Yesterday we discussed Costa Rica, and the fact that real estate prices there, especially along the coast, can be just as high as places like California. Additionally, if you want to be on the coast, it may be difficult for someone looking for something other than a “mega-development.” And, as one of our readers mentioned, Costa Rica has some very strict laws about building on the beach. What is considered a “beach home” in Costa Rica would be considered off-beach in other Central American and Caribbean countries.
So, what about Costa Rica’s neighbor to the north, Nicaragua? As a child of the 1970s and 80s, the first things that come to mind when I hear about Nicaragua are Daniel Ortega, the Sandinistas and war. However, things have changed during the last 20 years, and Nicaragua has become a new hot spot for real estate investment, especially among people who love what Costa Rica offers in terms of natural beauty, but at a more affordable price.
Like Costa Rica, there are two basic locations for potential investment; coastal or inland. We will come to the coastal opportunities in a minute, but lets first look inland. One of the most popular inland areas for expat investment is Granada. Located along the coast of Lake Cocibolca, the twelfth largest lake in the word, Granada offers the unique opportunity to own “coastal” land at more modest inland pricing.
Colonial Granada
In keeping with the local Colonial flavor, much of the available real estate are renovated colonial or “fixer-upper” colonial buildings. There are other options, including buy-and-build developments close to the lake. The prices of property I have found don’t indicate “bargain” to me, but may provide an alternative for those looking to escape the higher prices and overdevelopment of Costa RIca.
On the coast, the price difference between Nicaragua and Costa Rica are far more apparent. Ocean-view lots are still available for around $20,000, with some more upscale pre-development opportunities around $100,000. These kinds of prices are slim to none in Costa Rica, and provide something for those with less capital to consider. For those that like the all-inclusive mega-development lifestyle, but want something more affordable than what Costa Rica offers, there are plenty of opportunities.
Admittedly, I don’t know as much about Nicaraguan real estate as I do Costa Rican. One of my fears, since the re-election of Daniel Ortega has been property seizure. Having title insurance available helps to alleviate some fo these fears. However, buyers should read the terms of the tile policy carefully to be certain that government land seizure is covered. Clearly many people people don’t share my concerns, as evidenced by the number of expats moving to Nicaragua.
CentralAmeriCaribbean Blog would love to hear from other experts and bloggers about their experience with Nicaraguan real estate. Please join in the conversation.
