Properties in Costa Rica Blog

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.

The Southern Zone is known for its laid back vibe and three of the most magical towns in Costa Rica: Dominical, Ojochal, and Uvita. Rainforests, legendary surf spots, long stretches of beaches, an abundance of rich terrain and a laid-back atmosphere define this area. It’s a rare place on earth. While development has picked up recent years due to improved roadways and access to the area, the development and conservation regulations ensure this area will never become a noisy resort town with overbearing skyscrapers.

Along the Costa Ballena lie Dominical, Uvita, and Ojochal. These three Southern Zone coastal towns are off the radar hot spots. Dominical is a legendary surf spot. Uvita is a commercial center. Ojochal is a small village in the jungle. Deep blue waters meet the towering mountains and green jungles forming a breathtaking landscape that is raw, pure and clean. This is a place for adventurers and those seeking a more laid back lifestyle.

Dominical

Dominical attracts surfers from around the world each year to its legendary waves. The waters here are not for swimming and the waves are legendary. Making the trek to Dominical is a surfer’s pilgrimage. This haven beyond its legendary surf is an attractive laid back village with a few restaurants and shops. Surrounded by estuaries, mangroves, and marshes, the area has an abundance of wildlife. It’s now home to an estimated 700 residents. The pristine environment and warm culture draw surfers and eco-tourists. With lots of yoga and various types of holistic health practitioners mixing with the local culture harmoniously, it is a beacon for wellness. Vegan, raw food, and juicing are common here. Those seeking to live a more sustainable lifestyle flock here. In Dominical, there is time to reflect and just be.

Ojochal

Ojochal is a popular landing spot for expats from North America and Europe. It has grown into a culinary hot spot too. This coastal town is just 30-minutes south of Dominical. With hotels, restaurants, bars, doctors’ offices and a supermarket, it is a low-key Costa Rica town complete with the conveniences of modern life making it an ideal place to visit. With ATV tours, canopy tours, bird watching and mangroves to explore, there is no shortage of adventures and activities. For surfing, there is Playa Ballena and Playa Uvita nearby.

Uvita

Nestled in between Dominical and Ojochal along the Costa Ballena is magical Uvita. This town has a large supermarket and is probably the most developed area of the three places. Scuba diving, horseback riding, canopy tours and wildlife tours are all nearby. Uvita has grown famous for the hosting the annual music festival, the Envision Festival, which celebrates art, culture, yoga and sustainability each year in February. People flock to this small town in Costa Rica each year for the festival, which draws large crowds.

The magic and charm of these three towns lie in the quiet sustainable development, which protects the pristine ecosystems while also providing a level of comfort. The culture is laid back, health conscious and committed to wellbeing. There are few places left in the world that can match what the Southern Zone offers as a quiet refuge from the modern world for adventure, fun, and restoration.

As one of the most biologically intense countries in the world, Costa Rica has long been known for attracting people craving a more self-sufficient way of life. As one of the first countries in the world to be 100% powered by renewables, it serves as a mecca for those seeking to live in harmony with nature. The natural environment and climate is conducive to a sustainable lifestyle. Year after year people who want to grow their own food, be energy independent and have their own independent water supply move here. This trend shows no sign of slowing down anytime soon either.

From farms to eco-retreats to to permaculture to micro farms, there is a large, enthusiastic, committed community for sustainable living and green design here. The country is known for its eco-tourism, and it’s a major industry for this small country. As a country, Costa Rica was the first in the world to run 100% on renewables. What this trend reflects is a desire among the locals as well as incoming expats to simplify their lives. It’s about downsizing, simplifying in style, and living in harmony with nature. People crave a high quality life at a slower pace and Costa Rica delivers on that desire. The country’s commitment to the environment and protecting biodiversity means it supports the sustainable lifestyle new residents seek.

Costa Rica’s climate makes it conducive to living sustainably and the year round near perfect weather simplifies energy needs because the country does not experience large fluctuations in temperatures throughout the year. In addition, the climate also supports year round agriculture, which makes it easy for locals to grow and produce much of their own food. There is a lot of rich land available, and the relatively young housing stock means that homes tend to be simple yet built with current materials, and can easily be adapted.

Self-sufficiency is part of the culture. People purchasing property and homes here want to take more control of their lives and be able to manage their resources for a number of reasons. For some it’s simply about reducing cost of living, and for others, it’s forged through a deep commitment to living a more sustainable lifestyle, and for others, it’s about a lifestyle choice that allows for more independence. The available housing inventory offers plenty of attractive options for those seeking partial self-sufficiency to those seeking 100% self-sufficiency.

The fact remains there are a number of issues attracting North Americans and Europeans to Costa Rica. Self-sufficiency is a rich part of the culture and history; it’s not an idea people are struggling to grasp and adapt to as is the case for much of North America.These expats seek a simpler more balanced life, and Costa Rica is conducive to a self-sufficient lifestyle. It’s a top international destination when it comes to living a sustainably and finding a home to achieve that goal.

Costa Rica is known as the green country. As the country that has the majority of it’s rainforest protected and some of the happiest people in the country. As all countries Costa Rica is not perfect and if they had one crutch in their system it would have to be the Central Valley sewage system. The good news is that they are now in the works to bring a state of the art sewage treatment plant into the country between 2010 – 2030.

For those of you in the business world this might sound like a dirty investment but it happens to be one of the best investments you will find in these times. One option would be to look for a nice piece of land in Costa Rica and build your retirement home and after that you can invest in Costa Rica’s new sewer treatment plant. They are expecting this project to cost around 2.5 billion dollars.

The numbers are not out yet but over the next 20 years having an investment in this might be one of the most solid things to think about along with investing in some land in Costa Rica.