Insider Secrets to Investing in Real Estate in Nicaragua
Author: Claudia Gonella
The word is out: “Nicaragua is the new Costa Rica” but with prices 45-55% lower than its southern neighbor. Nicaragua is well and truly bouncing back from its troubled and often misunderstood 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.
Nicaragua’s democratically elected government is showing a great capacity to reform in line with its commitment to a free-market economy.
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.
How much is good real estate information worth?
Market knowledge based on fact and base trends, rather than exaggeration and hype (in both directions) 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. We have consolidated the experience of hundreds of investors and identified seven success strategies for successful real estate investing in Nicaragua.
We hope that this encourages more investors into taking the first step in exploring real estate opportunities outside their home countries with confidence.
Although imbued with a Nicaraguan flavor for the purposes of this article, many of the principles and steps highlighted in this article will also hold true in other investment destinations and contexts.
Seven success strategies for real estate investing in Nicaragua
1. Understand the link between tourism and real estate
Tourism brought in almost $200 million in 2005, according to the Nicaraguan government, more than any other single industry in its $5 billion economy.
Current projections indicate that by 2007 there will be more than one million visitors to the country. The profile of visitors has shown a marked shift from budget tourists to more affluent and sophisticated travellers and higher-end hotels in tourist areas show consistently high occupancy.
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 EyesÂ…Piedras y Olas the highest quality hotel in San Juan del Sur, boasting occupancy levels well,
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