Nicaraguan Online Real Estate Market

This is a guest post from Claudia Gonella, co-founder of Reveal Real Estate. She writes regularly on the state of the Nicaragua real estate market.

State of the market
From 2005 to mid-2008, property developers in Nicaragua enjoyed a boom period bolstered by a growing economy, increased tourism visitors, and the retiree phenomenon. The international real estate market witnessed enormous increases in property launches and sales as ocean front lots and colonial properties were developed into second homes for North Americans and Europeans. Over the same period, a plethora of mid-level housing developments sprung up in the capital city catering, primarily, to the local Nicaragua market.

But at the end of 2008 and into 2009 activity slowed for both local and international real estate, as the global economic downturn took hold.

Data from Reveal Real Estate shows that asking prices in international real estate developments have fallen year-on-year from September 2008 by 4% for serviced lots and 5% for single family homes and condos. The results do not track re-sales from end-user to end-user which, in the current market, we can assume are being offered for less than developer-direct prices.

While there has been a noticeable decline in prices across the board, the falls have not been as great as those experienced in many countries of the developed world. The relative resilience of Nicaragua’s international real estate market is attributable to an underdeveloped mortgage sector. A large proportion of foreign buyers pay in cash and developers, not tied to interest payments, can afford to wait for the right buyer. But going forward the small mortgage market may turn out to be a double-edged sword, hampering Nicaragua’s recovery from the recession as buyers find themselves unable to finance real estate purchases.

Market Structure
Online activity is more developed for the international real estate sector than for the local property market. Major US brands such as Coldwell Banker, Re/Max and Century 21 cater almost exclusively to foreign buyers and have regularly updated websites which vie for top positions in organic searches online. The two main local brands in this sector, Aurora and Serenity, also have a strong online presence.

Viviun and Escape Artist are the dominant online listing portals servicing the market. Escape Artist has more unique visitors (according to compete.com) but Viviun tends to lead in search rankings for Nicaragua specific keywords. Most of their listings are FSBO properties comprising both end-users looking to re-sell their properties and developer direct sales.

The real estate companies catering to local Nicaraguan buyers focus mostly on Managua, the capital city and home to nearly a quarter of the country’s population. This local sector is fragmented with many small players. Less emphasis is placed on online marketing and more on local printed materials, sign advertising and classifieds sections in the local papers.

Features of the international real estate market in Nicaragua:
- Exclusive sales contracts are rare.
- ‘Open listings’ are the norm where sellers list their properties with more than one agent
- Duplication of listings between rival real estate agencies is common.
- Brokers still play hard-to-get with their listings and are typically vague about the address of a property.
- Buyers have to visit multiple brokers in order to get a comprehensive handle on the market.

The international real estate market in Nicaragua still suffers from a lack of transparency. There are no central databases or MLS systems making it hard for buyers to find comparative market data. The situation is improving, albeit slowly, with a growing number of online information sources emerging. Calvet and Associates, a local investment consultancy produces regular market analysis pieces, and both Coldwell Banker Nicaragua Real Estate and Serenity run popular blogs. Additional market commentary is provided ‘from abroad’ by organizations such as the Global Property Guide.

1. Spanish Online Real Estate Market

   The Spanish real estate market finds itself in a very delicate situation. According to September 2008's comScore figures, fotocasa.es is slightly above its main rival, idealista.com....

2. Nigerian Online Real Estate Market

   Nigerian Online Real Estate Market...

3. German Online Real Estate Market

   The online property portal market in Germany is dominated by three major players. Clear leader in terms of usage and number of listings is Immobilienscout24. ...

4. Italian Online Real Estate Market

   The online property portal market in Italy is clearly lead by two major players, casa.it and the Immobiliare network, competing closely for the first spot. ...

5. Australian Residential Real Estate Market

   The Australian residential real estate market has been extremely active over the last 3 – 4 years. Transactions The Australian residential real estate market has around 750,000 transaction each year.  Agents and Agencies There are around 30,000 residential real estate agents in Australia who work for around 9,000 real estate offices. In Australia, it is the real estate office, not [...]...