Foreigners have invested about $400 million in real estate in Costa Rica in the past two years, according to the results of a study carried out by the Central Bank published yesterday in the daily La Nación.

Foreign real-estate investment reached $176 million in 2004 and $224 million in 2005, and the northwestern Guanacaste province showed the most foreign investment with $147 million, followed by the southern Pacific Puntarenas province, with $96 million and San José with $75 million.

During the first five months of this year, construction increased 152% in Guanacaste and 121% in Puntarenas.

U.S. citizens made up 60% of foreign investors, followed by Europeans and Canadians, according to the study, which is the first to measure foreign real-estate investment, an “important” part of Costa Rica’s economy, La Nación reported.

Chamber of Real Estate Owners president Bernardino Bravo told La Nación he predicts this real-estate boom will continue and the country should improve its property registration system to provide more security for buyers.

-Tico Times