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Wow, sorry to bring up the obvious, but what happened to real estate values in Costa Rica? Properties have dropped in alot of areas by over 50% as far as I can tell. (Based on the last time I was looking several years ago.) Does anyone have thoughts on why?
Obviously there is the credit crunch and more competition in Central America. But c’mon it’s still one of the most beautiful countries in the world in terms of the life and the natural surroundings. And I thought the baby boomers were gonna raise values. I don’t get. Seems like it is a great time to buy. But maybe things changed.
What’s “obvious” to you JoeMusc is certainly not as “obvious” to me because I don’t know of any developer we recommend that has dropped his prices at all – not even 1% – never mind 50%
Please do show me exactly where you have seen property values drop by 50% in comparison with what you saw “several years ago.”
Scott Oliver – Founder
WeLoveCostaRica.comSeveral years ago I paid $6M2(5200M2) for property in a gated community(since completed) just 6kms South of Jaco. Are you suggesting it is now worth approx. $3 dollars?
Yeah! But you have to pay up front for it WITHOUT BEING ABLE TO SEE it first but I am assured that it has Pacific ocean views, Arenal view, Caribbean views plus you can see the city lights at night 🙂
Scott Oliver – Founder
WeLoveCostaRica.comBased on our last trip to the Montezuma area 2 weeks ago, in which we visited over 30 properties with various realtors, owners and land administrators, we did not notice any price drops whatsoever. However, we did note that prices have stabilized somewhat, so instead of 80-100% increases per year it may be only 40-50% until the US economy stabilizes, if it ever does.
I agree that the property values have been stable in the Jaco area. The only properties that are selling for less are the properties that where over priced in the beginning. And even those properties are not selling for 50% less or then they would be selling. I would really like to know of some of these properties that are 50% less as I would love to pick some of them up. 🙂 As for a 5200 meter property in the Jaco area for only $6 per meter. Please let me know I have clients that will buy that as well.
grb, if you are being told that you will get a 40-50% increase a year, you are being lied to, big time. I do think it’s a great time to buy, and the real estate market in CR is cyclical, like anywhere else. But you are not going to make bank anytime soon these days, at least until the credit crisis is eased. People come to CR, mostly from the states and Canada, and understandably fall in love and buy a dream property with disposable income that they have immediately available. (I know, I know, people buy from everywhere in the world, europe, latin america, etc. and financing is possible – please don’t kill me.) The feedback that I am getting from real estate agents (that I know personally) is that things have slowed down like they have never seen before. Some who were making a killing have told me that they haven’t sold anything in many months. Everyone says that things have stabilized but my view is that is because no one is selling. People that can afford to invest in Costa Rica usually don’t need to sell and can hold on to the properties indefinitely – this is a double edged sword – I think it maintains prices but also makes it harder to sell. One major reason for all of this is that it is still near impossible for foreigners to (practically and logistically) finance a purchase – making it necessary for buyers to have all the money at hand at purchase. I’m not trying to be a d!ck. These are just my honest views and in the states if you can’t sell for 6 months you cut the listing price by 20% until you can, like what is happening now. I have owned a couple properties over the past 5 years, gated communities and land, and have made good money so I am one of the last people to dis the CR real estate market. But I have had alot of trouble selling lately and wanted to relay my experiences (over the past year). When I made money when the market was good, I made around 15-20% a year. good not great considering the relative risk level. i don’t live there even close to full time and so of course have been at a disadvantage. It still is a great investment though. I think I am was just venting because it always amazes me that not everyone in the world is as head over heels in love with Costa Rica as myself cause you are not going to find a better place to retire, live or vacation in my view, and because if they would buy my darn properties I could finally retire there myself and live the good life.
Thanks for the input, Joe. Your anecdotal experience sounds like it might be right on the money. I am just another American who bought land a couple of years ago in the Central Valley but my own casual observations are that prices have not gone down. My impression is that there are no worthwhile sources of information on relative real estate values in Costa Rica.
The market may be temporarily saturated as the money has dried up from North America. But what about other sources such as Europe, Asia and South America? Those economies are still quite robust. Perhaps you are fishing for business in the wrong lake. Your perspective is from one whose clients mostly come from the U.S. so it has a bias.
I also don’t understand why everyone in the world doesn’t leave the cold northern climates for the beauty of Costa Rica…but I am also glad they do not.I think we should also focus on people like me who bought land with a long term view. Whenever you are buying and selling short term you are exposed to more risk. But from what I can tell many CR buyers are long term holders, bought all cash so very little financial strain going forward. Most importantly buy because you love Costa Rica and after spending some time there. Please don’t buy from an online ad and send $25k to hold a lot! It is not only dumb it hurts the rest of the market! Costa Rica has come of age, and just like all the Caribbean Islands that have long term stable markets Costa Rica Is there and it will only get better. There may be some initial growing pains but with all the big time players investing from St. Regis. Four Seasons, Steve Case to Walmart and on and on…there big dollar investments mean big time advertising campaigns to bring people in from around the world. Costa Rica is as beautiful as Hawaii with more flora and fauna, active volcanoes, much less expensive and a lot easier to get to. So if you are worried about short term market conditions and looking to make(or lose) a fast buck hit the casinos. If you want to invest in a growing wonderful part of our planet that has both good and bad aspects(good far out weighing bad imho) then call Scott and let him hook you up with a reputable person to help you out,or do it youself. This beautiful little country is on the radar screen in a big way here in NYC the subway cars are lined with tourist ads from airlines announcing new flights to San Jose and Liberia as well as adverts from the CR tourism ministry. 5 years ago no one here knew much about CR, now everyone does and many have been there and loved it! I really don’t know many that were buying just to flip, of course there are some. Lisle55 can you contact me off board to discuss some options regarding my lot, Scott has my email information.
The price of land in the Orosi Valley is increasing 20% to 25% per year. We have seen no lowering in prices. We own a small real estate/home construction company, Paradise Peak, and we see land appreciating.
Best Regards,
Steve Riley
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