Consider Costa Rica Real Estate PDF Print E-mail
Written by Victor Krumm   
Thursday, 04 June 2009 09:08
by VictorKrumm




One of the tiniest countries in the world, Costa Rica is famous for its sandy beaches, picturesque coastal landscape, and its incredible diversity of plants and animals. In fact, though it is only about the size of West Virginia, nearly one of every five plant and animal species on the face of the globe are found in Costa Rica. Tourists flock to this little country in droves each year making it one of the hottest tourist destinations in Central America. Most visitors are from America and Canada, of course, but there are also thousands of European travelers. In order to cater to the booming tourism industry, hotels, restaurants, pubs, shopping malls, and other tourist attractions have popped up alongside beaches and other hot spots. This in turn has caused a sharp rise in Costa Rica real estate value over the last ten years owing to the fact that land is one commodity that is not plentiful in Costa Rica, a country with just one tenth of one percent of the world's land mass.

The north and central Pacific coast, in particular, with its great weather and many attractions, has been the most popular area for tourists for a number of years. The need for developed property catering to the needs of the growing number of visitors has seen a sharp rise in prices of real estate there. Hotels, resorts, restaurants, bars, and places for daytime and nighttime fun have sprung up dramatically. This has led to an acute shortage of land in some places that has brought increased upward pressure on land prices.

For more and more Americans, Canadians, and Europeans, Costa Rica is seen as the ideal place to spend their retirement years. With lots of sunny and sandy beaches (nearly 800 miles of coastline and most beaches virtually deserted), beautiful mountains always close at hand, nice weather, a stable and democratic political system, low crime rates, excellent medical and dental providers and facilities, and high human development indices, it is a prime draw for retirees. An increasing number of investors have seen the potential of real estate development in Costa Rica and putting money into real estate.

Costa Rica real estate has been, and continues to be, a good investment because the country has a very stable political system and a growing economy. Unlike Mexico, foreigners can own free title to land. The crime rate in Costa Rica remains low, though increasing, and human development indices are very high compared to other Central American countries. The tourist influx has also seen the country evolve to accommodate the international community. More and more international investors have come to the conclusion that Costa Rica is a great place to invest in real estate and their returns on investment have borne out that faith.

Of course Costa Rica has felt the impact of the severe economic downturn in the States and Europe. Sales of condominiums and single family homes for expats or as second homes in subdivisions have slowed dramatically and in some areas along the Pacific coast cash-strapped Americans are selling their tropical homes at steep discounts.

However, many experts predict that the boom will resume in the coming years. Costa Rica will continue to draw tourists and retirees from America, Canada, and Europe. Savvy investors often pool their money to form real estate ventures with, up to now, assured returns. Indeed, many folks who invested in Costa Rica real estate a decade ago have seen their investment soar. To be sure, the economic woes in the States and Europe are felt here now but the price stagnation or decline is temporary and will form the basis of a great recovery.

The beach properties along the Pacific coast have seen, and will probably see, the largest increase in prices over time. The Caribbean coast remains relatively undeveloped. Certainly prices there, like all of Costa Rica, are rising but not nearly as much as on the other coast (which, of course, means that stress on prices have been less lately than on the Pacific side). And, as more and more Ticos move from the country into the big urban area around San Jose, available prime property has become increasingly scarce. Demand remains strong in the urban areas and, for more and more expats who live in Costa Rica, the amenities and climate around San Jose are proving irresistible.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

The author, Victor Krumm, writes from sunny Costa Rica and has an informative websiteCosta Rica Vacations. Check out the prettyCosta Rica Real Estate This and other unique content 'costa rica real estate' articles are available with free reprint rights.