The Residential Real Estate Transactions market in Costa Rica has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.
Customer preferences: Costa Rica has long been a popular destination for tourists and expatriates looking to enjoy its natural beauty, warm climate, and stable political environment. As a result, there is a strong demand for residential properties, both for permanent residences and vacation homes. Many buyers are attracted to Costa Rica's coastal areas, where they can enjoy beachfront living and access to a range of outdoor activities such as surfing, fishing, and hiking.
Trends in the market: One of the key trends in the Costa Rican residential real estate market is the increasing popularity of eco-friendly and sustainable properties. Buyers are increasingly conscious of the environmental impact of their homes and are seeking properties that are built with sustainable materials, utilize renewable energy sources, and incorporate green design principles. This trend is driven by both local buyers who prioritize sustainability and international buyers who are attracted to Costa Rica's reputation as an eco-friendly destination. Another trend in the market is the rise of luxury real estate developments. Developers are catering to high-net-worth individuals by creating exclusive communities that offer luxury amenities such as golf courses, private beach clubs, and spa facilities. These developments are attracting both local and international buyers who are willing to invest in premium properties that offer a high standard of living and exclusivity.
Local special circumstances: Costa Rica's stable political environment and strong legal framework for property ownership make it an attractive destination for real estate investment. The country has a well-established system for registering property rights and a transparent legal process for property transactions. Additionally, Costa Rica has a large expatriate community, which creates a demand for residential properties from foreign buyers.
Underlying macroeconomic factors: Costa Rica's economy has been growing steadily in recent years, driven by sectors such as tourism, agriculture, and technology. This economic growth has led to an increase in disposable income and purchasing power, which in turn has fueled demand for residential real estate. Additionally, low interest rates and favorable mortgage conditions have made it easier for buyers to finance their property purchases. In conclusion, the Residential Real Estate Transactions market in Costa Rica is experiencing growth due to customer preferences for coastal and eco-friendly properties, trends in luxury real estate developments, the country's stable political environment and legal framework, and underlying macroeconomic factors such as economic growth and favorable mortgage conditions. These factors are likely to continue driving the growth of the market in the coming years.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)
