Real Estate: Prices and Sales are Down

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.

Tuesday, January 26, 2021

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.

This phenomenon is the result of several factors, as the political crisis of 2018 coupled with the health emergency caused by the outbreak of covid-19, eventually put downward pressure on property prices.

Learn about the "Real estate project feasibility studies" that we carried out at CentralAmericaData.

Moises Urtecho, manager of Pinoleros Bienes Raices, told that ".... 'in 2020 the effect was not only a product of the pandemic, but we are already dragging what happened in 2018, after that there was a lot of foreign capital that left the country and on the other hand those who wanted to come to invest in the country, took their eyes off Nicaragua, but if we could observe that some took advantage of this situation and despite the uncertainty bought properties that were below their real price."

See "Central America: Is the Real Estate Market Moving?"

Urtecho, added that "... another problem that occurred is that the banks stopped financing the purchase of properties, which aggravated the situation. The banks increased their requirements, the premium went from 10% to 20%, so there were people who maybe wanted to buy a $50 thousand house, but they didn't have the 20% premium ($10 thousand), so it was very complicated."

Sales have fallen by up to 70% compared to 2017, Urtecho estimates.

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