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Thinking of investing in real estate in Granada? You're not alone!
Many people are attracted to Granada's natural beauty and dream of owning a cozy tropical home or a modern villa there.
Would it be a good investment, though? Are property prices increasing in Granada? What is the current trend? Is it better to invest near the lake or in the city center? What about the taxes? Where can you get a yield above 7%?
We've figured it out for you.
At TheLatinvestor, we know this market inside and out. As a matter of fact, we have condensed all our findings in a pack. Get it now.
In the lines below, we'll share useful information and some practical tips.
How is the property market in Granada?
How is the property market faring? Let's gather and interpret the data to know for sure.
In Granada, you can find various types of properties for sale, including apartments, houses, villas, and townhouses.
These properties range in size from cozy one-bedroom apartments to spacious multi-bedroom homes. Some are located in the heart of the city, offering convenient access to urban amenities, while others are situated in more serene areas, close to the natural landscapes Nicaragua is known for, providing a tranquil atmosphere.
Whether you're looking for a modern apartment or a home with a tropical design, Granada offers a diverse range of properties to suit different preferences and lifestyles.
Buying or renting?
(If you're purchasing for personal use and not for renting)
If Granada is your city of choice, you may be contemplating whether to buy or rent a property.
Without a doubt, it's better to buy if you want to build long-term wealth and stability through property ownership.
One data can help you make a decision - the property price-to-rent ratio. It's a simple way to gauge the impact of rental earnings on covering the property's cost.
According to Numbeo, the property price-to-rent ratio in Granada is around 24.91, which is above the world average.
This value shows that it would take you 25 long years of paying rents before you can own a property in Granada. Renting for such an extended period means you wouldn't be building any equity, and you might end up spending more money without gaining ownership of the property.
Property prices in Granada
On average, according to the last data from Central Bank of Nicaragua, purchasing a property in Granada will cost you around $3,230 per square meter.
Obviously, there are significant differences. The value of a square meter for an apartment in a central urban area might differ from a house in one of the more serene, nature-adjacent regions. We actually offer a more in-depth analysis in our pack for buying property in Granada and in Nicaragua.
To put things in perspective, it means that, instead of purchasing a flat in Manhattan, you can obtain 4 properties in Granada.
However, housing prices in Granada are higher (92%) than in Antigua.
The most expensive neighbourhoods in Granada are likely those closest to the lake and the city center, offering premium views and amenities. In contrast, the more affordable neighbourhoods might be found in the outskirts of the city, offering a balance of accessibility and peaceful living.
First and foremost, we have to acknowledge that Nicaragua is, nowadays, a relatively stable country. The last Fragile State Index that has been reported for this place is 77.7.
This is important to remember when wondering if it's a good investment to buy a property in Granada.
Besides that, if we look at the IMF's GDP forecasts, Nicaragua's economy is expected to soar by 15% in the coming 5 years, resulting in an average GDP growth rate of 3%.
If you want to invest in real estate in Granada it's a good thing because, usually, when the economy grows, people make more money, and this encourages them to invest in real estate, which drives up the demand and prices for properties.
Also, in Nicaragua, the average GDP per capita has changed by 3.3% over the last 5 years. Though not substantial, there is still a positive trend of growth.
This trend can lead to a rise of property prices in Granada over the course of 2024 and also later on.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Nicaragua right now.
Buying property in Granada
Buying real estate in Granada can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Granada and in Nicaragua.
In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.
Now, we're giving you a simplified version of the buying process.
This is the step-by-step process to purchase a property in Granada:
- Obtain a local tax identification number for non-residents.
- Open a local bank account and transfer funds for the purchase.
- Choose a reputable lawyer or legal representative to assist with paperwork.
- Sign a reservation contract and pay a deposit to secure the property.
- Complete a purchase agreement with a deposit.
- Verify property ownership and any existing charges with the National Registry.
- Conduct a property inspection to confirm details and condition.
- Sign the property deed before a notary, and pay the remaining balance.
- Transfer the utilities into your name.
- Pay the property transfer tax at the relevant government office.
- Register the property at the National Registry with your name as the new owner.
- Congratulations! You've successfully purchased a property in Granada.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Nicaragua.
Make a profitable investment in Granada
Better information leads to better decisions. Save time and money. Download our guide.
Where to find a property
Explore these websites to find properties in Granada.
- GPS Nicaragua - Specializes in vacation rental homes and property management in the cities of Granada and Leon, Nicaragua.
- Discover - Specializes in properties for sale in San Juan del Sur, Nicaragua.
- Nicaragua Real Estate Team - Offers a diverse range of options including colonial homes, beach properties, vacation properties, and more.
- NICARAGUA REAL ESTATE - Specializes in finding the perfect beach properties in Nicaragua.
- BVN - Independent Real Estate Agency offering a diverse range of properties for sale and rent in San Juan del Sur, Nicaragua.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Nicaragua.
Which properties for which budget?
As mentioned before, the average price per sqm in Granada is $3,230. A 1-bedroom property with a size of 60 square meters would cost approximately $194,000, and a 2-bedroom property with a size of 85 square meters would cost approximately $275,000.
Obviously, property prices will change based on both the property itself and its location.
Prices tend to be higher in the top areas of Granada. An apartment in an upscale area might cost you about $370,000, and an apartment in Centro could be around $340,000.
Yet, there are places that won't cost you as much. You may find a residence in a tranquil suburban area for around $320,000, or you might encounter a residence in a more modest neighborhood priced only at $200,000.
We give more details about property types and areas in our full pack for buying property in Nicaragua.
Mistakes to avoid
- "Cédula de habitabilidad" absence can lead to difficulties in selling or renting the property.
- Ignoring the "licencia de obras" could result in unauthorized renovations or penalties.
- "Patrimonio" restrictions may limit modifications to protected heritage properties.
- "Ocupas" squatters might occupy the property, complicating eviction and legal processes.
- Overlooking regional regulations on short-term rentals could lead to fines or closures.
- Not checking for water scarcity issues can affect the property's viability and value.
- Falling into the "bancos malos" trap: purchasing properties with hidden debts from failed banks.
- Spanish inheritance laws may affect the property's transfer to heirs if not planned properly.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Nicaragua Property Pack
Living in Granada
Living in Granada is a great experience, with its stunning natural beauty, vibrant culture, and rich history, it's an ideal place to buy property.
Cost of living
The cost of living in Granada is generally considered to be quite affordable. Groceries, transportation, and entertainment are all relatively inexpensive compared to other regions in Nicaragua.
Here are some examples to better understand the cost of living in Granada:
- Rent for a one-bedroom apartment in the city center: around $500/month.
- Monthly public transportation pass: approximately $30.
- Dinner for two at a local restaurant: around $30.
- 1 liter of gasoline: approximately $1.05.
- Utilities (electricity, water, heating) for an 85m² apartment: about $70/month.
- Gym membership at a local fitness center: around $35/month.
- Ticket to a movie at a cinema: about $6.
- Cup of coffee at a café: around $1.50.
Since our goal is to present information in a clear and reader-friendly manner, we've created a summary table outlining the different neighborhoods in Granada. For yields, prices and rents, check our property pack.
The Lakefront area is known for its stunning views of the lake and lush greenery. It's a serene and upscale area, popular for relaxation and outdoor activities.
Beautiful lake views, peaceful environment, outdoor activities.
Higher property prices, more secluded from the city center.
The City Center is the bustling hub of Granada, with easy access to shops, restaurants, and cultural attractions. It's vibrant and lively, attracting both locals and tourists.
Convenient location, diverse amenities, vibrant atmosphere.
Can be crowded, higher living costs.
Suburban areas offer a balance of accessibility and tranquility. These neighborhoods are family-friendly with good facilities and green spaces.
Family-friendly, quieter living, green spaces.
Dependent on private transportation, fewer entertainment options.
Rural Outskirts are known for their natural beauty and spacious properties. These areas provide a peaceful living environment, close to nature.
Natural surroundings, spacious properties, peaceful atmosphere.
More remote, limited access to urban amenities.
Life in Granada
Granada is a city with a vibrant tourism sector, known for its natural beauty and outdoor activities. It is home to numerous small businesses and has a growing service industry.
What expats usually like the most in Granada is the city's lush landscapes and opportunities for outdoor activities such as hiking and exploring the local biodiversity. They also appreciate the warm climate, scenic lake views, and the laid-back lifestyle.
Granada has access to good quality healthcare, with both private and public healthcare options available.
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Renting out in Granada
This part is for you if you want to buy a property with the goal of renting it out and making money from it, rather than living there.
Tenant Profiles in Granada
If you decide to buy and rent out to long-term tenants, you should target university students, young professionals, and families who are looking to move to Granada's vibrant city centre. For short-term rentals, the city attracts a lot of tourists and international visitors who are looking for a unique experience in a culturally-rich destination.
Here is a little summary table we've made for you.
|Property type and area
|Profiles of potential tenants
|What they are looking for
|Expected monthly rent in $
Scenic views, tranquil setting
$1200 - $2000
House in city outskirts
Quiet neighborhood, space for kids
$800 - $1500
Studio in city center
Students, young professionals
Urban living, close to amenities
$500 - $900
Apartment in suburban area
Professionals, small families
Residential area, community amenities
$600 - $1100
Luxury penthouse near lake
Luxury amenities, exclusive location
$1800 - $3000
Modern apartment in new development
Modern amenities, convenient location
$700 - $1200
Flat in local neighborhood
Community atmosphere, affordable living
$400 - $700
As of today, rental yields in Granada are within the 3-4% range. It's low. A good rental yield generally falls within the range of 7% or more.
Properties close to amenities such as shops, restaurants, and public transport are usually in high demand, meaning they provide good rental yields.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
You could also decide to rent short-term to tourists visiting Granada to experience its natural beauty and outdoor activities, such as exploring the local biodiversity and enjoying the scenic lake views. Additionally, you could rent to individuals seeking a tranquil, tropical getaway.
If you decide to go with that option, look for properties near the lakefront and in the city center of Granada, as these areas are popular with tourists and offer a variety of rental options. Additionally, properties in quieter, suburban neighborhoods can also be desirable for those looking for a more relaxed and peaceful environment.
Currently, there are approximately 3,000 active Airbnb listings in Granada, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $109.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Granada can make around $1800 per month. Also, the average occupancy rate is estimated at 67%.
Is it worth buying real estate in Granada then?
Certainly, when it comes to buying property in Granada, it's all about your long-term vision and financial goals. If you're seeking a place to build wealth and stability through property ownership, Granada has potential.
The property price-to-rent ratio suggests that buying is a smarter choice than renting, enabling you to accumulate equity over the years. Moreover, Granada benefits from Nicaragua's relatively stable economy, with forecasts of economic growth and rising GDP per capita, making real estate investment appealing.
If rental income is your aim, Granada's proximity to universities and a vibrant city center can provide opportunities. However, if you're after quick returns or lack patience, Granada might not be your best bet.
On the flip side, Granada has its downsides. The current rental yields are relatively low, so if you're hoping for rapid profits, look elsewhere.
And while living costs are reasonable, property prices in certain neighborhoods can be steep. Be prepared for potential pitfalls like property licenses, squatters, and local regulations on short-term rentals.
In short, buying in Granada suits those with a long-term mindset and a taste for cultural experiences but might not be ideal for short-term investors looking for quick cash. Be ready for the challenges and uncertainties that come with navigating the local real estate market.
Make sure you understand the real estate market in Granada
Don't rush into buying the wrong property in Nicaragua. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.