Grenada on the Investment Curve
May 18th, 2008 by Kevin
Here is an article published this weekend about the home renovations happening in the historic town of Grenada. Grenada was one of the first cities Spain founded in the New World in 1524. The article talks about trying to maintain the historic look of this ancient city, and about the changing nature of the ex pat investors in this area. According to Claudia Gonella, who is with Coldwell Banker Nicaragua: “It is less of a speculative market now. Buyers are in it for the long-term and looking for a home that they can live in. These buyer also include retirement and pre-retirement buyers.”
This backs up what the property investment lifecycle curve suggests. In the late 90’s ex pats started moving from Costa Rica to Grenada, and there was a price surge in and around 2000 for property in this historic center. Now 8 years later, the article seems to indicate that the majority of investors are looking for second homes, places to live and retire. It is likely that this property has changed hands a number of times prior to it reaching some of these ‘end customers’. Grenada offers a great example of the evolution of what is will soon happen in the San Juan Del Sur area and even the northern pacific areas but at a much earlier stage. Even though Grenada is a historic city, from on investment perspective it does offer a glimpse into the future for other areas.
