The Costa Rica real estate market was booming for years prior to the global financial crises and took a major hit as did the rest of the world. Currently the market is recovering, prices have stabilized, and future outlook is extremely positive. Joshua Kanter of United Country – Properties in Domincial discusses the current Costa Rica real estate trends and investment opportunities in the Southern Zone.
Playa Dominical, Costa Rica (PRWeb) November 30th, 2012
Costa Rica has historically been a profitable real estate investment with 15%-20% year over year returns from 2000 to 2008, until the financial crises hit the U.S. and rest of the world. This once hot and booming market drastically cooled with a downward turn. This has caused previously over inflated real estate prices to drop to realistic and fair market values over the past few years. The result; prices are the most affordable they have been in years and investors once again are buying homes and property with the opportunity for future gains.
Foreign Direct Investment (FDI) in Costa Rica reached record levels in 2011 and is expected to outperform those numbers for 2012. *see graph from AM Costa Rica
International Living’s Ronan McMahon ranked the Southern Zone of Costa Rica 3rd of 27 on the list of “The World’s Best Real Estate Markets for 2012”. The results were based on the following criteria:
“The top ﬁve places in this Global Real Estate Index are all fast-emerging beach locales. These are places on the up…where it’s still not too late to get in. Each offers outstanding natural beauty. Real estate prices are affordable. And something is happening that I believe will push prices higher. These are places where you can work with reliable contacts; your rights are enshrined in law and the costs of buying, selling, and holding real estate range from ridiculously low to affordable.”
Ronan McMahon’s conclusion for the Southern Pacific Zone of Costa Rica was as follows:
“…Costa Rica’s Southern Zone stayed off the radar, though. And it’s nicer than up north, the area most folks know.
Bright, thick, green jungle canopy rolls down to a coast of sandy beaches and rocky points. It’s truly stunning. And, while prices in other parts of the country soared, prices here stayed low. It was difficult to get to. But a new, smoothly-paved coastal highway has changed that…
…It’s very good value for money. Because of the new road, I expect prices will rise. And that makes the appreciation potential strong, too.”
Costa Rica has been ranked the best country for real estate investment for the upcoming 2013 year according to International Real Estate Investments Magazine. Not surprising considering the stable government, property rights for foreigners, and close proximity to the U.S. and Canada. Additionally, the Baby Boomer generation is beginning to retire with many looking for opportunities abroad and this trend will continue to propel the Costa Rica real estate market for years to come. The Southern Zone is poised for the greatest potential increase and return on investment due to advances in infrastructure, increased worldwide recognition, and ideally tropical setting.
Joshua Kanter of Dominical Property, S.R.L. predicts a positive trend in the coming years, “We have seen an increase in inquiries and buyers on the ground this past year and are optimistic for the upcoming 2013 high season and beyond. Most of the ‘Fire Sales’ have been bought up, although there are still great deals depending on an individual seller’s financial position. The Southern Zone is Costa Rica’s last frontier and the real estate market with the most potential upswing for investors. If the planned International Airport for Southern Zone becomes a reality; that will be the ultimate game changer for this area as it was for the International Liberia Airport in the Northern Zone.”