Costs of Construction Some of the Lowest in the Region

Posted by Adam McGeehan on Feb 9, 2016 9:17:53 AM

If you’re looking to build a second home or an investment property, there is nowhere better to look than Nicaragua. Already, the benefits of building in Central and Latin America are well documented. They have lower labor costs, lower costs for materials, and, especially if you’re a foreigner, generous tax benefits for those who build real estate. Nicaragua in particular is probably the most attractive country in Latin America for building a second home or an investment property. There is a reason why real estate in Nicaragua is becoming such a hot commodity.

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Low Costs of Construction

Nicaragua has some of the lowest costs of construction in the entire region. Nicaragua is the second poorest country in the Americas. What this means for those looking to build and invest in Nicaragua is that everything is cheap, cheap, cheap. Costs of labor, for instance, are incredibly low in Nicaragua. Construction workers can be hired for only a few dollars an hour.

According to the United States Census Bureau, in 2014, the latest year for which data is available, the average cost of a new house in the United States was $97.09 per square foot. Of course, this is an average, and can swing wildly depending on location. But compare that number to Nicaragua, where even in the priciest of real estate markets, such as San Juan del Sur, you’ll likely never pay more than $100 per square foot. $100 per square foot is the ceiling in Nicaragua; in the United States, it’s the average.

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‘New Urbanism’ Working for You

Gran Pacifica Beach and Golf Resort is built around a model of ‘new urbanism.’ What this means is that the property is developed so that one gets many of the benefits of living in an urban environment, such as having attractions and amenities within walking distance, but that the development is actually located in a very natural location, so many of the drawbacks of living in an urban environment aren’t there.

Being part of a development such as Gran Pacifica further contributes to the attractiveness of building your next piece of real estate in Nicaragua. All of the necessary utilities and services one would want, such as running water, electricity, cable TV and high-speed internet, are already in place at Gran Pacifica, meaning that any real estate built here will merely have to connect itself into the already existing infrastructure, as opposed to creating a whole new line of infrastructure. This translates into lower construction costs for the builder and owner of the real estate.

If you’re looking to build a second home or an investment property, look no farther than in Nicaragua. Real estate in Nicaragua is a hot commodity with a lot of potential for capital appreciation and rental income, but won’t break the bank in up-front costs. Look into investing in real estate in Nicaragua at Gran Pacifica today.

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Adam McGeehan

Written by Adam McGeehan

Adam is a recent graduate of Allegheny College. There he majored in Economics with a minor in Spanish. He has always been interested in traveling abroad and is thrilled to have recently taken up residence in Managua, Nicaragua to work as an intern for ECI Development. He is excited to take in all of the culture of this wondrous nation.

Topics: Real Estate in Nicaragua