Nicaragua: Significant Decline in Residential Construction

A 40% decline is estimated in the construction of social housing investments in the country, and in the case of middle and upper-class housing, the contraction reaches 70%.

Friday, December 14, 2018

According to figures from the Superior Council of Private Enterprise (Cosep), the value added in the construction sector will register a 25% decline, falling from $399 million in 2017 to $300 million in 2018.

See "$1.500 million investment in residential projects"

Regarding the damage reported by the construction sector, Elnuevodiario.com reports that "... From the total of formal jobs generated by urban developers, 80% have been closed. In the case of housing, the impact would be serious, leading them to almost disappear, as is the case of social and residential housing for lack of financing,' said Cosep."

The article adds that "... Cosep estimations indicate that although a political agreement is reached, the urbanizing sector focused on middle and upper-middle class housing will not recover next year, but until 2020, mainly because of lack of funding. In the case of social housing would only complete ongoing projects,' said Cosep in its report."

You may be interested in "Construction: $100 Million for New Projects"

According to figures from the Central Bank of Nicaragua, in the second quarter of this year, the area effectively built in the country fell 8% over the same period in 2017, because of the 20% fall in residential construction and 40% in industrial.

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More on this topic

Home Sales: Unsatisfying Forecasts

June 2019

Businessmen in Nicaragua estimate that this year the sales of houses will not exceed one thousand units throughout the country, which is explained by the economic situation that the country has been living for fourteen months now.

Although in April 2018 the political and social crisis broke out in the country, builders managed to sell 3,108 homes last year, but the figure was 34% lower than the 4,738 homes sold in 2017.

Crisis Keeps Shocking Real Estate Sector

January 2019

Because of the difficult political and economic situation that Nicaragua is going through, it is estimated that with respect to 2017, sales in Managua declined more than 50% during 2018.

According to the firm Keller Williams (KW Nicaragua), which brings together nearly 200 real estate agents throughout the country, sales have fallen because of uncertainty in the country, coupled with job losses in the local economy.

Figures from the Crisis

December 2018

After the political and social crisis that began in April, the Nicaraguan economy will lose more than $1.3 billion this year, and GDP could decline by 4%, together with the collateral effects suffered by the countries of the region.

Several indicators have reflected the weak performance of the country's economy since the crisis began.

Housing Construction in Nicaragua

January 2013

The Chamber of Builders and the government are working together to achieve the funding necessary to reach the target of 10,000 new homes every year.

Laprensa.com.ni reports that "After fulfilling the goal of building 4,000 houses and delivering them in 2012, the goal is to raise the annual figure by a thousand houses.

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