The Market In Costa Rica
Costa Rica has been an attractive location for real estate investment and as a developing country renowned for its biodiversity and neural landmarks. In recent years, Costa Rica’s economy has been growing rapid and steadily by 3%` annually. The real estate market has become a significant contributor to the country’s GDP and foreign investments and tourism is helping Costa Rica be how it is today. This article aims to identify the key trends in Costa Rica’s residential and commercial real estate between 2010-2021.
Real Estate in Costa Rica
Costa Rica is located in Central America, bordered by Nicaragua to the north, the Pacific Ocean to the west and southwest and the Caribbean Sea to the east. The country’s population grew from 4.7 million in 2010 to 5.1 million in 2021, with over 570,000 foreigners residing in the country and 15% being United States citizens.
Th growth of foreign investments has boosted the country’s economy. Real estate building is a significant portion of the foreign investment pool.
Costa Rican Residential Real Estate Trends
Costa Rica has one of the most stable and hottest real estate markets in Latin America. Costa Rica’s real estate sector alone contributed to over 8% of the country’s GDP in 2020. The country’s peaceful and political stands are stabling the environment and attracts a high number of retirees, expatriates, and foreigners looking to invest in residential real estate. The following trends in residential real estate include:
1. The growing of gated communities - Real estate developers have been building high-quality gated communities in Costa Rica, making affordable housing accessible to many people.
2. Increasing dependence on technology – With the COVID-19 pandemic, potential real estate buyers shifted to virtual home tours and meetings with real estate agents online. Many Costa Rican real estate companies noticed this phenomenon, resulting in the introduction of virtual reality tours for properties, making the buying process more convenient for offshore buyers.
3. Eco-friendly and sustainably built homes – Eco-friendly real estate has been on the rise with demand from real estate buyers for environmentally sustainable, energy-efficient homes. Costa Rica’s government promotes sustainable building of homes and the creation of affordable energy-efficient housing.
Costa Rican Commercial Real Estate Trends
Costa Rica’s tourism sector is the second-largest source of foreign exchange after technology-based services. This is why commercial real estate plays an essential role in the country’s GDP. The Costa Rican government highly supports the commercial real estate market. By passing many laws in promoting safety and investments The trends in the commercial real estate market include:
1. Co-working spaces - Co-working spaces have gained traction in the commercial real estate industry of Costa Rica, providing different ecosystems for startups and entrepreneurs.
2. Retail spaces – Retail spaces growth has grown massively in Costa Rica, wi
th developers constructing shopping centres and plazas catering to the country’s growing population.
3. Medical tourism – Costa Rica’s medical tourism industry has grown, with many foreigners traveling to the country for medical procedures. This has led to the growth of both medical and hospitality infrastructure with several new hospitals, clinics to allow for the recent and upcoming growth.
Costa Rica’s real estate market has significantly grown consistently for the last decade, attracting investments from foreign investors and expats. With foreigners buying properties for vacations, retirements, and as secondary homes Costa Rica's economy has been boosted. While the real estate trends differ in residential and commercial spots, the stable market will continue to attract foreign investors interested in different aspects of the market. However, cautions should be taken when investing in real estate. Because of the devaluation of the country's currency, the government's introduction of loans and tax restrictions may have a big impact on the market.
