A recent article on CostaRicaTimes.com reports on the current growth of the Costa Rica real estate market. With positive market trends in Costa Rica stemming from baby boomers retiring to Costa Rica from the United States and Canada, a new wave of buyers is coming to the Costa Rica real estate market. This, along with a rebounding global economy, a spike in number of sales, lowering of interest rates, plans for infrastructure improvement along Costa Rica’s Pacific coast, the expansion of the Liberia International Airport, as well as a growing demand for Costa Rica property, leads to predictions for a successful 2015 in the Costa Rica real estate market.
The Thriving Costa Rica Real Estate Market
Costa Rica Real Estate – The real estate market in Costa Rica has changed tremendously in the past two years, with the lessening participation of foreign buyers during the rainy season of 2014 as the most noticeable one. Although this news may seem like the industry is not doing well, in reality Costa Rica’s Real Estate market is robust and thriving.
The upward trend of the real estate market is proved by the spike in number of sales and lowering of interest rates. Real Estate agents are now very busy, though the prevailing trends they have been contending with are now indisputably different from before.
A recent study done by Costa Rica Real Estate dot Com (CCREC), the industry leader and authority in providing trustworthy market analysis of the real estate sector in Latin American nation based in San Jose, contained information on the market size, key players of the industry, main financial metrics and a comprehensive analysis of competitive pressures from other Latin American countries. The study showed that Costa Rica is exhibiting signs of substantial interest in pre-built construction of coastal gated communities. CCREC’s study reveals that there is a huge demand for vertical housing solutions and gated communities in the GAM that offers more plush finishes, amenities and lots of security. It also indicated that buyers are showing an interest in new construction properties that can be bought for less than $135,000, furthermore locals are no longer on the look-out for detached single-family homes with private backyard and gardens, rather they are now amenable to town-house like arrangements that offer communal playgrounds and greeneries.
Business daily La Republica also published a report, with information coming from the Chamber of Real Estate Agents in Costa Rica and a major brokerage in western San Jose, stating that the prevailing demand is focused in the Greater San Jose Metropolitan Area or GAM. Expats and foreign buyers looking for bargains, beachfront homes and country houses with spacious lots are currently scarce.
Now, although CCREC’s study related different areas of interest to investors, it shed light notably on the Guanacaste area. The main factors that contributed to the popularity of this area are the expansion done at the Liberia International Airport, a booming luxury resort market with the likes of JW Marriott [at Hacienda Pinilla], Four Seasons Resort, Westin Conchal and RUI, not to mention the healthy commercial interest of profligate investors in Flamingo marina and upcoming Hard Rock plans. The study even exposed an upcoming trend and plans for low to medium priced gated communities along the coastal corridor.
Aside from CCREC, Palms International Real Estate Costa Rica also stated that 2015 is the best time for real estate development in Costa Rica as it may be the last chance for top-notch values and splendid opportunities on purchasing investment property in the country since real estate and development market will keep on growing and set new records until prime development land becomes more difficult to find. The healthy real estate market according to Palms International Real Estate Costa Rica is brought on by the improving real estate market in the US where the market is moving from first to second home buyers causing the rise in Costa Rican tourism and the all-time high foreign direct investment. Add to the equation the construction of new Chinese economic zone, proposed International Airport adjacent Orotina plus the announcement of $450 million World Bank load to be used on the improvement of infrastructure nationwide, Costa Rica undoubtedly offers a rich real estate investment environment.
However, for the time being palatial country homes, lovely beach houses and beautiful mountain cabins needs to give way to suburban housing solutions in different locations like Alajuela, Santa Ana, Ciudad Colon and La Guacima as they are currently at an all-time low.