Costa Rica Construction Boom Not So Booming

Prices of vacation homes being sold to foreigners on the Pacific Coast of Costa Rica have fallen by 40 percent.

Thursday, August 28, 2008

This is according to the online classifieds website encuentra24.com, which displays over 10,000 real estate listings posted by owners and real estate companies.

With the decrease in prices all along the Pacific Coast, residence homes that were once being sold for $640,000 are now going for $400,000. The decrease seems to stem directly from the hardening of home loan requirements in the United States due to the mortgage crisis as well as economically crippling inflation around the world. These factors, combined with the decrease in the construction of new residences, seem to be the cause of the demise of the Costa Rica real estate boom and consecutive years of growth along the ever so popular Pacific Coast.

More on this topic

Panama’s Residential Market

December 2012

The residential market in Panama City remains stable, with slightly increased demand for Class A buildings at 74%, up 2% on the prior period.

CBRE Panama submitted its report on the housing market for the first half of 2012:

The residential market in Panama City has remained stable in the first half of 2012, showing an absorption rate of 74% in Class A buildings compared to 72% in the previous period.

Luxury Homes on Panamanian Beaches

September 2012

Demand for luxury properties in Panamanian coastal areas has grown and it is not unusual to end up paying up to $1,800 per square meter.

Residential projects, depending on their proximity to the beach and how well esteemed the area is, in many cases can exceed a million dollars.

Panama's Real Estate Market 2009

August 2009

Real Estate agents are interviewed on their experiences, the current economic crisis and the state of the market.

The survey was done by the marketing team at encuentra24.com Panama Classifieds, who interviewed 50 real estate brokers in Panama. Each one told his personal and commercial experiences.

Costa Rica vacation homes hit by crisis

August 2008

The U.S. mortgage crisis has hit Costa Rica's once booming vacation home market, with sales plummeting as Americans who dream of buying a tropical getaway struggle to find financing.

U.S. retirees and vacationers often pay for beach homes along Costa Rica's jungle-fringed beaches by taking out mortgages on their homes in the United States, but trouble in the banking sector has made that more difficult, realtors say.

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