February 5, 2009 ? The Costa Rica real estate industry has been going through some major changes and not all of them are good.? Ever since the United States announced that it entered a recession, Costa Rica began to feel the pain.? Even though Costa Rica has widened its association with China it is still affected in large by the American economy.

When the United State catches a cold, Costa Rica coughs.

Even though many foreigners are currently putting up their real estate in Costa Rica on the market, the prices have not gone low enough to turn it into a bargain.? Especially since in the past years before the economic downturn real estate prices in Costa Rica had increased by 15% to 20%.

Right now, a 2% mark down from its original price is not a bargain when people are losing their jobs or are watching their spending in preparation for a worst case scenario.

Currently, several condominium projects have been stopped and many people have been left with no hope of ever seeing their deposits ranging from $10,000 USD to $30,000 USD.?

These condominium projects have stopped due to poor management where the company was hoping to get more people interested in investing in their projects.

The silver lining for those hoping to buy real estate in Costa Rica is that industry analysts are predicting that the Costa Rican real estate market will hit its low peak within a year and half.

Costa Rica is currently seeking a $1.5 billion loan for its projects which if approved will help the Costa Rican economy deal with the declining of cash influx from visiting foreigners along with expats that have decided to leave the country due to the increase in crime and the new immigration law that the Costa Rican legislator is trying to pass.?

A law which will is meant to make it harder for foreigners to move to Costa Rica.

This turn of event is making the U.S. dollar gain in value and is currently worth ? 566 Costa Rica colon.

Real estate investors are eagerly watching the market in Costa Rica but do not expect to make a move until the dollar is worth around ? 600 and the price in real estate will hit its lowest point at around 10% less than the market value.

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Frank Donavan is a professional internet writer with over 50 years of experience.? Frank has recently moved to Costa Rica and started his own Real Estate business after on and off for 5 years in the real estate industry.? You can contact him at This e-mail address is being protected from spambots. You need JavaScript enabled to view it