The real estate market in Costa Rica is thriving in 2017. Agents at Luxury Property Costa Rica, a subsidiary of long time real estate servicer for the Costa Ballena Region, Osa Tropical Properties in Ojochal, Costa Rica are advising their buyers that now is a good time to invest in this sector. Current market trends are on the rise and Marcia Oro, a real estate expert and investor in the Costa Ballena region of Costa Rica since 2010 is convinced that dividends will increase.
The Great Recession of 2008 presented the local market with a lingering lull, but the property market is heating up and will only get hotter, especially in the high-end bracket. Foreign buyers continue to arrive with the hopes of acquiring a slice of paradise at the bottom of the market, but as popularity grows, so will the prices.
“If you want a vacation home in Costa Rica, 2017 is likely to be your best chance to catch a deal,” suggests Oro.
Properties are still rebounding since the recession hit and the Canadian dollar is still low, making Canadian sellers (a large proportion in the Costa Ballena) highly motivated to make the strong U.S. dollar exchange.
The Costa Rican market lags a few years behind North America. It began heating up in 2013 in the Costa Ballena region of Costa Rica, according to local sales records and prices are anticipated to rise in late 2017 and into 2018. The housing market in Costa Rica nearly stalled after the 2008 global financial crisis but prices in early 2017 are still affordable compared to before 2008.
“Our region is seeing more buyers and many deals,” says Kevin Champagne of Osa Tropical Properties. “Land is being developed again and new condos are being built due to the increased confidence in the market. Real estate and construction starts are stronger than they were during the boom of 2004-2007 and we are excited for what’s to come.”
Retiring in paradise
Many more U.S. homeowners are interested in buying property abroad, according to the most recent International Home Buying Survey from the National Association of Realtors. This increase is largely attributed to baby boomers approaching retirement age and becoming interested in securing a retreat destination. Latin America holds the most interest for U.S. buyers, with price, proximity and weather being the major factors for drawing investors. The weakness of the Colon (Costa Rican currency) makes living in Costa Rica desirable in relation to stronger currencies.
Costa Rica has open investment and trade policies and is known as the most politically stable country in Latin America, making property investment highly attractive to international buyers and affluent Costa Ricans. Americans dominate the second-home market in Costa Rica and furnish the local economy with the largest number of tourists coming into the country. There are numerous direct flights from major cities in the U.S., making this an easy destination to visit.
Strong interest is growing from European buyers who are being increasingly opened up to this region with direct flights coming into Costa Rica from six major European ports, including London, Paris and Zurich.
Buyers often first come as vacationers, falling in love and finding themselves wanting to buy.
The first world economies of the world are becoming increasingly expensive, and hostile political climates are on the rise, making many consider expatriating. Recent changes to the world establishment and currency shifts may represent uncertainty for many investors, but for some of the more savvy, these circumstances represent a buying opportunity. The U.S. rate rise in early 2017 has resulted in a stronger U.S. dollar., further devaluing the Colon and making purchase in Costa Rica that much more desirable.
There is a strong diversity of property options for investors and many are opting to buy their vacation home in Costa Rica, where investors are free to use their property in any way they choose. There is no need for residency status to buy real estate, which can be purchased under an anonymous corporation.
Beach properties are more affordable in Costa Rica than comparable properties in the U.S., positioning the nation second behind Mexico for top interest from U.S. foreign home buyers. Sales volume has increased by around 60% in the Costa Ballena, according to the team at Osa Tropical Properties. Newly constructed homes can be less than half the price of similar properties in the warmer, coastal areas of the U.S. Exceptional value can still be found on high-end properties along the Pacific Coast, especially in the region of Costa Ballena.
If you are considering investing in foreign real estate, Costa Rica is a world-class option, with mountains, jungle, surf and climate all testing as some of the most preferred by travelers and investors alike. Follow your dreams to this luxury destination that you will love for years to come.