Costa Rica Real Market Experiences Upturn

Costa Rica Real Market Experiences Upturn

As someone who likes to travel, specifically between Central and North America, and with more than a passing interest in real estate, I try to follow trends. It appears to me that markets in North America where the job market is strong are doing better than areas with residential real estate that is mostly for pure enjoyment. Homes very close to downtown Atlanta, for instance, seem to be only slightly down in value. However, travel to any of the lakes in North Georgia and you will see a severely depressed market. The same can be said for coastal regions of Florida, where oil, hurricanes, high insurance and property taxes have decimated the second home market.

In contrast, there is a little bit of an upturn in the residential market on the Pacific Coast of Costa Rica. I have spoken with many colleagues and they are feeling it too. This is not to say there is appreciation as there is not, but there is an upturn in closings especially over 2009, when virtually nothing closed. In 2009 there were far fewer showings and the people that were looking mostly chose not to make offers because they felt the market had not hit bottom yet.

This year there are far more showings and closings. Area real estate professionals have been surprised at the amount of closings even in October and November, typically the slowest parts of the year.

The Costa Rica market certainly has ties to North America, with a general consensus at least in the past, that the market tends to follow the United States. These days, we may be seeing that trend change to a converse relationship with the United States economy.

I have written in the past about the laptop carrying class of worker that frequents our rental program and is also purchasing. As the US continues to have economic problems and jobs in corporate America become less and less attractive, this type of person is making Costa Rica home. That certainly helps our market as high speed internet is now widely available and relatively reliable.

I have also heard many people theorize that people with discretionary income were sort of in shock when the economy started tanking. Now these people have come to grips with the new reality and are moving on with their lives including purchasing property in places they really enjoy.

Perhaps the confluence of the factors mentioned above and the fact that as of 2010 there are quite a few more sellers who are also psychologically okay with the fact that they have lost value in their properties and are no longer stubbornly trying for unrealistic prices is what is driving our market right now. There are now some great values in the Tamarindo real estate market such as condos under $100k within blocks of the beach.

Certainly, we will know more once high season starts in December. Tourism looks better this year over last already, and that always help the coastal real estate market as well.

Stay tuned!

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