Properties in Costa Rica Blog

Thanks to Costa Rica’s vast network of hydroelectric dams, it is one of the first nation’s to go carbon neutral. In 2015, the country ran 99% on renewables with the largest source of energy coming from hydropower followed by geothermal and solar power. Costa Rica’s large river system makes it possible for the country to largely depend on hydroelectricity as its major power source. The vast network of rivers has been harnessed to generate electricity through the dams across the country. The country is a world leader when it comes to implementing alternative energy. Sustainability has been a major priority of the government that has paid off making it a global model nation for other countries to follow.

Costa Rica’s hydropower revolution dates back to 1948 when the country eliminated its military budget and decided to instead invest the money into healthcare, education and environmental protection. It marked the beginning of the country’s long pursuit of achieving carbon neutrality. In 1963, Rio Macho, the first hydropower dam, began operating. In the 1970s several more dams launched and since them its been an expanding massive infrastructure investment that can now generate approximately 75% of the country’s power. The abundance of rainfall makes this possible.

The latest dam project, the Reventazon dam is expected to produce 305.5 megawatts of power. The dam went online in March and will be able to generate electricity for approximately 525,000 homes. A bigger hydroelectric dam has been proposed near Buenos Aires in Costa Rica’s Southern Zone which would generate an estimate 652 MW. Costa Rica has begun a few initiatives to guard the country’s vast river network from over damming to protect the habitat and wildlife from the negative impacts of dams. Recently, a 25-year moratorium was signed to protect the Pacuare and Savegre Rivers from damming. These two rivers are vital parts of Costa Rica’s tourism industry, which makes up a significant part of the economy. Aware of some of the negative impacts of over damming, the government is now committed to achieving a balance.

Meanwhile, Costa Rica continues to march forward with additional plans to move the entire country off any reliance on fossil fuels. Plans include a massive electric train being built and replacing gasoline powered cars with electric ones. There are also plans underway to develop additional alternative energy sources such as geothermal. Costa Rica’s volcanoes makes the country a perfect candidate for a massive geothermal initiative in addition to hydropower. Costa Rica is a model nation when it comes to moving to fossil fuel independence. It’s a trend that’s quickly spreading around the world as other countries strive to reach carbon neutral status.

Costa Rica commercial real estate continues to perform well in 2016. Non-residential buildings grew at an annual rate of 18%. The widespread expansion and new construction of commercial buildings in beach communities and San Jose is driving much of the growth of the commercial real estate market. Costa Rica’s economy is also performing well. While most of the world is experiencing a dramatic slowdown or economic turmoil, Costa Rica’s economy is expected to grow 4.2% in 2016. This positive forecast is tied to record high demand. Throughout San Jose, new buildings are going up to meet the demand. Vacancy rates are low and rents are rising. Costa Rica’s economic that make Costa Rica very attractive to North American and European expats.

The real estate market is also being driven by the increasing number of foreign companies with offices in Costa Rica. Five foreign owned companies are expanding their operations in Costa Rica this year. A total of 39 foreign investment projects in service industries and manufacturing technology already created an estimate 12,000 new jobs in 2016. An additional 2,000 jobs are expected to be created by the end of the year. Sykes, Amazon, Pfizer and Manpower are among the corporations expanding their operations. The commercial real estate market continues to benefit from this economic expansion through foreign investment, which not only creates demand for more office space but also restaurants and local businesses.

Beyond a strong commercial sector in San Jose due to the recent job growth and corporate expansion, the beach towns are also thriving as increasing numbers of expats purchase property in these towns. Guanacaste, Papagayo, Arenal, Puntarenas, Manuel Antonio, Dominical on the Pacific Coast, and Puerto Viejo, Punta Uva, Cocles and Manzanillo in the Caribbean side are the most popular towns. These local towns are big gathering places for the surrounding residents and tourists who can come together to enjoy music, dine or shop as needed. As the population expands, the commercial market demand continues to grow with it. Costa Rica is also one of the few Latin American countries experiencing rising immigration levels. The increase in the number of people living in Costa Rica with disposable income is a big factor driving the Costa Rica commercial real estate boom.

All this said, Costa Rica is an excellent investment choice at this time. The commercial real estate market is strong. There are 30 retail shopping centers scheduled to be built this year. With rental values rising, commercial property owners are well positioned to take advantage of the market. At this point, the market does not show signs of a slowdown making it a good investment opportunity.