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.

Related posts:

1. Which of these 5 types of overseas property investor are you?
2. 5 ways to make your overseas property listing convert like crazy