Real Estate Information On Nicaragua

I just read a great article on Nicaragua real estate in the New York Times.  It's in two parts, so here is the link to the second part of the article.  The author starts out describing an absolutely stunning ocean view property on 3.7 acres in the town of San Juan del Sur (well actually overlooking the town from a vantage point on a dramatic headland).  The property is priced at $2 million.  Yes $2 million for a property in Nicaragua may give you pause.  But this is really a one off property and not a reflection of the "normal" market.

Nicaragua experienced a bit of a real estate bubble in the early 2000s.  Touted as "the next Costa Rica" the real estate speculators and developers arrived in force driving up prices rapidly.  Then came the global financial crisis and with it the bubble burst with many properties falling by 30-50%.  

Now a new, steady market is emerging.  Prices are still low but they don't seem to be going down further.  The country is also performing well as a whole boasting the highest rate of economic growth in 2011 for the region as a whole.  Foreign direct investment is up and exports are up.  

It's hard to get hold of official statistics on real estate prices in the county so buyers (and sellers) have to rely on anecdotal evidence.  And once you find a property that you like, don't rush headlong into a closing meeting ready to sign.  Take the time to hire a reputable real estate attorney who will do an in-depth title check on your property.  You can also take out title insurance on the property from First American Title Company.  Although not strictly necessary it's an extra step that is recommended.  As a buyer also be prepared to pay for transfer and registration tax (even if the law indicates that it should be the seller who pays for the transfer).

Happy house hunting.