icaragua Property: Hot Emerging Market - June 23th 2008

Nicaragua is the next property investment hotspot.

It's Pacific and Caribbean coastlines set in a tropical climate have already made it incredibly successful for property investors. Yet prices are still a fraction of the cost of property in neighbouring Costa Rica. According to David Stanley Redfern Ltd's experts on the ground, what is selling for $3m in Costa Rica, can be bought for $300,000 in Nicaragua.

Foreign investment is now pouring into the country. In 2005, a total of about $241 million was invested by non-Nicaraguans. In 2006, that number grew to $268 million and then rose again in 2007 to $335 million.

Meanwhile, tourist dollars are fast becoming a large part of the economy that was once focused on agriculture exports. Tourism has increased by 300% in the last decade and even rental yields on Nicaraguan houses are reaching 7.7 percent. Yields on new luxury resorts could make double that, and will coast to around the 10-12 percent mark.

As with any emerging market the biggest gains are made on off-plan property, and the tropical coastal regions are likely to prove the most lucrative. If Nicaragua is anything like the South American coastal countries before it - Brazil, Argentina, Panama and Costa Rica - then capital growth on off-plan coastal property could increase from 20 to 30 percent a year, and is unlikely to be anything less than 30 percent per year for up to the next five years.

David Stanley Redfern's Nicaragua property is in the Seaside Marianna Spa and Golf Resort. The master-planned resort is a 923-acre private community designed to set new standards for luxury, featuring a Jack Nicklaus signature course, world-class spa and wellness centre, and a host of shops, restaurants and entertainment areas; to name just a few of the amenities.

Penthouses; Villas; one, two or three bedroom beach front units are available with ocean views and exterior space that adds approximately 200-300 of additional square footage. All units are designed and built to North American standards with the finest quality fixtures and finishing. Yet not to North American prices. Nicaragua property is priced in dollars, so now is the time to enter Nicaragua's emerging property market.

 

Source: 24-7 Press Release  

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