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Hello all,

I am going to comment on the San Juan del Sur and southern Pacific coast of Nicaragua only, since that is the area our office covers. It seems that many North Americans have a negative perception of real estate agents in Central America, and much of that negativity is definitely justified. The lack of legislation in this industry has enabled some very unscrupulous individuals to get away with too much.

That is a conversation of its own. The bottom line is that it can be very dangerous having a do-it-yourself approach when acquiring real estate in Central America. There are reputable real estate agencies that you can work with, you just need to take the time to really learn the background of some companies before pulling the trigger on ANY transaction. And in doing so, make sure to get information from a number of independent resources (not from a couple ex-pats in a bar that have their opinion that usually is not a sober one).

To answer your question - yes, real estate values are down due to the global economy. Over the past 5 years there has been an enormous influx of foreign investment in real estate "development". An earlier poster mentioned the pipe dream. There is DEFINITELY a pipe dream factor with some of these developments, and there also can be title issues with properties if the "developer" came in and made a "great deal" and is not chopping up the property for huge profits.

We put together some helpful Nicaragua Real Estate Maps that you can view on our website www.realtornicaragua.com - so you can see how many real estate developments have popped up along the southern Pacific coast.

The biggest difference we have seen in price drops at developments has been attributed to the maturity of the development in question. Developments like Lomas de Palermo in San Juan del Sur and Finca del Mar outside of Managua have already completed all infrastructure, so they have less need for cash flow compared to less mature developments. In our dealings, we have seen much less negotiating room in places like this compared to others where infrastructure has been promised but not yet delivered.

This brings up an important point. If you are looking to purchase within a development that still lacks infrastructure, make sure to include details of deliverables in your contract! This can be written in to your legal paperwork in such a way that you protect yourself from someone else's pipe dream as mentioned earlier.

Of course there are some huge price drops occuring due to the economy. These are mostly on resales within developments, and the owner's situation will be the main driver for a discount and negotiating room. Keep in mind that even though you may find a "50% discount" on a property, it may not be a good deal. Just becasue someone paid a lot more a few years ago, it does NOT mean that the value is there...you will get what you pay for no matter what!

I hope this was helpful. We try our best to provide the most helpful Nicaragua real estate information and best options for vacation rentals in Nicaragua.