This is an unprecedented and challenging time on many fronts, from aggressive fiscal reform in Costa Rica to great economic shifts and now a pandemic for modern times. We need context to understand both the health and the business risks posed by this pandemic in Costa Rica and around the world. Specially the economic impact of Coronavirus on the real estate market.
“At this point, this is a crisis of confidence… The economic impact looks to be more like 2001 than 2008.”
- This is shock to the system but it’s external. It has nothing to do with the economy at its origin.
- Hardest hit industries will be Tourism and Oil & Gas as prices decline for about six months, but the effects will extend well beyond.
- Interests will stay low.
In Costa Rica, economist Alberto Trejos, professor at the INCAE Business School, points out that there can be positive economic effects such as the possibility of telecommunications, providers for teleworking and automation that can increase sales due to the new coronavirus. The adverse impact of the coronavirus in Costa Rica will likely be felt mainly in tourism, entertainment, raw materials, and education. – see reference article in La Nación. We think that the economic impact of the coronavirus in real estate will not be so high.
As an exclusive member of Luxury Portfolio for Costa Rica, LX enjoys ongoing training and support with the Leading Real Estate Companies of the World network. We wanted to share a video message recorded recently by LeadingRE Chief Economist, Dr. Marci Rossell. She discusses the economic impact of the Coronavirus and how it differs from other historic economic events.
