With an overall housing deficit of 850,000 (50,000 in Tegucigalpa) the potential for investment in the property market in Honduras is as obvious as it is large. Private investors, Honduran and foreign alike, are already capitalizing on these circumstances and we are seeing a new style of ´model´ community springing up around Tegucigalpa.

This new phase in the capitals regeneration not only affords the opportunity for native Hondurans to access affordable, modern, serviced accommodations, but investors are also looking to ´resort destination´ style communities with a view to tapping into the lucrative overseas and second home market.

Until recently the face of property development in Tegucigalpa in particular, has historically been an ever changing and not particularly attractive one. During the 1970’s and 1980’s, urbanization in Tegucigalpa was at its highest, rising at an estimated 7% annually but was somewhat chaotic, with the resulting uncontrolled growth making the delivery of basic services as well as the construction of roads and drainage systems very costly.

Following Hurricane Mitch in 1998, the main focus of property development was towards rebuilding in its aftermath and rehousing an estimated 2,500 families from the 12 neighborhoods virtually destroyed as a result of the hurricane.

Due to the physical location of Tegucigalpa, finding land that was not regarded as high risk, in the event of another natural disaster, and did not have disputed tenure, proved to be an onerous task.

Further, many otherwise suitable tracts of land were not large enough to generate the necessary economies of scale required by the number of displaced families and the funds available. The main thrust of this period of development came from NGOs (Non-Government Organizations).