Central America has been a massive growth in real estate developments catering to the international buyer. The four countries that are attracting the most investor interest are Costa Rica, Belize, Nicaragua and Panama. This article considers who the main buyers are and what they are looking for?

Buyers from US and Canada make up the largest proportion of real estate investors in Central America. It's only a short flight from major US hubs. The region started as a tourism destination and as time passed, and more visitors enjoyed their experience, the real estate dollars have followed. It's no surprise that it's the top tourism destinations that are evolving into the most important destinations from a property purchasing perspective.

It's possible to split the buyer demographics into two broad categories: 'investors' and 'lifestyle buyers'. Although there is considerable overlap between the two buyer types the 'investors' are focused primarily on capital appreciation. They are attracted by areas that are earlier in the development cycle that offer "early-in' prices and the promise for capital growth into the future.

A growing number of buyers are interested in starting a new life abroad and living in Central America full time. The lower costs of living possible are an important factor in their decision making. So too are questions of community and security. These 'lifestyle buyers' gather in more mature locations with ready amenities, services, good communications and transport infrastructure.

The post-crisis buyer is looking for a bargain. They are aware that it's a buyers market right now in Central America, that inventories are high and sales volumes are down. As a whole investors are more skeptical of claims made by developers and sellers about future amenities and infrastructure improvements down the line. They prefer to buy a finished product that they can see and touch.

The most successful developers will be those that are able to deliver on the needs of the 'post-crisis' real estate investor. and effectively communicate this in their marketing. Developers can no longer rely on a speculative rush of buyers but need to contend with the realities of the new market.

For more on investment strategy follow these links on purchasing abroad with an unfair advantage, and overseas investing strategies.