In fact, the troubles plaguing the US economy have turned Costa Rica into more of a buyer’s market as well. There are numerous unsold properties in existing developments, and a lot of the land on the market is sitting untouched as many smaller players – those who depend on mortgaging an existing property to come up with the capital for new purchases – are finding it harder and harder to do so.

This leaves the market wide open for the serious investor. Developers who are taking a realistic view of the market are dropping prices anywhere from 20 to 40 percent compared to the peak prices of three years ago, and offering other incentives to those with the capital to take advantage of the current situation.

The province of Guanacaste remains a hotbed of development, ever since the Daniel Oduber International Airport was built there five years ago, so a savvy investor might look for properties in other parts of the country, where prices have not climbed as much or as quickly.

Costa Rica also led the rankings for Central American Countries of the Future for 2007/08, placing first in five of the seven categories – economic potential, business friendliness, human resources, quality of life, and development and investment strategy.

Overseas companies invested US$ 1.4 billion in Costa Rica last year, equivalent to 6.4% of the Central American nation’s GDP ($320 per capita) and one of the highest levels in all of Latin America. Multinationals such as Intel, Hewlett Packard, GlaxoSmithKline and Allergan have all made recent investments in Costa Rica.

These foreign investment levels are attributable to factors such as high education levels, government support for high-tech industries and, for European investors, the favorable exchange rate between the US dollar–the currency of choice for most international business transactions in Costa Rica–and other foreign currencies such as the Canadian dollar, the British pound and the euro.

And let’s not forget the “climate” part of the title! Costa Rica is often described as Paradise, and the mild climate in the central highlands and tropical coastal areas are a huge draw for immigrants and investors alike. Highs in San Jose average in the mid 70s(F) year-round with lows around 60 degrees, while the Guanacaste region sees similar lows, with highs in the lower 90s.

ECLAC attributes the nearly US$106 billion in foreign direct investment to economic growth in the region and sustained global demand for natural resources.

While Brazil received the largest total influx of FDI, with US$34.6 billion, Costa Rica and several other Central American countries were among the leading recipients relative to each nation´s gross domestic product.

While the United States is one of the leading investors in the region (along with the Netherlands and Spain), the superpower´s economic slowdown did not affect the figures for 2007, as its effects were only beginning to be felt by the fourth trimester of the year.

The flow of FDI for 2008 may therefore not equal last year´s record highs, but ECLAC is forecasting 4.7% growth for the region as a whole this year, and 4.5% for Costa Rica.

José Luis Machinea, the Executive Secretary of ECLAC, acknowledged that economic woes in the United States are causing global uncertainty, and the expected growth for 2008 has been revised downward from an initial estimate of 4.9% issued in December.

Nonetheless, Machinea described the regional economy as a whole as less vulnerable than in the past.