Which purchasing destinations for Nicaragua real estate are doing best in the current economic mood?

New data on international real estate just out by Reveal Real Estate shows a drop in median prices for real estate developments in Nicaragua between 2008 and 2009. Serviced lots registered a fall of 10.54%, condos 7.43% and single family houses 9.57%

But in which areas where have these falls been the greatest?  And can this data help investors focus in on destinations where there may be bargains to be had?  

First lets consider the main purchasing destinations for Nicaragua real estate.  Over 80% of international real estate developments lie in the following four areas:  San Juan del Sur, Tola Riviera & Popyo, the Pacfic Central Coast and the area South of San Juan del Sur to the border with Costa Rica.  These represent Nicaragua's hotspots: Areas that are undergoing infrastructure improvements, have inherent appeal, offer 'lifestyle activities' such as surfing and water sprots, and those that attract the highest numbers of tourists.

• For the serviced lot category, the year on year median price fell most in the Tola Rivieria & Popoyo area (32%), followed by San Juan del Sur (14%).  Developments located South of San Juan del Sur showed a smaller fall of 3% while Central Coast resorts showed a small increase in median price of 1%
• The median price for condos and townhouses fell most in San Juan del Sur (15%). The Tola Rivieria & Popoyo area showed small falls, while master-planned communities located in the area South of San Juan del Sur showed an increase of just under 6% in median price.
• San Juan del Sur registered an 18% fall in median price for single family houses, Tola Rivieria and Popoyo and South of San de Sur were flat year on year for this property category.

Determining opportunity

Taking San Juan del Sur for example, we compared the median price for condos, lots and houses against the country medians between 2008 and 2009.  In all three categories the relative prices have fallen. So, for example, the median price for single family homes in San Juan del Sur was 30% greater than the overall country median in 2009.  But in 2009 San Juan del Sur was only 15% more expensive.  

Savvy investors would be wise to triangulate this data with broader trends such as infrastructure developments, tourism rates as well as the progress of individual real estate developments in San Juan del Sur to determine if this data reveals a buying opportunity.