HomeArchiveCity on the Move: Real Estate Development in Managua

City on the Move: Real Estate Development in Managua

MANAGUA – For some people, the cozy confines of Granada are a little too cozy and confining. And life at the beach is a little too isolated, inconvenient and sandy.For big-city folk searching for the liveliness, culture, entertainment and anonymity of a big metropolitan capital, Managua is the closest thing you’ll find to it in Nicaragua.After several generations of natural disasters and neglect, Managua is once again a city on the move.Fueled in great part by a recent repopulation of the city by well-to-do urbanites – many of whom are Nicaraguans who have repatriated over the last five to 10 years – Managua has undergone something of a housing explosion, giving rise to all the trappings of such expansion: grocery stores, PriceSmart, shopping malls, restaurants and movie theaters.THE upper-class repopulation of Managua began about five years ago, with a series of gated communities – Villa Italia, La Cumbre, Lomas Notre Dame, Acrópolis, Reparto San Ángel and Puntaldea – offering homes starting at $100,000. The homes sold quickly, with most of the communities selling all their lots during the preconstruction phase.Since then, another half-dozen high end gated communities have popped up nearby, with homes now selling in the range of $100,000-200,000.With the upper-class housing deficit resolved, residential developers are now targeting the capital’s emerging middle class, said Norman Bonilla of Discovery Real Estate.Middle-class housing developments are offering three-room, two-bath homes in the $27,000-60,000 range, Bonilla explained.Unlike the more exclusive gated residential communities, middle-class neighborhoods do not have perimeter security walls keeping nonresidents out.Instead, the communities are a series of interconnected streets featuring 120 or so homes that conform to the architectural model of the development.The 12 middle-class neighborhoods, many of which are located in the area of Veracruz, on the south side of the city, will eventually flow into one another.A relatively attractive financing structure is one of the major differences between purchasing a new home in a residential development versus, say, an old colonial home in Granada. Local banks BDF, BANPRO, BANCENTRO and BAC have facilitatedgrowth in residential development by offering approximately 9% interest over a 20-year term, with 10% down.While financing options exist for older homes, they usually offer a higher interest rate over a shorter term.Financing options for residential communities have allowed many working class families with steady incomes to purchase a home that would otherwise be unaffordable, Bonilla said. What’s still painfully lacking in the capital is dignified low-income housing.MANAGUA is a city on the rise, but it’s also a city on the move – literally. The majority of the more than two dozen residential neighborhoods and gated communities are being built on the south side of the capital, which is also the highest point of elevation in the city.The area of concentration is in the Las Colinas, Villa Fontana and Santo Domingo neighborhoods, and along the highway to Masaya.The trend of residential neighborhoods on the south side of town is a relatively new one, Bonilla explained.In the 1960s, when Managua had a proper downtown center, it was located on the north side of town near the shore of Lake Managua, where the old cathedral and National Palace still stand. Neighborhoods such as Bolonia, Los Robles and Reparto San Juan became the outlying places to live for the middle and upper class.As the city has grown over time, these neighborhoods have become absorbed by the sprawl of downtown Managua.TODAY, the so-called “new center” of Managua is Metrocentro shopping mall. As a result, the outlying neighborhoods have migrated south along the highway to Masaya, on the way out of town. Investors purchasing individual plots of land on which to build their homes – independent of residential communities – are also buying on the south side of town. Lots in Santo Domingo, according to Discover Real Estate, go for about $20-35 per vara (an area measurement often used in Nicaragua, equivalent to approximately 0.7 square meters); in Esquipulas, lots sell for $12-18 per vara.Most buyers, however, are purchasing homes in residential neighborhoods or gated communities, so as not to have to bother with issues such as security, water, electricity, construction and land-title problems.For more information on real estate in Managua, see Discover Real Estate’s Web site at www.discovernica.com.

Trending Now

Magnitude 7.6 Quake Centered in Panama Is Felt Across Most of Costa Rica

A powerful earthquake centered in southern Panama shook much of Costa Rica today. The long, rolling motion sent people out of homes and offices...

Booking a Red Taxi on Uber in Costa Rica Can Cost 2.5 Times More

If you open Uber in Costa Rica and tap the red taxi option, check the price before you confirm. On a longer ride, it...

Tropical Wave 50 Reaches Costa Rica Saturday Night With More Heavy Rain

Tropical Wave 50 reaches Costa Rica late Saturday. Expect the heaviest rain in the Northern Zone and Caribbean.

Rebeca Grynspan Leads UN Secretary-General Vote for Fourth Time

Former Costa Rican Vice President Rebeca Grynspan on Wednesday topped a United Nations Security Council “straw poll” for the fourth time in the race...

Costa Rica Concert Producers Arrested in $850,000 Money Laundering Probe

Two well-known Costa Rican concert producers were among 18 people arrested Wednesday in a money laundering investigation into whether an alleged drug trafficking organization...

Liberation Party Will Vote Against Costa Rica Joining Trans-Pacific Trade Pact

The PLN’s 17 votes could decide whether Costa Rica joins the CPTPP if the accord needs a two-thirds majority, as President Laura Fernández weighs whether to sign.

Panama Celebrates Removal From European Union Tax Blacklist

The European Union announced today that it had removed Panama and Vietnam from its tax haven blacklist, citing progress made by both countries. The...

World’s First All-Inclusive JW Marriott Opens in Guanacaste

Costa Rica is now home to the world's first all-inclusive JW Marriott. The JW Marriott Costa Elena Resort & Spa has opened at Playa...

Landslides Close Costa Rica’s Route 32 Between San José and Limón

Costa Rica’s main highway between San José and the Caribbean remained closed this morning after heavy rain triggered landslides at several points along...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel