Sometimes it appears that everybody has been harmed by the recent recession. Certainly, Costa Rica has not been immune from the severe recession in America and Europe. Real estate sales of condominiums and single family homes for expats or as second homes have slowed dramatically and in some areas along the Pacific coast cash-strapped Americans are selling their tropical homes at steep discounts.
Why was real estate there so popular in the first place?
One of the smallest countries on the planet, this Latin America country is popular because of its tropical beaches, picturesque coastal landscape, and its extraordinarily diverse fauna and flora. Indeed, though it is only about the size of West Virginia, nearly one of every five plant and animal species on earth are found in that Central American country.
Additionally, with the Atlantic and Pacific oceans bordering its east and west coasts, there is world famous Costa Rica fishing, diving, surfing, and sunsets, not to mention great parks and volcanoes.
Tourists flock to it in droves annually for Costa Rica vacations, making it one of the most popular tourist destinations in Latin America. Most visitors are from America and Canada, of course, but there are also thousands of European travelers. To help it serve the booming eco tourism, medical tourism, and vacation industries, tourist amenities have popped up on both coasts. This led to a sharp rise in Costa Rica real estate value over the last decade or so since land is one commodity that is not plentiful there.
There is more, Costa Rica was one of the world's first countries to understand the importance of sustainable development. That appeals to many tourists. The country has adapted to its tourist patronage by developing and welcoming the international community. Condo construction, single family homes, and subdivisions catering to expats accelerated dramatically in the last several along the Gold Coast. With that boom came increased land prices.
Additionally, more and more Americans, Canadians, and Europeans see it as the perfect place to spend their retirement years. With lots of sunny and sandy beaches, nearly 800 miles of coastline, beautiful mountains always close at hand, year round great weather, a stable and democratic political system, low crime rates, excellent medical and dental providers and facilities, and high human development indices, many other people like to have a second home there, too.
What parts of Costa Rica have been the most popular for buyers or investors of Costa Rica real estate?
The north and central parts of the Pacific coast, in particular, with great weather and many attractions, has been the most popular area for Costa Rica vacation tourists for a number of years. The need for developed property meeting the needs of the growing influx of vacationers and expat community has led to a substanial rise in prices of real estate there. Hotels, resorts, restaurants, bars, and places for adult and family oriented fun have sprung up dramatically. This has led to an acute shortage of land in some places that has brought increased upward pressure on property prices.
San Jose and environs have also been popular places because of the many conveniences like great malls, shopping, and terrific weather. About 40% of the country's population centered near its capitol city, and increasingly short supplies of land, property values have been less adversely affected than the Pacific Coast.
What are the future prospects?
Despite today's uncertain economic climate in the West, the general perception is that there will be a substantial turn around in Costa Rica real estate.
Why? One reason is that, compared to North America and Europe, real estate prices, particularly on sunny, tropical coastlines, are not yet out of this world, just a fraction of the cost elsewhere.
Second, the country has long been favored by foreign countries and investors. America and Europe have long been important business partnersand many international companies have substantial and growing there. Intel has large computer chip plants that now produce more revenue for Costa Rica than any other source. Walmart owns nearly every grocery chain in the country and is building large stores in many places. Hewlett Packard has a large presence. And dozens of other world class companies, as well. Many of these companies have been substantially increasing their work forces in Costa Rica even as they are reducing their American and European employees.
Not to mention China. Its presence is increasing substantially, as well. It has taken advantage of the softening of Costa Rica real estate prices and investing. There are now thousands and thousands of Chinese living in this little country.
About the writer: Vic Krumm lives in sunny Costa Rica. Visit his acclaimed website about Costa Rica Vacations and see why Costa Rica tourism is world-famous.
No comments:
Post a Comment