Interesting article published in the “Tico Times” regarding Costa Rica real estate investing.Back to Top
June 10th, 2010
As was the case for most Real Estate markets last year, Costa Rica saw a decline in property values in 2009. Leading up to that time Costa Rica had emerged as one of the hottest new markets for tourism and second home buyers. The combination of a vacation paradise, friendly locals and rising property values lured buyers and kept both pre-sale and re-sale markets strong. Sensing the opportunity, local developers moved forward with new projects. When the world’s economic situation worsened and cash flow tightened, speculation slowed along with home sales. Less demand softened the market and the heightened inventory forced prices down as much as 25-30% in some areas.
Due to the fact that this was not a big market to begin with, the absorption of product and recovery of pricing seems to be stabilizing quickly. Another factor that has helped the market rebound was the limited number of mortgages that were placed on Costa Rica properties. Costa Rican banks were normally more conservative and never really adopted the aggressive terms and tactics seen in many of the world’s lending institutions. Therefore foreclosures and bank inventories have not had much of a role in this Real Estate market. As a matter of fact the Costa Rica banks and local economy have fared much better than the US during this crisis. All these factors have played a role in limiting the down side and prompting the recovery of prices.
As we look regionally within the country, the Central Pacific Coast will have a huge boost this spring with the opening of the new highway linking the airport and capital city of San Jose to the Pacific Coast. This highly anticipated project has been 20 years in the offering and will cut drive time from the airport and downtown San Jose by more than half (55 minutes). The eminent opening has prompted a flurry of Costa Rican buyers to acquire beach homes at attractive rolled back prices and make this coastal paradise a regular part of their lifestyle.
Looking specifically at the Los Sueños Real Estate market, it is clear that we are fortunate to be a part of the finest Resort Development in the country. The current market in Los Sueños Resort proves that values based on superior location, abundant amenities and quality infrastructure will stand the test of time. It seems as though there is less turnover and more of a commitment with Los Sueños buyers to own property with long term intentions. However we have seen some distressed sellers who have been forced to sell at under market prices due to their financial setbacks in the U.S.
If you have an interest in speaking with a Real Estate professional regarding opportunities in Los Sueños or the surrounding area, feel free to call or email us.
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