The Costa Rica News (TCRN) – Central America’s economy has seen steady growth in the past few years and 2014 is forecasted to continue, as well, its capital markets has been further integrated globally as more national and international trade agreements come online.
As a result, the Central American real estate sector is experiencing a boom. The region is witnessing a major expansion in residential and commercial projects. There are an increasing number of apartment towers and condos in metro areas as well as beachfront all along the Pacific shorelines of many Central American countries like Costa Rica, El Salvador and Panama.
The main factors that explain this real estate boom are that political stability throughout the region as well as macroeconomic stability that have encouraged productive sectors to thrive, especially in the three aforementioned countries of Costa Rica, El Salvador, and Panama. High Net-worth Individuals (HNWI’s) and retirees from North America and Europe are attracted to these countries for their top quality life style, low cost medical services and continually improving infrastructure and political stability.
Costa Rica, called The Jewel of Central America, is the preferred destination of choice for foreign investors and companies such as IBM, Intel and Fujitsu to expand their operation. But it has been Costa Rica’s dedication to tourism and sustainable eco/environmental initiatives that has accelerated Cost Rica’s development.
Further, international banks opening credit at competitive interest rates have also helped to spur new developments such as hotels, resorts, and commercial/manufacturing sectors.
Real estate is promising in Costa Rica and stable governance, social and economic growth, weather and ease of access ensure a promising decade ahead.
Investing in Central America Real Estate Market
Real estate investing delivers important diversification because of its low relationship with stocks and bonds, so as a whole real estate investment is a good idea.
International real estate, especially in the Latin American market, may be the best possible way for investors to amass wealth over the coming decade. Latin America is seeing significant growth and change as middle classes throughout Central and |South America explode, and in times of great change and flux, the investment returns can be enormous. Because supply is finite in the case of land, especially prime tropical land, the big savvy investors moved into Central and South America quickly in the early 2,000’s. This is because prediction of Latin Americas growth projected in 2,000 indicated unprecedented growth even outpacing the Asian markets till somewhere around 2025.
With real estate, you can invest smart with a relatively small amount of money to control a large asset. For example, in parts of Costa Rica, the value of some condos and agricultural real estate increased by 45% in two years. You could control this condo or land over the two year period with just 20% of the purchase price.
Today, most experts agree that the best real estate opportunities are outside of the US in South and Central America. Even though the US economy has stabilized, investors are concerned about where growth will come from how long it will last, investments security, and the value of their paper assets.
There is a full spectrum of opportunities to profit from outside America’s borders. These range from high-growth frontier markets to properties so cheap that they represent true long-term value.
All the markers are there for continued growth, development and investment in Central America real estate for all the reasons mentioned above, so the time is now to look at real estate investing in Central America.
For more information on real estate and investing in Costa Rica, contact us on the form below and one of experts will be happy to answer any questions you may have.
