Real Estate: Opportunities in the Crisis

Although the construction of houses in Nicaragua is depressed because of the crisis that the country is going through, entrepreneurs in the sector see business opportunities in the resale of real estate and land.

Thursday, September 12, 2019

According to reports from the Central Bank of Nicaragua (BCN) in the fourth quarter of 2018 the area effectively built decreased 50% over the same period in 2017, explained by the decrease of 61% in construction registered in Managua.

See CentralAmericaData's "Real Estate Project Feasibility Studies"

This drastic fall in construction is the result of the crisis affecting the economy since April 2018, which has caused a considerable decrease in productive activity, the exit of investments and the disappearance of thousands of formal jobs.

See "One Year in Crisis

Despite this adverse scenario, entrepreneurs in the sector see business opportunities. Joao Mucciolo, investor and real estate advisor in the country, explained to Elnuevodiario.com.ni that the market is not paralyzed, "... maybe the construction of new houses if quite affected, but the resale of houses and land is quite active, which is why the banking system is not providing financing."

Mucciolo pointed out that "... The market is hit and the risk and uncertainty of buying properties today has caused prices to fall. It is normal, the one who can buy is assuming a great risk and wants to boost the risk by buying a good at a lower price."

For the specialist it is necessary to ask strategic questions before making a decision, in addition to analyzing the risk, consequences and benefits.

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More on this topic

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.

Global Real Estate Conference in Panama

March 2016

Investors and entrepreneurs in the global real estate sector will be meeting from 21st to 26th of May in Panama City to discuss issues such as project finance and marketing trends.

The World Congress of the International Federation of Real Estate Professionals (FIABCI) will be held this year in Panama City, and is expected to include the participation of representatives of companies linked to the housing market from all continents.

Offices in Panama: More Supply Than Demand

December 2014

Predictions are that the office vacancy rate in Panama City, currently 33%, could reach 45% in 2016.

Following that under usage prevailing in the office market rental rates have dropped by up to 30%. In the case of hotels, they are also experiencing this phenomenon, the vacancy rate has fallen by 50% and in turn nightly rates have decreased by 28%.

Construction of Houses for Rent

May 2013

In Panama the housing rental business has ample room to grow when compared with similarly developed economies.

"This has caught the attention of many local entrepreneurs and foreign investors who see a great opportunity in this business and who have routed their efforts to ensuring that housing is developed exclusively for the rental market", reported Capital.com.pa.

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Desarrollo Inmobiliarios 4D

We are a firm dedicated Aldesa Investment Corporation to seize business opportunities in the housing market.
Operates in Costa Rica and Costa Rica
Phone: (506) 2207-8888

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