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Real Estate Investor Briefing
Nicaragua is evolving and maturing
September 2006
Typology of typical buyer types
Greetings from Nicaragua!

We are often asked to describe the typical buyer for real estate in Nicaragua. An analysis of our database indicates that North Americans are the main segment purchasing property, especially from the west coast and southern states of the USA. The majority of buyers are aged between 35 and 55, a younger age profile than would be the case in more mature real estate destinations. Buyers are motivated by the conditions of the economy in the USA, the lower “opportunity” prices in Nicaragua, the growth of tourism, together with the unique combination of cultural, geographical and natural characteristics found in Nicaragua, especially around the San Juan del Sur and Granada areas.

Buyer typology over time

The graph above considers the relative proportions across five buyer profiles at different stages in Nicaragua’s property investment cycle. Speculators still make up a considerable proportion of investors but 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. With the majority of buyers under 55 years of age, the market changes associated with the baby boomer demographic are only just beginning to be felt.

Forthcoming elections

Many of our clients are asking about the forthcoming elections, set for 5th November. The recent polls indicate that it will be a close-run race, although it does appear that lead for Sandinista candidate Daniel Ortega has fallen in the past weeks. Polls have historically been somewhat inaccurate in Nicaragua – evidenced by the high poll results for Ortega in three previous elections; all of which he lost. The other main presidential hopefuls are the Liberal Nicaraguan Alliance candidate Eduardo Montealegre, the candidate for the Liberal Constitutionalist Party, Jose Rizo and Edmundo Jarquin for the Sandinista Renewal Movement. There has been speculation that Montealegre and Rizo may unite their respective parties, in their bid to succeed. It remains to be seen whether this action will eventuate.

The real estate, tourism and development community in Nicaragua will be meeting with each of the key presidential candidates at the end of the month to hear their plans and commitments regarding Nicaragua's future development should they succeed. We will keep you updated on the run-up to the election in our next briefing.

The landscape is green in Nicaragua and the surf is up. Come and visit us and we would be delighted to take you on a property tour and discuss market conditions on the ground. Have a look at our property listings and please do not hesitate to contact us with comments and questions.

Best wishes from Nicaragua

Claudia and Sara

Own a “hobby farm” within sight of colonial Granada
Responding to market demand

We are finding that the demand for acreage property close to the amenities of Granada is growing. But not just any acreage – prospective clients are looking for privacy and seclusion but without a sense of isolation. Consequently we are very pleased to offer two (or more) acre parcels set in lush rolling terrain only 8 minutes drive from the bars, cafes, restaurants and shopping of Granada. Some of the parcels offer long views of the town and Lake Nicaragua and all are sold with access to Laguna de Apoyo, the stunning volcanic crater lake with warm waters perfect for swimming, sailing and kayaking. The parcels start at $39,000.

Now you can have acreage with access
Unique opportunity to purchase a condo site with close ocean views
Ocean view building site in San Juan del Sur

This entire 1.5 acre parcel on the southern slopes of San Juan del Sur has views to the ocean. The land slopes gently up in a series of terraces giving it a versatile presentation and providing scope for a variety of development designs. The location combines very close access into the town itself with a feeling of privacy and detachment. It is hard to find a rental property in San Juan del Sur, especially in the high season, and this underlines the potential for developing town houses or condominium here and presenting these as money-making holiday retreats. Asking $295,000.

Development site with great aspect and presentation
Cantamar El Yankee continues to attract strong investor interest
Location, surf and potential for capital growth

Investors tell us that the reasons they choose to buy at Cantamar El Yankee are “proximity to San Juan del Sur”, “the barelling left wedge surf break”, “the quality of the views”, “the white sand beach” and, perhaps most significantly, “the likelihood of capital appreciation.” The view lots at Yankee are competitively priced when compared with others on the market and a number of buyers are buying multiple lots in order to later sell one to finance the construction of a house on the other. We have recently had access to a new release of ridge lots, at Yankee, ranging in price from $60- 130,000 and we are now showing these to interested clients.

White sand beaches at Yankee
Now you can have lake and ocean views combined
Development opportunity

There are only a few locations in Nicaragua that offer combined views of the Pacific Ocean, Lake Nicaragua and Ometepe Island. Investors who inspect this property will see how close it is to San Juan del Sur and will consider the potential for a range of development options. A similar property closeby recently sold for $40,000 an acre and we look forward to seeing the development plans. This property offers an interesting proposition to the commercially minded investor. We will shortly be receiving topographical maps of the property which will indicate what proportion of the land has the “double” view of lake and ocean.

Calliing commercial investors

Fast track your investment strategy by signing up for our real estate tours

In December and January next year we will be running a series of real estate tours designed to showcase the best real estate that Nicaragua has to offer. The four day flexible tours are tailored specifically to meet the needs of real estate investors exploring the Nicaraguan market and will serve to fast track your understanding of market trends and opportunities.

On the tour you will discover beachfront and ocean view properties that are the best candidates for capital growth and rental income, ground-floor investment opportunities in lake and mountain property as well as colonials in Granada that are undervalued against market benchmarks and offer an immediate positive cash flow. You will meet prominent lawyers, investment analysts, developers, hotel owners and tourism professionals; each with a unique perspective on the real estate market. We invite you to leverage the many years of experience that Coldwell Banker has in Nicaragua and build your strategy for successful real estate investing in Nicaragua. Send us an email to register your interest and for more information.

Please do not hesitate to contact us with any comments or questions.


Coldwell Banker Nicaragua Real Estate. Offices in Granada and San Juan del Sur
phone: + 505 552 2908 (Granada) or + 505 568 2360 (San Juan del Sur)
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