The word is out - Nicaragua is the hot spot for real estate. Making investments in the country is easy, but it is important to make sure you know what you are doing before jumping head in. You must make sure that the area you are investing, as well as the title you are buying are legit. There is so much property to purchase in the country that you want to have a great view and have proximity to a great town. Granada is a good spot if you are not interested in the ocean. Honestly though, investing near the coast is always a good move (with it being so hot in Nicaragua, you want to have a place to cool off!).
Like elsewhere, Nicaragua has suffered from the knock-on effects of the US subprime crisis, but the effects have been magnified by the accession in January 2007 of a populist president and former Marxist revolutionary, Daniel Ortega. The uncertainty this produced has caused development projects to slow and the pace of land sales to fall, although prices have remained firm, particularly of developed property.
“We’re not worried about the rhetoric per se, but we are worried about the effect this could have on prospective investors who don’t know better,” says Mr Calvet, who argues that economic policy remains faithful to the IMF rulebook. “We are at the lowest part of the cycle.”
According to Chris Berry, founder and Manager of Piedras y Olas, “We are making a special offer at this time to inspire travelers to escape and let their worries fade away against the backdrop of a luxurious and unhurried tropical paradise. Our guests come here to reconnect in an unforgettable setting that offers the perfect balance of adventure and relaxation.”
Other concerns include a patchy infrastructure, particularly in water and electricity, while many roads remain poor.
But legal issues pose perhaps the most serious barriers to investment. One problem is that much land in the war-torn years of the 1980s was expropriated, leading to some uncertainty over ownership.
Among the most keenly awaited changes is a new coastal law, although new laws in the pipeline on zoning, municipal development and protection of the environment will also improve investment conditions.
The message is clear - investing in Nicaragua real estate is the move to make. In today’s tumbling markets across the world, it is great to be able to find a solid investment. As they say, the early bird gets the worm.