Your search results

Real Estate Market in San Juan del Sur and Tola 2020.

Posted by nancy_trinity on February 10, 2021
0

Here it is. Our annual report on the real estate market in San Juan del Sur and Tola: The 2020 Edition. And really, in order for us to tell you about how the 2020 real estate market performed, we need to go all the way back to 2019 first.

Looking Back at 2019

In 2019, our Nicaraguan clientele took advantage of the low real estate prices that existed from the events occurring in the spring of 2018. Many purchases occurred, most at rock-bottom prices, or as Nicaraguans say, in “Ganga.”

In 2020, the story was different. What changed? The seller’s position.

Sellers no longer found themselves needing or wanting to liquidate their assets. As in 2019, multiple offers on available properties were received, but the sense of urgency to sell was gone. Tourists returned at the beginning of the year and this meant foreigners began to buy again. The famous Gangas became a thing of the past, though, from time to time, a great deal would pop up.

Enter the COVID-19 Pandemic

COVID-19, as in all places, had quite an impact on Nicaragua. Tourism disappeared, and entry into the country was practically impossible. Interestingly, the virus did not make real estate prices fall. Previously, where instability or uncertainty negatively affected the value of properties, the pandemic did not have this same result. Rates stayed consistent but the sellers became more flexible. While this flexibility was not in terms of price, it was in the terms of being open to more dialogue and more negotiation.

Even while it remained difficult to enter the country, interest in Nicaragua increased. Unsurprisingly, COVID-19 made a country like Nicaragua more attractive. People were and are wanting to be in open places, with sunshine, and with beaches. Interest and communication via digital channels increased and some sales occurred via video and digital media! Truly a 2020 experience.

Learning to Live With COVID-19

As soon as entry into the country became somewhat easier in the later half of 2020—with the return of a few flights per week—we saw the arrival of people who wanted to be in places like Tola and San Juan del Sur. Many of them decided to rent long-term, while others opted to make real estate investments.

There was a spike in interest in places such as Tola: Guacalito, Rancho Santana, Hacienda Iguana, and Redonda Bay. Many clients desired turnkey properties. Options such as this make it much easier for people who do not necessarily live in the area or in the country, and interest was significantly higher in finished builds vs options that involved a future build such as a lot.

The Financials

Overall there were more transactions in 2019, however, 2020 performed very well. It should also be noted that prices-per-meter of construction and prices-per-meter of land increased as compared to 2019. This is still far off from the high prices of 2017, but represented a year-over-year increase of almost 20% on m2 built.

One piece of news that was actually welcomed in 2020? The country’s improved banking situation.

Between 2018-2019, banks would not finance anything located on the beach. Prior to that financing was available, but limited in who and what qualified. By the end of 2020 however, we saw the main banks in the country open to financing again.

Conditions regarding financing are nothing compared to those in the US and other countries, but definitely an excellent signal for the Nicaraguan market. Banks are still very strict with conditions and clients, but the focus should be on the fact that they are again open and back to financing in a limited capacity.

Our 2021 Prediction 

Now, here is what you’re waiting for. Our outlook for the 2021 Nicaraguan real estate market is positive.

COVID-19 will continue to make places such as Nicaragua more attractive investment locations. While it is still extremely difficult to get here, the interest to do so, and to own, is apparent across our digital channels. In just the four weeks of January 2021, we received ten (10) offers on property and homes. That is an exceptional start to the year—unprecedented even.

The Team at Trinity Real Estate Nicaragua and I hope this 2021 Real Estate Report is useful for your real estate investment strategies. If you are interested in or need information that is more specific, or simply want to talk about anything related to the South Pacific coast of Nicaragua, don’t hesitate to contact us!

Leave a Reply

Your email address will not be published.

Compare Listings