There is no doubt, Costa Rica is booming and its property market is already an unparalleled success story. With the slowdown in the United States, the burning question is, Will it continue?”. There are a great number 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.

Taking into account 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.

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Costa Rica is an excellent nation to explore for maximum profitability in 2007 consider the following factors:

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!” source – Amberlamb Overseas Property Investment Resource

Popularity - North American retirees or expatriates seeking a hideaway, but now the appeal of Costa Rica is reaching a wider audience as eco tourism takes off in Costa Rica in earnest and the numbers of those seeking second homes or a brand new home in Costa Rica are growing. Natural beauty of Costa Rica – palm lined beaches, a coastline that brushes both the Pacific and Caribbean oceans, magnificent mountains and rainforest – and these natural attributes are attracting more and more tourists to the country every year. Investment is required into accommodation and general tourist facilities and to this end the government of Costa Rica are working to make the investment environment as attractive as possible.

For the investor – there are many opportunities in Costa Rica’s tourist sector. Alternatively a real estate investor could seek to target the growing numbers of visitors seeking quality self catering properties for short term rental or those looking for holiday properties for sale in Costa Rica. Many resorts in Costa Rica have seen some of the greatest gains in property value of late. An investor can look to some of the good rental yields as well if he carefully selects the product.

The retirement market – Costa Rica with it’s easy access from North America, is already home to many retired Americans, the cost of living is low, property costs are cheap and the country is regarded as safe therefore it is of appeal to a growing number of retirees seeking a cheaper alternative to their home country to make their retirement savings go that much further. Further, it is a fun country with nice people and it’s beauty never ceases to cause one to marvel when looking at the mountains, valleys and oceans.

The investment climate – Costa Rica is and has been politically and economically stable for many years. It has no army to defend it either and has a strong positive bond with the US which makes it a safer emerging market for property investors than many in Central America.

The economy has been gaining strength since 1997 and the government is committed to maintaining the strength of the economy by attracting more overseas investment and offering significant investors generous tax breaks. The long term appeal of the Costa Rican property sector becomes obvious.

Playas del Coco will be getting a major supermarket as part of the Pacifico project there.

The Jack Parker Corp. said a 20,000 square foot Auto Mercado will be part of a commercial development that also will contain other small businesses to service the 175-acre project.

The New York-based company says it has 56 residences under construction and scheduled for completion starting in March. The company set Saturday as the official start of its sales effort.

Playas del Coco also is the home of the sprawling Mapache condo development that transformed the fishing village into a major real estate marketplace.
The Jack Parker Corporation said in a news release that it is looking to Costa Rica because the U.S. real estate market is slowing, there are runaway home prices there and land is disappearing.

The 500 residences within Pacifico include 350 condominiums, town homes, and villas, 20 rental apartments and 150 single-family home sites. Floor plans are available with one, two, three or four bedrooms, and prices start from $150,000. Home sites, most with Pacific Ocean views, range from the $90,000 to $400,000.

Playas del Coco has been a construction hotspot since flight operations have increased at the Daniel Oduber airport in Liberia. The Jack Parker Corp said its development is just 22 miles from the airport. Lately some slowing in real estate sales in the Playas del Coco area has been reported as a result of the declining U.S. market.

Courtesy of: AM Costa Rica Staff

Firstly US chipmaker Intel have announced that they are to plough substantial investment into their Costa Rica plant and increase the numbers of jobs available to the local labor force, secondly a major UK based tour operator are launching direct flights to Costa Rica from London, and thirdly the Costa Rican government have extensively relaxed their immigration policies for investors bringing funds or skills to their country.

As Costa Rica is already one of our preferred emerging markets to watch, all this good news has got us excited! And property investors who were wondering whether the time is right to commit to Costa Rica may well be positively influenced by the abundance of positive news coming from this Central American country today.

First up, Intel has announced that they will commit one hundred and twenty million US dollars to improve and expand their Costa Rica processing plant. The direct investment will help create five hundred new jobs which will directly assist the local economy and help boost the appeal of commercial property in Costa Rica.

This news coupled with the fact that the Costa Rican government has just announced a significant easing on immigration restrictions for investors, employers and key employees means that the country just became an even more attractive prospect for companies looking for a more tax efficient, lower cost location for their operations. This will likely have a direct effect on the demand for commercial property, it may well boost demand for residential property in the main Costa Rican towns and it will undoubtedly raise the profile of Costa Rica globally.

IT giants Hewlett-Packard are another company expanding operations in Costa Rica in 2006; they are to double their locally sourced workforce by 500 and to begin a massive expansion of business interests in Costa Rica. Both HP and Intel will benefit from the fact that the immigration procedures their expatriate management will have to go through have been simplified by the government. According to the Costa Rican Minister of Foreign Trade Manuel Gonzalz Sanz, the new policies will help make foreign direct investment into Costa Rica more attractive and therefore boost the amount of investment the country receives annually.

This fact alone could result in an intensification of investor interest in the property market in Costa Rica…but the additional news out from the UK this week that First Choice are to begin direct flights from London in 2007 to Costa Rica means that hungry British property investors are probably about to descend on Costa Rica in their droves! There is much promotion of this stunningly beautiful and ecologically diverse country in the British press as a result of the First Choice announcement, and those who were unaware of the property investment potential in Costa Rica are now rapidly making themselves aware! Direct flights will begin from London’s Gatwick airport from May 2007 and already the flights and holidays from First Choice have gone on sale.

So, in terms of Costa Rica investment property news there is much to be positive about – but as always, we recommend that any real estate investor considering making a commitment spends time doing their due diligence on the potential profitability of a given property type before buying.

Best Destination

At the International Tourism Fair (FITUR in Spanish), held in Spain, the U.S. Travel Weekly chose Costa Rica as the best destination in Latin America. The variety of attractions and the many chances a visitor has here to enjoy the best of vacations were among the reasons to bestow the award on Costa Rica, whose competitors included Panama, Chile, Peru, Argentina, and Brazil.

The Costa Rican Minister of Tourism ,Ricardo Benavides, pointed out that the best feature of the award is that it results from the choice of the magazine’s 140,000 readers, who belong to the U.S. tourist industry.

The readers also remarked that Costa Rica is one of the most saleable destinations in Central and South America because of its mild tropical weather, natural and adventure attractions, exotic sites, and the warmth of its inhabitants.

Spanish Company to Build a Billion Dollar Project Near Puerto Caldera

Akasvayu and Islas Pitusas S.A. Will spend $970 million developing La Roca project near Puerto Caldera, Puntarenas on the Pacific Coast. The project will include three five-star hotels, over 1000 homes, a casino and a golf course designed by Australian Greg Norman.

2006 was the Year of a Construction Boom in Costa Rica
by Karen Retana

Foreign investment and better access to credit contributed to Costa Rica’s construction and real estate boom in 2006. Construction permits increased 70% during the year. In 2005 construction permits were issued for nearly 3 million square meters of construction. This year the figure reached 5 million square meters. About one third of the permits were for the Central Valley because of the variety and infrastructure found here.

New Marinas on the Way

More than 21 new marinas are scheduled to be built in the coming years in Costa Rica. There will be a total investment of around $400 million dollars required to build the new marinas. With the construction of thee marinas almost 6000 boats will be able to dock in Costa Rica.

The Spanish firm Grupo Nyesa says it will invest $600 million in a hotel and resort complex in Esparza.

The location is in the area known as La Roca in the province of Puntarenas east of the city by that name. The company is a principal player in the United States and Europe, frequently linked to Sol Meliá, but this is its first effort in Latin America. The company had purchased 200 hectares for development, about 494 acres.

The company made a courtesy call on President Oscar Arias Sánchez Tuesday. Later Casa Presidencial said that the project would generate 5,000 new jobs. The work would begin in three to four years and be finished in 10, said Casa Presidencial.

Actor and director Mel Gibson has purchased a us$25.8 million ranch that sprawls across 163 hectares (402 acres) on Costa Rica’s Pacific coast.

The property was acquired by a corporation controlled by the director of “he Passion of the Christ”, and the purchase closed on April 30.

The ranch faces Barrigona Beach in Guanacaste on Costa Rica’s northern Pacific coast, A where urban and tourist development is minimal.

In the area where the property is located, most of the inhabitants live off ranching and farming in a wooded, mountainous landscape bordered by beautiful beaches.

Locals seemed enthusiastic about their new neighbor, but some say the purchase of the ranch will cost them jobs, since apparently Gibson has no plans for any type of economic activity on his property and will only use it as a vacation home.

In recent years the actor has been a frequent visitor to Costa Rica, which led to speculation in the press that he was looking for possible locations for his movies or was seeking investment opportunities in Costa Rica

Puntarena’s old cannery will be transformed into a modern mall with a movie theater and office center.

What really has people excited in the $78 million Puerto Azul development. When finished it will boast 176 condominiums including 16 penthouses in four buildings. A 60 room hotel with 44 shops, a marina and supermarket will also be part of the development.

A second marina will be built nearby at a cost of $22 million.

The Ministry of Public Works is honoring its commitment by taking steps to finish the last section of the costal highway between Quepos and Dominical. The government has already built three bridges and is working on more and road has been graded between Quepos and the Savegre River.

A major international real estate investment and development firm says it is involved in what will be a $1 billion project in Papagayo.

Representatives of the company, Starwood Development, paid a call Wednesday on President Oscar Arias Sánchez. The firm, a division of the Greenwich, Connecticut,-based Starwood Capital Group in involved with the Monte del Barco project.

The project has about 500 acres of which just 40 are in a maritime zone concession. The project envisions 700 residences, two hotels, an 18-hole golf course and a beach condo-hotel and marina

Starwood Capital Group says it is a privately held investment management firm that specializes in real estate-related investments on behalf of select private and institutional investment partners. Founded in 1991, Starwood has a diversified portfolio totaling more than $9 billion in real estates, the firm said.