Introduction
Good morning, Raquel. How are you doing?
[Raquel Moya]
Hi, Richard. I’m very good. How are you?
[Richard Bexon]
Good. It’s been a while since we’ve had you on the podcast.
[Raquel Moya]
Yes.
[Richard Bexon]
Thank you for having me again. Not at all. It’s an absolute pleasure to have you back on here.
I know you’re a wealth of information and beforehand we focused a lot on concession properties, but I think now, you know, I mean, I think we need to have a little bit of focus of like when investors come into Costa Rica, how they invest in like, I suppose, also how they integrate themselves in the communities as well so that we don’t create too much gentrification in Costa Rica.
[Raquel Moya]
Yes, I think that’s definitely an important issue and something that everyone’s speaking about whether in detail or just by following trends, but something to pay attention to.
Market Overview: 2024-2025 Trends
[Richard Bexon]
Definitely. Well, Raquel, I always like to get an idea of kind of like what you’re seeing happening, like how has 2025 been for you compared to 2024 and like how is the whole year trend? Just trying to give people that are listening an idea of like what’s happening at the moment, you know, within your world of work.
[Raquel Moya]
Yes. Well, I think we had a frenzy and increase in real estate demand following the pandemic and that started slowing down possibly around late 2023 or early 2024. And of course, I can only base this answer on my experience and perception of the market.
I may not have all the data to give you the exact percentage or how things have reduced, but the market has definitely slowed down. And I don’t believe that’s necessarily or immediately a bad thing. So I think things are shifting.
We experienced a very emotional, anxious market for the past years, and now people seem to be wanting to make more conscious decisions. So I have seen things slow down, but also I anticipate there will be growth in the next year. All the conversations I have with people looking to invest in Costa Rica, they confirm this perception of mine that people are making more conscious decisions and all the things they’re considering when investing is taking them towards Costa Rica.
So I anticipate we’ll have a focus on projects that are more focused on the environment, on community building, local needs, resident involvement, and hopefully we’ll have a high demand of people that want to contribute to Costa Rica’s growth.
Tourism Trends and Market Plateau
[Richard Bexon]
Yeah. Yeah, it’s going to be interesting to see what 2026 is going to happen there. I mean, from a tourism perspective, which is something I’m always looking at tourism because it drives real estate and development for me, I mean, we’ve seen a reduction this year for sure.
It hasn’t been as substantial as we might have thought it would be. They’re saying 2% or 3%. I think it’s more than 2% or 3% when speaking to the hotels.
I think it’s close to like 8% really. And I think we probably might see something similar in 2026, maybe kind of flatlining over 2025, 2% or 3% kind of movement up above. But I think we’ve hit a plateau now kind of of where we are with regards to arrivals into Costa Rica.
That’s for sure.
[Raquel Moya]
Yes. I think, you know, despite all the challenges we have in the world and in Costa Rica, Costa Rica is still perceived as stable and appealing. And even though numbers have reduced, as you said, it’s still a very attractive place to come.
And I don’t see that changing in the near future.
[Richard Bexon]
I mean, the waterline, as I like to say, is higher than it was in 2019 by quite substantial. So I think we’ve hit a new plateau here and this is probably where we’re going to stay now for the next coming years. You know, it’s going to wobble around this, but it’s a lot, lot higher than it was in 2019.
It’s just going to be steady rather than this huge upward swing that we had. We don’t see a huge downward swing, but I definitely see it moving towards a buyer’s market. But we’ve hit a plateau.
[Raquel Moya]
Yes, I agree with your perception of that. And of course, we have challenges in our country that we need to address and keep addressing so we can live up to the standard that Costa Rica has created as a tourism experience. And, you know, we just started the election year in Costa Rica on October 1st.
And I’m sure that and I’m hopeful that all the candidates and political parties will be focusing on that.
Election Year Context and Tourism Policy
[Richard Bexon]
Well, I’ll try and get as many of them on here as possible. We had Juan Carlos Hidalgo, who’s the candidate for PUSC, who’s a buddy of mine. So we just kind of chatted with him, but we’ll see if we can get a couple of other people on here, you know, to kind of chat.
I’m not too sure how many of them speak English. I’m sure the majority of them do. But, yeah, it’d be great to get their opinion on kind of what Costa Rica needs to focus on, because in the previous podcast, I spoke with many Mario Makowski, who again used to own Tabacon, owns Nantipa and also El Presidente, just talking about that, like the government here really doesn’t talk about tourism that much.
You never hear our current president, Rodrigo Chavez, really talk about it at all.
[Raquel Moya]
Yes, and I think, well, it’s interesting, I did hear your interview with Mario and I think he’s a great resource because he’s well, obviously very he’s working in tourism for many years and has a lot of experience, but he also lives outside of Costa Rica. So he has a good perception of what’s going on in Costa Rica and in the world. And, you know, tourism is definitely a driver for our economy and it needs to be the center or if not the center, a very key, important part of any policymaking we have.
[Richard Bexon]
Yeah, yeah. Well, I mean, what you’ve had, you’ve probably managed, I mean, what type of investments have you seen that like people are having difficulties now and which ones are you seeing having success?
Investment Types: Turnkey vs Development Projects
[Raquel Moya]
I see people are having more success by developing turnkey projects for people that just want to immediately move in and don’t deal with the construction phase or the uncertainties of developing themselves, not just I think the world has so many complexities and uncertainties that people don’t just want to add one more to their plate. So if they can make an investment that feels easy, that’s becoming more appealing and it’s more successful for developers to do that. Also, the cost of living in Costa Rica is very high and the cost of building is very high.
So people don’t want to, when they start anticipating what it could mean and also they face the fact that they may not be able to fully understand what it will mean because of all the uncertainties, they get discouraged. So more and more clients are looking for something that has been already built.
[Richard Bexon]
Yeah. I mean, I think that land developers are probably seeing a little bit of difficulty at the moment there just because of what you’ve seen. I mean, I know a lot of projects out there that are suffering at the moment.
They’re just the sales aren’t happening. It’s happening very slow, like, you know, so or they haven’t even got started. Like they’ve pre-sold stuff.
And like now it’s got so slow that they’ve kind of, you know, some of them are starting to kind of give up a little bit on their projects. So, yeah.
Fractional Ownership Opportunities
[Raquel Moya]
Yes, I’ve seen that and I’ve seen people changing what their projects look like. So I think an opportunity in Costa Rica is fractional ownership that is not sufficiently developed here. And people need to trust more in the power of contracts and curativity to create this type of projects.
I think new models of ownership are definitely going to thrive. And I have seen developers that have been used to doing things in a certain way, trying to explore new alternatives to sell so they can have people become partial owners by paying lower amounts or reducing their risk or sharing their risk with family members or friends. And this connects to this trend of people trying to build community.
You know, families are smaller now and at least in most places and in most realities and people that can find ways to invest with friends, with families or family members, they feel more comfortable to take this risk. So I have not seen enough fractional ownership of offers. I think people are starting to look into it and it’s still not as popular, but I can see how that could become a trend.
[Richard Bexon]
Well, I mean, you know, we do a lot of fractional investments, Raquel, as I don’t know if you’re aware of that, but we do quite a bit of fractional investments. And again, half of our Mamel Antonio project is fractionalized. The Arenal Villa that we’re doing is fractionalized.
The Arenal project is fractionalized as well.
[Raquel Moya]
There you go.
[Richard Bexon]
Well, and the reason being is that not everybody wants full ownership. They want a percentage of it. But I also force them to sell at the end of year five as well so that they, you know, that there is an exit in there as well.
But, you know, what we do is a little bit different because we actually manage it as well. It’s not just ownership, but we manage it and rent it and everything.
[Raquel Moya]
So that’s what you’re doing right there. You’re taking away the problems and uncertainty and risk from the investor, which I think especially the younger generations, which are going to be the new investors, they are very risk adverse and they are not as willing to get into something complicated. So I do think fractional is great to hear that you have a lot of projects going on.
For me, it’s still at an early stage and in the country as a whole, and we don’t have modern regulation for that. And Costa Rica being a country that relies on regulation so much, the fact that there’s nothing you can find because ultimately people, when they start understanding our system, they want to know how the system will protect this type of ownership and they start asking questions that should be resolved by our legislation already. But we have very old codes that talk about co-ownership, like if you were owning a farm for cows and that’s it.
So definitely we need a lot more progress in that. And I always say it, progress in legislation comes first from practice and people being bold and willing to do something. And then regulation is born.
So I hope this is going to come next.
[Richard Bexon]
I’m sure it probably will do one way or another. But let’s change gears a little bit. You mentioned work communities, you know, and integration.
I mean, what’s your advice? Because, again, a lot of people are developing here or building or investing here on managing these aspects.
Community Integration Strategies
[Raquel Moya]
Well, I think in general, managing as a real estate developer that is dealing with this world, I think the most important thing is to try to take the wave of investment and turn it into opportunity for our country, not to disconnect to what the local needs and wants are, because now we live in a very globalized environment where everyone has access and opinions to things that are going on. And whether you like it or not or whether or not you think this is important or relevant, it’s a reality. So I think for anyone that’s coming to develop in Costa Rica or anyone anywhere in the world, there are more factors to consider than there were in the past, not just regulation and your own particular risk, but also what community you’re going to become a part of, what that community is expecting, and also not to lose the opportunity to connect your resources to help this community thrive, because at the end of the day, Costa Rica is what it is and it is so appealing and so attractive because it has been perceived as one of the safest countries in Central America, politically stable, a happy country. And that’s part of the assets that each investor needs to consider and take care of.
[Richard Bexon]
What are some of the examples of how investors here could potentially involve themselves in community? I mean, what have you seen that’s been successful for people here?
High Luxury Development and Philanthropy
[Raquel Moya]
Well, I think it depends on the scale of the project. So I’m going to start, for example, with high luxury. High luxury is definitely a trend in Costa Rica and will continue to be.
And I will have advice not just for the developers, but also for the communities receiving this type of investment. I think the fact that these resources and these type of people are coming to the country is an opportunity to promote philanthropy and the impact of philanthropy in Costa Rica is very great. Now that there have been so many changes in the US and in the way that people in the US can contribute to the country, there is a lot of opportunity to receive direct contribution from a lot of the investors that are coming here.
And in many cases, they want to be a part of that and they want to contribute and they just don’t know how. So I think understanding and accepting that this is a trend and opening bridges between community and investors is definitely a very good thing. So this is an advice both for communities and for the investors to create this bridge.
I think the country in general, this applies not just for real estate, the opening communication and connection between all the different parts of our world is what’s going to make it thrive right now. And for real estate investment, I think that will be my top recommendation. So know what community you’re coming into, understand it, know what challenges that community is facing, because those challenges will be your project’s challenges sooner rather than later.
The people in that community are the people that you’re going to employ. The people of the community are the ones that are going to promote your project. And I think when a project and you’ve seen it happen, I’m sure when a project is loved by the community and accepted, it really succeeds and it just becomes a wonderful thing.
And I think Costa Rica needs that more and more because I would like to see, of course, investors and developers being very mindful of the impact that they’re creating in the country. But I would like to see a Costa Rica that also understands the impact of people coming here and how that can benefit our growth and how we can take that as an opportunity not to divide the country, but to make it more prosperous.
Practical Community Engagement Examples
[Richard Bexon]
Yeah, I agree. I mean, you know, just some of the stuff that I think about is, you know, providing community areas, you know, even with that skate park and stuff, which, you know, I mean, they did in in Osada, like there are certain things that you can do there. There are certain organizations that you can get involved in as well.
But I don’t think it can be like closing the pearly gates to your high end community and keeping everything out. I mean, just because it’s only going to create more friction. And yeah, so I mean, and some communities have done it well and other communities haven’t done it so well.
[Raquel Moya]
And that brings us to another thing that is a challenge and this comes more on the government side and is the importance of focusing on zoning regulations, modern zoning regulations, flexible and alive that that can help people develop and at the same time help the communities develop and create public space and public infrastructure and just turning all these investment into an opportunity for everyone.
[Richard Bexon]
Yeah, I agree. I agree. Well, you’d mentioned there previously we’re going to have a new government, which probably is not going to be till about April, May next year, because we know it’s going to be a runoff with all the 20 plus candidates that we always get, you know, and like at the moment, I don’t think there’s any front runner, you know, we’ve got no idea who’s going to win it at the moment, but it was like that in the last election as well.
[Raquel Moya]
Yeah.
[Richard Bexon]
And probably the one before that, you know, so it’ll probably be the same thing now. I mean, what impact do you think a new government is going to have on exchange rate and security? Because these are probably two of the biggest factors, I think, that are impacting investment here in Costa Rica, you know, I mean, it’s the word on the street is that we have a artificially controlled exchange rate, you know, because it doesn’t make much sense.
And also that, you know, security is probably one of the biggest things that we have to date here to worry about.
Security Challenges and Solutions
[Raquel Moya]
Yes, so I guess I’ll start with security, I think, you know, Costa Rica has always been considered one of the safest countries in Central America, and that is one of the key factors that has made it popular. And we really need to take care of that. Regretfully, security has fallen in the last years, and that’s possibly the result of increasing inequality, access to opportunities is the result of many, many things.
People like to connect it to just one thing. And it’s very easy to do that. But, you know, we went through a pandemic globally and there have been a lot of changes that have impacted that.
But for from my point of view, restoring security is the top priority in our country. And this requires both preventive and corrective measures. We need to understand the root sources of this increase in insecurity.
But also we need to tackle the issue with immediate action, with coordination between the police institutions, the use of technology, information systems. And again, you know, we have so many opportunities when investment increases to improve all these things. So for sure, I think security is the top thing.
I think we still have not heard a lot of proposals or direct proposals in this sense so far. But, you know, we’re just getting started. But I’m sure this will be the focus of all campaigns.
Exchange Rate and Cost of Living Concerns
And then you mentioned exchange rate, right? Yeah, I think. Well, obviously, exchange rate, but if I had to describe the issue, I would describe it as the high cost of living here, which, you know, exchange rate, of course, has an impact of that.
I think in that sense, a stronger cologne is somehow a catch 22, because on one hand, it helps importers and consumers that have debt in dollars make their purchases and their payments more affordable. So some people are benefiting from that. But on the other hand, it really hits the tourism sector.
And and I think it’s pretty obvious that Costa Rica becomes less attractive when our currency is stronger or that seems to be the case. This should definitely be assessed by economists. A lot of people do believe, as you said, this is somehow government controlled and and this needs to be a top priority, not just for the exchange rate itself or on its own, but because of how expensive the country is becoming.
And I think this combination of becoming more expensive and less secure is making us so, so less competitive with other Central American options that are trying to do the opposite, that they’re increasing in security and they’re less expensive.
[Richard Bexon]
Yeah.
[Raquel Moya]
So we really need to to take a look into that.
[Richard Bexon]
Yeah, I mean, you know, I mentioned we had one Carlos on here before, Hidalgo, and he had a great thing, which was like, I’m just going to have in Le Mans, you know, European basically drug police, they’re doing scanning everything going into Europe. But like we have it at the Cuello Botella here in Costa Rica, scanning everything with the police so that they don’t have to do it there. And I’m like, that’s really smart.
[Raquel Moya]
Like, you know, that’s a good example of an immediate action and use of technology. And I think whoever the candidate is, you know, also in terms of, you know, democracy as a whole, hopefully we need to focus on on all the proposals that come from different candidates. I think people may have their very different political views and preferences, and that’s perfectly acceptable.
That’s also important that we have that balance. But whoever the candidate is, I think the issues are the same and hopefully they can all contribute to to focus in on that.
[Richard Bexon]
Yeah, it’s just, I mean, I suppose running a government’s like running a big business sometimes, you know, it’s a big ship that takes really like and really is it’s mid-level management that run businesses and also run governments as well. So, yes.
[Raquel Moya]
Well, it’s definitely a complex thing, you know, both running a business and both running a country. I’m sure they have things in common, but also a lot of differences. And we just need competent, committed people doing it.
I agree.
[Richard Bexon]
I agree. Well, we’ll see what kind of what happens here. But I’m I’m almost sure we’re going to have a runoff here for sure.
[Raquel Moya]
I think you’re right. It’s almost it’s positive. And I think Costa Rica elections is always decided in the last month.
You never know what’s going to happen up until the last month. We right now, it’s very hard to predict who’s going to be who’s going to be running up.
[Richard Bexon]
I don’t even know who the strongest candidate is at the moment, but I think nobody knows. Nobody knows. Well, Raquel, we’ve kept you long enough.
So my last question for you, I mean, if you inherited five hundred thousand dollars and you had to invest it all business in real estate in Costa Rica, what would you invest it in? And why?
Final Investment Recommendation
[Raquel Moya]
I always answer the same thing, you know, and this this is completely emotional response. I will love a big farm in the mountains, secluded with lots of water sources and nature.
[Richard Bexon]
I mean, it’s great because look, I’ve got a buddy that did that and ended up building an organic farm and now is delivering organic avocados and fruits and vegetables all throughout Escazú and Santana. And like it was meant to be his retreat for the weekends. And now he’s doing that like he just lives off his farm.
[Raquel Moya]
See, I’ll just use it to relax. I will not be engaging in business. I’ll be just relaxing in the farm.
But yeah, that’s what I will do.
[Richard Bexon]
Well, Raquel, it’s been an absolute pleasure having you here on the podcast. I think anyone that wants any great legal advice in Costa Rica should definitely reach out to Raquel, but very much appreciate you taking the time to join us on the podcast. Thank you.
