of the same year. Consequently, the construction materials market also grew and attained a value of $61.18 million in 2022 and it is expected to continue growing 6.6% in the forecast period of 2023-2028.
The national development projects are contained in the “Guatemala No Se Detiene” Plan that includes 40 infrastructure initiatives that are promoted by the central government. Some of these projects include:
Quetzal Port Expansion
Santo Tomas Port Expansion
Champerico Port Expansion
San Jose Airport Expansion
Mundo Maya Int. Airport Expansion
Puerto Barrios Airport Expansion
In addition, the National Partnership Agency for Economic Infrastructure Development (ANADIE) promotes public-private partnerships for investment, through the implementation of the Partnership for the Development of Economic Infrastructure Law. ANADIE already has a portfolio of projects with prefeasibility or feasibility studies completed but not yet tendered. All together these projects add the possibility of investing more than $1.5 billion in adequate infrastructure and safe and reliable transportation services and facilitating access to markets and basic social services.
Modernization La Aurora International Airport
Metro Riel North – South Guatemala City
Mass Public Transportation East – West Guatemala City
Interconnection CA-09 North – CA-01 East.
State Administrative Center in Guatemala City
Tecún Umán II Intermodal Port
For more information: https://anadie.gob.gt/proyectos/
Also, the government is seeking congressional approval for the Development of Road Infrastructure Law with the goal of extending and increasing the quality of the country’s road infrastructure. Specifically, the government plans to increase Guatemala’s road infrastructure from 16,457 kilometers to 37,952 kilometers in the next 15 years.
Regarding the development of real estate housing projects, it is estimated that the housing deficit in Guatemala is 1.9 million units. Under current conditions, the housing market only serves 37.5% of the total population. To reduce this deficit, the “Preferential Interest for Access to Social Housing Law” has been introduced into Congress. The purpose is promoting the alliance among government, housing developers and financial sector to reduce the interest rate during the first 10 years of the mortgage term.
Another opportunity in this sector is the supply of raw materials and construction equipment. According to 2021 Import statistics, Guatemala imported over $1 billion in construction materials, which represents an increase of 40% compared to 2020 since construction activities resumed after the pandemic in 2020.
We recommend the following events to connect with Guatemalan buyers, representatives, and industry officials:
- Feria Internacional de la Construcción (CONSTRUFER), Guatemala City. This fair is organized every year by the Guatemalan Chamber of Construction, CONSTRUFER is chosen by investors in the region to present and launch products, materials, services, machinery, vehicles, and technology.
- FerretExpo, Guatemala City. A yearly trade show that focuses on promoting construction materials and equipment.
- ExpoCasa, Guatemala City. This fair is organized every year and it is the largest housing trade show in Guatemala.
- Expo Construir Guatemala. This is a virtual event that takes place every year in May, organized by a virtual community “Construir” from Central America and the Caribbean.
· Camara Guatemalteca de la Construccion (Guatemalan Construction Chamber): This organization works to promote the importance of construction in the Guatemalan economy. Upon joining the group, the site provides market indicators about both the economy and the construction industry in addition to a variety of publications about the Chamber, its unions, and the overarching regional construction chamber. https://www.construfer.gt
Guatemala No Se Detiene Plan https://www.guatemalanosedetiene.gt/
Interested parties may contact Commercial Specialist Carolina Barrientos at email@example.com