Real Estate Market in Costa Rica
“It’s tangible, it’s solid, it’s beautiful. It’s artistic, from my standpoint, and I just love real estate.”
Whether you like him or not, Trump is a real estate mogul and he is, without a doubt, right. Real Estate may have highs and lows in the market, but over long periods of time, always is a good, sound investment. In Costa Rica, Real Estate is always on the uptick. Click Here for a growth chart of Private and Public works in the Greater Area Metropolitan (GAM) over the last 3 years.
With 2 free trade zones known as Zona Francas, and 1 under construction, the Commercial sector, both public works and private works is strong in Costa Rica. With a rise each year in expenditures, Government projects in 2016 maintained stability due to the financing of large developments such as the Reventazón Hydroelectric Plant in the Caribbean region and the City Mall in Alajuela. 2017 already has 14 real estate commercial projects underway. One of which is Escazú Village in which there is an investment of over $100 million, according to Colliers International. Costa Rica’s economy is stable with steady GDP growth projected through 2017.
According to CentralAmericadata.com, 3 private medical centers are planning to invest $55 million in the renovation and construction of infrastructure in the next 5 years. In the district of San Rafael Escazú, San José province, an application was filed to construct a project called “Oficentro GTU” and according to the document a global investment is foreseen of $34 million. All of this positive expansion in the economy will undoubtedly boost Medical Tourism, jobs and real estate development and sales again during and upon completion.
Costa Rica already has a high GDP and all this booming economy and construction lends to the future of the real estate market. There are also 2 appealing free zones in the Coyol Zona Franca and Cartagos’ Zona Franca enticing investors and large corporations to build free trade commercial empires; plus an up and coming Green Valley in Alajuela which is said to also operate as a free trade zone. Welcome to the future. Contact us to discuss your project.
In the Residential front, sales are strong and steady. Costa Rica’s higher-end property market continues to grow rapidly as foreign home buyers flock in. The Central Valley has a temperate climate great for year-round living with little to no need for air conditioning, and offers easy access to San Jose, the country’s capital and the Juan Santa Maria International Airport. San Jose is experiencing a downtown revamp, building parks; improving water and drainage systems; and improving traffic management. In addition, the construction of the US$1.3 million “Chinatown” project, covering 8,300 sq. m., was completed in 2012. Just a half-hour away from the capital are the mountains of Heredia to the north, Alajuela to the northwest and Cartago to the east with a commercial hot spot free zone and small-town charm. The warm climate on the hills of Escazú, west of San José, is another favorite with North American expatriates, although location comes with a price. The Coyol not only offers new residential projects, but is another hot spot for commercial growth and large corporations with the zona franca. Guácima is booming with developments, country clubs and day cares, perfect for the suburb lifestyle, just outside the big city. Ciudad Colon, Turrúcares and Atenas are within a short drive to the city offering more space and views for affordable prices and are growing in popularity, especially considering they are on the way to the beautiful beaches of the Central Pacific Coast.
The Central Valley has the highest number of developments underway, especially in places such as San José, Alajuela and Heredia, according to The Association of Engineers and Architects and the National Statistics Institute. In fact the pre-crisis construction boom has made houses more affordable. Buyers can have a decent house for as low as US$50,000 up to US$250,000 in Tico neighborhoods. Low-end condominiums sell at a minimum amount of US$150,000 in Ezcazú and Santa Ana. The real estate market in Costa Rica is booming! What are you waiting for?