RSSCosta Rica Real Estate – Weathering The Storm
Dec 15
Costa Rica beaches, Condominiums, Costa Rica, costa rica homes, Costa Rica Real Estate, family, Houses, investment, land, real estate, retirement, tourism, travel, tropical destinations No Comments
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Costa Rica is a Latin American country with great sandy beaches, volcanoes, and tropical mountains. With the Caribbean on its eastern shore, the Pacific on the other, and wonderful warm blue waters teeming with fish, it is an ideal vacationing spot. Fact is, it is one of the most visited countries in Central America. Today it has a booming industry with many resorts, inexpensive hostels, hotels, golf courses, restaurants, casinos, pubs, and locales catering to adult activities. As it is being discovered, 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.
This relative scarcity of available real estate in the face of development has resulted in a boom in new condos and homes along the coasts, in the mountains, and in urban areas.
The demand for condos and homes has been concentrated mostly in areas where the tourist influx is large particularly along the Pacific coast. The purchase of vacation property and real estate for relocation by expatriates are two main reasons why the property prices have gone up. In addition to the coasts, money is flowing into investments on farms (called fincas), mountain properties, and vacation rentals. Increasingly, Costa Rica is also being seen as a retirement destination by many retirees hailing from cold countries in Europe as well as America and Canada. The highly stable democratic political system and the beauty of this country attract real estate purchasers from around the world who want to have a piece of paradise to themselves. Costa Rica is one of only two countries in the world without an army, the other being Switzerland, and is extremely forward looking. The government is committed to sustainability and in a few years, Costa Rica will be the first country on the planet to have a zero carbon footprint. No wonder so many people fall in love with this place.
For many years now, Costa Rica has understood the importance of sustainability. The country has adapted to its tourist patronage by developing and welcoming the international community. Development of condominiums, single family homes, and subdivisions catering to expats accelerated dramatically in the last 10 years, particularly along the northern and central coasts of the Pacific. With that boom came increased land prices, though still far, far lower than in comparable areas in the United States and Europe.
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, are selling properties at very large discounts. One person’s challenge is another person’s opportunity.
Despite today’s uncertain economic climate in the States and Europe, the general perception is that there will be a large rebound in Costa Rica real estate. Why? One reason is the incessant flow of investments based upon the lucrative returns to be had from property development. Another is that, in comparison to the Unites States and Europe, real estate prices, particularly on sunny, tropical coastlines remain incredibly reasonable. Land prices along the coasts are still just a fraction of the cost elsewhere. Further, real estate investors have found extraordinary returns on their investments over the last decade.
The largest rise in property prices and the biggest decline due to the U.S. and European recession have been along the Pacific coast. The Atlantic coast remains largely undeveloped so the run-up in prices was not as rapid. And home prices in the Central Valley containing the largest city, San Jose, and some 40% of the country’s population have not been significantly affected because of the acute shortage of available land and continuing demand as more and more Ticos move to the urban areas.
The author, Victor Krumm, writes about spectacular Costa Rica and has an informative websiteCosta Rica Vacations. Check out the prettyCosta Rica Real Estate
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