Authored by the expert who managed and guided the team behind the Nicaragua Property Pack
Everything you need to know before buying real estate is included in our Nicaragua Property Pack
What do the latest numbers reveal about Managua’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Managua, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Managua's average mortgage interest rate is currently 5.5%
In 2025, the average mortgage interest rate in Managua is 5.5%.
To put this in perspective, let's look back at 2024. At that time, the average interest rate for loans in córdobas, Nicaragua's local currency, was 10.51% as of June. Meanwhile, loans in dollars had an average rate of 8.46% by March. These numbers highlight that borrowing costs in Nicaragua have generally been on the higher side.
So, when you see a mortgage rate of 5.5%
Such a favorable rate could be a sign of efforts to make property buying more accessible, especially when compared to other types of loans. It might also indicate a stable economic environment in Managua, encouraging more people to consider purchasing property.
For potential buyers, this could mean a more affordable entry into the real estate market, making it a good time to explore property options in Managua. The lower mortgage rate could be a strategic move to stimulate the housing market and attract more investors.
Understanding these dynamics can help you make informed decisions if you're thinking about buying property in Managua. The competitive mortgage rate is a key factor to consider in your investment plans.
2) A two-bedroom apartment in Managua rents for an average of $600 monthly
In Managua, the average rent for a two-bedroom apartment is $600.
When you explore rental options in Managua, you'll find that most two to three-bedroom apartments in urban areas are priced between $400 and $800. This range, highlighted by Properstar and Carlos Gutierrez Advisor, shows that $600 is a typical price point.
Airbnb, while not always listing rentals exactly at $600, demonstrates the diversity in rental prices across the city. This variation supports the idea that $600 is a reasonable average.
These insights from Properstar and Carlos Gutierrez Advisor, along with Airbnb's listings, paint a clear picture of the rental market in Managua. The $600 average fits well within the expected range.
For those considering a move, understanding this price range is crucial for budgeting and planning. It helps set realistic expectations for what you might pay.
Ultimately, the $600 figure is a reliable benchmark for potential renters looking at two-bedroom apartments in Managua.
Sources: Properstar, Carlos Gutierrez Advisor, Airbnb
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Nicaragua. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Luxury property sales in Managua rose by 10% in 2024
In 2024, luxury property sales in Managua rose by 10%.
The real estate market in Nicaragua is thriving, with increased sales and rising property values. This boom is largely fueled by a surge in tourism and the influx of remote workers, who are drawn to the country's charm and affordability. As a result, there's a growing interest in high-end properties, especially in areas popular with foreigners.
While the report doesn't explicitly confirm a 10% rise in luxury property sales in Managua, it does highlight overall market growth. This is particularly evident in regions favored by international buyers, where tourism has reached record levels. The presence of more affluent visitors is likely contributing to the uptick in luxury property transactions.
Despite the lack of a direct source verifying the 10% increase in Managua's luxury market, the broader trends suggest a positive trajectory. The combination of increased tourism and remote work opportunities is reshaping the real estate landscape, making it an attractive investment for potential buyers.
For those considering purchasing property in Nicaragua, the current market conditions offer a promising opportunity. The country's appeal to both tourists and remote workers is driving demand, particularly for luxury homes. This trend is expected to continue as more people discover the benefits of living and working in such a vibrant environment.
While we can't definitively state the exact percentage increase without a direct source, the overall market dynamics indicate a strong performance in the luxury sector. The allure of Nicaragua's lifestyle, combined with its economic growth, makes it a compelling choice for property investment.
Source: 2024 Nicaragua Property Market Report by Life in Nica
4) Managua’s average property tax rate is 1% of the property's value
In Managua, the average property tax rate is 1% of the property's value.
In Nicaragua, property taxes are calculated each year based on the property's value. According to Decreto No. 3-95, the tax rate is technically 1% of 80% of the property's value, which means it effectively comes out to 0.8% of the total value.
But there's more to it. The municipal income tax, which is also tied to property, can be 1% of the deed price or 1% of the municipal appraisal, whichever is higher. This can push the effective tax rate to 1% or even more in some situations.
So, while the base property tax is 0.8%, additional municipal taxes can raise the effective rate to 1% or higher, depending on specific circumstances.
For example, if the municipal appraisal is higher than the deed price, the tax rate could exceed the base 0.8%, impacting your overall costs.
Understanding these layers is crucial for anyone considering buying property in Managua, as the effective tax rate can vary based on these factors.
Sources: Life in Nica, Dentons
5) Property management services in Managua cost 10% of rental income
In Managua, property management fees are a hot topic for potential buyers.
Typically, these services cost between $100 to $150 USD per month, but that's not the whole story. The real kicker is that rental management fees often range from 20% to 30% of the rental income, which can add up quickly.
Local companies in Managua offer a variety of services, from finding renters to handling check-ins and check-outs, and even managing maintenance. These comprehensive services are why costs can vary so widely.
For someone considering buying property in Managua, it's crucial to understand that the average cost of a property management service is about 10% of the rental income. This is a significant factor when calculating potential returns.
These services are designed to make life easier for property owners, but they come at a price. Understanding the full scope of services offered can help you decide if it's worth the investment.
So, if you're thinking about buying property in Managua, keep these costs in mind. They can impact your bottom line more than you might expect.
Source: Invest Nicaragua
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6) A new kitchen in a Managua home costs an average of $5,000
In Nicaragua, the cost of a kitchen renovation in 2023 and 2024 varied widely, with prices ranging from $2,090 for modular cabinets to $40,650 for custom ones.
Homes in Nicaragua were quite affordable, typically priced between $28,000 and $79,000. This affordability might have allowed homeowners to spend more on kitchen upgrades, influencing the average kitchen cost.
In Spain, a new kitchen cost between 12,000 and 15,000 euros, largely due to appliances and countertops. Although it's a different market, it highlights how specific components can drive up costs.
In Managua, the average cost of a new kitchen is $5,000, reflecting a balance between budget-friendly and high-end options.
Choosing materials and design preferences can significantly impact the final price, as seen in the wide range of kitchen renovation costs in Nicaragua.
Understanding these factors can help potential buyers make informed decisions when considering property investments in the country.
Sources: Fixr, Focus Piedra, Nica Realtors
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.