Where is Nicaragua?
Nicaragua is located in Central America, north of Costa Rica and south of Honduras. It touches both the Pacific Ocean and Caribbean Sea.
Why consider a property investment in Nicaragua?
Nicaragua is bouncing back from its troubled and often misunderstood past. With a growing economy and stable democratic government since 1990, there has never been a better time to invest in Nicaragua. Hailed by the UN as the safest country in Central America, Nicaragua boasts a rich cultural heritage, beautiful scenery, incredible biodiversity, lakes and volcanoes and an ever growing range of leisure activities. This, together with the competitive pricing of properties, makes Nicaragua the perfect place to invest and make your home. A growing community of expatriates is enjoying the vibrant culture, beautiful architecture and stunning landscapes that Nicaragua has to offer. Combined with a comfortable climate and reasonable prices, the country is becoming more and more attractive to those looking to set up ’home away from home’.
The Real Estate Market
- Property prices start very low but are increasing rapidly - investors have seen returns upwards of 60% on purchases in key ‘hotspots’ since 2000. Property prices have been rising by an average of 20% per year for the past four years and developments are springing up along the Pacific coast, in historical Granada and the Great Lakes (Laguna de Apoyo and Mombacho).
- Foreign investment Law 344 assures that foreign and domestic investment receives the same treatment. The law eliminates restrictions on the way in which foreign capital can enter the country and recognises the investor’s right to own property and establish business enterprises as they wish. 100% foreign ownership is allowed – there is no requirement to have a local partner.
- The Nicaraguan Government has established attractive residency and retirement programmes where eligible persons are given customs exemptions for household goods and vehicles.
- The cost of building is approximately $35-$50 per square foot.
- As of 2006 three major title insurance companies offer title insurance on property in Nicaragua: First American Title Insurance, Stuart Title and Land America.
Growth in Tourism
- Tourism arrivals to Nicaragua have increased 600% since 1997. Analysts project that by 2007 there will be more than one million visitors to the country. Moreover, the profile of visitors has shown a marked shift from budget tourists to more affluent and sophisticated traveler prompting development in high-end hotels, restaurants and other related businesses.
- Tourism Incentives Law 206 promotes the growth of tourist activities by providing tax breaks for investments in: Hotel services industry, Food, beverage and entertainment services, Tourism infrastructure and Arts and craft facilities. Already, over 65 projects have been approved, under this law, value US$65 million.
- Nicaragua’s first major marketing campaign was launched in 2004 and promoted the country through CNN Networks. A Mixed Marketing Commission has been formed with its first tourist office in the United States (Miami).
Where should I invest?
The bulk of foreign investment into the real estate and tourism sectors in Nicaragua is focused on the south western corner of the country with its dramatic geography, rich biodiversity, good surfing and cooling lake and ocean breezes. The majority of investments lie between Astillero bay and the Costa Rican border and in three main areas:
- Pacific Coast - over 350 km of coastline. Current focus is the southern shore with San Juan del Sur emerging as the pivotal centre for investment and tourism on the Pacific Coast.
- Granada - represents an important hotspot with buyers attracted by the colonial heritage of what is purportedly the oldest city on the continent.
- Great Lakes – popular due to the cooler climates and views offered in and around the Great Lakes in Laguna de Apoyo and Mombacho.
- Corn Island – located on the Atlantic Coast offering terrific land investments.
In the next few years we envisage investor focus broadening to include Ometepe Island (in Lake Nicaragua), the shores of Lake Nicaragua, the Matagalpa highlands, Corn Islands and the northern Pacific beaches.
What are the most common real estate products for investment?
The breakdown is as follows:
- Lots of land: 34%
- Townhouses: 28%
- Villas & Country Homes: 23%
- Apartments & Condominiums: 15%
Who is currently investing in Nicaraguan Real Estate?
- The current breakdown is as follows:
- Speculators: 42% (Forecast in 2015: 28%)
- Primary Home Buyers: 35% (20%)
- Near-Retirement Investors: 12% (17%)
- Second Home Buyers: 8% (18%)
- Commercial Investors/Developers: 3% (17%)
An increasing number of pre-retirement / retirement and second home buyers are emerging. The number of commercial investors researching opportunities in Nicaragua has also increased considerably in recent years.
How do you fly to Nicaragua?
- Daily non-stop flights are available to Managua International Airport from Miami via American, TACA and SANSA. Continental offers daily non-stop flights to Houston.
- Direct connections to Los Angeles also available.
- National flights are available for travel to Corn Island, Bluefields, Puerto Cabezas and San Carlos. NatureAir runs daily flights between Granada, San José and Liberia in Costa Rica.
- Flights from the United Kingdom must be made via one-stop, typically Miami or Houston.
What do the Analysts say?
- “Nicaragua wants to lure tourists.” Miami Herald
- "The world’s best-kept retirement secret." MNS Money
- “ What are the waves like in Nicaragua? Better than you can possibly imagine.” Surfing
- ''After years of political turbulence, Nicaragua is beginning to emerge as a popular eco-tourist destination.” New York Times
- "Nicaragua - the NEW Florida." GQ
- "It's been 14 years since peace broke out and the country is now officially the safest in the region, according to a UN survey.” Guardian Unlimited
Houses of the Month
|Travel Packages to Nicaragua - Experience the antique charm of the city of Granada, the majesty of the Maderas Volcano, or go island hopping on Lake Nicaragua. Discover the colonial highlights of this emerging Central American country....