It’s no secret that back in the mid-90s the Costa Rica real estate sector was an emerging market. So much so that it caught the attention of NBC whereas they labelled it the “Hottest Real Estate Market on the Globe.”
Since those days, many circumstances and events have arisen that put most of the world in to a depressed financial state – Costa Rica was no exception.it the hottest real estate market on the planet!
However 2012 was yet another emerging year and real estate agents and brokers across the country began to see promising signs. The return on real estate investment is typically far quicker than other assets including the economy. It should come as no surprise that for years, savvy investors have leveraged real estate to hedge inflation and struggling economies world-wide. Considering real estate is a hard asset, this means it will retain a value independent of any paper currency and it’s nominal value
Here are 3 reasons why 2013 will be a big year for Costa Rica real estate…
- A record number of tourists arrived in 2012 and as is the case in any country, with increased tourism comes increased interest throughout a variety of sectors – in our case – most importantly the real estate sector. Forecasts are showing that 2013 will only improve upon what we witnessed in 2012.
- North American mortgage rates are at record lows and this stimulates home buyers who are more likely to consider leveraging their assets to invest in the more lucrative Costa Rica real estate segment. A record low unemployment rate in the US has also stimulated greater interest in off-shore investing from mid-class Americans.
- Protecting your hard-earned cash has become essential in today’s harden economic climate, and with that, people begin to look outside the box for viable options at securing their – and their children – futures. For years now creative developers and Costa Rica real estate agents have been sharing the gospel of utilizing ones 401K or IRA in order to purchase real estate in Costa Rica.
While this may or may not be an accurate prediction of what’s ahead, the truth of the matter is, we are seeing a rise in interest throughout many internal segments of the real estate market including condos, fractionals, vacation rentals, luxury real estate and large development projects. Another thirst market appears to be the commercial sector which thrives mostly within the Central Valley – most particularly in San Jose, the business hub of Costa Rica.