Chillicious.comAll About Finance
Costa Rica Real Estate – Will It Continue To Be A Popular Investment?
[I:http://www.uniquearticlewizard.com/extras/pics/krummlawimage2.jpg]
One of the smallest countries in the world, Costa Rica is known throughout the world for its sandy beaches, spectacular coastal landscape, and its wonderful diversity of plants and animals. In fact, though it is only about the size of West Virginia, nearly twenty percent on the face of the globe are found in that Central American country. Tourists flock to it in droves annually making it one of the hottest tourist destinations in Latin America. Most visitors are from America and Canada, of course, but there are also thousands of travelers from South America, Europe, and the Far East. In order to cater to the booming eco tourism, medical tourism, and vacation industry, resorts and hotels, restaurants, pubs, shopping malls, and other tourist attractions have popped up alongside beaches and other hot spots. This resulted in a sharp rise in Costa Rica real estate value over the last decade or so since land is one commodity that is not plentiful in Costa Rica, a country with just one tenth of one percent of the world’s land mass.
Most investors are concentrating their investments in 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.
The demand for real estate has been centered 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.
How has the financial downturn in the States and Europe impacted Costa Rica? Not surprisingly, subdivision and condominium development have dramatically slowed or even been put on hold, and in some parts along the Pacific coast American second-home buyers, now cash-strapped, have been selling beautiful properties at large price reductions. These are properties that were by American and European land prices good buys when made. Now they have become extraordinary opportunities.
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.
Victor C. Krumm lives in spectacular Costa Rica and has a popular websiteCosta Rica Vacations. Look at prettyCosta Rica Real Estate
Comments are closed
