Archive for the ‘Regional statistics and data’ Category
We’ve just compiled Nicaragua real estate market statistics for 2009 and compared this against our 2008 data. With price falls across the main real estate categories, it’s clear that Nicaragua is not immune to the global contagion of sliding property markets.
The numbers that tell the story
Median asking prices in real estate developments that target the international buyer have fallen 9.57% for single family houses, 7.43% for condos and 10.54% for serviced lots since 2008.
Looking deeper into the numbers, we found that beach front lots (the premium end of the market in lots) showed the largest fall in median price at 20%.
But, this pattern of greater falls in premium categories doesn’t hold true for houses or condos. (In fact beach front houses showed a very modest fall of 0.63%)
After beach front lots, long ocean view houses showed the next largest drop at 15.33%. Overall (close) ocean view property held its own quite well against the other property categories, but if houses or condos only have a distant ocean view (defined as ‘long ocean view’), median prices have fallen more since 2008.
Not immune
Nicaragua, is clearly feeling the pinch of the slowing global economy. The falling GDP real growth rate from 3.8% in 2007 to 2% in 2008 (according to the CIA Word Factbook) paints the picture for the local economy. But the biggest factor at play in the international real estate space is the fall-off in demand from the US, Canada and, to some extent, European countries. Many of these buyers no longer have access to the necessary capital (be it from investment portfolios or built-up equity in their properties at home) to purchase a property abroad.
But, despite the darkening economic mood, Nicaragua is not experiencing the double digit drops we’ve seen in property markets elsewhere. One of the reason for this is the low levels of lender mediated activity in Nicaragua, making the real estate market stickier. There could be some pockets of finance-driven speculation, but the broad foreclosure waves as experienced in the US are not a factor. Another reason could be the low cost of living possible in Nicaragua. This is attracting a particular type of ‘lifestyle purchaser’ looking for a more affordable retirement.
The upshot for investors
All-in-all if you’re a buyer looking at Nicaragua, you’re in the driving seat. The factors you’d expect from a buyer’s market are present: developers are offering incentives, charter programs, package deals, heavy discounts for cash buyers, extended financing and so on. In fact, if you negotiate hard enough, you may get a deal of a lifetime.
From Reveal Real Estate - charting trends in international real estate in Central America focusing on Belize real estate, Costa Rica real estate, Nicaragua real estate, and Panama real estate.
The state of the real estate market in Nicaragua 2009
June 27th, 2009
Property investors looking at Nicaragua need good data to make good decisions. Until now, finding this data has been quite difficult. There are no centrally held databases collecting market data and no Multiple Listing System (MLS).
Our goal at Reveal Real Estate is to plug this information gap. We aggregate asking prices from real estate developments that target the international buyer and put this information online. It’s the next best thing to a functioning MLS or centralized database. Learn more about our data.
2009 Nicaragua property price report
The table looks at property in real estate developments - effectively the luxury end of Nicaragua’s property market.
Most of the developments are located in key ‘purchasing destinations’ or property hotspots such as San Juan del Sur, Tola Rivieria, and the Central Coast, offering close acccess to surf breaks, swimming beaches and other tourism attractions.
Ocean view single family homes registered the highest median price in 2009 - But when looking at price per square foot, condos come in as more expensive.
The only two property categories to have a median price/sqft greater than $200 are beachfront condos and ocean view condos.
Long ocean view lots have a median price/sqft of $4.11 - This is lower than the median price for serviced lots that have views of a golf course or fresh water (Lake Apoyo and Apanas primarily).
Beachfront and ocean view property has the highest price/sqft - This holds true for houses, condos and lots.
But if your view of the ocean is from a distance, you may find that lake view property has a higher price/sqft.
Comparing property prices with 2008
We’ve in the process of comparing this new 2009 data with prices in 2008 and will be revealing the trends in later posts.
We’ll also be digging deeper, breaking down the information by ‘property hotspot’ and running comparisons with other Central America markets.
From Reveal Real Estate - charting trends in international real estate in Central America focusing on Belize real estate, Costa Rica real estate, Nicaragua real estate, and Panama real estate.
Tags: Nicaragua
Posted in Real estate trends, Regional statistics and data | No Comments »
Fun with maps in Central America
May 8th, 2009
We’re using maps on Reveal Real Estate to help investors looking at individual real estate developments and property hotspots to see what’s nearby. After all, location is (nearly) everything in real estate. Our maps plot the following information:
Introducing country maps
We’ve now gone one step further and built a series of country maps. The maps load with all the map markers showing, but you can select individual markers to display by choosing from the drop down menu.
In aggregate the map markers tell us a great deal about a country overall. Here are some examples of maps we like:
This map of real estate developments in Nicaragua shows how the majority of developments fall in the south western part of the country. It’s the part of the country with the main tourism attractions, most dramatic geography and cooling lake breezes.
Check out Panama’s surf spots on the Panama map below. The waves are not only on the Pacific, you can also find breaks on the Caribbean side of the country.
Have a look at golf courses on this Costa Rica map - completed, planned and under construction. You’ll find that Costa Rica has more completed golf courses than other Central American countries.
And yes, Belize is all about diving - check out the dive spots along the Great Barrier reef on the Belize map below. The barrier reef in Belize is the largest in the Western Hemisphere and a World Heritage Site. (You can load a map showing World Heritage sites as well).
Here are the links again: Belize map; Nicaragua map; Costa Rica map and Panama map
Have a play around and tell us what you find. If you would like to include one of these maps on your website or blog, then contact us and we’ll be pleased to forward you the embed code. We’ll keep a link list of all sites that embed our maps.
This is an ongoing project, we’re planning to add more markers and functionality. What map markers should we add? Hospitals? Community projects? You tell us.
Posted in Real estate trends, Regional statistics and data | 2 Comments »
Are real estate prices stickier in Central America?
April 15th, 2009
We’ve just started a new round of data collection for 2009 covering Nicaragua, Belize, Panama and Costa Rica. When we have this collected, we’ll present a trend analysis - showing how prices have changed since 2008.
Kirk Hankla, owner of International City Mortgage, on a recent trip to Nicaragua, put forward the view that we would find property prices in Central America to be stickier on the downside than in the US (or other more mature markets).
The argument for stickier property prices
The argument being that people who buy in Central America are typically making cash purchases and are usually not effected to the point of having to liquidate assets in order to meet demands. This characteristic, of not being highly leveraged, generally speaking, is how they conduct their lives in their home country as well.
Even if they were looking for financing, they would be hard pressed to find the kind of financing products commonly available in the US. This is because Nicaragua, Costa Rica, Belize and, albeit to a lesser extent, Panama do not have capital markets developed for the selling of mortgage backed debt instruments.
So due to the lack of financing, there is no debt load and the fact that property taxes are low across the region, the buyers are not backed up against a wall to meet a monthly debt service which has required that they liquidate. The result being that prices are stickier on the downside.
Regional variances will exist
We’ll see if the numbers bear this out, and we’ll dig into the regional variances. Some real estate areas, such as Panama City for example, have seen significant levels of financed purchases. And some heavily leveraged large scale projects have suspended operations - the St Regis project in Costa Rica in the wake of the Lehman Brothers collapse was a case in point.
But regionally we’re not seeing the waves of foreclosures that have swept across the US. There are of course motivated buyers who are lowering their prices, some of whom are having their hand forced by a debt burden in their home country that must be satisfied. But that may not be enough to add up to the heavy across-the-board price falls we’ve seen in the US.
We’d love to hear your views. Let us know what you think in the comments below.
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 Panama City.
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. We’ll be publishing more data in later posts to dig into the comparatives further.
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.
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.
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?
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?
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 surprizing 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. 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.
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?
Tags: Belize, Costa Rica, Panama
Posted in Comparison shopping, Regional statistics and data | 1 Comment »
What $50,000 will get you in Belize, Panama, Costa Rica and Nicaragua less than 90 minutes from the international airport.
February 16th, 2009
The key to cutting a great deal in Central America is getting hold of objective market information to determine fair value. Trouble is, in Central America investors can’t draw on industry databases like the Multiple Listing Service. There’s no equivalent to zillow or trulia and local sources of information can be prone to exaggeration and hype.
Our goal is to shed some light on the market by aggregating real estate prices from developments, comparing them against the median for the country as a whole, and putting the information online. Savvy buyers will also want to know how far a development is along with its master plan and its proximity to services. So for each development we track whether the community amenities are completed or still in planning phase and provide an estimate of driving time to the nearest town and international airport.
So what can you get for $50,000 less than 90 minutes from the international airport?
Here are 9 projects that fit the bill. We’ve based our analysis on median asking prices for property in real estate developments collected between July and September 2008.
Starting in Belize, you can pick up a home-site at Belize Reserve, an eco-community located in Cayo, around 15 minutes from San Ignacio for under $25,000. A swimming pool, hotel and restaurant are planned. You’ll find similar prices at Camino del Rio, a 63 acre development also located in Cayo, this time east of Belmopan. Sticking to Belize, both Progresso Heights a residential community in Corozal located on Progresso Lagoon which leads to Chetumal Bay going out to the Caribbean Sea and Waterside at Flowers Bank on the Belize River have lots available for under $50,000.
Moving to Nicaragua, for $20,000 you could be the owner of a green lot at Club Alegria located near Granada with views to Mombacho volcano. Close-by you’ll find Club Vistalagos peering over the eastern edge of Lake Apoyo and Villa Lagos a community located in a green setting near the port of Asese, Lake Nicaragua. At both projects you’ll find serviced home-sites for under $50,000.
In Costa Rica, around four miles west of the tourist town of Tamarindo, you’ll find Lomas de Santa Rosa and lots for sale in the low $20,000s. And, if Panama takes your fancy, then Rancho los Suenos a project located 45 minutes from Panama City and close to Espave and the beaches has lots with a median price of under $30,000.
We’ve based the above on median prices for individual real estate categories. We’ll broaden the search in future posts to include real estate projects further away from the airport.
For now, what have we missed? We’d love to have your views.
Posted in Regional statistics and data | 1 Comment »
7 real estate developments with beachfront lots below $15.85 per sq/ft
January 27th, 2009
Why $15.85 per sq/ft?
Well, the revealrealestate median price per sq/ft for a beach front lot is $15.85. Our analysis looks at real estate developments, resort communities and condo projects in Panama, Costa Rica, Nicaragua and Belize (July to October 2008). Most of the real estate developments target the international property investor.
The 7 real estate developments with beachfront lots below $15.85 per sq/ft are listed below. Remember, some of these will be early in the roll-out of their master-plan while others will be more advanced. Click though to each development to see the price data, location information (via Google maps), accessibility information (including distance from the international airport and whether roads are paved) and lifestyle information such as proximity to a golf course, a dive site, equestrian facilitites or a surf break. We’ve also collected information on the amenities offered and whether these are completed or planned.
- Rincon Beach Estates, Panama
- Cerros Sands, Belize - Property hotspot: Corozal
- Lobster Cove, Panama
- Cocoplum Belize, Belize - Property hotspot: Placencia
- Costa Paraiso, Nicaragua
- Los Suenos Island Resort, Nicaragua - Property hotspot: Central Pacific Coast
- Montecristo Beach and Golf Resort, Nicaragua - Property hotspot: Central Pacific Coast
Property hotspots and reviews direct from investors
If the real estate development falls within one of our property hotspot areas, we’ve included a link to the property hotspot page. Here you’ll find charts that compare median prices for the hotpot compared against the country.
And if you have visited the region or have a story to tell about investing in Central America, please leave a review. We think reviews direct from real estate investors add an important layer of information for others who may be thinking of investing.
Posted in Regional statistics and data | No Comments »
One thing is clear, change is coming
January 25th, 2009
In these difficult financial times we know a lot of people are re-thinking their investment and retirement future. Some are concerned about losing their jobs, others have been hit by severe stock market losses, and many are anticipating receiving retirement checks that will be far smaller than they had planned.
One thing is clear, change is coming.
But at the same time we’re remembering that with change often comes opportunity.
We’re seeing this in our users - people interested in researching real estate in Central America. There’s a renewed willingness to explore new options and an increased openness to reinvention and change. Some are actively seeking destinations that offer a lower cost of living and more affordable healthcare, while others simply wish to move a percentage of their assets outside the US.
In these turbulent times it’s more important than ever to access reliable information for decision making. Yet people often don’t get the information they need.
The basic problem in Central American is the lack of consistent and objective data on property prices. Market comps are hard to come by and there’s not much in the way of data available from property institutes, registries or central bank database. You won’t find the equivalent of zillow, redfin, or trulia serving up market comparatives, neighborhood statistics and price trends. This means that investors often have to rely on information supplied by self-interested, and sometimes ill-informed, vendors and real estate agents.
Filling the data gap in international real estate
It’s into this information gap that investor guide sites like Global Property Guide and expert weblogs such as the Panama Investor Blog and Overseas Property Blog have launched. And it’s in response to the lack of reliable market data in Central America that we built our database of real estate developments in Panama, Costa Rica, Nicaragua and Belize with standardized price comparisons; collated market data and reviews of overseas property hotspots (see for example for San Juan del Sur, Nicaragua and collected country indicators relevant to real estate investing (see for example for Costa Rica real estate.)
The International RE.net has still got a long way to go, but the good news is that the improvements are coming at the right time – just when finding good value, in the right location and within budget is more important than ever. Armed with better information than before, international real estate investors can make decisions with more confidence.
Increased transparency is coming to real estate in Central America and that kind of change can only be a good thing.
What do Corozal, Jaco, Coronado and San Carlos have in common?
January 22nd, 2009
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.