As we all know, the presidential elections in the United States are on a countdown and they have global repercussions; Costa Rica is no exception. The Costa Rican commercial real estate sector could be influenced by the policies implemented by the two main candidates: Vice President Kamala Harris and former President Donald Trump. Therefore, at RC Real Estate, we have analyzed how each one’s proposals could affect the commercial real estate market in Costa Rica.
Fiscal policies and their impact on foreign investment
Kamala Harris: As a representative of the Democratic Party, Harris could propose raising taxes on corporations and individuals with high incomes to fund social and infrastructure programs. This fiscal increase could discourage foreign direct investment (FDI) from large American investors in markets like Costa Rica. Investors might seek destinations with lower tax burdens or focus on domestic investments.
Donald Trump: Trump has been a proponent of tax cuts and deregulation to stimulate economic growth. If these policies are implemented, American investors could have more capital to invest abroad. This would benefit the commercial real estate sector in Costa Rica, potentially increasing FDI and the development of new projects.
“Fiscal policies in the United States have a domino effect on our economy.” A favorable fiscal environment there can translate into greater investment here, driving large-scale commercial projects,” says Grettel Campos, commercial director of RC Inmobiliaria.
Exchange rate and financial stability
Kamala Harris: With a focus on strengthening international relations and promoting global financial stability, Harris’s policies could contribute to a more stable exchange rate. This would provide a safe environment for investors seeking long-term stability in real estate projects in Costa Rica, minimizing the risks associated with currency volatility.
Donald Trump: His more protectionist stance and aggressive trade policies could generate uncertainty in international financial markets. This volatility could lead to fluctuations in the exchange rate, creating a less predictable environment for long-term investments in the Costa Rican real estate sector.
“Financial stability is crucial for attracting and retaining foreign investment.” A predictable exchange rate facilitates the planning and execution of long-term projects,” says Campos.
Tourism and foreign exchange flow
Kamala Harris: By promoting policies that support tourism and international relations, the Harris administration could increase the flow of American tourists to Costa Rica. This would directly benefit the commercial real estate sector, especially in areas such as hotels, shopping centers, and retail establishments that depend on tourism.
Donald Trump: More restrictive immigration and travel policies could reduce the number of American tourists. This would have a negative impact on the flow of foreign exchange and the demand for commercial spaces in tourist areas of the country.
Campos emphasizes: “Tourism is a pillar of our economy.” Any policy that affects the flow of visitors has a direct impact on the commercial real estate sector, from hotels to small businesses in tourist destinations.
Definitely, the upcoming presidential elections in the United States represent a crucial moment for the commercial real estate sector in Costa Rica. Fiscal policies, financial stability, and tourism are factors that could significantly influence the market.
“It is essential for us, as actors in the real estate sector, to stay informed and prepared to adapt to the changes that may arise as a result of these elections.” At RC Real Estate, we are committed to continuously analyzing the international landscape to offer the best opportunities to our clients and partners.
