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How to find your perfect master planned community in Central America

February 10th, 2010

find-perfect-community-central-america

OK so you’ve found a beautiful condo with a great view of a surf break. Or a luxury mansion where you can impress your friends with your lavish international lifestyle.

But can you really love your home if you don’t like your community, the surroundings or your neighborhood?

We don’t think so. So we encourage you to become a real estate community profiler. Start by figuring out exactly what you’re looking for, the kind of lifestyle you enjoy, the amenities you need and zero in on the community that delivers. Do this before you start comparing individual houses, lots or condos.

To get you started on your profiling, we’ve put together a list of 8 types of master planned community you’ll find in Central America.

1. Status communities

Status communities are at the top of our Price Rank. They tend to be beachfront, exclusive, and packed with community amenities - such as a golf course, marina, hotel, private club, fitness center, sports facilities, convention center, etc. If you’re in Costa Rica or Panama you may even see a top tier brand name associated with the community. Think Four Seasons, Trump, Ritz-Carlton… Properties in status communities tend to be large custom built houses or upscale condos.

2. Golfing communities

Completed golf courses in Central-AmericaYes, you’ve guessed it. Golfing communities have golf courses and attract golfing enthusiasts. The graphic shows the completed golf courses in the countries we cover. Costa Rica leads the field with 9. Of course many more are under construction or planned. Most golfers like to play on different golf courses so remember to look for the geographical clusters within (say) an hour’s drive of each-other.

3. Surfing communities

Walking barefoot out of your property, surf board in hand, straight out to the break is something surfers dream about. Luckily in Central America there are many property developments where this is possible. In fact we’ve found over 60 master planned communities located within walking distance to a surf break. Here’s the list and map. We also looked at developments within an hour from a break and the list is longer.

4. Historic communities

It’s really only Nicaragua and Panama that can boast ‘historic communities’. In Nicaragua these are clustered in and around Granada; purportedly the oldest continually inhabited city in the Americas. Nicaragua also has Leon, a city that rivals Granada when it comes to the colonial feel. But you’ll find more master planned communities located around Granada. If you’re in Panama, head straight for the Casco Viejo area of Panama City for colonial buildings with serious curb appeal.

5. Retirement communities

As North American retirees take stock of economic realities, it’s clear that many are looking for a more affordable life overseas. The retiree trend has not escaped the attention of real estate developers and we’re seeing a growing number of communities, or sections within communities, designed specifically to cater for the over 55s. Look out for on-site medical facilities and organized social activities such as bridge, painting, yoga and so on.

6. Escape communities

International real estate (and vacation homes in particular) are commonly marketed as a form of escape. An escape from the stresses of the modern world and the hustle and bustle of 9-5 living. Places where you can switch off your cell phone, unwind and embrace a simpler, less hurried lifestyle. Destination resorts have popped up all of the place, sometimes in very remote areas to cater to this need. The remoteness is repackaged as a benefit that delivers ’space and privacy’.

7. Urban core communities

Moving overseas is not always about fulfilling your escapist dream (See #6). Sometimes you want to be close to amenities and be highly accessible. Panama City stands out in this regard. It’s the most cosmopolitan of all Central American cities and a world class financial center. We’re not just talking about coffee shops, restaurants and nightlife but world class shopping centers, banking, theater and fine arts. The Central Valley area of Costa Rica probably comes in a close second.

8. Eco-communities

One of the characteristics of the post crisis investor is an interest in “contributions to larger concerns such as environmental preservation, the local community and sustainable approaches to building, water, and energy”. Recent years have seen a huge growth in master planned communities embracing the sustainability agenda ( and no, not just in Costa Rica). It’s sometimes hard to get past the green-washing but here’s a list of projects that have made public disclosures. The green trend is here to stay, we just need better ways of distinguishing the projects that churn out empty eco-cliches from the ‘intentional communities’ that are taking real action on the ground.

Now you’re ready to start finding a master planned community that fits your lifestyle. Are there any categories we’ve missed? Let us know in the comments. And once you’ve narrowed things down don’t forget to ask these 10 questions before you buy.

From Reveal Real Estate - charting international real estate trends in Central America.

After the storm: Pessimists vs. Optimists

February 1st, 2010

financial-crisis-international-real-estate-Central-America

The global financial crisis and its impact on international real estate is still discussion topic #1 among investment analysts, real estate agents and developers in Central America. Everyone agrees that 2009 was a difficult year. The tricky part is that the arguments being presented paint quite different scenarios for the future.

On the one hand, large-scale real estate projects, especially if heavily leveraged, have proven vulnerable. The suspension of the St. Regis project in Costa Rica in the wake of the Lehman Brothers collapse was the first high profile example. Other project closures and suspensions followed in 2009 including the Rosewood at Costa Carmel (Costa Rica), La Punta Papagayo (Costa Rica), Marea Alta (Nicaragua), and Orchid Residences (Panama City), to name a few.

But perhaps more important than the direct impact of the international financial crisis, the property pessimists argue, was the indirect effect of tighter lines of credit in North America - the main source of buyers for international real estate in the region. No longer is the market being carried by North American buyers flush with equity and easy credit. It’s easy to point to low sales volumes and falling prices to make this point.

Any bright spots? Counter trends?

One can overdo the gloom.  The optimists point to sticker prices on the downside in Central America relative to more mature markets. The relatively low levels of lender mediated activity across the region meant that the market did not suffer the kind of foreclosure crisis we’ve become used to reading about in the US.

Second, international real estate markets, and Central America included, are increasingly being seen as tax-friendly, safe haven investments. The kind of places investors and retirees seek to shield themselves from the US financial system.

Added to this, is a new wave of lifestyle buyers looking for areas where the real estate is cheaper and, crucially, the cost of living more affordable. We included examples of developers, such as Montecristo Beach & Golf Resort in Nicaragua, Grand Baymen in Belize and Valle Escondido in Panama, successfully marketing to these buyers in a recent article for the International Property Journal.

The upshot?

The impact of the financial crisis has been mixed both within and between countries. Developers are having to adapt quickly to a new market.  Those that understand the mindset of the post-crisis real estate investor are best placed to succeed.

Investment activity is trending towards well-planned developments with good locations, quality products and a master plan that delivers against end-user requirements. Pre-construction offerings in weak locations face an uphill battle.

The property pessimists are right that the boom years are over for international real estate in Central America.  It’s a different market now, with buyers firmly in the driving seat. Welcome to the ‘new normal’.

From Reveal Real Estate - charting international real estate 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 international real estate trends in Central America.

How real estate works in Central America (and why you need to know)

November 22nd, 2009

how-does-real-estate-work-Panama-Nicaragua-Costa-Rica-BelizeThe best investors in Central America know exactly how the real estate market works. They know how property is listed and how local real estate agents operate.  They stay on top of the online real estate marketplace and get hold of as much market data as possible.

Some of this is Real Estate 101, applicable to any real estate market. But when you look closely at how the market operates in Central America, you’ll notice important differences compared with the US.

We’re speaking from experience

When I was first researching the real estate market on Nicaragua’s Pacific coast in 2002, I went on property viewing after property viewing with a host of different real estate agents.  We covered an enormous amount of ground, spending long days touring up and down the coastline.  But despite this effort I was still left with that niggling feeling: “Have I seen all there is?“.

I spent hours on the Internet trying to figure out whether there were properties that fitted my criteria that I hadn’t seen.  Instead of finding re-assurance online, this process confused me even more.

Many of the listings I stumbled across online had vague descriptions and almost no location information.  It was almost as if brokers didn’t want me to see what they had on offer.

Fast forward to today and I know why brokers seem to play hard to get with their listings in Central America and why it’s difficult to get a comprehensive picture of the market.

(As it turns out, I’m happy with the investments that I made.  But had I known more about how the market for real estate in Nicaragua works, the process would have been less fraught and I would have felt more confident about the decisions I was making.)

So how do things work?

We’re writing a series of posts explaining the intricacies of the real estate market in Panama, Costa Rica, Belize and Nicaragua.

We want to go beyond the usual insider tips for international real estate in Central America or the questions to ask the real estate developer. The posts focus on the process of real estate, the mechanisms of the market, the detail of how things work in practice, and what this means to buyers interested in these markets.

It’s the kind of information we wish we’d had when we were researching the market.

We’ll also present how Reveal Real Estate fits into the picture; how we fill some of the information gaps and help buyers make more informed decisions. We’re part of the market and have a passion for making things work better.

Here are the first posts in the series:

From Reveal Real Estate - charting international real estate trends in Central America.

Nicaragua real estate snapshot: Tola Riviera and Popoyo

November 12th, 2009

tola-market-snapshot3International real estate in Nicaragua (or any market for that matter) is best analyzed on a granular, market by market and asset-by-asset basis. So to help buyers and sellers get to grips with the market, we’re writing a series of posts looking at the main property purchasing destinations in Central America.

This first post in the series looks at the ‘Tola Riveria and Popoyo’ area in Nicaragua.  We’ve answered 5 questions designed to give you a quick market snapshot of the area.  You’ll find that the post dives straight into the real estate nitty gritty, so if you first want to step back and read a description of the area, then click here. Onto the questions:

1. What real estate is available in the Tola Rivieria & Popoyo area of Nicaragua?

We follow 12 master planned communities in the area. The projects range from large destination style resorts with a host of amenities, ambitious hotel & spa resorts to smaller-scale surf-focused projects and subdivisions offering serviced lots.

The bulk of real estate on offer in the area is serviced lots (or homesites), with buyers choosing between ocean view, golf front, ‘tropical view’ and beach front positions. The larger projects, and those more advanced in their plans (see question 3 on amenities) also offer condos and single family houses for sale.

2. How much does property cost in Tola Riviera and Popoyo?

The table below shows the median price for condos and lots in the main real estate developments.  If you want to see more detail then click through to each development where the prices are split out into additional categories (e.g. beachfront, ocean view, long ocean view and so on).

Name of real estate development in Tola Rivieria & Popoyo Median price/sqft condos and houses* Median price/sqft serviced lots**
Rancho Santana $195 $5
The Village at Aqua $165 _
Iguana Golf Condominiums $142 _
Bella Vista Guasacate, Nicaragua _ $12
La Vista Nicaragua _ $2
Bella Mar Nica _ $5
Hacienda Iguana _ $7
Hills of Santa Marta _ $6
Prana del Sol _ $3
Selva del Mar _ $5
Guacalito no data no data
Los Perros no data no data

* Average of the median asking price for each real estate development. Data collected July to September 2009.

3. What amenities are the developers offering?

Rancho Santana, The Village at Aqua and Hacienda Iguana are the furthest ahead in the completion of their masterplan. Some of the smaller subdivisions that do not plan on-site amenities, intend to make use of memberships offered by the other projects in the area (e.g. corporate membership to the Iguana Golf Club).

Name of real estate development Completed community amenities Planned community amenities
Rancho Santana Clubhouse; Racquet courts; Hotel, Restaurant; Stables/equestrian center; Swimming Pool  
The Village at Aqua Restaurant Spa/yoga center; Gym/fitness center; Hotel
Iguana Golf Condominiums 9-hole golf course; Hotel; Restaurant _
Bella Vista Guasacate, Nicaragua _ _
La Vista Nicaragua _ _
Bella Mar Nica _ _
Hacienda Iguana 9-hole golf course; Restaurant _
Hills of Santa Marta _ _
Prana del Sol _ _
Selva del Mar _ Clubhouse
Guacalito _ Hotel; Clubhouse; 18-hole golf course
Los Perros Clubhouse; Racquet courts; Hotel; Restaurant; Stables/equestrian center _

4. How do prices compare with Nicaragua as a whole and the average for Reveal Real Estate?

For condos and single family homes, median prices in Tola Riviera are similar to the medians for Nicaragua as a whole, but well below the Reveal Real Estate average (which also takes into account property in Costa Rica, Belize and Panama).

For serviced lots the picture is more varied although for the most part the median for Tola is still below country and regional averages. The full chart can be seen on the Tola Riviera page (scroll down and click on the tabs)

5. What’s the year-on-year price trend?

The table below shows the year on year price trend for the area compared with other purchasing destinations in Belize, Costa Rica, Nicaragua and Panama.

Purchasing destination Country Y-O-Y change in price (%) Median price per sq/ft* Rank by price
Tola Riviera and Popoyo Nicaragua -10.00% 168.62 10
Placencia Belize -9.91% 253.98 5
San Juan del Sur Nicaragua -9.90% 203.15 8
Bocas del Toro Panama -9.00% 241.65 6
Tamarindo Costa Rica -6.12% 241.26 7
Boquete Panama -5.13% 110.26 11
Papagayo, hermosa and Coco Costa Rica -4.49% 283.39 2
Jaco Costa Rica -3.41% 287.53 1
Panama City Panama -3.23% 269.21 4
Coronado & San Carlos Panama -2.14% 201.03 9
Ambergris Caye Belize -0.14% 268.57 3

*Data looks at condos and townhouses for sale in international real estate developments

The developments that we follow in Tola showed an overall drop in asking price of 10% year-on-year to September 2009. Although higher than the other property markets we track, the falls are less than those we’ve become used to seeing in the US and other developed world markets.  For more analysis on the trends in the table, check out an article we wrote over at International Property Journal.

That’s it for a quick market snapshot of master planned communities in Tola Riviera & Popoyo. Any questions or comments, please reply below.  We’d love to have your feedback.  And stay tuned for the next one.

From Reveal Real Estate - charting international real estate trends in Central America.

Scouting international real estate in Central America requires a fair bit of bumping along unpaved roads

November 9th, 2009

I seem to spend a lot of my time bumping along unpaved roads in Central America on my way to see how real estate developments are progressing.

Sometimes this can give you the feeling that you’ve arrived at a secret paradise, miles from anywhere, when the bumpy road suddenly opens out to sweeping vistas, lush gardens and well appointed homes. Ahh, you think, no one except other discriminating investors like myself will take the time to reach and assess this opportunity so I’m guaranteed exclusivity, privacy and maybe somewhat of a discount due to the access.  But, more often, the bumpy trip can leave you tired and grumpy and heaven help a developer who doesn’t then have a cool drink on hand and something worthwhile to show you as an investment opportunity.

It’s important to be prepared before you set out - to know exactly where the project is located, how long it will take to get there and on what sort of road. So on RevealRealEstate we include a location map for each real estate development and answer these 3 questions:

  • Is the road paved from the nearest international airport? (if it’s not paved, we’ve estimated the amount of driving time on unpaved sections)
  • What is the total driving time from the international airport?
  • How long does it take to drive to the closest town with a decent sized grocery store?

This data is useful on a project-by-project basis when planning a trip, doing a price comparison, or for tossing up real estate options; but there’s also something to learn from aggregating the data and analyzing by country.  So here’s the picture for Panama, Costa Rica and Nicaragua.

Is the road paved from the nearest international airport?

international-real-estate-paved-roads

In broad terms the data reflects the level of investment each county has made on its infrastructure and the remoteness of the main property purchasing destinations.  Panama leads the field when it comes to paving.  You can drive in comfort, on paved roads, to most of the real estate developments featured on RevealRealEstate, including of course all the condo projects in Panama City.

Costa Rica follows close behind with over 70% of the developments having paved access. We haven’t yet seen the new section of road between Quepos and Dominical, but this should improve driving comfort further.

In Nicaragua be prepared for a bumpier ride.  Only 20% of the projects on RevealRealEstate have paved access.  But if the planned coastal road from the border with Costa Rica heading northwards following the ribbon of development ever gets off the drawing board, this would change the picture quite dramatically.

How long does it take to drive to the airport and the nearest grocery store?

international real estate driving time

The pattern between the countries is similar when it comes to driving times.  Real estate developments in Panama and Costa Rica have a shorter driving time on average to the airport and to a decent sized grovery store than those located in Nicaragua.

If you need to pop out to a grocery store with a decent range of items you’re looking at a 9 minute drive, on average, in Costa Rica.  In Nicaragua, your grocery run is 23 minutes on average.    Of course this varies considerably for each real estate development. Check each development page for individual driving times.

What about Belize real estate?

belize-paved

We’ve included the Belize data separately as it’s not directly comparable to the other countries.  The terrain is quite different, particularly on the coast, and visitors mostly get about by taking short internal flights and then getting in a golf cart for the final stretch.  Many of the projects on Ambergris Caye for example do not have paved access but in practice all this means is a short golf cart ride on a sand road.

Infrastructure is steadily improving in Belize.  The paving of the 16 mile road along the Placencia Peninsula is underway with the section from Maya Beach to Placencia Village already completed.  So the only bumping we’ll do on our next trip to Placencia will be over speed-bumps.

So what does all of this mean for pricing?  Does paved access lessen a development’s exclusivity?  Does a long driving time from the airport or grocery store mean that prices will be lower for comparable real estate? We’ll be looking at this in our second post on accessibility.  Stay tuned.

From Reveal Real Estate - charting international real estate trends in Central America.

10 questions you must ask the real estate developer before you buy

September 16th, 2009

international real estate in Panama, Costa rica, Belize and Nicaragua

Master-planned communities in Central America come in all shapes and sizes - from small condo buildings to developments covering thousands of acres offering resort style amenities.  Many offer pre-construction sales where you buy before you see the finished product.   Great gains can be made as properties are offered at a discount.  But you have to be confident that the developer will deliver.  The starting point is getting answers to these 10 questions below, before you sign the contract.

  1. Find out what kind of title the developer has to the land and ask to see the master title insurance policy.  Ensure the legal due diligence on these documents is carried out by a good quality attorney.  The developer may recommend their own attorney, but it is always safer to conduct an independent review of the documents before signing.
  2. Ask whether the development masterplan has been approved by all relevant authorities.   In particular, check to see if environmental impact statements have been submitted, and approved.   Authorities across Central America are getting increasingly stringent in their environmental regulation.
  3. Investigate whether the developer has the capital to move the real estate development forward or if they are relying on sales revenues.  Remember that limited financial flexibility or low project sales can adversely impact the timely completion of a project.
  4. Do some research into the past experience of the developer and and ask to be put in touch with previous buyers.  Try and get background information or bios on the entire developer team including builders, architect, marketers, operators and master-planners.
  5. The builder being used is a critical component of the development team.  If the developer is using a well respected local firm that has a track record in the type of construction required by the master plan, this is a good sign.  If possible try and see examples of buildings that have been completed by the builder so that you can get a real sense of the quality of their work.
  6. Find out how much time of the year the developer spends in-country.  If the developer is foreign, but lives full-time in the country where the real estate project is located, this is a positive indicator for their long term commitment to the project and country.
  7. Find out about the water source and whether the developer has ensured that there will be enough supply even when the development is fully built-out.  Ask how sewage is being handled and does the process comply with local regulations.  Check to see if power lines will be underground or overground.
  8. Read the Codes Covenants and Restrictions (CC&Rs) carefully.  CC&Rs in some international real estate developments can be highly restrictive, down to what you can or can’t grow in your garden, what pets you can have, the architectural style that is allowed, or the color of your roofing tiles.  Make sure you know what you’re getting into. In most cases the CC&Rs will be enforced by a Home Owners Association (HOA) - a legal entity which allows the developer to transfer ownership and management of the community to the homeowners after it has sold a predetermined number of units or lots.  Ask to see a copy of the Association bylaws and budget.
  9. Don’t forget to find out about after sales service such as property management, rental management and marketing support for re-sales.  Make sure you are comfortable with the level of service that the developer intents to provide after the sale.
  10. Find out if the developer is addressing the social and environmental impacts of the development and whether there are any programs in place to support the local community.  Efforts to protect the environment, treat employees and suppliers fairly and ensure that the local community is benefiting are all good signs of a ‘responsible’ approach to development over the long term.

Finally, remember also to check out our 16 insider tips to purchasing international real estate in Central America.

From Reveal Real Estate - charting international real estate 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 real estate 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 real estate development in Nicaragua. 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 international real estate trends in Central America.

New data: Real estate developers in Nicaragua cut their prices

July 2nd, 2009

Nicaragua property trends 2008 to 2009

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

The table below sets out the change in median price for Nicaragua real estate developments since 2008.  To ensure that we are comparing like with like, the data aggregates prices for the same property category within each development for both 2008 and 2009.  So if a project offered beachfront condos in 2008, but not in 2009, the data was not included in our comparison.

nicaragua-real-estate-change-in-property-price2

Median asking prices in real estate developments that target the international buyer have fallen 3.53% for serviced lots, 6.40% for condos and 3.41% for single family homes since 2008.

Looking deeper into the numbers, we found that ocean view condos showed the largest fall in median price at 13.62%, followed by long ocean view houses with a drop in median price of 7.55%.

Beachfront property held its own relatively well against the other property types.  In call cases (lots, condos and houses) beach front property fell by less than ocean view property.

nicaragua-condos-and-lots-year-change

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 international real estate trends in Central America.

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

nicaragua-real-estate-medians-20091

The table looks at property in real estate developments - effectively the luxury end of the Nicaragua real estate 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.

Beachfront condos registered the highest median price in 2009 -  But when looking at price per square foot, ocean view 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 house or lot has only a distant view of the ocean, 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 international real estate trends in Central America.

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