Why should I consider a property investment in Nicaragua?
Nicaragua is bouncing back from its troubled and often misunderstood past. It now has a growing economy and stable democratic government since 1990. Nicaragua boasts a rich cultural heritage, beautiful scenery, incredible biodiversity, lakes and volcanoes and an ever growing range of leisure activities.
The real estate market
- Property prices start very low but are increasing - 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 recognizes 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 programs where eligible persons are given customs exemptions for household goods and vehicles.
- The cost of building is approximately $40-$80 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.
The real estate market
- Gross Domestic Product (GDP) $2.45 billion (locally produced)
- Estimated 2005 Real GDP Growth 3.5%
- Inflation 3.7%
- Nicaragua is a signatory of the Central American Free Trade Agreement (CAFTA)
- After completing conditions of an IMF-monitored economic program, Nicaragua has been granted relief of foreign debt via the Heavily Indebted Poor Countries (HIPC) initiative.
- Since 2002, 10 major shopping centres have opened plus numerous international hotels and restaurants.
- Massive upgrades in roads and utilities are underway, particularly in Granada, Managua and on the Pacific.
- In 2005 GE acquired a 49.9% stake in BAC Bank, one of Central America’s largest banks.
- Managua International Airport has recently been expanded to double its original capacity.
- Telefonica, PCS and Enitel now operate cellular phone networks.
- Other large investors include Bayer, Unilever, Esso, Coca Cola, Shell and TGI Fridays
Spectacular natural beauty
- Beautiful Pacific coast white sand beaches to rival any in Costa Rica contrasting with dramatic hills and bluffs.
- World class colonial architecture in Granada and Leon
- Beautiful lakes and perfect cone volcanoes including Lake Nicaragua, the 10th largest freshwater lake in the world, and the astonishing Laguna de Apoyo.
- Turtle sanctuaries, cloud forests with old-growth trees and exotic flora and fauna in
close proximity to Granada and Managua.
"From secret surf stashes on the Pacific to untouched Caribbean isles – plus all the volcanoes and colonial plazas in between – Nicaragua has the makings of a sporting paradise. Come discover Central America’s red-hot center." --Outside Traveler, Summer 2004.
- For more information on what the country has to offer visit INTUR, Nicaragua’s tourist board.
|
|
Learn about the real estate hot spots. | |
| Understand how tourism is influencing real estate. | ||
| Find value packed investment opportunities. | ||
| Understand the purchasing process for Nicaraguan property. | ||