There are no two ways about it, Costa Rica is booming and its property market is already an unmitigated success story; but fear not for there are a whole host of factors, including some about to come into play for the first time that will ensure that Costa Rica’s property market success will continue in 2007. Despite the fact that Costa Rica has had an exciting property market for the past decade it is still considered to be an emerging market because of the record gains that are still achievable and also because its real estate market success has not yet been duplicated across the entire country. While it remains an emerging market and yet one stable, secure and with so many factors ensuring its appeal, high gains will be made on properties bought and also on land banked in 2007. One of the main factors driving the ongoing success of Costa Rica’s property market is that the nation is stable, secure and the Costa Rican government is active in the promotion of the nation as an attractive investment hotspot. While the government maintains its focus on improving investment conditions and maintaining the overall attractiveness of the nation, it will continue to be a popular place to invest, retire and even live and work.

At the moment the majority of demand for properties for sale in Costa Rica comes from the American baby boomer consumer, but all that is about to change – from May 2007 you will be able to fly direct to Costa Rica from the UK for under GBP 500 meaning that this Central American nation is about to become the next big thing for the British property buying public who will be benefiting from a safe and stable nation where they can have freehold rights to property ownership and where many parts of the nation have yet to even be discovered let alone developed upon. Add to this the fact that more and more US baby boomers are coming to retirement and seeking a safe and low cost place to live now that favourite Mexico has become too expensive, that direct transport links to and from the US are improving annually with new airports opening in Costa Rica and new carriers entering the market and you have another consumer base about to expand dramatically. All this should represent investment heaven for an international property investor! There exists the opportunity of being one of the first to alert the British buying public to the delights of Costa Rica for example. 

Britons will be happy to know that they can speak English in Costa Rica and be understood, that there is a good and transparent property buying process, that they can get affordable and direct flights and buy all sorts of properties from those in high end golf and spa style resorts to a basic house in the jungle that has no running water and which is ‘ripe for renovation’ and Brits often prefer to buy from Brits as the British approach is slightly less intense than a typical American approach – a point worth bearing in mind maybe! Alternatively a buyer could consider banking land in parts of Costa Rica away from the areas currently under major development. Parcels of land with a good elevation which can be sub-divided for resale and which will offer future buyers of individual lots exceptional views, or land close to sites of interest or where others are developing tourism type amenities will generate the best returns. Alternatives include buying accommodation suitable for rental to the increasing tourism market or buying into all sorts of commercial venture from investing in commercial properties for lease to the likes of Intel and Hewlett Packard who have large operations in Costa Rica or buying into investment trusts funding hotel and resort development projects. In parts of Costa Rica that have suddenly become more accessible and fashionable and where developers have worked hard to raise the international public’s awareness of the delights of the resort, land and real estate prices have far outstripped the already impressive national average of trebling in ten years.

 Taking Guanacaste as an example of an area that has boomed late but boomed well, property prices have quadrupled in the past three years alone and this effect could well occur throughout 2007 and beyond across newly emerging areas of development in Costa Rica. Finally, if you are not yet convinced that Costa Rica is an excellent nation to explore for maximum profitability in 2007 consider the following factors if you will – the IMF has praised the Costa Rican government for doing all it can to facilitate the drafting of a free trade agreement with America and also for reining in spending to make the economy stronger and the nation therefore more attractive for foreign direct investment. Thanks to the government’s commitment FDI is now stronger than ever in Costa Rica, the economy in 2006 grew far stronger than was anticipated and going in to 2007 Costa Rica is in an incredibly strong political and economic position. Anyone sitting back and mulling over their options should know that hundreds are going before them and backing Costa Rica as a property investment hotspot in 2007 and beyond. We could be wrong…but we don’t think we will be!