It came as little surprise when I heard the news that several regions in Costa Rica had topped the Global Real Estate Index. On the 27th March the highly esteemed online resource, International Living, featured an article in which Ronan McMahon placed the Southern Zone in his top three best real estate markets for 2012. Furthermore, Arenal was awarded 8th position and the Caribbean coast 20th position.
In compiling his Global Real Estate Index, McMahon explains, “In pockets all across the planet, you’ll find amazing opportunities to make money from real estate. I’m talking about beautiful places tucked into lush jungle-clad hills, on white sandy coves, in bustling cities, and in small colonial towns. These are markets on the upswing. The mainstream hasn’t heard of them yet. And in them today you’ll get excellent bang for your buck as well as great profit potential.”
The Southern Zone Ticks All the Boxes for International Living
Preceded only by Ecuador’s North Coast and Tulum Mexico, Costa Rica’s Southern Zone caught the eye of McMahon. The real estate investment expert explains that his Global Index is composed of locations that boast the most attractive, and potentially lucrative, real estate opportunities and the South Pacific certainly ticks all the boxes.
Narrowing his list down to just 27 locations around the world I can see why he placed this quite unknown region of Costa Rica on his list. Benefiting from a relatively slow paced development in comparison to its northern neighbors the South Pacific features unspoiled tropical landscapes, ocean views and almost deserted white sandy beaches.
Thanks to the opening of the Caldera Highway which connected the Central Valley to the Central Pacific, the South Pacific has never been more accessible. Reporting an increase in tourist arrivals the region is developing commercially and creating employment opportunities. As many economists would point out the best place to acquire land is where new jobs are being generated.
The South Pacific Offers Ease of Buying and Value for Money
In the McMahon Global Real Estate Index comparisons are made between “value for money,” “appreciation potential,” “income potential,” “costs,” and “ease of buying.” The South Pacific scored particularly high when it came to value for money and ease of buying. As McMahon explains
“Costa Rica has done a great job selling itself. That’s why, in places, a half-acre lot could set you back up to $600,000. Costa Rica’s Southern Zone stayed off the radar, though. And it’s nicer than up north, the area most folks know….The entry price for a lot at the gold-standard project in this area is a modest $40,000. It’s very good value for money. Because of the new road, I expect prices will rise. And that makes the appreciation potential strong.”
I am also sure that the property investment also took into account the fact that Costa Rica’s 3rd international airport is earmarked for opening in 2014. Considering what a new airport did to property values in Guanacaste, it’s little wonder that investors are turning their attention towards the South Pacific.
Costa Rica Real Estate in Arenal and the Caribbean Coast
While Arenal is a more established real estate location the Caribbean coast is an emerging region that has also remained largely underdeveloped although. Both of these areas rely heavily on tourism arrivals and as the country continues to innovate in this industry these regions will evolve.
Not Just a Google Search – How Did McMahon Create His Index?
Ronan McMahon has spent the past eight years travelling the world in order to ascertain the best real estate investment. His research has been collated out in the field, not from his desk and this adds further credibility to his Global Real Estate Index.
Explaining how to interpret the index, McMahon explains that what’s right for one investor may not be for another. Whether you are interested in generating an income, short term gains or long term hold, there is something to suit every investor’s needs.
As he concludes, “Appreciation potential is my view on the prospects for values to rise. But that’s the point of this Index. It’s meant to give you a useful window into the world of analysis I do…and help point you to the markets that might make the most sense for you and your portfolio.”