Housing Bubble Remains in Costa Rica

The high prices of properties being recorded in parts of the country are scaring away foreign investment and limiting the recovery of those most affected by the 2008 crisis.

Tuesday, March 19, 2013

The question posed by foreign investors to Realtors: "'Why invest in Costa Rica when the price of the property is the same or higher as in New York but with less quality services?", is proof that the real estate bubble remains as active as before the crisis of 2008.

In a survey by ElFinanciero with several real estate agents, the feeling in the industry is that, far from being a breaking point, ending speculation and adjusting prices, the crisis of 2008 caused a stampede from developments and construction but did not modify the practices of usury and informality.

Some even speak of a mafia responsible for artificially inflating prices .

The position of the Chamber of Real Estate Brokers is that although formal intermediaries have slashed prices in an effort to regain market share, informal ones continue to speculate.

More on this topic

Extraordinary Capital Gains in Casco Antiguo

April 2016

The value per square meter in the Panamanian colonial settlement has almost doubled in the last 10 years.

The restoration of the 'Casco Antiguo' (Old Town) of Panama, which has received investment and economic boom in the city has made property prices soar. According to a report published by Martesfinanciero.com, there are about 900 buildings and houses in the area.

Land Values Up in Downtown San Jose

July 2013

The demand for housing solutions and commercial spaces in downtown San Jose has led the cost of land per square meter to rise to $1,200.

Nacion.com reports: "Mata Redonda, Merced, Catedral, Hospital and El Carmen have in the last three years represented half of the total square meters (sqm) for which there are applications for building permits. In this area, construction of houses and stores has the most dynamism ... ".

High Land Values Around Highway in Nicaragua

January 2013

The widening of the road to Masaya between landmarks 6 and 14 is expected to increase land prices, which currently range from $100 to $120 per square meter.

Elnuevodiario.com.ni reports that the president of the Nicaraguan Chamber of Real Estate Brokers, Canibir, Abraham Blandon said that the land located between the Centroamérica roundabout and the residential community Las Colinas where the road will be extended, will become more expensive, but did not specify how much the value per square meter will be raised.

No Housing Bubble in Panama

March 2012

Prices are rising, and some areas stand out above others for higher growth rates, with no signs of a housing bubble.

Mass construction in Panama, particularly in the capital, is concentrated in some residential areas where prices are rising and it is advisable to monitor this situation. However, this does not constitute a threat of a housing bubble in the view of some economists.

Camara Costarricense de Corredores de Bienes Raices

Organization that operates in Costa Rica.
Phone: (506) 22830191 - (506) 22832891

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