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WANNA buy a beach house? Now is the time as
prices, at least those along the Pacific coast, are only going
to go up. That’s the advice offered by several real
estate agents with experience in Costa Rica who have seen
prices on houses and condos rising, especially along the Pacific
beaches. “We are so busy we can’t keep up,”
affirmed Yolanda Goulet, the manager of Continental Americas
Realty Group in Playa
Esterillos on the central Pacific coast. “We are
going through a boom and have more qualified buyers now than
we had during the last tourist season.” Goulet explained
that generally tourists “fantasize” about owning
property here, but often don’t follow through.
Buyers who are currently living in Costa Rica, however, are
more serious about purchasing a condominium or beach property.
The northern Pacific coast has developed sufficient infrastructure
to support the development
of housing and retirement communities, condos and luxurious
resort projects. “Ten years ago there was no infrastructure,
it took me seven years to get a phone and the roads were terrible,”
Goulet said. “Now, the phone lines go all the way to
the beaches and the government is building roads and putting
in modern bridges.
” Economic conditions are also helping the area’s
boom. “The world markets, with low interest rates and
more fluid money, are helping people to buy property here,” explained
Kevin Olson of Century21 Real Estate in Jacó, on the
central Pacific coast. “A real estate friend in California
told me that he thinks North Americans will continue to look
to Costa Rica to buy property.” Olson estimates that
60-70% of buyers of upscale properties are from the United
States and Canada.
Real estate agent Danny Henderson said he can’t keep
an inventory of property because it sells so fast. Henderson,
who is an agent with Carico Real Estate Company in San José,
said that real estate sales are experiencing a “snowball” effect
that started along the northern beaches and now is spreading
into property along the Nicoya Peninsula. “It started
in Flamingo and Tamarindo, where property is now pretty expensive,
and has spread to Nosara (in the northwestern province of
Guanacaste) in Nicoya where construction costs have risen
from $10 per square meter to $60 or $70 per square meter,” he
said. “Costs along the northern beaches have now bypassed
those in Escazú.
” Prices can range into several million dollars for
some homes, but the agents agreed that most homes will likely
sell between $250,000-450,000.
Goulet warned that prices have risen more quickly in the
past three years.” Some people have paid $200,000 for
a two- or three bedroom home on an acre in mountain developments
when you can get the same price for property along or near
the beach,” she said. Those kinds of prices are rare
farther south along the Pacific coast where, Goulet said,
the area is more desolate and there is no phone service or
infrastructure to support major developments yet. However,
she said that she expects that area of the country to continue
developing over the next few years.
Commercial
property sales are also strong along the Pacific
zone. Not only are big companies developing massive complexes,
but small hotels ranging from four to 12rooms are in demand. “People
are buying older hotels and upgrading them,” Olson
said. “Whatever we market does very well.
“Improved clarity regarding Maritime Zone construction
has helped investors who want to buy property close to the
water.
Costa Rican law prevents construction of private homes with
250 meters or two city blocks of the water line at high tide.
However, Goulet, whose company specializes in the sale of
Maritime Zone properties, said that the law is clearer and
enforcement better organized so purchasers are not in as
serious a danger of losing their property as they might have
been in the past.
However, Goulet warns potential investors to be cautious
when looking for property. “It’s pretty secure
now, but a lot depends on the people you deal with,” she
warned. “I try to warn people that buying property
here is not like buying in the United States. People need
to keep an eye on their property and have a lawyer check
the registry at least twice a year.” Squatters are
seldom a problem along the coastline, however some communities
can try to take private land to establish an ecological corridor,
she said. “You need to get legal advice that you can
trust,” Goulet added.
In San José, realtors say the market is also very
active and increasing in value. “Among the upscale properties
there is a big time trend,” said Les Nunez, president
of Remax First Realty in the Sabana area. “Any time
an economy starts to pickup, the commercial real estate market
leads the way.
Then, that market pulls up the residential market.”
Currently, Nunez reports a lot of construction of commercial
property, such as small to medium sized shopping malls. “This
is happening especially in the area that we call the golden
triangle, Santa
Ana, Escazu, Rohrmoser and Cariari.” Nunez described
real estate activity on the west side of San José as
very hot while that on the east side in areas such as San
Francisco de Dos Ríos as “chugging along.”
“The west side is on fire while the east side is cooling
down,” he said.
Nunez attributes some of the growth to the influx of investors
from Venezuela, Colombia and Argentina who are building commercial
centers and buying houses. “That’s not all drug
money either,” he said. “Most of it is legitimate
investment. There has been an influx of Latin Americans buying
property.” Nunez and Henderson have seen a shift in
buying and renting patterns among landlords and clients. “There
isn’t an oversupply,” Nunez said. “But
the lines have shifted.” He described many buyers as
downsizing their desires and moving when their lease is up
from $2,000 a month apartments to those costing as low as
$800-900 per month. In addition, landlords are lowering their
expectations. “A three bedroom condo that cost$1,500
a month in a gated community a few years ago is going for
$1,200 now,” he said.
Henderson has seen the slide in condo
prices in the San Jose area as well, some dropping as
low as $150,000 from a previous selling price of $500,000.
“It’s a strong buyer’s market right now,”
Nunez said. “There is a lot of inventory and the supply
is bigger than the demand.” But, Nunez cautioned, there
are some pockets where sellers are getting their asking price.
Starting with a reputable real estate agent is a key to the
successful purchase of a property. “Every taxi driver
here is a real estate broker,” Henderson warned. “Make
sure your agent is a member of the Costa Rican Board of Realtors
and that he or she has been here for a while and is reputable.”
Goulet agreed. “There isn’t a lot of licensing
here and some people will say anything.”
If you want more information about the best real
estate affordable, please contact Costa
Rica real estate and retirement properties or call toll
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