Market increase: Real Estate in the Pacific Coast of Costa Rica
What's being said and why?
Real Estate Markets in the Central Valley of Costa Rica have generally been supported by major corporations (IBM, Intel, etc.) that continue to put more money in to the business sector of the economy. Just taking an afternoon drive through Escazu, Costa Rica or downtown San Jose, Costa Rica will show you business is booming. To add to this, everywhere you turn there is a new site of construction being developed.
As for the real estate market on the Pacific Coast of Costa Rica, it is mainly supported by vacationers, retirees and expats.
“Almost 1.2 million international tourists visited Costa Rica during the first six months of 2011, the Costa Rican Tourism Institute (ICT) announced Monday. The 1,197,199 tourists that visited Costa Rica from January to June was a 6.5 percent increase compared to the same period last year. In 2010, nearly 2.1 million tourists visited Costa Rica, a record.”
~Tico Times -Popular expat newspaper in Costa Rica
The tourism market has experienced an increase and following shortly behind it was an increase in the real estate market that stalled a few years ago. Another popular website Welovecostarica.com run by Scott Oliver in a recent post said:
“I would suggest that the worst of the price declines is definitely over, real estate inquiries and closings since December 2011 have increased dramatically so if you have been waiting for bargains, I would not wait too much longer if I were you …”
That’s great news for buyers and investors in the real estate market of Costa Rica. For buyers, now is the time to begin considering a purchase in Costa Rican real estate. If the market begins to swing further in an upward direction, prices will increase in the near future; both scenarios are good news for investors. From one angle an investor in a development project today, could see a quick and healthy return on their investment, and those who invest for the long term could see an even greater return on their investment as the prices of lots and homes increase.
“It’s starting to get better, honestly. Things are looking up,” said Les Nunez of First Realty
“I really think people are restless now. They’ve been sitting and waiting too long,” she said. “They want to buy something. They have the itch. And I think a lot of people want to relocate to Costa Rica.” ~Karen Ebanks of Karen Real Estate
“I see activity picking up now. This time of year it always picks up at the beaches. But I’m seeing a little more this year in the Central Pacific area than I have been.” “I think the growth in the future is really going to be in the Central Pacific. In Guanacaste, there’s just too much inventory,” ~Bruce Wood of Costa Rica Realty One
Other contributing factors leading to the increase in the real estate market in the Central Pacific Coast of Costa Rica are:
- The new highway that cuts travel time for vacationers
- The banks opening their doors once again to developers and buyers
- The increase in seller and developer financing
- 90% (2011 est.) of purchasers have paid cash on real estate
- Expats from the USA are seeking a stable and growing economy (politically and financially) in which to invest their retirement funds through real estate. Real estate in Costa Rica, statistically, has provided the best option as others such as South America and Asia are too far in proximity to family, friends and businesses still in North America. As well, these “farther” markets many times are in countries that do not have the business infrastructure support that is so prevalent and growing in Costa Rica.
For more information about the Costa Rican real estate market or to get a free consultation regarding your investing options in Costa Rica feel free to contact us.