“There is definitely a lot more interest in Costa Rica as investors see the long-term potential there, especially with the new airport terminal providing more access and new residential development projects,” says David Otanez from Recap Investments. “Prices have levelled off, so now is a great time to consider buying.”
Gross rental yields in Costa Rica remains generally healthy with average figures between 6 and 7.8 per cent. “The rental market is quite strong, as Canadian and U.S. snowbirds and tourists continue to flock to the country,” adds Otanez. “Investors can get from between $125 to $150 per night on a short-term rental basis. The returns in the long run are just as attractive.”
He also says that investors can make a “good return” from buying into a pre-construction development that will appreciate over time. Cap rates, according to Otanez, are at 0.25 per cent.
Costa Rica’s hot spots are the Northern Pacific Coast and the southern zone. The former can be accessed by the Daniel Oduber International Airport near the popular Guanacaste Gold Coast.
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Investment Hot Spots:
Hillcrest Mines, Comeaus Hill, Sunderland, Boutiliers Point, Shepody