By the end of 2011 the Atenas real estate market began to see a strong up swing in home sales. This was especially true of homes priced from $350,000.00 to $500,000.00, which has always been the most active part of our market.
By the end of 2012 our inventory was depleted to almost pre-crisis levels (I am referring to the economic crisis that had a huge impact on the United States and Europe), a time when properties were seemingly being sold by the dozen.
The AARP Ranks Atenas as…One of “The Best Places to Retire Abroad.”
In the first half of 2013, that trend has continued, with high demand and short supply of quality homes in the $350,000 to $500,000 price range. By the end of 2012 local developers and builders began breaking ground on several homes throughout Atenas but are struggling to keep up with demand. Many of these homes have sold before construction was completed.
This demand is also true of homes priced under $250,000 We continue to have daily inquires and requests for quality properties under $250,000 but that end of our market is almost nonexistent. Due to the decrease in property values in North America, most buyers expectations of what you can purchase in Costa Rica for under $250,000 are often unrealistic.
Another positive change 2013 has brought to the Atenas real estate market is the movement of higher end homes ranging from $750,000 to over $1,000,000 Investors are also looking at large tracts of land for residential and commercial development especially at the edge of town and near Highway 27.
One such client is looking to develop a small boutique community of 12-18 homes with a small hotel and full 5 star amenities package to be shared by both. Some of the amenities include private club house, restaurant, pool, gym, spa, yoga studio and concierge service.
One trend that continues is the need for owner financing. We have many clients who are qualified buyers but are in need of financing. Often times, these clients have 30-50% to put down but are asking for 2-5 years to pay off the balance.
Some sellers are offering financing and in the past year we have closed several deals with owners holding paper. Most sellers who will consider financing are asking for a 30-50% down payment, annual interest rates ranging from 5-8% and 2-10 year terms, sometimes with a balloon payment in 5 years.
Atenas also continues to enjoy a strong rental market. For the past 2-3 years, the long term market has been stressed with very little inventory coming onto the market. Many long term tenants have realized the wonderful homes they have at good rates and are not letting them go.
In the past month we have taken 5 new long term rentals and we had all of them rented with-in 48 hours. The short term rental market also remains strong. We are about 60% booked for the 2013/2014 high season. In the next two months that percentage will change drastically.
One of the things we love most about living in Atenas is that there is something for everyone. In life there are always trade-offs so you must decide what is most important for you on an individual basis. Living in a community like Atenas is a real privilege with it’s location, climate, established expat community and warm welcoming locals.
These things are very hard to duplicate and have been keystones to Atenas’ popularity as a world renowned retirement destination, receiving a much deserved nod by AARP in 2010 and more recently by The Wall Street Journals Market Watch.
Come see for yourself why Atenas has captured the heart of so many. We will be waiting for you with open arms!
Real Estate Investor’s Market Update For Atenas. July 2013. The little town that AARP ranks as one of “The Best Places to Retire Abroad.”
Article/Property ID Number 4332
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