The real estate boom in Costa Rica

Are we growing too fast?

Are we experiencing a healthy real estate boom?

Introduction

It is clear that Costa Rica is a country that in the last five years has grown both in population and in the amount of housing and construction. We see more traffic, more free zones, more condominiums, more shopping centers. For some it is a bit overwhelming since we are a country known for greenery, palpable nature and peace. The growth of cities and urban spaces sometimes overshadows this feeling and this beauty. The real estate boom does not necessarily mean pollution, cutting down trees or density of people. Many developers have the awareness and there is sustainable planning and construction.

The real estate boom in our country is positive. Although some areas arise and create controversy, we must remain open-minded and connect with the opportunities that growth and change bring.

If we look at the numbers

The estimate of housing in 2022 concludes that the total is 1,836,291. The annual growth rate is 2.73 % with respect to 2011. According to INEC data, in 2023 Costa Rica will have 5.26 million inhabitants. The five most populated cantons of the country concentrate a quarter of the population: San José with 352,381 people (7.0%), Alajuela with 322,143 (6.4%), Desamparados with 223,226 (4.4%), San Carlos with 198,742 inhabitants (3.9%) and Cartago with 165,417 (3.3%).

*San José as seen from the air. The G.A.M. or Greater Metropolitan Area is composed of the four cantons of San José, Heredia, Alajuela and Cartago.*

More numbers

A significant increase in housing has been observed and in reality, the percentage increase has been more than the population. For each occupied individual housing unit, it is estimated that on average there are 3.1 inhabitants. This number was 3.5 in 2011 and was 4.1 in 2000. In short, there are more people, more dwellings, and fewer people per dwelling.

The residential real estate market in Costa Rica is expected to reach a value of US$251.5 billion by 2024. Analysts expect this market segment to show a compound annual growth rate (C.A.G.R.) of 2.35% from 2024 to 2028. This will lead to a market volume of US$276,000 billion by 2028. It is a market that as the word describes, is 'booming'.

*Condominio El Canal as seen from the air. We began developing our 32 hectares in 2017. Our first six three-story towers were the first homes to be built.*

New construction

The explosion of residential projects is transforming the Costa Rican housing market. The real estate boom is characterized by this type of projects. In the Central Valley of the country there are almost 500 developments that have been legally authorized by the MEIC (Ministry of Economy, Industry and Commerce) to carry out forward sales or pre-sales of their units. There were 44,265 construction projects in Costa Rica in 2022, which marked an increase of 9.2% over the previous year.

In terms of construction area, which includes new projects and expansions, the total was 3,918,842 square meters. This represents a growth of 6.4% for the year 2022. The provinces with the largest construction area are San José (21.9%) and Alajuela (21.8%), followed by Guanacaste (18.7%).

*Condominio El Canal has a large amount of amenities area. It is a unique space where the lifestyle aims to health, wellness and tranquility.*

The number of housing units approved in 2022 was 24,418. This represents an increase of 4.1%. On average, 11,446 of these dwellings have between 40 and 70 m2 of construction area. The new housing units are distributed as follows: 80.2% are single-family homes. 17.7% are apartments or are located in condominiums. 45% have been developed in the central region of the country.

What do I do with so many numbers?

Nothing. We share data for those who love numbers and statistics. Those of us who are not math fanatics and look at the world in other ways, know that Costa Rica is growing. It is visible and it is, in fact, a great opportunity for many.

Costa Rica's real estate boom is profitable for those who are looking for a new home, investment, lifestyle change, getting out of the city (or getting in). Just the fact that we continue to grow (in a relatively orderly and sustainable manner) has simple and direct benefits such as: economic growth, job creation, increased property values, infrastructure development and urban innovation.

Take advantage of the real estate boom today! Investing in Condominio El Canal is a great strategy if you are looking for a house, apartment or are curious as an investor.