When first starting your search for Costa Rica real estate, it is important to know what you can expect to find there so you know what kind of reasonable criteria you can form for your search.
Forming Expectations
Let me start by saying that if you are looking for beachfront acreages in the $20,000 range, you are a few years too late. That is not to say that you cannot buy some very well built, attractive real estate in some amazing locations, but you need to know what to expect price wise.
Let me also point out that the homes that I am going to be discussing are those built with foreign tastes in mind - granite countertops, fine wood finishes, travertine tiled floors, etc. And even if your tastes don’t include these luxurious features, you will usually find other desirable community features like pools, a fitness center, golf courses, and much more.
Like in Canada and the US, you can find a variety of property types - lots, single family homes, and apartment or townhouse style condos. Prices vary greatly, mainly due to the same factors that affect value in the US - proximity to desirable points of interest (airport, beach, parks, golf courses, retail areas, etc.), accessibility, property features, and good old supply and demand.
High Level Overview of Costa Rica Real Estate
One of the hottest real estate areas in Costa Rica has been in the northern Pacific coastal area - Playa Conchal, Playa Flamingo, Tamarindo, etc. Growth in this area has been heavily influenced by the building of the second international airport in Costa Rica, the Daniel Oduber airport in Liberia. Not surprisingly, these areas are heavily frequented by tourists, allowing property owners to offset their real estate expenses with income from tourist rentals.
The general rule is that the further south along the Pacific coast you go in Costa Rica, the more inexpensive the real estate gets. In the Central Pacific area - where you find Jaco, Esterillos, Hermosa, and other beach towns - real estate is more affordable than the northern Pacific area, but it has seen some steady appreciation in the past few years. Jaco in particular has seen some strong growth as it is the closest beach town to San Jose, where you will find the first international airport, Juan Sanatamaria. Real estate values in this area are expected to improve even further once the new highway between San Jose and Jaco is completed, cutting the drive time from San Jose almost in half.
Go south some more along the Pacific coast, and real estate is (typically) even more affordable. This is mainly due to the fact that travel to this area takes a lot longer. However, that will all change soon. This past year (2007), it was announced that a third international airport will be built down in the southern Pacific area of Costa Rica. As can be expected, this should have a strong effect on property values in this area.
You now have a good high-level overview of what to expect with property values along the Pacific coast of Costa Rica, but you are probably wondering about more specific numbers.
Let’s look at some examples:
Northern Pacific
Near Tamarindo, you will find a luxurious condo development called Naturalia. This condo is a short walk to the beach and is situated along a main road heading to the popular tourist town of Tamarindo. Amenities are abundant and the units are well appointed. These properties run in the range of $271K for a one bedroom around 1350 sq ft, on up to a two story penthouse suite priced at $1,590,598 around 5010 sq ft.
Close by is Colinas Del Coyolar, a gated development with lots for sale where one can build their dream home. Colinas Del Coyolar is located just 40 minutes from Liberia International Airport, and about a 7 minute drive to Portreo Beach. Lots here are extremely large - from 1.5 to over 2.5 acres. You can get a small lot around $39K and a large lot around $99K.
Central Pacific
In Jaco, you will find quaint and cozy Bahia Azul - 2 bedroom, 2 bathroom condos situated along Jaco beach. Walk out your front door, past the pool, straight onto the sand and in the ocean! These units range from $375K for a 1060 sq ft unit without a few, up to $575K for a 1292 sq ft unit with a rooftop terrace, right in front of the beach.
Also in the town of Jaco, is a small condo in the development Villas Paradise, is just a block from the beach and situated in the downtown area close to shops and restaurants. Priced at $120K, you can’t go wrong! Plenty of potential for a positive cash flow!
Close by, you will find Costa Del Sol - a gated community of single family homes, abundant with a variety of amenities (pools, BBQ area, bike paths, basketball court, and more). This development is also a 3 minute walk to the beach. Lots are being sold here for $69K.
Southern Pacific
It is expected that there will be more development as progress on the new proposed International airport in this area progresses. It is also here that it is expected to see the most growth in the upcoming years.
It is immediately evident that in this area you will get more home for your money. For example, you can get a lot for $39K to $59K in a proposed, luxury, gated community with golf courses, hotels, shops, restaurants, fitness center, and access to marinas. You can just guess what will happen to the value of that property when the airport is completed!
Of course, you can find all price points in all areas of Costa Rica, as well as all types of properties and locales. But now you can know what to expect in certain areas and determine which is a fit for your real estate desires.
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The finalized master plan for Phase 1 of Las Colinas de Miramar (a.k.a. Hills of Miramar) was just release on May 1, 2008. Download Phase 1 Master Plan Map to your computer for review.
I have spoken to dozens of individuals who are looking at buying real estate in Costa Rica. I have looked at hundreds of properties and developments in Costa Rica. Of course, everyone’s criteria is varied, but there is a “magic number” that keeps popping up, like the universe recorded it somehow and keeps playing it back to me.
Costa Rica has a large number of fine and luxury properties, priced at $400K and above. What is more difficult to find are properties priced at a more modest price tag of $200,000 or less. Over and over I hear from people that they want to find properties in the $200,000 range - it is like that recording that I told you about.
The luxury properties are exactly that - luxurious - but there is still the average buyer out there who wants a modest, safe, and clean Costa Rican property, but doesn’t want to pay a fortune for it. For the beginner, finding these properties seems like a daunting, almost impossible task. When you search the Internet, a score of ads and search results pop up for high-priced, luxury properties, making it appear as if Costa Rica is not for the average person any longer. Unfortunately, that’s untrue.
The key is working with people in the know - people who can network with real estate folks all around Costa Rica to find those properties. These properties do exist, and there are quite a few of them!
