One would suspect with the economic crisis that the United States is having recently, Costa Rica’s properties would be negatively affected. According to some well-respected real estate agents, this could be a misconception. During the last five years or so, the real estate market in Costa Rica has been booming. Most of this is due in part to North Americans travelling to Costa Rica with bundles of cash, ready to purchase anything on the market from lots to condos or even beach properties.
In recent times, things seemed to have changed; due in part to decreasing stock markets and higher interest rates from lending banks. The state of the Costa Rican real estate, one might think, could be taking a turn for the worse. Not so, say some very qualified real estate agents. One negative factor of the big real estate “boom” was the fact that many new agents were selling high priced properties, now things are beginning to level off. What will happen with an overpriced property is, it will sit on the market for a long time, the seller will have to decrease the price, and then it will finally sell when the property owner becomes more realistic.
Another concern, potential land purchasers, are faced with is the increasing cost of construction materials. The costs of raw materials are definitely on the rise, but this is true in all countries not just in Costa Rica’s market. Even with these rising costs, Costa Rica still has a very inexpensive price-per-square foot to construct and is a big enticement for baby boomers and other people looking for a long term property investment. Several economy experts claim that the real estate market in Costa Rica will start to increase sooner or later, when the price of construction materials lessens or stops rising. Potential real estate buyers, property owners, and real estate agents have no reason for concern. Things have just made a full circle and are just like they were 5 years ago, before the big real estate “boom”.
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