Nicaragua » Market Report

Nicaragua has bounced back from its troubled and often misunderstood past and has altered itself into one of the most preferred property investment destinations in the world.

Nicaragua has one of the fastest real GDP growth rates in Central America. Nicaragua is set to benefit from quick and constant economic growth in the years to come. A foreign investment law ensures you can get back 100% of your profits and, after three years, the initial investment as well.

The country is now poised to emerge as a travel hot-spot, a potential place of protection for emigrant and a place where an unlimited opportunity awaits for an energetic entrepreneur. You can take advantage from the two growing trends in Nicaragua. Today, Nicaragua is attracting lots of foreigners who are retiring in Nicaragua in order to take advantage of the low cost of living and high quality of life in this rising destination.

We estimate that property values on the Pacific coast will increase by 50% after the tourism highway is finished in 2008. 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). 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.

International Property Brokers forecast  predicts that Nicaragua is fast developing as a very sought after real estate market. The prices are low and building costs are cheap. Property market in Nicaragua is ideal for a long term investment. The property market has currently slowed down firstly because of US investors leaving the country and because of the political situation that seems to have stabilised. Things seem to be picking up but it would take time. It’s predicted that in about five to seven years property prices in Nicaragua's southern coast will match those on Costa Rica's northern coast.