Trends and Predictions for the 2022 Nicaraguan Real Estate Market – San Juan del Sur & Tola
To say the last two years have been interesting would be a vast understatement. The same is to be said for the Nicaraguan real estate market in 2022. We have seen a consistent influx of buyers from all over the world coming to San Juan del Sur & Tola to relocate and invest, and we see no reason why this will change moving forward. Read why below:
Real Estate Market Trends – San Juan del Sur & Tola
We are officially in a seller’s market – Sales have continued on an upward trajectory throughout COVID, with buyers scooping up existing homes at a furious pace. At the beginning of 2022, we have less home inventory on the market than in previous years, and this has caused sellers to become more firm on their asking price and increase pricing for new listings coming on the market. We even have cases of homes selling over asking price as aggressive buyers make strong offers to secure their slice of paradise in the real estate markets of San Juan del Sur & Tola.
Lifestyle is at the forefront – Families and individuals are motivated by the high quality of life and low cost of living offered in Nicaragua. As the decentralized global economy expands and lockdowns/restrictions limit freedom in North America and Europe, more people are choosing to call Nicaragua home. Whether remote workers, business owners, or retirees, many find that they can have a higher quality of living on the pacific coast of Nicaragua than in their own home country
Cash is King – With lifestyle at the forefront, buyers are spending more freely to turn their vision into reality (opposed to ROI-driven investments). Generally, buyers are willing to pay more for their personal / family home to ensure their comfort level. We are currently seeing this play out in the real estate markets of San Juan del Sur and Tola. Buyers are presenting more substantial cash offers, and sellers are becoming less inclined to entertain owner financing.
No long-term rentals – Not everyone coming to San Juan del Sur & Tola is purchasing a property. Many individuals and families rent long-term before buying, whether testing the waters, patiently waiting for the perfect home, or due to lack of funds. This has left virtually no long-term rentals available as remaining inventory shifts to short-term rentals due to rising demand from local and foreign tourists as the world starts to travel again.
The commercial market is vibrant – Entrepeuners are feeling bullish and opening businesses to cater to the wave of new families, individuals, and tourists flooding San Juan del Sur & Tola. The port and town of San Juan del Sur are flourishing with great new businesses like Dockside, Ding Repair Cafe and Tuani’s. Cool new concepts like Dubs Wine Bar and other restaurants have also popped up in Tola. And many existing businesses are doing remodels and expanding to freshen up and attract new customers. This is a significant vote of confidence from the private sector towards their conviction to continued growth in our markets.
Real Estate Market Predictions – San Juan del Sur & Tola – 2022
Increased relocation to Nicaragua – The number of people who have invested and/or relocated to Nicaragua in the last two years is stunning! What’s impressive is that travel restrictions, lockdowns, and new variants have not stopped people from coming here. Looking forward, as travel restrictions and lockdowns ease, it will be easier to come to Nicaragua. We expect an even higher influx of visitors as international travel becomes more accessible. It’s also important to note that only five airlines are flying to Nicaragua at the moment, and the Costa Esmeralda Airport (ECI) in Tola is closed. These obstacles have not stopped travelers, and as more carriers open up in-country and ECI opens, we will see a massive wave of movement in the Nicaraguan real estate market in 2022.
Home demand will continue to outpace supply – Increasing volume in home sales will continue to eat away at existing limited inventory. Although there are some pre-construction options, no developers are building 5 – 10+ homes at a time, which means that the slow trickle of resales coming on the market will be the primary source for new home inventory. This scenario presents an excellent opportunity for an ambitious investor to add constructed inventory to the market to take advantage of the supply shortage. Adding a financing option would make the offer even more attractive for a significant portion of buyers who would prefer to buy with financing.
Land sales are gaining traction – With a meager amount of home inventory, buyers are beginning to turn to land purchases. Land and lots are always a viable option for those who may not be financially able to purchase a home immediately. Land sales should continue to increase moving forward until we see a more considerable amount of home inventory enter the market.
Buyers are using crypto – Crypto transactions are occurring in Nicaragua. Although some sellers are not interested in receiving crypto as payment, third-party conversion solutions allow a buyer to pay in crypto and a seller to receive cash, making the scenario a win-win for both parties. This means that any property in the country is an option for a buyer who wants to purchase with crypto. We expect to see this segment grow as more investors utilize crypto gains from the last two years.
More Growth for the Nicaraguan Real Estate Market in 2022
If the last two years are any indication of what is to come, growth will continue in the real estate markets of San Juan del Sur & Tola. As the world winds down from COVID restrictions and international travel becomes more accessible, we will see steady waves of new buyers coming to our beachside communities to invest and relocate. Nicaragua is on the radar of investors, retirees, remote workers, and families attracted by the country’s safety, incredible weather, unmatched beaches, best-in-class surf, low cost of living, and laid-back lifestyle.
Nothing makes us happier than helping our clients achieve their goals! We are the experts on the ground and the top real estate agency in the country. If you are looking to buy or sell, don’t hesitate to get in touch with us to help you accomplish your property goals.
We’ll see you at the beach!