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From beach front investments on the coast to a grand old colonial city, Granada is currently considered the safest real estate investment in Nicaragua. Granada is located on the massive Lake Cocibolca also referred to as Lake Nicaragua and is just 30 miles from the capital Managua. Granada is the most popular tourist destination in Nicaragua and that alone makes it comparable to Antigua, in near by Guatemala. Other similar characteristics between Granada and Antigua are their shared history as the first two cities established by Europeans in Central America.

Aside from their age and continuous habitation, these two cities share historical, architectural, and cultural value that no other cities in Central America can claim. These attributes make them both attractive investments, whether it’s for a vacation home, or a retirement home.

OK, let’s talk about investment comparisons between these two cultural center pieces of Central America. First, remember the investment adage that, “the greater the risk, the greater the return” this is an important disclaimer because Granada is less developed than Antigua, therefore, there is more risk and so the potential for return is greater.

Here’s a list of comparisons:

Two Old Jewels – One Needs Some Polishing

Antigua is a UNESCO international heritage site (IHS) – Granada has applied and is awaiting approval. This status carries weight because it focuses an international eye on the city, which translates into money from their respective governments for police and infrastructure. In the case of Antigua, which is the jewel of Guatemala, the money it has received certainly has made a difference – and you’re going to pay for it. By all rights considering historical value, Granada should receive the UNESCO designation in the near future. Once UNESCO status is achieved, building regulations will surely become more restrictive similar to those in Antigua. As far as investment potential for the future, Granada has way more room to grow .

Antigua: No Lake

As mentioned, Granada is situated on the largest fresh water lake in Central America. The potential for development around the lake is, well, as big as the lake itself, not to mention the islands within the lake. Being the largest city on the lake and the closest to Managua and the airport, Granada has the potential to service any communities that may spring up around the lake. A comparable and very busy lake city is Panajachel which is the center of activity on Lake Atitlan in Guatemala. Again, if you consider the historical culture of Granada and the value of the lake it sits on, tourism has only begun to reach its potential in Granada. One just needs to count the number of expat communities around lake Atitlan to get an idea of the possibilities around Granada. Yoga retreat anyone?

Property Potential

In my research I found that the average price for a two bedroom home/business in Antigua is north of $200,000 and for a similar property in Granada you’ll pay about half that. It’s all about the lack of property listings in the city of Antigua. The reality is, if you want to live IN Antigua, property is at a premium on a completely different level than you’ll find in Granada. Not to mention the building restrictions. So as far as finding a home or property for sale, coupled with its potential for property appreciation Granada has the edge for the investor willing to take some risk.

There is a lot to know about investing in international real estate, and it’s encouraging when you can point to a precedent that has worked. Antigua has achieved a level of success that is envied by most small cities across Central America. In many ways Granada is lucky because today’s investors know what the potential is for a small historical city. Antigua is the known model for what Granada can become, throw in a lake that links to the Caribbean Ocean and the possibilities are impressive.