Costa Rica Real Estate Market Conditions - Interview with David Karr

Many of our clients are constantly asking us to update them on the Costa Rica real estate market  opportunities.  Recently David Karr was interviewed by Welovecostarica's Scott Oliver, to get a quick update on market conditions in metro market of Jaco Beach Costa Rica.  This interview provides a great summary on what we have seen thus far in 2011 and we wanted to share this with you.
 

Question: Please give us your comments on the current real estate market conditions in your area and include prices where possible?

Answer: There continues to be demand for properties under $200,000, properties with financing available, and of course, large numbers of buyers are searching for such tremendous values.  The Jaco real estate market continues to be a buyers market, and while there are great values to be found throughout the region, the best of the best is clearly what has been selling, specifically those with prime views and ideal locations. 

I think 2011 is a great barometer illustrating this point, as one of the best sectors selling this year has consistently been beachfront properties and oceanview properties. "In the past 6 months we have had 9 closings with an average sales price of $420,000." said Shawn Fletcher, Sales Manager for a developer which has 6 beachfront developments in Jaco Beach. Shawn added, "Five of those sales were to clients who live in Costa Rica which is fantastic because before the Caldera highway was complete, virtually all of our sales were made to clients outside of the country." I feel the entire Central Pacific has significantly benefited from the new Caldera highway making the drive from San Jose to Jaco just one hour.  This has stimulated demand and sales from both Costa Ricans and expats who live in the San Jose area.  Many of the most motivated beachfront sellers have sold in the past two years, so while there is still value to be found, it's uncommon to negotiate much more than 10% under the listing price. With vacation rentals in many communities reporting an increase of 15-25% and improving infrastructure, many buyers are understanding the strong potential for rental income in the Central Pacific region.
 

Question: What do you think makes the Costa Rica's Central Pacific an attractive destination?
 

Answer: This area is all about comfort, convenience and infrastructure.  Jaco is obviously the hub and center of all of that, as it provides services and amenities that most people want, but I think its important people realize choosing to be in this area is more than Jaco.  This region is diverse, white sand beaches of Punta Leona, the Los Suenos resort with its 18 championship golf course and marina, rustic surf towns like Hermosa and Esterillos or beachfront living in Jaco, the region truly has it all.  And if you get a little stir crazy the city is just over an hour away.
 

Question: How has the Ciudad Colon Caldera Highway impacted Jaco Beach metro area?
 

Answer: The entire region has benefited, but Jaco Beach has definitely seen the greatest impact.  Jaco vacation rentals have seen a significant increase in demand from San Jose residents coming to the beach on a more regular basis.  The short distance is changing the landscape for the traditional Costa Rican family vacation.  Many Costa Ricans only went to the beach once or twice a year, now many are coming on a regular basis, with the new highway the beach is just an hour away so it's an easy get away.  Condo rentals are also an affordable and ideal fit for Costa Ricans, as they can travel in large families and all stay together.  This in turn is increasing rental revenues, which directly helps sales for property investors.  The increased traffic is also leading to new and improved commercial development.  Remodeling of existing establishments, new restaurants, new cinema and theater (Jaco just opened a new cinema and will soon open up a new performing arts theater), all of this is a result of the highway.
 

Question: Going forward, how do you see the Jaco Beach real estate market opportunities?
 

Answer: I think you'll really start to see that Jaco transitions into becoming the official beachtown of the Central Valley, and start to see more of an overlap of the two markets.  We will see more and more San Jose residents making the short trip from the central valley whom will make Jaco Beach their weekend home, looking to escape the city.  More traffic, more visitors, means more money coming into the area and in turn that will attract investors, new businesses and continued improvements.  Sellers as a whole still aren't dropping their prices much, I think you'll see an occasional deal here and there, but properties under $200,000 will still be very limited in supply and high in demand.

 

If you are interested in learning more about buying Costa Rica real estate whether as a property investment or for retiring, the 2Costa Rica Real Estate team can help. Call 866-403-1345 for professional and expert assistance.