National real estate associations exist for most counties in Central America.  And, given the sharp growth of real estate investment in the region, these bodies seem to be getting more active. There are some big ticket items on the table not least the question of licencing, code of ethics and ultimately (maybe) development of an MLS.   The associations are as follows:

• The Costa Rica Chamber of Real Estate (CCCBR), Costa Rica Global Association of REALTORS® (CRGAR),
• Camara Salvadoreña de Bienes Raíces (CSBR),
• Asociacion Nacional de Agencias de Bienes Raíces de Honduras (ANABIR),
• Camara Nicaraguense de Corredores de Bienes Raíces (CNCBR),
• Asociacion Panamena de Corredores y Promotores de Bienes Raices (ACOBIR),
• Camara de Corredores de Bienes Raices de Guatemala (CCBRG)
• Association of Real Estate Brokers of Belize
• Federation of Real Estate Associations of Central America and the Caribbean (FeCePAC) - an umbrella organisation that ties the other bodies together with a focus on integration and networking.

The recent activity is a good sign.  The FeCePAC and CNCBR conference held in Managua, Nicaragua last week had a strong turnout with some key action steps to take for more regional integration of real estate approaches and standards.  We were also pleased to see the recent announcement that the Association of Real Estate Brokers of Belize will be working together with the government to establish a code of conduct and general property industry standards.   The US National Association of Realtors (NAR) currently has bilateral agreements with real estate associations in Costa Rica, El Salvador, and Panama and is affiliated with the Federation of Real Estate Associations of Central America.

Most of the foreign buyers for real estate in Central America are from the US - with California and Florida leading the way.  The graph adds the detail to this trend.  It includes not only buyers but people researching Central American real estate markets over the internet.  The last two years have seen a slight but perceptible shift with more buyers appearing from Europe and South Asia.  Many of whom are likely to have business interests in, and/or spend time in, the US.

Savvy investors are always on the look out for emerging destinations - especially those with a twist on a familiar theme. The Inland Mountains region of Matagalpa and Jinotega could be just that. The area shares many of the characteristics of Boquete - probably the hottest spot for real estate in the Panama after Panama City - such as enchanted “hidden” valleys, mists that shroud the mountaintops, a perfect spring like climate, rushing rivers, flowers and high quality coffee. 

This is where you come to commune with nature, hike, fish, cycle, kayak and recharge your senses in a setting of peace and tranquility. Prices in the area are still 1/4 of what you will find in Panama and around 1/3 of property on Nicaragua’s Pacific coast. Read more on the mountainous, coffee growing areas of Nicaragua.

By drawing on purchasing-power-parity (PPP) data released by the IMF, we can calculate what US $1,000 “adds up to” in various countries across Central America. 

According to Wikipedia ”Purchasing power parity (PPP) … is the method of using the long-run equilibrium exchange rate of two currencies to equalize the currencies’ purchasing power. It is based on the law of one price, the idea that, in an efficient market, identical goods must have only one price.”

So the theory behind PPP is that exchange rates should adjust to equalize the price of a basket of goods and services around the world.  In the United States $1,000 is the equivalent of, well, $1,000.  But in Nicaragua, for example, it rounds up to a hefty $4,144, see below.

We have to be careful not to draw too much from these averages as they don’t apply to all product categories.  But for day-to-day goods and services your dollar will stretch further in Central America.