by Henkel Smith III
Just four years ago, San Juan del Sur was only starting to be discovered by international travelers and real estate investors. Hotel options were minimal, restaurants were limited to almost exclusively local fare, internet cafes and ATM’s were non-existent, and you could count the area’s real estate developments on two hands.
Major press coverage around the globe in recent years has helped transform San Juan del Sur into the bustling tourism destination it is today. Internet cafés and ATM’s are abundant and a multitude of tourism related services are available, from water taxis to dune buggy rentals to airport shuttle services to daily scuba diving, fishing, and surfing trips. Hotel options cover the entire spectrum from inexpensive hospedajes to hilltop resorts and major brands such as Alamo and Subway have found their way to this once sleepy fishing village. There is a growing and flourishing expatriate community and the hills and outlying areas of town are now peppered with real estate developments and homes.
Although real estate investors and developers have been flocking to San Juan del Sur for the great land deals compared to other Central American and Mexican markets, the movement has not been purely profit driven. Many developers are incorporating social and environmental sustainability efforts into their business plans, and many investors are interested not only in finding a good deal, but in pursuing an investment choice that involves contributing to the local community, protecting natural surroundings, and living the type of lifestyle that they have always envisioned.
Social Sustainability
Any modest local community has the potential to experience either negative or positive repercussions in response to a boom in foreign investment. Fortunately, some of the pioneer real estate and tourism developers in San Juan del Sur understood this potential and built social awareness into their business models.
Pelican Eyes Hotel and Resort formed the A. Jean Brugger Foundation, a major contributor to local youth and adult education and health programs.
Hotel Villa Isabella helped found the Biblioteca Movil (Mobile Library) which is the first public lending library in the area. It provides ongoing literacy and English classes and maintains a mobile book delivery service to outlying communities where access to reading materials was not possible in the past.
The trend of social awareness in San Juan del Sur continues to increase and is being incorporated into the business models of newer developments such as Brisas de Palermo, which heavily promotes and funds youth sports programs in San Juan del Sur and other communities throughout Nicaragua.
Environmental Sustainability
Nicaragua’s pristine natural beauty is one of the biggest reasons why travelers and real estate investors are drawn here. However, unplanned growth and development has the potential to devastate the environment, especially around sensitive ecosystems like old growth forests, coastlines, and waterways. An increasing number of developers are serious about protecting Nicaragua’s environmental future and have initiated local education programs and proactive conservation efforts to help ensure that the country’s environment can support long-term tourism and real estate development.
Paradise Development Holdings, another San Juan del Sur real estate and development pioneer, is one of the key founders of Pueblo Limpio (Clean Village) an awareness program geared towards educating the community’s children about proper waste disposal.
Las Fincas de Escamaquita, a development outside of San Juan del Sur, is committed to both environmental and social causes. Their multi-faceted efforts include the preservation of forests and streams within their development and the creation of Nica Dev, a fund that financially supports community events and projects.
Overall it seems that the “green” movement is finding its way to Nicaragua and many individual property owners are incorporating environmentally sound solutions such as rainwater harvesting, alternative energy, and grey water re-use into their residential or second home designs.
Lifestyle Investors
The lifestyle choices and activities available are why so many foreign investors are making Nicaragua their primary residence or second home destination. In San Juan del Sur alone, there are foreign residents from Australia, Austria, Canada, Denmark, England, France, Germany, Holland, Ireland, Switzerland, and the United States.
Developers are responding to this increase in demand by designing niche communities with easy access to activities and with on-site amenities and services. El Camino del Sol is one such development that is centered around yoga, mountain biking, and holistic living.
By attracting like-minded individuals and families, this type of community carries the highest potential for providing long-term growth and stability to the local economy and to helping increase the overall awareness of social and environmental sustainability, which are critical to Nicaragua’s economic future and to real estate values.
