The US State Department estimated in 2014 that 6.32 million Americans live abroad in over 160 countries. Annually, around 13,000 of these move to Costa Rica, contributing to an estimated 60,000 U.S. expatriates among a total of about 250,000 expatriates in the country at any given time.
New construction in Costa Rica saw a 14% increase in 2015, signaling a recovery in the real estate market post the 2009 financial crisis. By 2016, construction works across the country grew by 4.2%, with permits increasing by 15.1%. High-rises, condos, villas, single-family homes, and private projects accounted for 45% of this growth, indicating a boom in real estate.
Trends in the Costa Rica Real Estate Market
An article from The Globe and Mail in 2015 highlighted Costa Rica's recovery from the real estate downturn caused by the 2009 U.S. recession. Since then, real estate offices like Osa Tropical Properties have noted a surge in property inquiries. Buyers are particularly drawn to Costa Rica for various reasons, and many realtors believe the market is back with vigor. Conversations about the market's upturn are common, reflecting optimism and excitement.
Property purchases rose by 14% in 2013, but even in 2017, homes remain a relative bargain. Realtors with 12 years of experience in the Southern Zone have observed this trend, advising buyers to act while sellers are motivated, as this market condition might not persist.
International tourism has increased by 4% annually since 2015, boosting demand for vacation rentals with average rental yields of 6-8% across Costa Rica. While exact statistics can be elusive, the proliferation of property and rental management businesses in the Southern Zone speaks to the growing market.
Who is Buying?
The buyer profile has shifted post-recession. Previously, the market was dominated by investors looking to flip properties, capitalizing on trends like ecotourism and wellness travel. Now, the typical buyer is often from the baby boomer generation, focusing on retirement investments, alongside a younger demographic aged 35-50, seeking a long-term lifestyle change. These newer buyers value remote work capabilities and a connection with nature, looking for a place to establish a more meaningful life.
Whether for retirement, investment, or a lifestyle change, your interest in Costa Rica is well-placed. The client profile here tends to be intelligent, health-conscious, and entrepreneurial, seeking an escape from conventional Western lifestyles to embrace community, tranquility, and a purer way of living. If this sounds like you, consider contacting our office to explore how you can invest in this promising future.
