reveal real estate

[Video] Introducing the “Choose Belize” property developers

February 5th, 2010

You don’t need to be a genius to master real estate investing in Belize, you just need to know where to look.

Over the past few months a select group of developers have come together to showcase a broad palette of real estate options under a unified banner - “Choose Belize”.  The group has been convened by Coldwell Banker Belize and represent the top properties and investment opportunities across the country as a whole at a time when it’s more important than ever to focus on value.

Coldwell Banker Belize has done the homework on the ground, leveraged their first hand experience and networks, triangulated their offerings against “four pillars of international real estate success” and enlisted the help of our database to track down the really great deals in this buyer’s market.  Then, they designed a three day property tour to showcase what they had found.

They’ve just put out a video describing why the tour is a smart way to research the property market. I counted 5 reasons as I watched the video. Have a look:

Look out for the Recommended Real Estate Tour Member badge

choose-belize-tour-member1We’ve added a “badge” to the listing page of developments in our database being showcased on the Choose Belize Tour.   Here is a selection of what you’ll see on tour:

No question, a real estate tour, where you get to see a choice of property options, selected by in-country experts, is a prudent way to make the decision if Belize is right for you.

choose-belize-property-tour-video

From Reveal Real Estate - charting overseas property trends in Central America.

What’s the cheapest real estate you can find in a master planned community in Central America?

December 20th, 2009

central-america-international-real-estate-price-rank-2009

2009 has been a tough year for real estate sellers in Central America. Sales volumes are down, buyers are more risk adverse and financing is tight. The one bright spot is a growing group of ‘lifestyle buyers’ looking for cheap properties and a low cost of living. Many see Central America as an affordable safe haven and a way to side-step the worst effects of an economic downturn at home.

As it’s cheap real estate these lifestyle buyers are after, we thought we’d offer up a resource that highlights the lowest priced real estate in the four countries we follow: Belize, Costa Rica, Panama and Nicaragua.

Not surprisingly, the most affordable way into the market is by purchasing a lot or homesite. Our analysis looks at master planned communities targeting the international buyer. This means that a lot purchase comes with access to community amenities. Swimming pools, clubhouses and fitness centers are the most common. In some of the larger, resort-style communities, you’ll find golf courses, restaurants, shopping centers, racket courts, hotels and marinas.

So what’s the starting price point for lots in master planned communities?

We’ve built a ranking table to answer this question, giving the results in overall price and price/sqft for 2009. The table complements the earlier PriceRank we prepared for single family houses and condos. The columns are sortable letting you organize the list in different ways. If you want to know what amenities are offered by each real estate development, click through to the individual page for the answer. You’ll also see if the amenities are planned or completed.

A quick glance at the table shows two broad themes:

  • Real estate developments located in Nicaragua tend to rank lower (ie are lower in price) than those in Costa Rica, with Belize and Panama falling somewhere in between. This pattern mirrors the level of maturity of the real estate markets - from emerging (Nicaragua) to middle markets (Panama and Belize) to the most mature (Costa Rica). We’ve analysed this before by plotting ‘development curves’ to show the relative levels of each of the markets.
  • Generally speaking ocean property has a premium over other locations. Master planned communities on the ocean rank higher for the most part than lake/river and pastoral locations.

Rank Real estate development Country Location Location type Median price ($) Median price/sqft
1 Camino Del Rio Belize Belmopan Lake/river 20,000 2
2 Lomas de Santa Rosa Costa Rica Tamarindo Pastoral 21,200 6
3 Club Alegria Nicaragua Granada Pastoral 21,500 2
4 Better in Belize Belize Belmopan Lake/river 23,000 1
5 Prana del Sol Nicaragua Tola Ocean 25,000 3
6 Rancho Las Lomas Costa Rica Parrita Ocean 26,500 4
7 Villa Davina Panama David Lake/river 28,400 3
8 Casa Llanta, Nicaragua Nicaragua South of San Juan del Sur Ocean 30,000 1
9 Congo Hills Nicaragua San Juan del Sur Ocean 30,000 3
10 Rancho Los Suenos Panama Espave Pastoral 31,000 2
11 Waterside Belize Flowers Bank Lake/river 31,730 1
12 Progresso Heights Belize Corozal Lake/river 34,816 3
13 Rancho del Oro Nicaragua San Juan del Sur Ocean 35,000 2
14 El Camino del Sol Nicaragua San Juan del Sur Ocean 38,175 5
15 Apanas Lake Estates Nicaragua Matagalpa and Jinotega Lake/river 39,900 2
16 Rancho Papayal Nicaragua San Juan del Sur Ocean 40,000 2
17 La Vista Nicaragua Nicaragua Tola Ocean 40,000 2
18 Consejo Shores Belize Belize Corozal Ocean 42,500 2
19 Seahorse Tropics Nicaragua San Juan del Sur Ocean 44,200 4
20 Villa Lagos Nicaragua Granada Lake/river 45,240 5
21 Parque Maritimo el Coco Nicaragua South of San Juan del Sur Ocean 48,600 7
22 Las Fincas de Escamequita and Las Haciendas Nicaragua South of San Juan del Sur Ocean 49,000 1
23 Belize Reserve Belize Cayo Pastoral 49,950 2
24 Paraiso de Amelia Nicaragua San Juan del Sur Ocean 50,000 4
25 Tamarindo Beach and Ocean Estates Nicaragua Central Pacific Nicaragua Ocean 50,000 5
26 Bella Mar Nica Nicaragua Tola Ocean 52,561 5
27 Cerros Sands Belize Corozal Ocean 53,500 5
28 Dreamscapes Belize Belize Dangriga Ocean 54,111 5
29 Finca Java Nicaragua Matagalpa and Jinotega Lake/river 55,000 0
30 Selva del Mar Nicaragua Tola Ocean 55,000 5
31 Bella Vista Guasacate, Nicaragua Nicaragua Tola Ocean 59,000 12
32 Altos de Maria Panama Chame Highlands 59,100 3
33 Club Vistalagos Nicaragua Laguna de Apoyo Lake/river 64,000 4
34 Cantamar Playa Yankee Nicaragua South of San Juan del Sur Ocean 65,000 4
35 Montanas de Caldera Panama Boquete Highlands 67,500 4
36 Finca del Mar Nicaragua Central Pacific Nicaragua Ocean 70,500 4
37 Hills of Santa Marta Nicaragua Tola Ocean 72,000 6
38 Turtle Cove Lake and Yacht Club Costa Rica Arenal Lake/river 72,720 4
39 El Encanto del Sur Nicaragua San Juan del Sur Ocean 73,500 4
40 Costa Dulce, Nicaragua Nicaragua South of San Juan del Sur Ocean 82,000 6
41 Starfish Reef Panama Bocas del Toro Ocean 84,000 3
42 Hacienda Los Molinos Panama Boquete Highlands 84,660 6
43 Pacific Marlin, Nicaragua Nicaragua San Juan del Sur Ocean 85,000 7
44 El Club del Mar Nicaragua South of San Juan del Sur Ocean 89,000 7
45 Papagayo Golf Lots Costa Rica Playas del Coco Ocean 90,000 1
46 Remanso Beach Resort, Nicaragua Nicaragua South of San Juan del Sur Ocean 92,792 12
47 olcan Springs Ranch Estates Panama Volcan Highlands 97,250 4
48 Bahia Lomas Estates and Marina Panama Bocas del Toro Ocean 98,499 4
49 Balcones de Majagual Nicaragua Marsella / Maderas Ocean 99,000 6
50 Mansions at Banyan Bay Belize Ambergris Caye Ocean 101,000 15
51 Paradise Dreams Panama Bocas del Toro Ocean 103,333 10
52 Boquete Country Club Panama Boquete Highlands 107,189 5
53 Valle Verde Costa Rica Central Valley Highlands 107,685 1
54 Boquete Plantation Panama Boquete Highlands 110,000 7
55 Rio Oria Estates Panama Azueros Peninsula Ocean 112,000 1
56 Cala Azul Nicaragua San Juan del Sur Ocean 117,000 11
57 Orchid Bay Belize Corozal Ocean 119,000 9
58 Finca las Brisas, Costa Rica Costa Rica Nicoya Ocean 120,750 2
59 Montanas y Mar Costa Rica Quepos/Manuel Antonio Ocean 122,500 1
60 Cheetah Chombo Costa Rica Cahuita Ocean 125,500 1
61 Cerro Grande Estates, Costa Rica Costa Rica Tamarindo Ocean 126,250 1
62 Placencia Yacht Club Belize Placencia Ocean 130,000 18
63 Gran Pacifica Nicaragua Central Pacific Nicaragua Ocean 132,665 21
64 Montecristo Beach and Golf Resort Nicaragua Central Pacific Nicaragua Ocean 133,833 10
65 Rancho Santana Nicaragua Tola Ocean 136,750 5
66 Residencial La Esmeralda, Costa Rica Costa Rica Tamarindo Ocean 137,500 4
67 Hacienda Iguana Nicaragua Tola Ocean 140,417 7
68 Tierra Pacifica Costa Rica Playa Junquillal Ocean 145,000 2
69 Sanctuary Bay Estates Belize Belize Stann Creek Ocean 146,500 3
70 Bosques de Vista Marina, Costa Rica Costa Rica Playas del Coco Ocean 150,000 6
71 Playa Santa Rosa Nicaragua Central Pacific Nicaragua Ocean 155,563 13
72 Costa Paraiso Nicaragua South of San Juan del Sur Ocean 159,000 7
73 Rancho Villa Real, Costa Rica Costa Rica Tamarindo Ocean 171,000 3
74 Portasol Costa Rica Dominical Ocean 180,500 2
75 Sittee Point Belize Hopkins Ocean 193,500 13
76 Lobster Cove Panama Chuchecal Bay Ocean 208,750 8
77 Pura Jungla, Costa Rica Costa Rica Paraiso Ocean 209,275 2
78 Lomas del Mar, Costa Rica Costa Rica Playas del Coco Ocean 212,500 3
79 Brisas del Pacifico, Nicaragua Nicaragua San Juan del Sur Ocean 217,174 9
80 Eagles View, Costa Rica Costa Rica Nosara Ocean 224,900 5
81 Valle Escondido Panama Boquete Highlands 227,140 7
82 La Reserva Camaronal, Costa Rica Costa Rica Samara Ocean 233,475 18
83 San Buena Golf Costa Rica Southern Pacific Ocean 234,400 11
84 Ladera del Mar Costa Rica Playas de Coco Ocean 237,000 4
85 Villas Cabo Vela Costa Rica Playa Grande Ocean 247,000 3
86 Sunset Point Bocas Panama Bocas del Toro Ocean 255,000 10
87 Manuel Antonio Estates Costa Rica Quepos/Manuel Antonio Ocean 284,000 5
88 Cabo Caletas Costa Rica Costa Rica Esterillos Ocean 285,000 18
89 Cocoplum Belize Belize Placencia Ocean 305,250 11
90 Sonidos del Mar, Costa Rica Costa Rica Nosara Ocean 306,667 28
91 Coco Bay Estates Costa Rica Playas del Coco Ocean 311,250 12
92 Balcones del Lago Arenal Costa Rica Arenal Lake/river 315,000 4
93 Rancho Playa Negras Costa Rica Playa Negra Ocean 337,112 22
94 Lora Hills Costa Rica Costa Rica Playa Ostional Ocean 498,877 11
95 Hermosa Heights Costa Rica Playa Hermosa Ocean 565,000 48
96 The Four Seasons Papagayo Peninsula Costa Rica Papagayo Ocean 950,000 31
97 Hacienda Pinilla Costa Rica Tamarindo Ocean 970,983 45
98 Isla Viveros Panama Panama Isla Viveros (Pearl Island) Ocean 993,866 18

We’re continuing to sort through the data we collect, looking for the best ways to present and dig out the facts. We’d love to have your ideas and suggestions. They’ll be more price rankings to follow. We also plan a “Master Plan Completion Index” to give a sense of how far along real estate developments are with their master plan - a piece of information that savvy real estate investors should follow with care.

Stay tuned by subscribing to updates.

From Reveal Real Estate - charting overseas property trends in Central America.

Comparison shopping: An analysis of purchasing destinations for Nicaragua real estate

July 14th, 2009

Nicaragua property trends 2008 to 2009

The Nicaragua real estate market is hard to generalize on a national level. It’s made up of many micro or sub-markets.  In this article we deep-dive into some of Nicaragua’s most important sub-markets or ‘purchasing destinations’ to draw out the kind of data we hope will help buyers and sellers make more educated decisions.

nicaragua-real-estate-by-areaIn Nicaragua the main purchasing destinations are located on the south western part of the Pacific coast.  In particular the town of San Juan del Sur, the area south of San Juan del Sur to the border with Costa Rica, the Tola Rivieria & Popoyo region and the Central Pacific Coast, due west of the capital, Managua.

Together these four areas have 80% of all overseas property developments in Nicaragua catering to the international buyer, making them a logical basis for comparison.

Mingle enough with real estate investors in Nicaragua and you’ll hear them expounding on the relative merits of different areas and asking questions like:  “Is the town of San Juan del Sur with its local cafes, bars and restaurants a good place to invest.  Or is Tola with its master planned resort-style communities a better option?”

Ranking purchasing destinations by price

nicaragua-property-hotspot-mediansThe Central Pacific Coast of Nicaragua tops the list for median price/sqft for both serviced lots ($11.75/sqft) and condos ($206.30/sqft). Several large scale resort communities are planned in this area, including 3 championship golf courses.

The area South of San Juan del Sur, towards Costa Rica is the most expensive for single family houses ($173.03/sqft), followed by Tola Riviera & Popoyo ($164.78/sqft).

San Juan del Sur receives the most press and has the most international tourist visitors.  But it is not the most expensive purchasing destination for any property category. (It comes a close second for condos.)

San Juan del Sur has certainly seen a rush of development in recent years and is home to 1/3 of all real estate projects in Nicaragua focused on the international market.  Perhaps developers have been doing the math on buying a lot in the San Juan del Sur area (5th most expensive location) and developing this into condos (2nd most expensive location).

What about trends over time for San Juan del Sur?

The median price for lots, condos and single family homes has fallen in San Juan del Sur by more than the average across the country. For lots, the overall fall in median price between 2008-9 for the country was -3.53% (in San Juan del Sur the median price fell -9.38%), for condos the overall fall was -6.40% (in San Juan del Sur the drop was -9.90%) and for houses -3.41% for the country compared to -11.98% in San Juan del Sur.

Some buyers will see this as a clear buying opportunity given San Juan del Sur’s continuing status as the pivotal center for Nicaragua property. Others a sign of over-supply.  What do you think? Let us know in the comments below this post, or leave a review for San Juan del Sur.

From Reveal Real Estate - charting overseas property trends in Central America.

The real estate market in Central America: In graphics

March 28th, 2009


Whether you’re in the market for real estate in Central America, or you are selling, market data matters more than ever.  Without data how can you determine fair value, track where the market is heading or feel confident that you are making the right investment decision?  Trouble is, in Central America market data and comps are not readily available from property institutes, registries or central bank databases.

To try and fill this data gap, we’ve collected data from real estate developments in Panama, Costa Rica, Nicaragua and Belize and put this information online.  As part of our research we also collected country-level indicators that shed light on the investment climate.   Here are some highlights from what we have found:

Real estate developments targeting the international buyer

Costa Rica has the largest number of real estate developments that target the international investor, with 34% of the total in our database.  No surprise really.  It’s been on the international real estate map for longest.  Panama follows close behind.  This is largely due to the explosion in condo projects in recent years in the capital city selling Panama apartments.

Percentage of real estate developments per country

The price for an ocean view condo

The order from most expensive to least expensive country to buy an ocean view condo is Costa Rica - Belize - Panama - Nicaragua.  The data looks at median price per sq.ft.

The ordering is what you would expect given the different levels of maturity of the markets and level of infrastructure. But did you think the differential between Costa Rica and the other countries would be greater?  We did.

The average size for an ocean view condo in Costa Rica tends to be larger than in other countries, which may explain part of this.  Click here for a more in depth review of Belize condos. We’ll be publishing more data in later posts to dig into the comparatives further.

Condos in Costa Rica, Panama, Nicaragua and Belize

Internet searches on Google

There were more searches for ‘Costa Rica real estate’ on Google than for ‘Panama real estate’, ‘Belize real estate’ and ‘Nicaragua real estate’ combined.  We predicted the order, but again were surprized by the differential between Costa Rica and the other countries - this time in the other direction.

Real estate searches for Costa Rica, Panama, Belize and Nicaragua

Cost of living

Nicaragua stands out as offering the lowest cost of living.   Using purchasing-power-parity (PPP) data we can determine what US$1,000 ‘adds up’ to in different countries.  In the US $1,000 has the purchasing power of $1,000, but in Nicaragua it has a purchasing power equivalent to $2,629.   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 all four countries than in the US.

Cost of living in Central America

Completed golf courses

There are several golf courses planned or under construction in the region. At least 3 in Nicaragua and 3 in Panama.  The data below is for completed golf courses that can be played on.  Before seeing the data, would you have guessed that there would be more than 2 completed golf courses in Nicaragua?   See more on golf property.

Golf real estate in Panama, Costa Rica, Nicaragua and Belize

The data is drawn from research done in 2008, see notes to the data for more information.  We’ll be updating for 2009 and charting the trends. Dig into our main site, run some searches, and check out the property hotspots and country indicators for Nicaragua, Panama, Costa Rica and Belize.

What’s your reaction to this data.  Any surprizes for you?

From Reveal Real Estate - charting overseas property trends in Central America.

The 7 most expensive regions to own an ocean view condo in Central America

March 5th, 2009

Costa Rica tops our list coming in first and second.  In fact, 3 of the 7 regions fall within Guanacaste, Costa Rica’s northern state.  The data is based on our database of real estate developments in Costa Rica, Panama, Belize and Nicaragua.  Nicaragua, being a cheaper destination than the other countries, did not make the list.

1. The stunning coastline of Coco, Hermosa and Papagayo in Costa Rica’s Guanacaste region tops our list.  Here the median price for an ocean view condo is $340 per sqft.  The region is packed with amenities from tennis clubs and marinas to championship golf courses and luxury spas.  It has some epic surf breaks, good infrastructure and is very accessible from Liberia’s international airport.  Celebrity purchases, major hospitality brands and top class attractions abound in the region so it’s not surprising that it tops our list.

2. Just next door, also in Guanacaste, lies Flamingo where the median price for an ocean view condo will set you back $305 per sqft.  Tourists are attracted to the spectacular beaches, the world-class sport fishing (there’s an international tournament every year) and the numerous dive spots.

3. Ambergris Caye comes in third.  It’s the most visited part of Belize and offers the picture postcard Caribbean experience -  sparkling white sand, azure waters, swaying palm trees and a great barrier reef just off shore. Belize condos are the main draw on the island. And for a median price of $290 per sqft, you’ll be on your way to owning an ocean view condo in this important tourism area. The added bonus for many international real estate investors: you won’t have to learn another language as Ambergris Caye is English speaking.

4. Fourth on the list is Tamarindo located, wait for it, in Guanacaste Costa Rica.  Long recognized by surfers for its great waves, Tamarindo now offers something for backpackers, luxury travelers and everyone in between. You can take advantage of lovely local beaches - some with turtle nesting areas, dive spots, golfing, numerous night-spots, restaurants and, of course, plenty of sunshine year round.  An ocean view condo clocks in at $285 per sqft.

5. Jaco lies on a wide, grey-sand bay on Costa Rica’s Central Coast in Puntanrenas.   Well known hospitality brands such as Sonesta, Ramanda and Wyndham have set up store along the beach front and you’ll lose count of the internet cafes, curio stores, tour agencies, souvenir stands, bars, restaurants and nightclubs that jostle for position on the main road.  You’ll find ocean view condos here for around $280 per sqft.

6. Our second Caribbean region, Bocas del Toro, in Panama comes in 6th.  If you want an ocean view condo here you’ll be looking around $275 per sqft.   The cluster of islands that make up the archipelago have become a key tourist destination for visitors to Panama.  Unusually for the Caribbean, you’ll not only find great local dive spots but also some good surfing waves.

7. Cosmopolitan Panama City with it’s soaring skyline of glass and steel comes in 7th.  The town is a world class financial center and business hub that offers a range of exciting experiences to visitors.  You’ll find a vibrancy here that is rare in Central America.  Investors looking for US style infrastructure, excellent health care and a benefit-laden retirement program tend to look no further.  You’ll need to lay out around $265 per sqft. for an ocean view condo. Click for a 2010 update on the Panama apartment market.

The data was collected during 2008.  We’ll be updating for 2009 and tracking the trends.

So tell us, would you buy in one one of these property hotspots?

From Reveal Real Estate - charting overseas property trends in Central America.

Should you buy in an overseas property hotspot?

February 13th, 2009

Should you buy in a property hotspot?

Real estate activity is not uniform across a country. Different regions will have different properties for sale at different price points. That’s why on revealrealestate we’ve identified a number of real estate areas for each country that we cover. We then focus in further on the ‘hotspots‘ - those areas generating the most interest from international real estate investors.

Each property hotspot has a different risk/reward profile. Some are early-in opportunities, some are established real estate areas and others fall somewhere in between as middle markets - not quite emerging, but also not yet developed. Despite these differences they all share three characteristics (defined in more detail, here):

1. The tourists are coming
2. A good range of local attractions
3. Infrastructure improvements

Property hotspots in Central America

Nicaragua hotspots: San Juan del Sur, Granada, Tola Riveria & Popoyo, and the Central Pacific
Belize hotspots: Ambergris Caye, Placencia, and Corozal
Panama hotspots: Panama City, Coronado & San Carlos, Boquete, and Bocas del Toro
Costa Rica hotspots: Jaco, Flamingo, Tamarindo, and Coco, Hermosa & Papagayo

Some investors will argue that it’s best to avoid hotspots altogether if you’re looking for the ‘real’ bargains. This can be a tempting proposition to the pioneer investor with a speculator’s stomach. But, before jumping in, remember to ask why there is a price differential now and whether this is likely to change in the future.

Momentum effects are important

Remember the mantra: location really is everything. Hotspots tend to have inherent appeal - perhaps it’s the views and geographic features, the ease of access, the local attractions or the climate - which is why interest and development gravitates there.

That’s not to say that we’ve defined all the property hotspots in Nicaragua, Belize, Costa Rica and Panama or that there won’t be price appreciation and development in other areas. But momentum effects are important and it’s worth asking whether a significant price differential that exists now is due to something inherent about the area. If it is, then a price differential could remain well into the future.

What do Corozal, Jaco, Coronado and San Carlos have in common?

January 22nd, 2009

Corozal, Jaco, Coronado and San Carlos

The median property price/sqft for ocean view condos in real estate developments located in Corozal, Jaco, Coronado and San Carlos are lower than the country median. Clicking on the links reveals the charts.

So the median price for an ocean view condo in real estate developments located in Corozal is lower than in developments in other parts of Belize.

Your dollar stretches further when buying an ocean view condo in a real estate development in Jaco, on average, than it does in developments located elsewhere in Costa Rica.

And the median price for Coronado & San Carlos condos is less than the median price for ocean view condos in developments in Panama overall.

Jaco (Costa Rica) or San Juan del Sur (Nicaragua) – which way do you lean?

January 15th, 2009

Let’s start with some similarities: Jaco (Puntarenas, Costa Rica) and San Juan del Sur (Rivas, Nicaragua) are both set on crescent shaped sandy bays facing east. When it comes to recreation, surfing is the main draw for both towns - followed by early evening drinks as the sun sets over the Pacific.

Jaco beach (left) and San Juan del Sur (right)

Jaco has an 18 hole golf course in Herradura to the north. There’s no golf close to San Juan del Sur (for now). But you’ll find spectacular beaches both north and south of town including La Flor, a well known turtle breeding site.

Jaco has a head start on San Juan del Sur when it comes to tourism. It’s been on the vacation map for much longer. Well known hospitality brands such as Sonesta, Ramanda and Wyndham have set up store along the beach front and you’ll lose count of the internet cafes, curio stores, tour agencies, souvenir stands, bars, restaurants and nightclubs that jostle for position on the main road through town.

It was only a few years ago that travel writers were describing San Juan del Sur as “a sleepy little fishing village”. It may have lost that tag-line - after all you can now get good expresso coffee, and the night life picks up on the weekends and holidays - but it’s still not as hectic by day or night as Jaco.

As far as real estate prices are concerned, here’s some data to mull over. The charts look at median price sq/ft for condos. For data on lots and houses have a look at the Jaco real estate page and the one for San Juan del Sur property.

Jaco real estate - median price sq/ft condos:

Jaco Costa Rica real estate condo prices

San Juan del Sur real estate - median price sq/ft condos:

San Juan del Sur, Nicaragua real estate condo prices

What do you think? What about the restaurants? surfing? scenery? community?

Has Jaco got your vote? Or would it be San Juan del Sur - if you had to choose? Tell us which, but most importantly, tell us why?

At what stage of a “development curve” are we investing?

January 2nd, 2007

Emerging real estate markets tend to follow an S shaped development curve. Knowing where on the curve a particular market is helps you to decide whether the risk/reward profile is right for you. At the top of the curve lie the more ‘mature’ markets with more speculative or ‘pioneer’ markets found at earlier stages.

Markets early in the curve tend to be good candidates for short term capital appreciation. But inherent risks are high and infrastructure quality tends to be low. More mature markets, located at later stages in the development curve, have a lower risk environment based typically on an established tourism (and retirement) market and strong sense of economic and political stability. Strong rental possibilities exist in property hot spots and luxury (often branded) offerings can be found on the market. Middle markets fall somewhere in between - not really emerging but also not quite fully developed.

Real estate development curves

We plan to plot counties in Central America on this graph and also dig deeper into individual regions. There may be instances that a property hot spot in a particular country has the characteristics of a ‘mature’ destination while the county as a whole appears to have ‘pioneer’ attributes. We have our ideas but would be interested in your thoughts on where you would place different counties and regions on a development curve such as this one. It is also possible to draw some general conclusions on the main types of buyers active at different stages on a development curve for Central America.

From Reveal Real Estate - charting overseas property trends in Central America.

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