Costa Rica: A Foreign Buyer’s Market
A resurgence of buyer confidence in the Costa Rican real estate market along with increased interest from investors in the U.S. and Canada signal now is the best time in years to invest in Costa Rica’s affordable, yet dwindling stock of beachfront real estate.
In a real sense, economic trends over the last three years have begun to tip off international investors and experts predict real estate prices could roll back as much as eight years in certain markets — great news for those looking to pick up a slice of paradise while the picking is good!
(To learn how you can take advantage of the current low cost of land and construction to build your own custom vacation home, visit our website, CostaRicanOceanHomes.com.)
While the U.S. continues to represent the majority share of foreign real estate investment in the “Pura Vida” country, recent data reveals that Canadians, too, are beginning to follow suit.
“We find that with the strong Canadian dollar, more Canadians are looking outside their homeland for investment with the promise of affordable living in paradise and a great escape from winter’s gripe,” said Brett Elliott, CEO of Costa Rica Real Estate (CRREC), one of the leading real estate firms in the country.
The CRREC also recently noted a 13% increase in the number of European visitors in 2013 compared to the previous year. There are a host of reasons foreigners are flocking to Costa Rica for vacation and retirement homes, but we can sum up a few of them right now.
7 Reasons Why Foreign Investors are Looking to Costa Rica for Beachfront Real Estate
1. U.S. Homebuyers Drive Up Property Demand
In recent years, price hikes on U.S. luxury real estate have encouraged U.S. homebuyers from coastal markets like California and Florida to find their ideal ocean view, beachfront property in Costa Rica. Not surprisingly, buying or building a custom vacation home in Costa Rica is generally a less expensive and yields greater value when compared to beachfront property in the U.S.
2. Steady Economic Improvements
Costa Rica’s housing market has been steadily improving since 2012 thanks to its strengthening economy and stable socio-political environment. Mixed with improvements in education, politics and the resource management, life in Costa Rica increasingly appears a welcome alternative to the Economic crises back ‘home’ to many foreigners on the cusp of retirement.
In general, unemployment in Costa Rica is down and overall GDP continues to rise — both these facts have been inspiring confidence in High Net Worth Individuals (HNWI) looking to invest in real estate away from home.
Here are some quit points:
- During the third quarter of 2013, the country’s unemployment rate fell to 8.9%, from 10% in 2012, according to the Instituto Nacional de Estadística y Censos de Costa Rica (INEC).
- The Costa Rican economy is projected to expand by 3.8% in 2014, according to the International Monetary Fund (IMF)!
3. Low Property Taxes
It’s a fact that’s attracted expatriates to Costa Rica for decades — foreigners are treated the same as locals when it comes to property taxes — as in, they don’t have to pay much at all! Give us a call for all the details: 1-800-870-1891.
4. No Residency Restrictions
Put simply, you don’t have to live here to own property.
(Great news if you’re looking for a vacation home!)
5. Best Housing Stock in Latin America
Less than 10% of Costa Rica’s available housing stock is considered to be in ‘bad’ condition, according to Global Property Guide, and 74% of the total housing stock is owner-occupied with 17% being rented.
Between 2000 and 2012, property in Costa Rica was, on average, 50 to 70 percent less expensive than in comparable markets in the U.S. according to World Property Channel.
Experts expect to see an increased interest in every level of Costa Rican real estate in the coming years, from lower priced properties to the ultra-upscale villas that dot the Gold Coast of Guanacaste.
6. Retirees are Flocking to Costa Rica
Where U.S. retirees once laid a nearly exclusive claim to the numerous plots Costa Rica land for sale all along the Pacific Coast and in the Central Valley, more and more baby-boomers from Canada and Europe are taking notice of the inherent value in investing in Costa Rica homes.
Those same individuals are discovering that life after a career, when spent in Costa Rica, can be as experientially richer than nearly anywhere else. Which leads us to #7 —
7. Amazing, Year-Round Climate and Natural Resources
For decades, Costa Rica was a secret escape for expats and travelers looking to tap into a lush, tropical environment unlike anything else on Earth.
Mountain ranges covered in misty rainforest run alongside vast tracks of flat farmland, both butting up against the most fabulous beaches the entire Pacific Coastline has to offer.
Wildlife and urban lifestyles can exist side by side, as Costa Rica consistently proves its dedication to controlled urban development and its own national park system, which is unrivaled in Latin America. Overall, this tiny country offers a level of biodiversity you’d be hard pressed to find anywhere else on the planet.
Altos Los Robles in Guanacaste
Property values vary greatly from region to region, but most investor interest has begun to shift from the Central Valley, the region surrounding the Capital City of San Jose to the developing Pacific Coast, which means finding beachfront property is only going to be more difficult in coming years.
More specifically, investors are looking to Costa Rica’s famed “Gold Coast,” or the Northern Pacific Coastline in the region of Guanacaste on the country’s North Pacific, which soaks up a lot of sunshine and the beautiful sunsets that come with them most of the year.
Guanacaste only has two seasons:
- Green (or Rainy) Season, which runs from Mid-April to early December, is characterized by early afternoon showers and stunning, colorful sunsets.
- Dry Season, which conversely runs from November to April (roughly), is the time of year when the sun comes out and doesn’t stop shining until the rains start again. While you’d think the sun beaming down everyday would create unbearable temperature spikes, it actually mixes with the cool breezes coming off the Pacific Ocean, which accounts for this regions year-round ‘perfect’ climate.
To learn more about the seasons and how they affect life in Costa Rica, read our previous blog post, “Retire to Costa Rica and Enjoy Perfect Year Round Weather.”
Interest in real estate and tourism has been booming in Guanacaste since 2002 following the completion of the Liberia International Airport (LIR), which offers direct flights from Los Angeles; Houston; Atlanta; Newark; Dallas; Miami; New York and Toronto.
Altos Los Robles is a fifty-five acre property situated on a plateau overlooking the Pacific Ocean at Playas del Coco , only 850 yards from the beach. The property has stunning ocean and sunset views to the West and beautiful valley and sunrise views to the East.
Give us a call at 1-800-870-1891 today to learn how $275,000 can get you on your way to your very own custom Costa Rica home.