Looking back to 2000, it’s possible to identify at least three ‘waves’ of international real estate investors attracted to Nicaragua. In this article we look back to the early years and draw conclusions for the future that are relevant to both buyers and sellers.
As Nicaragua began to emerge on the map as a destination for international real estate (buoyed on by the real estate boom in Costa Rica, which neighbors Nicaragua to the south) it was still considered an ‘emerging’ or ‘early-in’ real estate destination. The first wave of Nicaragua real estate buyers were ‘speculators’ who mainly bought raw land and vacant lots at low prices, often in locations that had seem little development, with the intention of selling them a few years later as the country become more well known among real estate investors. As land was still relatively cheap compared to construction (a ratio that has since shifted), few of the early investors carried out improvements to their land.
The second wave of investors that continues to this day is made up of vacation home and second home investors looking for a good deal. Some of this buyer groups are purchasing for future retirement (the pre-retiree group). These buyers looks for evidence of ‘development’ in the area such as infrastructure upgrades and new amenities, but are still willing to wait for more improvements down the line. A significant proportion purchase vacant land with the view of building a home down the line.
Nicaragua is now experiencing a third ‘wave’ of real estate investors. These are people who are interested in relocating to Nicaragua and are looking for a primary home. A wide array of ‘lifestyle considerations’ are factored into their real estate decision. Quality amenities, good infrastructure, access to shopping and a sense of community are all important to this buyer group. So too are cost of living considerations, especially among people who have suffered financial losses in the recent global economic downturn.