Nicaragua real estate snapshot: Tola Riviera and Popoyo
November 12th, 2009
International 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.
Tags: Nicaragua, Tola Riviera Popoyo
Posted in Market statistics and data | 3 Comments »
Comparison shopping: An analysis of purchasing destinations for Nicaragua real estate
July 14th, 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.
In 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
The 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.
