When investing in real estate in Costa Rica, the goal is to make money as opposed to losing it. Although it is possible to lose money on an investment in this South American country, you can also make it by taking the time to conduct thorough research prior to making any hard decisions.
Real Estate Appreciation
As far as real estate appreciation in Costa Rica, this depends on whether your deal is good from the start. Because of that, it is imperative that you have a real estate professional who can guide you who is both ethical and knowledgeable of properties and laws. Without having any or very little knowledge of Costa Rica, you always want to begin your investment venture by gaining as much insight as possible. One option is to take an expat tour from a trusted and reliable source. For the most part, there is favorable appreciation in Costa Rica. This is primarily due to the country having a stable and growing economy. Of the economies in Latin American, Costa Rica has one of the strongest. In addition, it has a democratic tradition that dates back a long time, which includes seamless presidential elections and easy transitions of power every four years. The social democracy of Costa Rica is extremely vibrant. Because there is no military, revenue is not drained as with other countries that have strong military forces. Instead, a great deal of money goes toward education, healthcare, and different areas of infrastructure. Over the past several years, a great deal of money and effort has gone into the improvement of its infrastructure, primarily bad roads that are now easy to travel. Because of its social democracy, Costa Rica ranks as one of the happiest places in the world every year. For real estate appreciation, one area is most relevant to the country’s growth. The tourism sector has become huge. In fact, in 2015, the country attracted 2.7 million tourists from all over the globe. The country experienced a 9 percent growth in tourism over the prior year, and it outpaced the national GDP growth of 2.8 times three.
Based on figures coming from the Costa Rican Tourism Board, or ICT, the tourism sector was solely responsible for revenue of more than $2.8 billion in 2015. To accommodate the needs of people who visit the island, approximately 600,000 people hold direct and indirect jobs. There are good reasons for the significant jump in tourism seen in Costa Rica. This country boasts the most gorgeous landscapes found anywhere, and it offers the most intense levels of biodiversity pertaining to flora and fauna. Of the entire land mass, roughly 25 percent is protected from development. Instead, the land has been set aside for use as a wildlife refuge, reserve, or national park. A large number of tourists who visit Costa Rica end up staying as expats. There is always an opportunity for the potential expat who first comes to the island as a tourist, followed by returning as an investor. Eventually, the expat purchases a permanent residence and decides to stay long term. That cycle is the very thing that has made Costa Rica one of the top destinations for foreign investment. However, for the local people, that investment has proven to be a double-edged sword. For the Ticos or Costa Ricans, as the locals are called, investments have driven prices up, making day-to-day living as well as real estate more expensive. As imagined, that can create a real challenge for the locals; for investors, it is great for real estate appreciation. Simply put, although Costa Rica is not the least affordable place to live in South America, it is a place where sound investment opportunities exist in real estate. With tourism on the rise, any investment made that appeals to the tourism sector is great. After all, in Costa Rica, the major driver behind the real estate market is tourism.