Construction sector calls for more investment in infrastructure; Growth is driven by housing, industry and commerce

Home Business Construction sector calls for more investment in infrastructure; Growth is driven by housing, industry and commerce
Construction sector calls for more investment in infrastructure; Growth is driven by housing, industry and commerce

Regarding infrastructure, the president of the Guatemalan Chamber of the Construction Industry (CGC), Juan Pablo Estrada, explained that it is necessary to advance in a framework that facilitates investment, strengthen public-private alliances, improve contracting systems and consolidate institutional capacities for the planning and execution of projects.

Regarding behavior in general, Estrada announced that The construction sector is projected to grow 4.7% by 2026a figure above the 4.1% estimated for the national economy, according to the Bank of Guatemala (Banguat).

The projection for this year represents a moderation compared to the strong dynamism estimated for 2025, when the sector grew more than 8.4%, but confirms that construction will continue to be among the activities with the best relative performance, said the manager.

This behavior is supported by investment and the continuity of public and private projects. Furthermore, at the regional level, Guatemala maintains a relevant position in the trade of construction materials, particularly to Central America, where these products are among the main manufacturing export items, Estrada explained. He added that last year the country recorded a 7.1% growth in its total exports, and construction materials generated around US$495 million.

Among the factors that influence the growth of the sector is the growing demand, both in construction in general and in housing. The latter is driven by the urbanization process, one of the highest in the region, the demographic bonus and an average age of 29 years, which increases the population of age to join the labor market.

Read also: McKinsey: “In the next 10 years, Guatemala must take advantage of its demographic bonus to grow 2 or 3 points more in annual GDP”

Another aspect is the geographical location of Guatemala, where the nearshoring and the friendshoring They represent opportunities that drive business growth and demand for industrial and commercial construction, such as offices, warehouses, production plants and commercial areas.

Estrada explained that there is also municipal construction in various areas of the country.

Industry

In industry, he mentioned that there are seven million square meters of industrial projects in operation or in the process of authorization under figures such as the Free Zone of Industry and Commerce (Zolic) and the Public Special Economic Development Zones (ZDEEP), in addition to multiple factories outside these regimes.

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Trade

In the case of commerce, this is promoted by the installation of shopping centers in the interior of the country. “In all intermediate cities they are already beginning to have shopping centers at the level of what used to be seen only in Guatemala City, a few decades ago,” added the manager.

Dwelling

In housing, according to Estrada, the market is unable to meet the growth in demand, since the house and building projects that come onto the market are sold quickly and lagging demand persists. The segment is driven by the demographic boom and by the population entering a stage of life in which the opportunity to purchase a home arises. In recent decades the market can no longer keep up with demand.

The housing deficit is around one million unitswhile Guatemala produces between 20,000 and 25,000 homes a year, so the gap is not closing, said Estrada, who believes that housing construction will grow in the next three years.

He supported his comment with data from the FHA market: in 2025 around six thousand units were approved; For this year, 7,500 are projected, and they estimate that in the next three years it will reach about 10,000.

In recent years, the demand and supply of vertical housing has grown, mainly in dense urban areas such as Guatemala City and the metropolitan area, where there is less and less land available to build. Vertical housing projects are also beginning to be developed in dense urban centers in the rest of the departments.

In the interior of the country, growth is mainly in traditional housing, that is, horizontal. According to FHA data, in the interior 70% of the loans are for traditional housing and 30% for vertical housing; In the metropolitan area, 70% corresponds to vertical housing and 30% to traditional housing. In addition, there is home purchase through bank credit, cash or through cooperatives, the manager mentioned.

Infrastructure, pending task

The low infrastructure investment It continues to be a weakness of the country, indicated the president of the Chamber.

He explained that rulers must understand that infrastructure is the only way to make the country more competitive, boost economic growth, employment and expand service coverage.

For example, when connecting the country, specialized industries emerge in different areas, since they do not depend on being close to the buyer or the export port.

He added that there is a delay of years, but there are opportunities to solve the problems in ports, roads, develop the three metropolitan rings of the urban area and alleviate traffic. Furthermore, he said that it is a matter of political will to promote it.

“The growth of the construction sector is interdependent. The real estate sector can only maintain sustained growth to the extent that it has mobility infrastructure that allows the safe and efficient transit of goods and people,” said Estrada.

He added that to close the infrastructure gap, Guatemala requires a sustained increase in its investment.

Read also: Multilateral banking: “Guatemala has the potential to lead in Central America, but it needs infrastructure”

“The issue of traffic and mobility is a national emergency that requires a commitment at all levels by the State and the country’s municipalities,” he expressed during the inauguration of Construfer. He pointed out that different analyzes propose increasing gross fixed capital formation—which includes infrastructure, construction and other productive assets—to levels close to 24% of GDP.

He indicated that this must combine a greater participation of the public sector, around 6%, with a significant mobilization of private investment, close to 18%.

Municipal regulations

The mayor of Guatemala City, Ricardo Quiñónez, who participated in the inauguration of Construfer 2026, stated that the sector is growing and that in the next 10 years construction and the associated economic chain will have a significant impact, although he did not specify figures.

He indicated that the growth of the city must be developed based on a territorial planning plan, which provides legal certainty for construction with clear rules and regulations.

When asked about the reduction in time to approve municipal licenses, He responded that it has been achieved and that work has been done in several ways. Among these, the creation of new regulations that include nine regulations to streamline construction licenses, especially the territorial planning plan.

He said that this has been in force for more than 10 years and is what establishes where it can or cannot be built, which has generated trust.

Currently, the growth of the construction sector is driven not only by the sector’s own activity, but also by what more housing, commerce and services generate in jobs and businesses.

Part of this growth is reflected in the fact that there are around 34 buildings under construction in the municipality, it was added.

Builder 2026

From April 16 to 19, the seventeenth edition of Construfer will be held.

This is the regional fair for the sector, which brings together more than 100 exhibiting companies, 130 stands and anticipates the arrival of more than four thousand visitors, including businessmen, technical professionals and the general public. It is organized by the Guatemalan Chamber of the Construction Industry.

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This year it combines commercial exhibition of products and services linked to construction materials, finishes, machinery, technology, automation, design and specialized solutions with other activities.

Among these, competitions and a four-day academic program with speakers who will address the economic panorama of the sector, sustainability, the implementation of good practices and the incorporation of new technologies such as artificial intelligence and digital tools such as BIM (modeling software -Building Information Modeling-), the organizers reported. The financial and industrial sector will share their vision on investment opportunities, challenges and trends.

The event takes place at Fórum Majadas, from 10:00 a.m. to 8:00 p.m. Admission is free, prior registration at www.construfer.info as reported by the organizing entity.

The seventeenth edition of Construfer 2026 will be open from April 16 to 19. The capital’s mayor, Ricardo Quiñónez, participates in the inauguration; the president of the Guatemalan Chamber of the Construction Industry, Juan Pablo Estrada, and authorities from the CIV and other associations in the sector. (Photo: Prensa Libre, courtesy of Construfer)

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