A recent study by San Jose-based CRREC found that despite pressure from rival markets like Panama, the Costa Rican real estate market is showing signs of significant interest in the pre-built construction of coastal gated communities.
The study by Costa Rica Real Estate includes data on market size (both volume and value), top competitors, important financial metrics, and a thorough analysis of the competitive pressures Panama will face in the years to come. The report also contains growth forecasts for the 2014–2015 season, along with trend information from numerous reliable sources.
Recently, Costa Rica elected a new president. While many people think the change in government will stimulate the economy, others are still pessimistic in light of recent announcements from Intel and HP that they will be ceasing operations there.
Many people cite reports of rising sales and falling interest rates in the real estate industry as signs the market is experiencing an upward trend.
“Normally come this time of year [June] we see a drastic decline in interest from foreign investors however this year it appears to remain consistent with earlier years where sales were strong straight through,” said one agent cited in the study.
The Guanacaste region received the most attention from the study, despite the fact that it covers a variety of topics of interest to investors.
The Liberia International Airport’s expansion, the thriving luxury resort market, which includes hotels like the Westin Conchal and RUI, and, of course, the “high roller” investors who are putting money into the Flamingo marina and future Hard Rock projects, are just a few of the factors that contribute to the region’s strength. In fact, the study’s most notable finding was the emergence of a trend for low- to medium-priced gated communities near the coast.
The report also delves into defining emerging segments and provides analysis and projections for the upcoming 2015 season.
The housing market [pre-built construction], which accounted for 62.35% of all real estate transactions from the period between June 2013 and the present, experienced the greatest growth throughout the 2014 season. The trend is anticipated to increase as the market transitions into the upcoming high season, reaching a projected 65%.
A startling statistic from the study reveals a growing pattern of expatriates choosing the more developed neighboring nation of Panama. For many years, Costa Rica and Panama have competed head-to-head over tourism and the economic benefits of drawing in foreign investors. Major corporations relocated their operations to other developing markets in Asia during the administration of the previous president, Laura Chinchilla, causing the nation to take a step backward in this direction.
Professionals in Costa Rica’s real estate industry are still confident that the country can regain some of the ground it lost to Panama with the help of the newly elected ruling party. The report’s use of forecasts to back up the theory of growth through the 2015 season.