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.
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.
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? See more on golf property.
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.
Tell us about your real estate investment in Central America. Was it a triumph or a mistake?
March 19th, 2009
We’re looking for the inside scoop, your investment story. Why? Because we think personal insights, reflections and information direct from other investors will help those who come after make more informed decisions. It’s all about increasing market transparency for overseas property and providing an additional lawyer of information to people researching the region.
So what makes a good review?
Reviews vary in tone and approach. Some deliver hard facts and quantitative data while others focus on softer attributes like the feel of a place or its reputation. Although there’s no single formula to follow, there are some content topics that we see in the best property reviews:
- Informed judgments based on real-life experience
- Comparisons between different options
- Examples (perhaps even with photos) of previous investments made and how they have performed
- Specific information on the kind of investor that would be be most suited to a particular area or property type
- Coverage of how a particular place or region has evolved over time
On Reveal Real Estate you’ll find reviews organized by property hotspot - the areas generating the most attention from international real estate investors.
Study after study has shown that people who read reviews say that their purchasing decisions have been influenced by what they have read. Your review may help someone confirm that an investment in a property hotspot is the right decision for them. Or it may result in them changing their mind about a buying decision.
And, over time, we want to highlight the people behind the best reviews and build a network of expert reviewers. If you are interested in joining the network, please contact us.
So, write a good review, upload a photo of an investment that you have made, demonstrate your expertise, and you’ll be helping those who come after you.
Tags: Ambergris Caye, Belize, Golf, Real estate tour, Reviews
Posted in Property news, Site development | 1 Comment »
5 real estate bloggers in Central America you should follow
March 7th, 2009
If you are looking for news and views from the front line of real estate in Central America, here are 5 real estate bloggers you should follow.
1. Panama Investor Blog, written by Sam Taliaferro, is packed full of insight into the real estate market in Panama. Sam has a long experience in real estate development and knows the business backwards. He’s also got a knack at weaving global trends into a local analysis of the marketplace. A must read for investors looking at Panama.
2. Destination Panama is an information packed guide to living in Panama written in a down to earth, engaging style. You’ll find posts on medical care, pets, travel and life on Taboga Island. The blog roll is full of links to additional sources of information.
3. Guys in the Zone - I found this blog via their recent post on yodeling naked in Costa Rica. In case your wondering it’s an indicator they’ve coined to measure privacy. If you can - yodel naked that is - then you’ve found yourself a private spot. A great source of local insight into the Uvita and Dominical property markets in Costa Rica.
4. Costa Rica Travel News - This is much more than a resource for hotels and travel information, the blog brings regular news on Costa Rica culture, tourism, real estate, jobs and retirement. There’s also a directory for local businesses on the site.
5. Discovering Serenity - A well-written blog covering Nicaragua real estate. We particularly enjoyed a post where they analyze the Index of Economic Freedom and per capita income of a country to determine whether a market is overvalued or undervalued. The blog follows latest trends in Nicaragua like the discussions on a proposed Coastal Law currently taking place in the National Assembly.
These blogs are well worth following. We’re planning on building a map of real estate bloggers (and Web 2.0 sites) covering Central America, so we’ll be adding to this list.
We would love to hear from you if you have any suggestions for blogs that are worth a closer look and we’ll add them to our list.
Tags: Belize, Costa Rica, Nicaragua, Panama
Posted in Property news | 9 Comments »
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?
Tags: Belize, Belize condos, Costa Rica, Panama, Panama apartment
Posted in Comparison shopping, Market statistics and data | 1 Comment »