ØHuge government incentives for direct
foreign investments in the real estate sector.
ØHigh growth for the real estate
tourism, especially along the coastlines of Costa Rica.
ØThe rise in demand for homes related
properties among international investors who want to own properties in the
Costa Rican market.
ØHuge incentives for those intending
to make investments in the real estate sector, especially in the construction
of homes and rental properties.
ØImprovement in infrastructure,
particularly in the area of transportation, thereby, opening up various parts
of the country for real estate investment opportunities.
ØReal estate revenues from both
domestic and international customers in the next 20 years are expected to
continue rising, as the country real estate sector is experiencing rapid
growth due to the need of the people to own homes.
ØLack of adequate qualified employees
to work in the real estate businesses, and this makes it difficult to hire as
well as retain individual employees.
ØCurrency fluctuations, which are
experienced from time to time and this impacts on the cost of doing business,
especially the cost of raw materials that needs to be imported from other
ØHigh risks of properties being
damaged by typhoons, earthquakes and other forms of natural disasters that
are very common in Costa Rica, due to its geographical location.
ØThe high taxation structure employed
by the government is a threat to the profitability of a business investing in
ØCases of corruption in the public
sector remains high, and they might cause certain delays and increase costs
of undertaking construction projects in the Costa Rican market.
This section focuses on real estate agency and
construction faction of the real estate sector in Costa Rican market,
especially in various major cities, located in major tourism destinations. Most
of the real estate properties are located in major cities compared to rural
areas in Costa Rica due to their high demand. The major cities have the right
infrastructure, regarding roads, water and sanitation services,
telecommunication and electricity, and this make properties and homes found the
areas attractive to potential buyers. Given the plan is to make a foreign
direct investment in the real estate sector, the major competitors will be
firms offering real estate agency services and construction related services in
Costa Rica Real Estate Services
Costa Rica Real Estate Service is an
organization that specializes in offering real estate services to target
customers. It offers real estate brokerage services within the coastal town of
Dominical, located in the Costa Rican South Pacific region, where unique rain
forest covered Talamanca Mountains usually touches the magnificent Pacific
Ocean. The company offers sales of properties in Uvita, Quepos, Dominical,
Manuel Antonio, Ojochal, and Jaco neighborhoods found in San Jose as well as in
other parts of the country (Costa
Rica Real Estate Service, 2017). The company has made tremendous success
for last 15 years since its formation (Costa Rica Real Estate Service, 2017). The main focus of the
company is offering professional advice to people intending to buy properties
and acting as their representations.
Costa Rica Real Estate Services is familiar with real estate needs of the Costa
Rican customers and as a result, can offer services that tailored towards
meeting the needs of different groups of customers. As a result, it can offer services to clients
that are highly competitive in nature and responsive to customer needs,
building a group of satisfied customers and this is a strong marketing weapon
for the agency. Therefore, the ability of Costa Rica Real Estate Services to
offer services that are tailored to the needs of customers gives it an upper
hand over other agencies operating in the country.
to Kotler and Armstrong (2010), the ability of an organization to offer high
services that are tailored towards the needs of customers is a source of
competitive advantage. Thus, the agency has managed to become one of the best
preferred by customers in offering real estate brokerage services due to its ability
to respond effectively to the needs of customers. Also, the expertise of the
company when it comes to negotiations, enabling it to cut better deals for the
customers gives it an upper hand over other real estate agencies in Costa Rican
market. In real estate business negotiations are a key to cutting deals that
are favorable to customers, and this has been a major strength of the agency
for the last 15 years, enabling it to expand its services in different regions
within the Costa Rican market.
Additionally, the agency has built a strong
reputation of an organization that offers high-quality professional services to
the target (Costa Rica Real Estate Service, 2017). The agency has a team of
qualified real estate brokers, who serve customers in a professional and
dedicated manner. As a result, the customer feels valued by the agency at all
times. Finally, Costa Rica Real Estate Services faces stiff competition from
agencies operating in the target markets, such as GoDutch Realty.
GoDutch Realty is a real estate
brokerage firm operating within the Costa Rican market. Its offices are located
in Escazu and have other operational offices in Atenas, Santa Ana, Grecia, and
Cariari. The firm usually focuses on the entire of Central Valley region of
Costa Rica, whereby, it sells residential properties to the target customers
(GoDutch Realty, 2017). The firm has a proven record in the area of real estate
brokerage. It has expertise in areas of advising customers who intend to invest
or live in Costa Rica. The firm mainly specializes in residential properties
and luxury properties, mainly targeting international investors who intend to
own home in Costa Rica.
One of the sources of competitive advantage is
the business approach taken by the company. The firm usually specializes in
small market segments, thereby managing to offer high-quality services to
customers. According to Kolter and Armstrong (2010) focusing is an effective
marketing strategy that enables a firm to offer high-quality services to the
focus market segment, thereby, gaining a high competitive advantage over firms
which offer a wide variety services to customers. Hence, the ability of the
firm to focus on certain market segments, particular in residential properties
enable it to win the heart of customers who need brokerage firms that
specialize in offering residential properties.
Lastly, the agency offers high-quality
services to customers that are geared toward ensuring that the customer attains
the success they intend in life (GoDutch Realty, 2017). Therefore, the agency
offers residential properties that are tailored towards helping customers
realize success in life. This enables the agency to attain high levels of success,
as it needs connected to the needs of customers. It faces stiff competition
from real estate companies that offer construction and brokerage services
within Costa Rican market.
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