United States’ economic disaster not affecting Costa Rica’s real estate

People would suspect with the economic situation that the United States is experiencing recently, Costa Rica’s properties would be negatively affected. According to some experienced real estate agents, this could be a misconception. During the last five years or so, the real estate market in Costa Rica has been thriving. Most of this is due in part to North Americans travelling to Costa Rica with tons of cash, ready to purchase anything on the Costa Rican real estate market from lots to condos or even villas.

In recent times, things seemed to have changed; due in part to decreasing stock markets and higher interest rates from lending banks. The Costa Rican real estate condition, one might think, may be taking a different turn. Not so, say some very skilled real estate agents. One negative factor of the big real estate “boom” was the fact that many new agents were selling costly properties, now things are beginning to level off. What will happen with an high priced property is, it will sit on the real estate market for a long while, the seller will have to reduce the price, and then it will eventually sell when the owner becomes more realistic.

Another matter, potential property purchasers, are faced with is the growing cost of construction materials. The costs of raw materials are definitely growing, but this is true everywhere not just in Costa Rica’s market. Even with these increasing costs, Costa Rica still has a very inexpensive price-per-square foot to build and is a big attraction for retirees and others looking for a more laid-back lifestyle. Countless economists claim that the real estate market in Costa Rica will start to increase eventually, when the price of construction materials diminishes or stops rising. Potential real estate buyers, property owners, and real estate agents have no reason for concern. Things have just made a 360 degree turn and are just like they were 5 years ago, before the huge real estate “boom”.