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

Real Estate: Prices and Sales are Down

January 2021

Although in the Nicaraguan market properties are priced up to 30% or 40% cheaper compared to the prices registered prior to the political and health crisis, sales have fallen considerably.

Taking as a reference 2017, the year prior to the political and social crisis in Nicaragua, it is evident that currently real estate prices have decreased by up to 30% or 40%, assure businessmen in the sector.

Real Estate Market: Challenges and Opportunities

August 2020

The commitment to long term rentals instead of vacation rentals, preference for larger residences and innovation in the marketing tools of the projects under development are some of the changes expected in the coming months, which could set a new pattern in the sector.

The health crisis caused by the spread of covid-19 ended up changing consumer habits in all Central American markets.

Real Estate Market: Prices in the New Reality

May 2020

It is predicted that in Panama due to the health and economic crisis the inventory of available properties will increase, a situation that will put downward pressure on property prices and rents, affecting mainly the office and commercial space segment.

Directors of the Panamanian Association of Real Estate Brokers and Developers (Acobir) estimate that in the context of the health crisis resulting from the covid-19 outbreak, sales or rental prices in the local market could contract between 20% and 25%.

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.

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