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INSIDECOSTARICA.COM | COSTA RICA  NEWS |       Wednesday 15 June 2011

Costa Rica's Real Estate Market Slowly Recovering

Costa Rica was one of the countries whose real estate market plunged when the recession hit. But now Costa Rica’s housing market is reviving, though it is nowhere near what it was during the 2006 to 2007 boom.

“There has been a timid awakening in selling homes and condos on Pacific beaches, while the GAM  [greater San José metropolitan area] residential sector has been growing at a steady pace, with an excellent range of properties,” according to Aleyda Bonilla, president of the Costa Rican Chamber of Real Estate Brokers.

Adds Playa Hermosa First Realty’s Les Nunez: “Middle- and lower-priced homes… are really starting to move now, as opposed to the top end. So, anything between us$300,000 and under, you’re getting good inquires and even purchases now.”

Real estate transactions in Costa Rica are typically quoted in US dollars. The Costa Rican colon decreased in value during 2010, from us$1 = 557 colones to us$1 = 493 colones, so real estate has become cheaper from the Costa Rican point of view.

San Jose, parts of Central Valley , the Central Pacific region and Guanacaste are picking up. Atenas in western Central Valley is becoming popular. “Gringo-style” homes are selling in Atenas, especially modestly priced ones which do not exceed us$200,000.

The improvement in housing demand has boosted construction and the mortgage market. Private construction rose 0.7% y-o-y to February 2011 – the first private construction index rise in 25 months. Housing loan volumes also increased 6.38% y-o-y to February 2011.

Costa Rica has some of the best housing stock in Latin America. Less than 10% is considered to be in bad condition. 74% the total housing stock is owner-occupied, and 17% is rented.

Positive outlook for Guanacaste
For years Guanacaste was a wild woolly territory, hard to get to, the domain of backpackers and surfers who appreciated its climate and stunning beaches.

Then Guanacaste took off. The real estate boom in Guanacaste began after the opening of the Daniel Oduber international airport (in Liberia) in 2002 and the opening of the Four Seasons resort, part of the 2,300-acre (9.3 sq. km.) us$400 million Península Papagayo, indisputably the most luxurious development on the coast.

The resort was tagged by Travel & Leisure as among the 500 Best Hotels, the top resort in Latin America. Beachfront and ocean view condominiums in Four Seasons resort are priced from us$1.4 million to us$2.5 million. Houses sell from us$3 million to us$7.5 million.

Another catalyst was the start of direct flights into Liberia from the United States and Europe..

Some of the most luxurious and high-priced properties are available here, though there is a wide range of condominiums in Guanacaste on a price range from us$100,000 to us$750,000, depending on location.

Aside from the Four Seasons resort, there are three more hotels, including a Barcelo hotel. More than 1,000 luxury homes are expected to rise in Peninsula Papagayo. A private 18-hole Jack Nicklaus designed golf course is also scheduled to open in 2014, one of the three golf course attractions planned in Peninsula Papagayo along with the currently existing 18-hole Arnold Palmer signature golf course.

Also under development is the us$15 million La Marina Papagayo. La Marina Papagayo’s Phase I was opened on January 13, 2009, and includes 180 boat slips accommodating private boats ranging from sport fishing boats to mega yachts. The marina is expected to have 370 slips upon its completion.

Tamarindo, the biggest coastal town in Guanacaste, is a hit among tourists, especially surfers. It has the most developed tourist infrastructure in Guanacaste. Due to its popularity, Tamarindo property prices have risen, and average homes and condominiums sell at prices ranging from us$200,000 to us$700,000

Located at the southern part of Tamarindo is the Hacienda Pinilla, where hundreds of condominiums and villas are being built around 4,500 acres of nature preserve by the Atlanta-based owner, Hoover Gordon Pattillo, who bought the land as a family vacation homestead 30 years ago. Over two weeks in 2008, Hacienda Pinilla sold 43 Spanish colonial condominiums for us$580,000 and up – without any advertising. Nowadays, ocean view condominiums sell in Hacienda Pinilla at around us$725,000 to us$1.1 million, and houses range from us$840,000 to us$2 million.

The us$35 million expansion of the Daniel Oduber Quiros airport is expected to finish later this year, allowing it to accommodate around 1,500 passengers, reaffirming Guanacaste as Costa Rica’s second most important airport.

The area’s promoters have taken to calling it the new Gold Coast. Guanacaste is low in humidity and has just two seasons- the Green Season, May to November when there are morning or afternoon showers that clear to provide spectacular sunsets, and the High Season, with beautiful sunny days from November to May.
 

 

 
 
 
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