InternationalLiving.com highlights property-price collapse and pinpoints buyer’s market on Nicaragua’s Pacific coast.
Real estate prices in Nicaragua have dropped by as much as 44% since the beginning of the economic downturn, InternationalLiving.com has revealed.
A short-lived property boom triggered real estate price increases in many parts of the country, with Nicaragua’s popular coastal regions witnessing a particularly pronounced jump.
However, since the downturn started in 2008, property prices have fallen steadily.
“Many properties are now selling for less than they originally sold for pre-construction four or five years ago,” explained InternationalLiving.com Latin America editor Suzan Haskins.
Haskins believes the price reductions seen in vacation-friendly regions is caused in part by overseas investors and part-time residents who bought during the boom and are now looking to sell, due to personal financial difficulties.
She continued, “Properties are being sold by foreign owners who had intended to someday retire or live part-time in Nicaragua…financial setbacks at home are causing them to rethink those plans.”
Villas de Palermo, a development in Nicaragua’s beach-ringed San Juan del Sur area, is one of the projects to have witnessed dramatic price falls.
Four years ago, furnished, two-bedroom, two-bathroom units with sea views were selling for $225,000 in this development. Today, they are on the market for $100,000.
It’s not just residential property that has been hard hit. In the coastal district of Poneloya, a hotel that sits one block from the beach, featuring a large restaurant and 20 rooms, is offered for $220,000.
“The economic downturn has left some owners strapped,” added Haskins. “As a result, this may be the best time in recent years to purchase bargain-priced real estate anywhere in Nicaragua, including popular beachside locales.”
The degree to which prices have fallen was first revealed by Internationalliving.com in an article in its December 2011 issue of International Living magazine, which can be viewed here: “Bargain Hunting on Nicaragua’s Pacific Coast”.
Editor’s Note: Members of the media have full permission to reproduce the article, “Bargain Hunting on Nicaragua’s Pacific Coast”, either in part or in its entirety, once credit is given to InternationalLiving.com.