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Central American investors have been calling Nicaragua the next Costa Rica for the past decade, citing the similar climate and implementation of tax incentives for foreign investors. In a recent report the U.S. News and World Report rated Nicaragua one of the 10 best places to retire. Despite complications from political instability and Daniel Ortega’s reelection, Nicaragua has managed to leverage its natural assets and become a reliable emerging investment for many real estate investors. Nicaragua’s beachfront property is its most heavily coveted real estate, not only for its beauty but also its limited supply.

Accessibility and quality are both factors to consider. The low cost of living has led to many would-be developers on the beachfront scene will little actual development experience. As with beachfront property in many countries, access to water and other infrastructure (i.e. roads, electricity and internet) is still questionable in most oceanfront regions. There are also requirements for timely building in some areas.
 
The Pacific coast has been the most widely developed up to this point. The Atlantic coast offers a much longer term investment, but is also relatively untapped due to infrastructure and climate concerns (think humidity and mosquitos).  Much of the boom has already hit the Pacific coast, snatching up much of the extremely low cost beachfront opportunity that existed a few short years ago.

One development prospect for the Atlantic coast revolves around ecotourism. Because much of the area is untouched rainforest, many regions offer tropical jungles, private white beaches and Amazonian-like river scenes.

One of the biggest hurdles for the development of Nicaragua’s oceanfront property is a lack of reliable and well-maintained transportation. There are no formal highways on the Pacific coast and literally no viable overland transportation from the populated areas of Nicaragua (on the Pacific coast) to the jungles of the Atlantic coast. The government has made the Puerto Cabezas airport, on the Atlantic, an international airport and is working on improving the runway. This is desperately needed as air travel is the only way to quickly access the east coast of Nicaragua.

The Pacific Coast is clearly the oceanfront property that will provide the most opportunity in the next five years. There are already plans for a new Pacific coast highway to reach from the coast nearest Managua south to Costa Rica. Once this highway is in place you can expect a significant increase in property values, as infrastructure access will become more affordable for oceanfront property near the highway.

The most developed oceanfront property resides in San Juan del Sur. It’s proximity to Costa Rica and it’s updated port have made it the center of oceanfront development in Nicaragua. It is still in the early stages of development, but already has multiple large developments underway.

If you are considering purchasing Nicaraguan beachfront property, it would be wise to make a visit to the country. Nicaragua’s title issues are not as wide spread as advertised, but there are real issues with water access and building feasibility. Areas like San Juan del Sur have already been discovered and thus carry a much larger price tag than other ermerging areas. However, these emerging areas also carry risks. It is always a good idea to work with a local attorney. This is not only to protect you legally, but to give you someone on the ground in Nicaragua to navigate local relationships and ensure your property is protected.