Costa Rica Real Estate – Why Is It So Popular?

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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.

Costa Rica is a tiny country with its land mass constituting just one tenth of one percent, 0.1%, of the land on the planet. This relative scarcity of available real estate in the face of development growing out of tourism has led to a boom in the real estate business over the last decade along the coasts, in the mountains, and in urban areas.

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.

A number of years ago, the country realized the benefits of sustainable development and tourism. Unlike many other countries, Costa Rica has learned the lesson that unregulated exploitation of resources is ultimately detrimental. Wisely, in the face of sometimes intense pressure, it refuses to allow oil exploration off its coasts. Tropical forests, once cut or burned for little farms, are returning. As more and more of the international community is encouraged to visit, investors from around the globe have found that Costa Rica is a wonderful real estate market. And, indeed, over the last decade there has been a real boom in development along the Pacific coast.

How has the economic downturn in the States and Europe impacted Costa Rica? Not surprisingly, subdivision and condominium development have dramatically slowed or even been put on hold, and in some parts along the Pacific coast American second-home buyers, now cash-strapped, are listing beautiful properties at huge discounts. These are properties that were by American and European land prices good buys when made. Now they have become extraordinary opportunities.

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.

Most investors and many folks buying second or retirement homes prefer the more developed Pacific coast. Prices have risen the most there due to the increased demand though some of the most developed there are temporarily witnessing some declines in prices. The Caribbean coast is not very developed yet and prices are often substantially lower than on the Pacific. Though most tourists head west, nearly 40% of the country lives in or around San Jose, the capitol city, and real estate prices there have not been significantly affected by the world’s recession because available land is at a premium as more and more Ticos move from the country to the city.

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