Exciting things are happening in Costa Rica and other Central American markets where real estate and condos are experiencing double digit appreciation much like we saw in California and Florida before the housing bust. This growth persists in countries such as Costa Rica, Panama, and Belize. This reality coupled with low prices for homes and condos make these markets key targets for foreign investors, home buyers, US buyers and investors, and investment clubs.
According to many local experts we are just at the cusp of the growth. Better infrastructure, schools, hospitals, government stability, and safety are all providing a sound foundation for fast and healthy growth. The question is whether these markets will resemble the current US markets in 5 years with overvalued properties and an abundance of supply sitting on the market. I think this will all depend on how investors tackle this opportunity.
Prices are so low relative to US prices that even with rapid appreciation it would take a while for Costa Rica condos and Panama condos to be drastically overvalued. It is more difficult to buy property in Central America as an investor because most countries call for 30% down payments or more. This requirement will bring more qualified investors who seek long term holds and keep out the people who do not really have the liquid capital for proper investing.
That said, Panama condos and homes will continue to be purchased be “real” buyers, not flippers, and values will grow appropriately. Fast growth does not always mean a bubble will be created, but it can. As long as lending practices in Panama, Costa Rica, and Belize stay more traditional, things should remain healthy.
Some of the most exciting projects are new Panama city condos and high-rises. Some great new projects we represent on New Condos Online are The Orchid Residences, The Plaza Costa del Este, and of course Trump Ocean Club.
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