As opposed to hiding behind the curtain, I prefer to come out and discuss it. Yes, the current global economic situation has an effect on the real estate market in Costa Rica. However, it is important to understand clearly what those effects are, and whether or not that will affect your personal, or investment goals.Although I am not one for cliches, there is much truth in the overused statement that crisis breeds opportunity. UNLIKE many places in the US, Costa Rica is not experiencing across the board price drops, nor are we suffering from a saturation of unmet bank committments, short sales and foreclosures. One of the biggest advantages of the Costa Rican market today, is its overall stability due to historic sales being cash, as opposed to leveraged. This has allowed banks in Costa Rica to keep their balance sheets on the positive side, and likewise, allowed for the market to maintain stability.The coastal market is most directly affected as the bulk of its buyer's have historically been foriegn investors, either looking for their place in the sun, or simply looking for a solid investment. Lucky for Costa Rica, both of those still exist down here...the sun, and solid investments. During the rush in Costa Rica over the past years, many developers were able to be successful selling products which in a slower market, would have never made it to the marketplace. Vacationers became investors as their dream to take part in this paradise, took them to a level that they may have never dreamed of entering.In today's market, savvy investors and retirees are looking for secure places to place their money, and are being more selective, more intellgent and more demanding of the products and developments that they seek. That is not a negative. This is part of the natural correction which allows buyers and sellers alike a more confident time in the market. Developers who do not believe in what they are doing will no longer take those risks, therefore, buyers will have a higher quality product to choose from. Developers and sellers, although unlike the states are not dropping market prices drastically, they are becoming creative, and offering the buyer more. Some developers are offering non-qualified owner financing, while others are offering free HOA fees, etc...There are a number of people on the coast who used their leverage in the US to play in the sanbox in Costa Rica, and some of them need out. Opportunities like this are out there now, and provide new investors both foreign and Costa Rican alike, a chance to buy a quality product at a price at the low end of the market. We are seeing this as a continuing trend and have had dozens of clients take advantage of these opportunities to get into their dream property.We are also seeing some of the most innovative and attractive developments come online, as developers are now doing more, and wanting to deliver more to today's investor. One such project, is the Wyndham Jade located in Manuel Antonio. (for more info, www.costaricawyndham.com). From the design of the building, the level of amenities, finishes, and perhaps most importantly, solid financial and managerial backing to not only create the development, but make it a success.In the Central Valley, we are not seeing a drop in demand, but rather, cautious banks holding interest rates a higher figure, slowly stunting the demand. However, liquid buyers in today's market are finding solid opportunities, and the luxury rental market is seeing never before seen demand. Likewise, and probably the strongest sign of stability in this market, is the current demand in the commercial market. As you drive around areas like Escazu and Santa Ana, although many of the residential cranes have stopped, the two largest commercial projects in the area are not only moving forward, but are seeing record absorption and prices in the development, as retail demand is still very strong.....Talk soon....