October 18, 2008 by sacuanjoche.

NicaraguaAlthough Nicaragua is known for its history of political instability and conflict, the previously war-torn nation is desperately trying to attract foreign investment. Government incentives have made Nicaragua real estate appealing to investors, as Nicaragua’s attractions continue to draw more tourists and expatriates.

Nicaragua could become an ideal retirement and vacation destination for millions

“Because Nicaragua has historically been overlooked by travelers and real estate investors [in comparison] to Costa Rica, Panama, and Mexico, prices have remained extremely affordable,” Henkel Smith, president of Water’s Edge International Realty, said. “Nicaragua’s real estate market is definitely still in its infancy, but we see things changing as the number of foreign visitors and investors continue to buy up properties.”The country has an abundance of natural resources, beautiful landscapes and a government that claims to be welcoming towards foreign investment and tourism. Assuming the government’s expressed attitude towards foreign investment is genuine, Nicaragua appears to be an investor’s dream, offering an ideal retirement and vacation destination for millions of people, especially Americans and Europeans.

On the other hand, some investors might find Nicaragua’s political structure to be intimidating; those who perceive President Daniel Ortega’s position of power as threatening have been discouraged from entering the market. Nevertheless, optimistic investors believe that Ortega’s personal investment in business and tourism projects around the country are a sign that he plans to take a different path this time in office, and that the President is now trying to make amends for his violent past as a young Sandinista revolutionary.

Nicaragua’s investment hotspots are Granada, a colonial town on the bank of Lake Nicaragua, and San Juan Del Sur, a booming fishing village located on the Pacific Ocean just north of Costa Rica. Although a profusion of new developments are happening along the Pacific coast, most of the country awaits significant advancements in infrastructure, providing investors with opportunities to buy property in almost any price range.

Read the entire story here => nuwireinvestor.com

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July 31, 2008 by sacuanjoche.

Thursday, 31 July 2008 Property investors from the US are no longer buying in Nicaragua because of the economic downturn and concerns over the political regime, it is claimed.

But European investors are stepping into the breach and the country’s property market is starting to recover from a spartan period.

‘You have to be somewhat of a contrarian to buy real estate in Nicaragua right now,’ said developer and advisor Jeff Cassel. ‘Two years ago this Nicaragua was right up there in the property-buying popularity polls. Hordes of buyers, especially soon-to-be American and Canadian retirees, couldn’t get enough of it,’ he explained.

‘Pristine properties in Nicaragua were plentiful - beachfront, mountaintop, lakeside, and everything in between and best of all, they were very inexpensive. This was the fabulous frontier, waiting to be explored and settled.’

But the US buyers dried up due to the election of Daniel Ortega as president of Nicaragua and then the economic crisis.

Now Ortega is taking steps to encourage foreign investors and is openly talking about new regulations to encourage overseas investment.

‘It’s not for the timid or for those who are worried about the country’s political uncertainties. But contrarians may win big here, as the potential for gain is great if nearby Costa Rica and Panama are any example,’ said Cassel.

Others agree. According to Robin Donaldson, a real estate agent, things are picking up gradually. ‘As Ortega refrains from pursuing an aggressive policy foreign investors and the markets are coming back to life, Nicaragua has plenty of models in Latin America for growth in the real estate sector,’ she said.

Charles Southwell of RE/MAX Granada said there is potential. ‘Nicaragua is turning into quite a tourist mecca, and it has huge investment possibilities,’ he said. He compares it to Costa Rica which has succeeded in becoming a popular tourist destination, an inexpensive place to do business and attracted global players such as Microsoft and GE.

‘The countries that build the middle class are the countries that have long-term success, and that’s what’s happening here,’ Finch said.

And some Americans are also taking the risk. ‘We’ve been getting lots of inquiries from Americans posted in Afghanistan,’ said Cassel.

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January 15, 2007 by sacuanjoche.

Real estate continues its boom in Nicaragua, spurred by low prices and growing tourism.

BY CHRONICLE STAFF

Despite a new, leftist government led by President Daniel Ortega, executives in Nicaragua’s growing real estate industry remain bullish.

“The real estate market outlook continues to be positive,” says Claudia Gonella, director of the Nicaragua offices of U.S.-based real estate agency Coldwell Banker.”We are selling well out of both of our real estate offices, at approximately the same rate as this time last year.”

Ortega has vowed to respect private property rights, the free trade agreement with the United States (CAFTA), agreements with the International Monetary Fund and continue with the same macro-economic policies of his predecessor, Enrique Bolanos. He has also gained some praise for appointing Arturo Cruz, a well-respected economist, as his ambassador to the United States. His new pledges stand in contrast to his last government (1979-90), when private property was expropriated, inflation skyrocketed and the economy went into freefall.

Thomas sees the next two months as key to determine whether Ortega means what he has said. Gonella expects price stability for a few months and, assuming the new administration keeps to its verbal and written commitments (in support of DR-CAFTA, private property rights, tourism, free market etc), the market could come back strongly in the second half of 2007.  

A NEW COSTA RICA?

Nicaragua has seen significant growth the past few years, partly helped by inexpensive prices, a reputation as a safe country, growing tourism and increased flight connections with the United States. Some realtors dub the country “the next Costa Rica.”

“It’s close to America and one-fifth of the price of Costa Rica for the same properties,” Thomas says.

The real estate market is driven by both residential and commercial properties. On the residential side, many baby boomers from the United States are discovering Nicaragua as a less-expensive alternative to Costa Rica and Mexico, while banks and factories are helping the commercial market.

Banpro, a Panamanian bank, is constructing a new $15 million building across the street from Thomas, while a Korean investors is planning a $100 million factory to manufacture Levis. Meanwhile,  a client of Thomas plan an ethanol plant in Nicaragua, while another one is expanding a chain of coffee shops in the country. Meanwhile, local real estate group is developing a major resort, Gran Pacifica Beach & Golf Resort, with hotels, apartments and gold courses on the Pacific coast.

PRICES DON’T FALL

While the asking prices from developers and owners usually increase during high season (which runs from December to May), that did not happen this time. However, neither have they fallen, according to Gonella.

“The major developers are continuing to roll out their master plans with no delay,” she says. ”This is a sign of confidence.” 

As more tourists visit Nicaragua, more people plan to come back to buy property, says Thomas. “Tourism is huge…and just getting bigger,” he says. This weekend, some 5,000 tourists visited San Juan del Sur thanks to four cruise ships, he points out.

Most of the real estate sales will take place in

 the residential sector focused primarily in key tourism destinations. ”Investors will be looking for capital appreciation, but also for properties that they see as good candidates for rental income,” Gonella says.   ”The strong outlook for tourism visitors for 2007 will support this trend.”

Coldwell Banker expects less activity in the commercial sector in the early part of 2007, as many investors  will take a wait-and-see approach.  “Commercial investors tend to invest on a larger scale than the residential buyer, and for the longer term,” she says. 

In terms of geographical areas, the more “established” markets for foreign real estate investment such as Granada and San Juan del Sur are likely to be where most investor activity will continue to be focused, while newer, more speculative, cities and areas for investment such as the colonial town of Leon and Inland Mountains around Matagalpa, are likely to see less activity, at least for the first part of 2007, Gonella predicts.  ”Investors are likely to feel more comfortable investing in areas where a positive growth trend is already established,” she says.

 
Coldwell Banker has also seen good demand for its four-day real estate tours to Nicaragua scheduled for each of the next three months. The tours typically have between six and 12 participants to better tailor the group’s requests. ”

he tours offer a great way to make sense of real estate opportunities here,” Gonella says.

So far, the participants are mainly from the United States, but Coldwell Banker plans to boost its marketing to Europe to take advantage of the strong Euro and British Stirling, she says. 

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