Real Estate Investment Triples
[COSTA RICA]
By: Leif Holtzman
The latest study conducted by Costa Rica's Central Bank indicates a dramatic increase in foreign investment compared to last year's figures. A local paper reports that according to the Bank's estimates, private individuals and developers combined, acquired at least $192 million U.S. dollars worth of Costa Rican real estate, largely consisting of condo purchases, during the first three months of 2007. This figure is nearly triple the amount estimated to have been invested during the first three months of last year, which was somewhere in the range of $70 million U.S. These estimates do not include condo purchases under $100 dollars U.S., nor do they pertain to hotel sales or money invested in the tourism sector. As of October of last year, Costa Rica ranks third in Latin America in terms of direct foreign investment per capita, according to the United Nations Developed Program.
So what are the major factors driving Costa Rica's seemingly unstoppable real estate boom? Why are big money developers and small time investors alike scrambling to get a hold of property in what a recent CNBC On The Money report entitled "Paradise Found" touted as "...one of the hottest real estate markets on the face of the planet"? The answer is simple. A fabulous climate, world class beaches, a stable, democratic government, friendly natives and a steadily growing economy make Costa Rica the ideal destination for retirees, vacationers and condo buyers alike. These factors combined with affordable yet rapidly increasing real estate prices and a legal system that favors property acquisition by foreigners make investing here a no-brainer.
Recent studies have also shown that the hottest areas in terms of real estate investment and condo development are primarily located along Costa Rica's Pacific Coast, where undeveloped beachfront property ,( now practically impossible to find), goes for an average of $1000 per square meter ( roughly $100 per sq. foot). Two bedroom beach front and ocean view condominiums, most of which are in the $350,000-$500,000 range, but can sell for upwards of a million U.S. dollars in some of the Central and Northern Pacific's more exclusive areas, are also a hot item; in addition to spectacularly built and lavishly equipped single family homes and villas, which are popping up left and right.
While most condo buyers are simply looking for an investment opportunity, something that will generate a steady source of short term income from rentals and produce large returns in the future, more and more foreigners, particularly Americans from all walks of life, are setting up shop in Costa Rica. The burgeoning expatriate community, whose population some recent estimates place at around 100,000, is a direct consequence of the recent surge in the tourism sector, which constitutes this small Central American nation's driving economic force.
Does it sound too good to be true? Well there is one down side for investors seeking to put their money to work in Latin America's hottest real market. The availability of affordable beach front and ocean view property is rapidly diminishing, while condo prices are skyrocketing. In Jaco Beach, one of the Central Pacific's hottest up and coming real estate enclaves, two bedroom beach front houses were going for about $350,000 less than a year ago, while condos went for even less . It is now almost impossible to find a two bedroom condo in the same area for under a half a million dollars. That's great news for those people who already own property, but if you're just now looking to get in on the condo action, you'd better act fast because you might just miss the boat!
Costa Rica Condos For Sale
By: Leif Holtzman
The latest study conducted by Costa Rica's Central Bank indicates a dramatic increase in foreign investment compared to last year's figures. A local paper reports that according to the Bank's estimates, private individuals and developers combined, acquired at least $192 million U.S. dollars worth of Costa Rican real estate, largely consisting of condo purchases, during the first three months of 2007. This figure is nearly triple the amount estimated to have been invested during the first three months of last year, which was somewhere in the range of $70 million U.S. These estimates do not include condo purchases under $100 dollars U.S., nor do they pertain to hotel sales or money invested in the tourism sector. As of October of last year, Costa Rica ranks third in Latin America in terms of direct foreign investment per capita, according to the United Nations Developed Program.
So what are the major factors driving Costa Rica's seemingly unstoppable real estate boom? Why are big money developers and small time investors alike scrambling to get a hold of property in what a recent CNBC On The Money report entitled "Paradise Found" touted as "...one of the hottest real estate markets on the face of the planet"? The answer is simple. A fabulous climate, world class beaches, a stable, democratic government, friendly natives and a steadily growing economy make Costa Rica the ideal destination for retirees, vacationers and condo buyers alike. These factors combined with affordable yet rapidly increasing real estate prices and a legal system that favors property acquisition by foreigners make investing here a no-brainer.
Recent studies have also shown that the hottest areas in terms of real estate investment and condo development are primarily located along Costa Rica's Pacific Coast, where undeveloped beachfront property ,( now practically impossible to find), goes for an average of $1000 per square meter ( roughly $100 per sq. foot). Two bedroom beach front and ocean view condominiums, most of which are in the $350,000-$500,000 range, but can sell for upwards of a million U.S. dollars in some of the Central and Northern Pacific's more exclusive areas, are also a hot item; in addition to spectacularly built and lavishly equipped single family homes and villas, which are popping up left and right.
While most condo buyers are simply looking for an investment opportunity, something that will generate a steady source of short term income from rentals and produce large returns in the future, more and more foreigners, particularly Americans from all walks of life, are setting up shop in Costa Rica. The burgeoning expatriate community, whose population some recent estimates place at around 100,000, is a direct consequence of the recent surge in the tourism sector, which constitutes this small Central American nation's driving economic force.
Does it sound too good to be true? Well there is one down side for investors seeking to put their money to work in Latin America's hottest real market. The availability of affordable beach front and ocean view property is rapidly diminishing, while condo prices are skyrocketing. In Jaco Beach, one of the Central Pacific's hottest up and coming real estate enclaves, two bedroom beach front houses were going for about $350,000 less than a year ago, while condos went for even less . It is now almost impossible to find a two bedroom condo in the same area for under a half a million dollars. That's great news for those people who already own property, but if you're just now looking to get in on the condo action, you'd better act fast because you might just miss the boat!
Costa Rica Condos For Sale
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