Paying attention to trends in the real estate market in Costa Rica can help make successful decisions and purchases. It doesn’t take a real estate genius to spot trends in the real estate market; but rather the knowledge of what to look for. As the global financial market continues to rebound since the crisis of 2008, the Costa Rican real estate market is also rebounding for 2014. Many properties are still undervalued which has investors, retirees and expats making purchases in Costa Rica. The biggest trends to watch include the demographics, the existing and planned infrastructure changes, and the current demand for property.
With the new wave of baby boomers retiring in the United States and in Canada comes a new wave of buyers in the Costa Rica real estate market. Retirees are one of the largest groups driving real estate trends not just in Costa Rica, but throughout the world. Costa Rica has always been a hot spot for retirees and now that the financial situation in the U.S. and Canada is looking better than it was a few years ago, those retirees are setting their sights on overseas retirement yet again. Areas that already have a large community of retired expats are seeing more new arrivals in 2014. Populations with a good mix of people are strengthening the real estate market because the diversity is helping keep prices affordable. Young families throughout Costa Rica are beginning to form a very strong middle class and they are looking at buying homes away from San Jose and the Central Valley. This factor is also changing the prices of property available along both the Pacific coast as developers are targeting the local population, not just the expats.
The next key to the real estate turnaround for 2014 is infrastructure. The Guanacaste region of Costa Rica saw a marked jump in real estate after the complete overhaul of the Daniel Oduber International Airport. Now, there are plans for another international airport located in the Southern Pacific region of Costa Rica. A new airport, plus plans to improve the roads linking the Puntarenas Province to San Jose will drastically change the real estate market in that region of the country. The Limon Province on the Caribbean side of the country is currently involved in a port expansion project, another huge infrastructure change that will affect real estate on the Caribbean Coast as well. While these projects will most likely drive up the cost of real estate in these more remote regions, they will also likely drive down the cost of real estate in more popular regions, as the need to be competitive becomes apparent.
And finally, the supply and demand of real estate is something to consider. The most basic trend in all economics and one that will change in light of both retirees flocking to the shores of Costa Rica and new roads, ports, and airports. Looking for property in an ideal location would mean one where the demand is high, but the supply is shrinking. If there are good deals out there with the supply that still exists, the market will only see the prices rise from then on. But, consider that new developments and an over-supply of houses, if the demand is not there, will cause devaluation over time.
Punta Playa Vistas is an eco-conscious development located along the Pacific Coast that is popular with expats looking to relocate to Costa Rice where they offer both ocean view condominiums and luxury home sites at an affordable price.
Visit http://www.puntaplayavistas.com/locations/tamarindo/ for more information.
Name: Christian Desmond
Organization: Punta Playa Vistas Community
Phone: (732) 962-6520 U.S. (506) 8349-2025 CR
Address: Tamarindo Costa Rica