Nicaragua: More Opportunities to Build Social Housing

The eventual increase from $20 thousand to $23 thousand as the ceiling price for affordable housing is seen with good eyes by the construction sector, which expects an increase in demand.

Wednesday, November 9, 2016

A spokesperson for the union of builders and developers in the country explained that if the increase is formalized more families will have access to financing at preferential interest rates, enabling them to buy a home through the Social Fund (FOSOVI). 

"... Once the new ceiling is formalized, homes that cost US $23,000 will be included in the award of US $2,000 provided by the Nicaraguan Institute for Urban and Rural Housing (Invur), through FOSOVI to adjust to the payment for a deposit on a house."

The increase in the ceiling price for social housing is good news for builders and property developers, who have sometimes expressed difficulties in selling this type of  housing solution because a lot of families do not have access to financing. See: "Building Social Housing is Unprofitable"

The businessman Alberto Atha said that "... one of the purposes of increasing the ceiling price of houses of popular character is to motivate investors to continue to make social interest housing projects." 

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More on this topic

Nicaragua: More Flexibility for the Housing Market

July 2017

The construction sector proposes extending the conditions of social housing loans to a larger segment of the population, in order to promote the sale of houses with prices of between $30 thousand and $50 thousand.

The association of developers is proposing that the interest rate benefit of 2.5% and the exemption from the registration costs that are currently granted to those who purchase social housing worth up to $23 thousand, be extended to more expensive homes, worth up to $50 thousand. 

Nicaragua: Better Conditions for Social Housing Market

November 2016

The construction sector expects an increase in demand now that there has been an official increase from $20 thousand to $23 thousand in the ceiling for the price of social housing.

In addition to raising the cap so that more homes are considered of social interest and can be purchased with a subsidy on the interest rate, it was also agreed to grant a direct bonus of up to $2,000 for families to finance the purchase of a home of this kind.

Building Social Housing is Unprofitable

August 2016

Development companies in Nicaragua believe that profitability in the construction and sale of this type of housing has not occurred as expected due to difficulties in obtaining financing.

The Chamber of Builders in Nicaragua (Cadur) argues that the bond that the government announced earlier this year to facilitate access to financing to acquire affordable housing is not what was expected, and because of this, this segment of the market is not proving profitable. They state that the homes that are still being sold with good results are those with prices ranging between $20,000 and $50,000. These represent   "... 60% of sales."

Nicaragua: Housing Construction to Grow By Just 12%

August 2013

For 2013, the Chamber of Builders of Nicaragua projects an increase in housing construction of between 10% and 12%, the lowest percentage in the past three years.

"In the last three years, not including the current one, between 12,000 and 14,000 homes were built, that's a ratio of about 4000 houses per year, for this reason we believe that this year growth will not have the same level bringing acceleration," said Alberto Atha, vice president of the Chamber of Urban Builders (Cadur).

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