Why Costa Rica Real Estate?
Investment Security
ROI
Consistent and supportive measures by the Costa Rican regulative bodies, the government and major banks have provided security and confidence to the international real estate buyer interested in Costa Rica. Listed in the top 5 among over 150 countries studied by several environmental agencies including the 2008 Environmental Performance Index (EPI), Costa Rica gives an admirable level of respect and consciousness to the value of their pristine beaches, jungles, rainforests and enormous bio-diversity. Low property prices, property taxes and an affordable lifestyle in a friendly and safe tropical country have been attracting US and European baby boomers in significant numbers. Due to its proximity to the equator, the affordable oceanfront real estate is hurricane-free.
These are some great enabling factors to a real estate investment with a high return on investment, but with respect to ROI the numbers, past, present and future, tell the full story. New developments in the Central and Southern Pacific coasts host lots that have yielded 15%-40% appreciation per year for the last ten years. Stand-alone homes and their lots have appreciated by 10%-30% during the same period. Improvements in infrastructure like paved roads, state electricity and high-speed internet have enabled quality of life to improve astronomically. In undeveloped areas and pre construction developments returns of 40% or more can be expected. Actual ROI depends upon the true value of the land and the price. Proximity to modern convenience, ease of travel, natural features and utility of the land factor into ROI potential. With enhancement of these categories as a major priority of the Costa Rican government, investors in Pacific Coast real estate are reaping the benefits and the long range forecast shows no deviation in this trend.
International hedge fund managers and economic experts project over 15% appreciation in the next five to ten years in many of the under-developed regions along the Pacific coast. The world economy, Costa Rican culture, and the demand for inexpensive tropical and beach front property will drive this trend in the future. Costa Rica is fourth in the world in foreign investment by percentage. A third international airport is under construction in southern Costa Rica. The forecast for ROI in Costa Rican real estate is favorable.