Costa Rican Real Estate Stable Despite Recessions

Posted on | December 19, 2009 | 126No Commentshttp://www.continentalestateagents.com/costa-rican-real-estate-stable-despite-recessions.htmCosta+Rican+Real+Estate+Stable+Despite+Recessions2009-12-18+20%3A13%3A47admin_cea

Costa Rica is a Latin American country with great sandy beaches, volcanoes, and tropical mountains. With the Caribbean on one side, the Pacific on the west, and wonderful warm blue waters teeming with fish, it is an ideal vacationing spot. In fact, it is one of the most visited countries in Central America.

Today it has a booming industry with many hotels, resorts, golf courses, restaurants, casinos, pubs, and locales catering to adult activities. More and more Americans, Canadians, and Europeans have chosen to live there full or part time with thousands owning second homes along the spectacular beaches or tropical mountains.

Foreigners can own property in Costa Rica and tens of thousands live here year-round because of its democratic government, tropical climate, reasonable land prices, and spectacular laid-back natural environment. All this in turn has led to an increase in Costa Rica real estate prices, particularly along the magnificent Pacific coast where most of the tourists go.

Most real estate investors and second home buyers express a preference for areas that are attractions for tourists and, in particular, its magnificent Pacific coast. The large scale purchase of prime property along beach fronts (all of its beaches are public), mountain properties, farms (called fincas) and vacation rentals by expatriates have contributed to a steep hike in real estate prices in the most coveted areas.

Increasingly, Americans, Canadians, and Europeans, Costa Rica is now recognized as the ideal place to spend their retirement years. With lots of sunny and sandy beaches, nearly 800 miles of coastline and most beaches virtually deserted, beautiful mountains always close at hand, nice weather, a stable and democratic political system, low crime rates, excellent medical and dental providers and facilities, and high human development indices, it is a prime draw for retirees. An increasing number of investors have seen the potential of real estate development in Costa Rica and putting money into its real estate.

Costa Rica real estate has been, and continues to be, a good investment because the country has a very stable political system and a growing economy. Unlike Mexico, foreigners can own free title to land. The crime rate in Costa Rica remains low, though increasing, and human development indices are very high compared to other Central American countries.

The tourist influx has also seen the country evolve to accommodate the international community. More and more international investors have come to the conclusion that Costa Rica is a great place to invest in real estate and their returns on investment have borne out that faith.

The severe economic downturn in the States and Europe has impacted Costa Rica as well. Condo and subdivision development have slowed dramatically and in some parts along the Pacific coast, American second-home buyers, strapped for funds, have been forced to sell at very large discounts. One person’s challenge is another person’s opportunity.

However, many experts predict that the boom will resume in the coming years. Costa Rica will continue to draw tourists and retirees from America, Canada, and Europe. Savvy investors often pool their money to form real estate ventures with, up to now, assured returns. Indeed, many folks who invested in Costa Rica real estate a decade ago have seen their investment soar. To be sure, the economic woes in the States and Europe are felt here now but the price stagnation or decline is temporary and will form the basis of a great recovery.

The beach properties along the Pacific coast have seen, and will probably see, the largest increase in prices over time. The Caribbean coast remains relatively undeveloped. Certainly prices there, like all of Costa Rica, are rising but not nearly as much as on the other coast (which, of course, means that stress on prices have been less lately than on the Pacific side).

And, as more and more Ticos move from the country into the big urban area around San Jose, available prime property has become increasingly scarce. Demand remains strong in the urban areas and, for more and more expats who live in Costa Rica, the amenities and climate around San Jose are proving irresistible.

Source: V.Krumm (REA)

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