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Real Estate in Nicaragua
The New Costa Rica?
Nicaragua is considered the new Costa Rica but with prices 45-55%
lower than its southern neighbor. Nicaragua is well and truly
bouncing back from its troubled past and beginning to transform into
a sought-after investment and tourism destination. Misconceptions
still persist, but in many ways that only increases the opportunity
that Nicaragua offers.
The country is booming and tourism is now the number-one industry,
increasing by over 19% in 2005 even considering a record-breaking
year in 2004. There is a real buzz in the air for this land of
opportunity. Whether you are looking for a retirement or vacation
destination, a place to start a business or a place to invest for
the future, Nicaragua is definitely worth considering.
Market knowledge based on fact and base trends can make the
difference between a good investment and a great one. The aim of
this article is to capture the essence of the successful real estate
investor in Nicaragua. Here are seven success strategies for
successful real estate investment in Nicaragua.
1. Understand the link between tourism and
real estate
There is strong relationship between leisure and vocational markets
and the market for second homes and retirement homes. The areas
attracting the most tourism are also generating the greatest levels
of real estate activity.
For certain real estate products, the link between tourism and real
estate is particularly direct and immediate. Pelican Eyes…Piedras y
Olas the highest quality hotel in San Juan del Sur, boasting
occupancy levels well above industry standards since it opened,
offers the possibility for investors to purchase a villa or duplex
unit and participate in the revenues generated by the hotel.
2. Know where you are in a property cycle
Nicaragua has seen considerable price rises in the past few years.
Over this period prices have risen by an average of 87%. Unimproved
colonial homes in Granada have been rising by around 25% per year
for the past three years. These price rises indicate that Nicaragua
is now on the map as an investment destination, the positive price
trend has started, but we are only just seeing the beginnings of a
“second wave” of investors: the pre-retirement and retirement
market.
The real estate product on offer has also evolved from simple lot
sales (sold mainly to speculative buyers) to turnkey products with
sophisticated facilities and services for longer term investors and
the retirement market. A consistent growth in condominium
constructions and sales has been evident for 18 months and is
accelerating.
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