The Case for Costa Rica

February 15, 2014

 2014 Projected To Be A Good Year For Costa Rica Real Estate Investment, The Costa Rica News
by: Jason Clements, Real Estate Consultant

As one of the most economically and politically stable countries in Latin America, Costa Rica is viewed as a safe bet. We will examine below why now is the best time to get a slice of the action. From its political to natural landscape, there are many reasons why Costa Rica is viewed by investors as one of the safest emerging markets to expand their real estate portfolio. Its exports remain strong, tourism numbers are at record level, and the country has one of the highest levels of foreign direct investment per capita in Latin America.

The financial crisis did have an impact on the market, but prices have stabilized in recent years. Foreign investors have been capitalizing on this particular market of late, with purchasing activity already up 14 per cent in the first quarter of 2013, compared to the same period last year. Economically, Costa Rica’s GDP is expected to rise, which will fuel investor interest. The IMF indicates that the GDP will increase by 4.2 per cent in 2013 and 4.4 per cent in 2014.

In the aftermath of the global crisis, overinflated real estate prices dipped to more realistic and fair market values. Interest for purchasing real estate in Costa Rica has steadily increased the last few years, especially with the newly renovated Daniel Oduber Quirós International Airport in Liberia, providing easy access to the Guanacaste region. The demand for short-term vacation rentals in the area continues to lure foreign investors looking for income producing properties. As the US economy continues to rebound from its recession, we continue to see more American Buyers reengaging in foreign markets.

There have also been an increasing number of Canadian and European Investors buying land and businesses in Costa Rica to build their own businesses. Guanacaste seems to have become a hub of foreign entrepreneurs looking to develop their own businesses abroad. This diverse mixture of property and business owners in the Tamarindo area is what drives the local economy and continues to attract the adventurous from all around the world. Long-term investments will yield the best results; so, as the market has now found its footing, now is the time to act.

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