Property Investment in Costa Rica: Diversify for SuccessPosted by David on 10 th in Costa Rica property news, DSR, Investment Property on 10th of November 2010
Latin America is like one big emerging market, with a couple of exceptions it is booming across the board. Take Costa Rica for example, real GDP growth is around the 6% mark.
Emerging markets are fuelled by increasing levels of tourism, something usually triggers people to view the country as a good holiday destination. Tour operators always on the look out for new and exotic destinations to offer low price holidays to, favour emerging markets because low cost of living means low cost holidays.
Latin America’s Costa Rica, Argentina, Brazil, and Panama are all benefiting from being new tourism hotspots, with a Hilton hotel being built in Panama and a trump towers on the way, rental yields going through the roof in Argentina’s capital Buenos Aeries, and Brazil tipped to become the world’s fifth largest economy. But Costa Rica has as much potential to soar on the world stage as any of them because of the amount of additional strings to its economic bow.
For a start Costa Rica is one of the world’s most stable democracies, which means it is a safe place to take your kids on holiday to see the-must-see-sites that Latin America is famous for like tropical rain forests.
Speaking of tropical jungles, Costa Rica’s rich bio-diversity attracts eco-tourists from around the world in an addition to its tourism market. But Costa Rica’s strong economic growth comes not only from rising tourism, but from being a globally active producer of electrical goods, most notably micro-processors.
As we all now know computers are becoming an everyday part of everyone’s lives, and even fridges are going digital, micro-processor production is therefore as big an expanding market as tourism for Costa Rica’s economy.
Another thing Costa Rica has done to help sure up its path to becoming an economic power-house is joining the US-Central American Free Trade Agreement (CAFTA), after the population voted in favour of signing the agreement last year. The implementation of CAFTA is to be completed by 1 March this year, experts predict it will result in an “improved investment climate” (CIA World Factbook).
Costa Rica is already a growing property investment hot-spot, one of the new hot emerging property markets, and an emerging market is a force to be reckoned with. Like Panama, Costa Rica has a coastline on the North pacific ocean and the Caribbean ocean, this means it has a vastly varied climate, humid on one coast, dry-heat on the other, and cooler in the center — something for everyone.