Costa Rica remains one of the safest and most attractive countries for foreign investment in Latin America.The Costa Rican government, its ministries and financial institutions maintain a decidedly pro-U.S., pro E.U. and continental stance in regard to financial security and tax laws.
The World Bank has given Costa Rica an excellent bill of overall political and economic health. At its annual conference this year, the World Bank lauded the country as possessing "one of the most stable and robust" democracies in Latin America. It went on to praise the Costa Rica's "healthy economic growth rate" and "some of the best social indicators" on the continent.
The private equity industry is finally returning to real estate markets after a long recession, according to a report by consultants Ernst & Young Global Limited, in November 2013. They also said the real estate private equity sector is positioned for growth into period 2014-2020.
In Costa Rica new private equity funds related to Real Estate and Commercial projects are getting attention. These funds are managing independent mutual fund asset companies which focus their collective capital on residential and commercial real estate projects. Currently there are 186 private equity funds listed in Costa Rica and 23 fund managers. One of these is our development fund PROSPERITY®
While typical private equity funds tend to have high entry costs, new fund types in Costa Rica like PROSPERITY® are offering low initial investment and subsequently attracting many new and first time investors. This type of collective investment provides greater bargaining power to the PROSPERITY® fund managers and expands real estate and commercial investment options for investors as well as higher profit rates.
An exceptional growth in investments happened during recent years in San Jose and surrounding cities in the Central Valley where they have been focused on commercial development such as strip malls. Now the growth in this specific area of the country is sort of capping because growth was too fast. So the most flexible and proactive funds like PROSPERITY® are seeing a growing potential in the residential and commercial markets of the area of the Central Pacific also called the Golden Coast for investment purposes.
Thanks to the new infrastructures (the main highway being completed, connecting San Jose, Alajuela and Heredia towns to the vacation beach destinations of Puntarenas, Jacó, Manuel Antonio, and down to Dominical and Osa peninsula. The new International Airport is planned to be built in Orotina. The new cruise ship port, the biggest in Costa Rica, is under costruction in Caldera). The Central Pacific area has seen excellent growth, even through the global slowdown in recent years. This growth is foreseen as higher in the near future. The Central Pacific area has now caught the eye of investment fund companies looking to expand their platforms from typical commercial projects to residential developments.
PROSPERITY® is the company that handles the escrow accounts for PCG Business Center group.
The company provides escrow agent services to other law firms in the country, as well as development projects in diversified business areas and real estate support offices.
The company is one of the few entities registered by SUGEF (a Costa Rican government office that supervises financial entities) which demonstrates the professionalism implied in its services.
Also, PROSPERITY® is authorized to act as trustee for transactions among individuals or entities that may require it
Industry experts are predicting that Costa Rica will see a growing number of these fund companies like PROSPERITY® entering the residential market as the country continues to improve its international profile as a destination of choice for business, investment, travel and living.