A historical understanding of the changes in buyer profiles over time can give an indication as to where buyers of Nicaraguan real estate will come from in the future. The early buyers were mainly speculator investors who bought low aiming to sell high at a later date. Nicaragua at the time was still a risky destination for real estate investing and prices reflected this level of risk. As the international profile of Nicaragua has grown as a tourism and investment destination, the number of speculator investors has decreased as prices for property have increased. These investors were not willing to invest in property improvements and have been hoping to divest as the country matures.
The next wave of overseas property investors has been the pre-retirement and second home group. These are quite similar groups with many buying a second home that will later be used for retirement. This group began to invest as safety concerns in Central American region as whole, and Nicaragua in particular, began to be allayed. The proliferation of articles and groups focusing on developing country investment destinations with positive praise for Nicaragua and its potential has been a significant element in the decision to invest. This group is still a major investing group in Nicaragua, albeit a recent one, and will continue to be so into the future. They are willing to add value to properties and to hold on to them longer before wanting to see a return.
Finally, we are seeing a further wave of investors who are looking to have primary homes in Nicaragua and are considering moving to the country full time. They are often in the market for more than one property – one to live and one to make money from. They are careful in their choice of property, are looking for a ‘good deal’ and generally have time to make a considered decision. Their needs and wants are slightly different to other categories given that they are planning to be full time in the country.
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