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 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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We are a firm dedicated Aldesa Investment Corporation to seize business opportunities in the housing market.
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