The construction boom in Costa Rica is mind-blowing. The buildings go up and up. Strips of land just do not sit empty for long. In a developed country I understand that the basic cycle of construction usually involves obtaining leases or tenants before the first Catepillar breaks ground. But when these digs go up in Costa Rica, they often sit more than 1/2 empty when finished. Prices generally do not reflect the market and instead show a landlord willing to sit on empty space (which has got to relate to lost money I’d think). I don’t get it. Are there that many people flocking to Costa Rica? Businesses?

These two buildings are going up almost right next to each other. And they’re neighbor is another new construction. I suppose real estate agents have got a much better feel on this than I do, but gosh, it is something to watch. The slow-down in the U.S.will have an impact on Costa Rica, but in one of those great sound-bite phrases - “a trickle down effect.” I’ve got to think it’s a buyers market and there are going to be great deals down here. And, if you are smart, I think you could find some great value in Costa Rica.

But beware, there’s a catch: some people pay no mind to the markets. Places will sit empty; people pay too much for paradise; and there goes the neighborhood.