Jan 28 2008
Our market in Costa Rica and impact of US economy
There is a strange phenomenon happening for the last 4 months here in Costa Rica. In our business and with some associate Realtors, we have seen a noticeable drop in inquiries. However, the ones of late are of much higher quality. What I mean by higher quality is that they are a more seriously minded buyer and have cash. Before there we had a larger number but mixed with a large number of curiosity seekers. This results in more efficiency and certainly increased sales even with the lower count.
We are very pleased to report this during these times with the US market crisis.
One would have thought that the Europe and English buyers of Costa Rica Real Estate would be coming here in droves. Personally we have not seen that much of an increase there even with the high cost they are experiencing in their countries and the buying power of the Euro.
As you watched the market spin down last week, it appeared to support the old belief if the USA sneezes the rest of the world gets a cold. Other markets fell dramatically in sync with the US. That would lead one to believe that the US is still the factor in real estate here no matter how bad it looks for the dollar.
This is merely an observation, but when correlated, it seems we cannot bank on the foreign markets as one would assume.
Our large development projects division indicates that there is still a high level of confidence here as we are swamped with requests for large tracts for Hotel, Casino beach front and ocean view land. This is made up of 80% USA then the balance from Europe and other sources.
With over 70,000,000 baby boomers on stream, and Costa Rica’s Real Estate ranking (in the top 5 in the world) and Tourism rating I am sure this factors into it and the confidence has not fallen even in light of the US market.
Our banks are finally taking an int erst in end financing which is helpful especially for the investor types. Hopefully the rates will get more favorable with the recent US drop in the prime rate.
We are beginning to see an upturn in inquiries again and feel this will continue through 2008. We need to be very sensitive about pricing of product as there are some pretty attractive buys in the USA today.
We are fortunate to be able to offer low taxes, great climate, good proximity to the USA, excellent health care, high standard of education, friendly people and beautiful country.
We have more Americans per capita here than anywhere else in the world and there is a large mix of other nationalities.
I have every confidence that Costa Rica is still a very viable consideration for retirement and investment.
If you are an investor or planning retirement, please feel free to call me at any time toll free at 1 888 581 1786 for any further information you may need.
