There is no doubt that real estate in Nicaragua is much cheaper than its neighbor to the south, Costa Rica, and the recent spike in interest in Nicaragua has led potential investors to question both markets, and rightly so. However, when purchasing property in any country, whatever your financial position, you would be wise not to be too quick to hand over your hard-earned cash before weighing cost and location.
In Nicaragua, you can buy a beachfront property of approximately 3000 m2. ft., with 4 bedrooms and 4 bathrooms for just under US$300k. By comparison, a 4-bedroom, 4-bathroom beachfront property on the Pacific coast of Costa Rica will set you back around US$389k. Considerable difference you might agree. But look at what you’re paying: it could be a price difference worth investing in.
Costa Rica and Nicaragua are polar opposites in their images projected to the rest of the world. Nicaragua has long suffered from a negative image, not helped by the fact that it is persistently compared to its wealthier neighbor.
Nicaragua remains one of the poorest countries in the Western Hemisphere. Its employment problems are plentiful and its external debt amounts to almost 3,200 million dollars. Nicaragua has one of the most uneven income distributions in the world and crime is widespread.
By comparison, Costa Rica’s economy is positive. According to a recent press release from the International Monetary Fund; “Over the last 18 months, Costa Rica’s economic performance has been strong. Despite the oil price shock, growth has been higher than expected, supported by sound economic policies, strong external demand and favorable conditions in international capital markets”. However, despite this good news, inflation remains high at 12 percent. He went on to say that the country’s main challenge is to promote sustained economic growth, coupled with a significant reduction in inflation. Officials said a “multi-pronged approach” was necessary to achieve this goal.
In other news this month, Hewlett-Packard (HP) has announced plans to expand its offices in San José, the capital. HP currently employs almost 3,500 people and aims to nearly double this number by 2007. This news certainly indicates that the current positive economic climate in Costa Rica will continue.
Certainly, there is a wealth of information, statistics, and percentages available to help you make your decision, but this tedious process will ultimately lead you to a burning question: who really wins the debate, Nicaragua or Costa Rica? The real answer to that question is neither.
Personal choice is the key to determining which country is best suited to your needs and budget. Keep in mind though, while shopping for your dream home in Central America, there is no such thing as a “bargain” and you pay for what you get; rent, rent, rent.
