Steve’s Travel World

Granada, Nicaragua real estate is a popular choice among investors and would-be expats who are looking for a bit of a different experience than those offered by many popular tropical destinations.

While similar to many of its Central American competitors in its beauty and charm, Granada offers an adventurous and authentic experience that appeals to a uniquely special breed of expats.  

Granada, Nicaragua Real Estate Stands Out from Its Surroundings

One of the most important factors that makes real estate in Granada so distinctive is the way the city functions as a sort of oasis among the Nicaraguan wilderness.  While the country is Central America’s largest area-wise, it’s also the least populated.

Much of the nation is uninhabited and lacks modern amenities and infrastructure.  Yet, there amidst it all is Granada real estate, the city that has stood since it was first established as one of the continent’s earliest settlements.

Among its attractions is its ancient Spanish colonial architecture, which consists of block buildings, vibrant colors, clay tile roofs, and open courtyards.  The beautiful buildings are situated along cobblestone streets lined with horsedrawn carriages and dotted with shady parks.

While it may seem for a moment like you’ve traveled back in time, the first world comforts available in Granada will quickly zap you back to reality.  Although the city is quaintly traditional, it still enjoys such modern amenities as reliable utilities, phone, and internet service.  Not to mention luxury hotels, four-star restaurants, and state-of-the-art fitness centers.

Khaufle

It Offers a World of Adventure Right at Your Fingertips

In addition to these conveniences, Granada also benefits from close proximity to a number of natural attractions that lure adventure-seeking expats from all around the globe. Surrounding the city are forests, farmland, lakes, volcanoes, rainforests, and even the nearby Pacific Ocean.    

The city itself is located on Lake Nicaragua, one of the largest freshwater lakes in the world.  The lake is dotted with 365 tiny islands, many of which are inhabited.  It’s also home to the world’s only freshwater shark that adapted, along with a number of other species, to a salt-free life after the lake was formed by a volcanic eruption thousands of years ago.

Also nearby is the towering Mombacho volcano, which affords spectacular views of the lake, as well as opportunities to see howler monkeys, birds, reptiles, and deer.  The Laguna de Apoyo, the local swimming hole that’s one of three volcanic lagoons, is another great place to spot exotic species of flora and fauna.

If you’re looking for more than swimming, you can head on over to the coast, which is about a 90 minute drive from Granada.  There you’ll find some of the most beautiful beaches in Central America, popular among surfers from around the world.  

Boris G

How Granada Bounced Back from Near Demise

Granada has long existed as a sleepy little colonial town nestled in the middle of a largely underdeveloped region. However, almost 30 years ago it lacked much of the appeal it possesses today.

The country itself was debt-ridden and bankrupt, and the ancient city had suffered as a result.  Much of the town looked forlorn and weary, and its historic buildings were deteriorated and in disrepair.

Around 1990 the country launched an initiative to encourage foreign investment and assistance, and aid began to pour in.  Sources included American and European expats and investors, as well as substantial interest from the Spanish government.

Foreigners began to purchase Granada, Nicaragua, real estate, buying up historic buildings and turning them into residences, rental properties, and new businesses.  The growth was steady until around 2007 when the global economy took a hit, but it quickly resumed once the market began to bounce back.

Today Granada is a hubbub of construction and improvement projects.  It’s the most rapidly growing city in a country that has one of the fastest GDP growth rates in the region.  

The city’s infrastructure has also come a long way, with plenty of access to cable and cell service.  There are Internet cafes, libraries, health food stores, and still plenty of room for investment opportunities.

Granada Offers Incentives for Expats and Investors

To encourage continued growth and development, the Nicaraguan government has implemented several incentives that make living and investing there quite appealing.

Law 306

This bill offers a number of tax-free incentives to those who invest in the tourism industry and real estate development. Those who qualify can be exempt from taxes on real estate for up to 10 years.  This even includes a savings of between 80-100% on the income tax applicable to rental profits.

Other benefits include sales tax exemptions on supplies purchased for tourist projects and exemptions from the transfer tax applied to real estate transactions.  Since its implementation in June of 1999, the country has approved well over 400 tourism projects for a total of close to $3 billion in investments.

Decree 694

More recently, the Nicaraguan government followed the lead of some of its Central American neighbors and began offering a package of retiree discounts and tax exemptions.  Qualifying individuals (those over age 45 who have a minimum monthly income of $600) can import their household goods (up to $20,000) and a vehicle (valued at $25,000 or less) with no tax repercussions.

They can also bring in another car duty-free every 5 years and receive a tax exemption of up to $50,000 on the cost of building materials for constructing a home.

Adalberto.H.Vega

One of the Biggest Benefits of Buying Granada, Nicaragua Real Estate

If its authentic charm and gorgeous natural surroundings aren’t enough to make you fall in love with Granada, then its price tag may do the trick.  Despite the fact that it’s an established destination with many of the same amenities as some of the top expat havens, Granada is a surprisingly affordable city.

Inexpensive luxuries like an hour long massage ($20) and a meal in a high end organic cafe ($4) allow for an exceptionally high quality of life on an extremely reasonable budget. In fact, with affordable rental rates to round out the equation, many couples find they’re able to live on a budget of a mere $1200 per month on average.

Even though it’s considered prime real estate, and valued slightly higher than most other areas in the country, Granada is still a very affordable place to live, invest, and raise a family.  From real estate to a four-course meal, most things still cost at least half what they would in the U.S.

Granada’s Expats Are Truly Special

Many Latin cities have their own close-knit expat community.  But Granada’s is a unique group.  Perhaps due to the city’s status as an established town in the midst of an underprivileged area, many of its expats share a strong commitment to volunteering and improving the living standards of the surrounding community.

Its foreign population includes many teachers, anthropologists, environmentalists, agricultural specialists, and even students looking for some hands-on experience with humanitarian projects.  There are schools, research programs, health clinics, and a number of other opportunities for employment and volunteer work.

As a result, much of Granada’s expat population is youthful and energetic. With the low costs of buying real estate and starting a business, many young entrepreneurs are choosing Granada as the perfect place to start their businesses or try out self-employment.

Craig James

Granada, Nicaragua Real Estate Options

Another great thing about Granada is the wealth of property types and living options it offers.  There are colonial homes in the historic district, many of which now boast air conditioning and swimming pools, for between $150,000 and $250,000.  You can also buy one that needs fixing up and do the work yourself, or just rent a room in someone else’s colonial mansion for a mere $400 per month.

Some expats have taken these historic homes and turned them into properties that double as both their residence and business or office.  Still others opt to rent properties on the outskirts of town, where many claim to be able to live more like the locals and get by on only $800, including rent.

Sally South American Cruise

What Your Money Will Currently Buy in Granada

For comparison’s sake, here are a few properties that are currently on the market in Granada, Nicaragua.

• A mere $69,000 will get you in a 2 bedroom, 1 bath fixer-upper that’s a 5 minute walk from the Central Park, with its restaurants, bars, and market.

• $165,000 buys a turn-key 2 bedroom, 2.5 bath property in the city center that was recently remodeled and includes a pool and second-floor terrace.

• Your $185,000 investment can purchase a 3 bedroom, 4.5 bath home that’s 2 blocks from the main strip.  It has walk-in closets, several gardens, dedicated parking, and an ornate iron fence that encloses the entire property.

• For $215,000 you can buy a 3 bedroom, 2 bath home within walking distance of the Plaza Central and all its dining and shopping options.  It includes a pool and terrace with views of Volcan Mombacho.

As a destination that hasn’t [yet] seen quite the boom that some other Central American cities have experienced, Granada is an excellent choice for expats and investors who don’t want to feel like they’re buying at the top of the market.

And with its entrepreneurial, philanthropic, and adventurous set of expats, the city’s appeal is likely to continue to grow in the coming years.  As a result, it’s a great place to invest and an even better place to start a new chapter of your life. For everything you need to know about the Granada, Nicaragua download our starter kit today.

Map of Granada, Nicaragua

Granada, Nicaragua Fast Facts

• Population: 117,569
• Typical temperature: Most days are between 82 and 88 F, year round
• Major airports with U.S. flights: Granada is served by Augusto C Sandino Airport located in Managua, Nicaragua
• Nearest U.S. consulate: Managua, Nicaragua