Investing in Costa Rica Property

Country:  Costa Rica

Costa Rica is one of the Central America’s most mature property markets. US investors have been purchasing property along its beachfront for several years and the property market is appreciating in value by around ten per cent an annum at selected developments. The country has a mature legal framework and equal rights for foreigners surrounding the purchase of private property. Hollywood star, Mel Gibson, recently bought a house on the Pacific coast in Guanacaste, and has been spotted holidaying there with high-profile friends.
 
Matt Thompson co-founder of Solid Property said: “Costa Rica is a new market to the British and Irish property buyer, but typically the people investing in property in Costa Rica are a mix of pure investors, retirees and those of any age seeking a change of life pace whether on a part-time or full-time basis. With its year round summer climate and network of stunning beaches, the country is proving particularly popular with Americans hailing from the colder mountain states, who are known as ‘snow birds’.

“This makes the market a strong rental one, particularly because Costa Rica abounds with natural beauty, is politically and economically stable and is hugely popular as a tourism destination among North and South Americans. The country is growing its European tourism market with direct flights from the UK departing weekly from London Gatwick to the capital, San Jose, during the peak season.”

Located only 90 minutes from the country’s bustling and vibrant capital, San Jose, is unspoilt Jaco Beach. Jaco is predicted to become Costa Rica’s ‘mini Miami’. There is a shortage of hotel accommodation in the Jaco Bay area and the only five-star hotel in the area enjoys high occupancy rates throughout the year. HVS, the world’s leading independent hotel feasibility organisation, has predicted 76 per cent occupancy in the first year of operation.

Thompson says: “We are predicting strong capital growth for the region of Jaco Bay.” Jaco Beach is the closest beach to the Costa Rican capital, San Jose, which is served by Juan Santamaria International Airport. Extensive development plans are underway for the region and the current journey time will be cut from two hours to 45 minutes when a new three-lane road is completed soon. A marina is also scheduled for development.

property in Jaco Bay  through Solid Property includes Wyndham Resort and Residences, positioned on Jaco Beach. This five-star beachfront condominium hotel will consist of two 13-floor towers. There will be 54 one-bedroom, 60 two-bedroom and 22 three-bedroom units, all with ocean views. The two- and three-bedroom condominiums will offer a lock-off system where larger units can be instantly turned into smaller units to maximise rental potential. Thompson projects a net yield of between eight and 11 per cent for investors. A three-bedroom apartment will start at $797,698 (£399,000).

Also in the Jaco Beach vicinity, Ramada Resort and Residences is a residential development with plans for 266 units. There will be 252 two- and three-bedroom apartments and 14 four-bedroom penthouse apartments. Facilities at the development include a bar and restaurant, a clubhouse, wireless internet access as well as shops and complimentary transport to the beach. The air-conditioned units come with a furniture package and fully fitted kitchens. Prices are from $397,000 (£199,000) through Genesis International Realty. 


First published in October 2008.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.