Surfonomics: Property Markets and Waves
Surfonomics: The correlation between waves and real estate markets
The allure of the oceans rolling waves, & the thrill of catching them, has drawn people from around the world to new and exciting locales. Beyond the deceptive simplicity lies an intriguing phenomenon, one worth the attention of individuals and investors alike. Waves can and should be treated as sustainable natural assets with a tangible economic valuation.
This article delves into the various factors that contribute to this correlation, the benefits, and implications. For the real estate market on the southern Pacific Coast of Nicaragua, and San Juan del Sur in particular.
Areas with easy access to world-class surfing beaches attract a wide variety of people. Including beginner to experts surfers, travellers and families. Thes composite demographics are drawn to the laid-back coastal lifestyle. A stable influx of tourists, residents and investors positively impacts local property markets over the long term.
Beach and surfing destinations such as San Juan del Sur often follow a similar trajectory of discovery and development. Budget travellers (such as myself more than a decade ago) serve as the pioneers who uncover hidden gems along less well know coastlines. These adventurous individuals are drawn by the allure of uncrowded waves, affordable accommodation & real estate, and authentic experiences.
As word spreads about the beauty, surf potential and the charm of a place, a wave of budget-conscious surf enthusiasts begins to explore these areas, bringing an injection of vitality and curiosity. The ripple effect of this initial discovery doesn't go unnoticed. As the reputation of these surf spots grows, higher-value tourists and investors follow. Those pristine beaches, consistent swells, and laid-back culture become more attractive to a more upscale demographic.
Permanent residents then move in, driving demand for amenities like the popular private San Juan Del Sur Day School, resorts, boutique hotels, and dining establishments. These entities cater to this new market who are willing to pay a premium for comfort and sophistication. This now includes a large number of professionals able to work remotely from our beachside community.
In this way the journey from budget traveler discovery to up-market allure represents a logical progression. In our case preserving the unique essence that attracted visitors in the first place, while embracing the opportunities for growth that come with broader recognition. As surfing destinations evolve, they create this captivating narrative of transformation, inviting travellers from all walks of life to be a part the area. This has been the demonstrated in the steady growth and improvement of San Juan Del Sur.
Surfing's Cultural and Economic Impact
Surfing is more than just a sport. It’s fosters a culture that usually creates a vibrant community. The lifestyle embraces nature, adventure, and common sentiments. The nearby beaches and community of San Juan del Sur are prime examples. In the vicinity of San Juan Del Sur the main surf beaches and breaks are: Playa Maderas, Playa Hermosa, Playa Remanso, and Playa Yankee
Several key factors contribute to the correlation between proximity to surf beaches and property markets:
Scenic Beauty and Lifestyle: Obviously the visual appeal of a surfing beach and its surroundings enhances the desirability of properties in the area. Ocean views, beach access, and the overall coastal ambiance can command premium prices.
Tourism and Recreation: Surfing beaches attract tourists, boosting local economies through spending on accommodation, dining, and entertainment. This economic activity can bolster property demand and drive real estate appreciation.
Community and Culture: Surfing communities often foster a strong sense of belonging and camaraderie, making these areas attractive to individuals seeking a tight-knit social environment of like minded people. This sense of community can positively influence property values via a self reinforcing cycle. People come, like it, and they tell their friends, who follow them here
Limited Supply: Prime real estate in desirable areas is often limited, often leading to a supply-demand imbalance. As the demand for properties in surf regions rises, prices tend to rise due to the inherenet scarcity of available land in the vicinity.
Investment and Development: The potential for high returns on real estate investments near surfing beaches can incentivize property developers to create upscale accommodations and amenities, further enhancing property values.
There are areas that are (to varying degrees) analogous to our own market. Several notable examples from the rest or the word exemplify this correlation between proximity to surfing beaches and property markets. Such as Costa Rica, Uluwatu (Bali), Pichilemu (Chile), Huanchaco (Peru), San Miguel (Mexico), Guarda do Embaú (Brazil), and Lobitos (Peru).
Benefits of Surf as a Geographic Feature for Real Estate
Capital Appreciation: Properties in surf regions often experience higher rates of capital appreciation, making them attractive investment opportunities. This is especially true since the pandemic and related lockdowns and restrictions led people to desire healthy outdoor activities
Tourism Income: Surfing destinations can generate consistent income from tourism, benefiting local economies and potentially stabilizing property values.
Lifestyle Appeal: Residents can enjoy an enhanced quality of life, with easy access to outdoor activities, natural beauty, and a vibrant community.
Implications for the Real Estate Market
While the aforementioned beaches offer prime access to surf, the potential of long term appreciation in real estate values also benefits the region as a whole. In the case of San Juan Del Sur the benefits extend to the communities and developments close to town as well.
Given the range of breaks close to the town center, many people enjoy the easy access to the shopping and amenities while also being a short drive to the center. Many buyers and renters, especially those learning to surf and families, are looking for a combination of short travel to surf balanced with proximity to restaurants, shopping, bars, restaurants, gyms and community activities.
In a broader sense, the correlation between surfing beaches and property markets underscores the well worn adage of location being prime driver of property values. Similar to the attractiveness of real estate near prime skiing resorts. Individual buyers, real estate developers and investors can capitalize on this correlation by choosing emerging surfing destinations and strategically investing in property developments that align with the culture and lifestyle.
Surfing's growing global appeal has the power to influence property values, driving demand for coastal properties and creating vibrant communities. As the waves roll in and out, so too do the fortunes of property markets near these iconic beaches, shaping the landscape of real estate for years to come.
Surfing brings personal, financial and environmental benefits to thousands of communities across the world. San Juan Del Sur is fortunate in that the economic development has benefited the local community while the town retains its local, funky charm. We don’t have Starbucks. I like it that way.
.Want to know more about San Juan Del Sur? Contact me!
Joel Stott-Jess
LifeInNica.com
Cell / WhatsApp: +505 8176 8624
US Number 1 786 753 8743
Skype: joelstottjess
Joel Stott-Jess is a New York Times featured agent / broker in San Juan Del Sur, Nicaragua.
Originally from Alberta, Canada he has been doing business in Nicaragua since 2014.
An investment consultant, serial entrepreneur, surfer, and outdoor enthusiast he is an expert on the real estate and business markets in Nicaragua. He also operates The Central Investor, a real estate and investment blog focused on the entire Central American region.