Real estate in Costa Rica: a market that overcame the crisis and blooms in urban areas
After the financial crisis that hit the United States of America in 2008, and thus the rest of the world, it is important to notice that, recently, Costa Rica has experienced a growth in the real estate market mostly related to the sale of properties.
The difference, after 2008, is that – geographically – the focus of interest changed, because domestic and foreign buyers are now acquiring more real estate in urban areas than at the beach.
Arturo Blanco, senior partner at Jurex Law, explains that the investors are still buying beach properties, but they are more interested in the Great Metropolitan Area (GAM) than in the coasts.
Another important aspect, Blanco clarifies, is that despite the crisis, the properties didn’t depreciate, but maintained their fair value.
What do the real estate buyers look up in the GAM?
Those who participate in the real estate business in Costa Rica, especially foreigners, are interested in acquiring an apartment to rent and live seasonally; that means between the months of November and March.
Among the foreigners that invest more money in real estate, are the Canadians, who enjoy up to four months of vacation every year; plus the United States citizens who take one or two free weeks per season.
“Foreigners are seeking for a property that generates an income. How? Once they go back to their countries, they rent it for the rest of the year. There lies the importance of their investment: in the ability of the property to generate them earnings somehow“, says Blanco.
Beside those foreigners who acquire apartments, real estate business in the GAM concentrates in the construction of condominiums and shopping centers, among other possibilities.
Real estate legal counseling
When a national or foreign citizen wishes to sell a property, the priority is to establish the price. This will be done taking into account a couple of variables, such as the area where it is located and the cost of nearby properties.
“We help the client to establish the price through assessments, since we have the cooperation of commercial appraisers, non-banking”, Blanco added. “The appraiser will tell us how much the property is worth commercially, which means, what is its real value or how much would people be interested to pay.”
“Jurex Law handles for the client the entire process to have an appraisal. This is part of the‘due diligence’ we perform and that can be implemented for selling or buying a property”, concluded the expert.
The ‘due diligence’ also works when the owner of a hotel wants to sell it or attract investors. In that case, our firm will prepare all the documentation that the other part will request: financial studies which demonstrate that the project works properly; record of permits, etc.
If you’re interested on selling or purchasing a property in Costa Rica, but don’t know the right way to proceed, contact us today, because when it comes to real estate, your safe investment will be our priority.