The first quarter of the 2014 season sales have been up 30% from last year so far. We have seen a slight increase now on oceanfront land and home prices as most of the foreclosures and fire sale inventory has been sold off. Historically, Costa Rica echoes the United States housing market and we are still in a recovering market for sure. Similar to the United States housing market, “Cash is King“. The real deals have been moving fast and are made with cash offers.
Manuel Antonio, Playa Dominical, and Playa Uvita in particular have seen the most sales over the past 12 months. It seems we should see this trend of prices on the rise again next year if it keeps going at this pace.
We understand that coming out of a worldwide recession, the market will take some more time to recover completely, but we see the green shoots of growth. Our lack of housing inventory in the Southern Zone has construction companies on the move here to keep up with demand! I have not seen this many construction trucks driving to work in 7 years. That is always a good sign.
I feel personally the very best deals out there are still with undeveloped land parcels and home building lots. We have local professionals we work with closely to ensure that our investors experience as seamless a building process as possible. We are however seeing the most demand on turn-key / “move in ready” homes for our clients, especially those over 55.
The luxury market here is what has been the most surprising to us with with over 20 homes selling over the $1 Million mark just in Dominical and Uvita alone with many more selling in Manuel Antonio.
What To Expect For The Costa Rica Real Estate Market In The Southern Zone
Based on direct inquiries to our office and conversations with fellow real estate professionals in the region, the #1 demand is currently for houses listed at $450,000 or below and as close to the beach as possible. This is where the development companies are now racing in to fill that gap in the market supply.
We are now seeing at least 4 new projects coming on line offering beachside residences starting at the $349,000 range. These properties should sell fast once the projects have the first few homes built and infrastructure completed.
We have great hope for Costa Rica’s future in Real Estate and Investment as we see so much room for growth here. Southern Costa Rica in particular is the most beautiful part of Costa Rica and we are all trying to build as green as possible to keep it that way!
We feel that Real Estate Investing will only be on the rise here over the next 10 years!
About The Author
Casey Stamps is Cofounder, Full Partner, and Senior Investment Advisor at Costa Rica Real Estate Service.
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