An Examination of the Real Estate Market in Costa Rica

Many have decided that it is time to examine the real estate market in other countries,
and to begin looking for a good place to vacation or retire This article examines the
booming real estate market in Costa Rica which is often called the "Jewel of Central
America".

Costa Rica appears to have everything anyone could ever want in a solid real estate
market, a good stable economy, excellent weather, welcoming people, safety from
major crimes, beach and mountain areas to choose from, and a low cost of living,
along with the fact that it is only a few flying hours from the United States.

Beginning with the upper Nicoya Peninsula area where a large part of the building
and construction is occurring, you will find nice sandy beaches around Playa Hermosa,
Flamingo, and some others, with many upscale hotels and resorts. The close proximity
to the international airport in Liberia is one of the major factors in the rapid growth of
this area.

Further down the peninsula almost midway is Playa Samara where growth is now
beginning to occur in earnest. From Samara down to Mal Pais on the lower
peninsula, growth is not occurring rapidly due to the non-existence of good roads.
However on the lower peninsula there is a ferry that runs from Puntarenas on the
mainland to Paquera which allows access to the lower beaches around Tambor,
Montezuma, and Mal Pais which many world class surfers have found.

Land values have soared in these areas over the past several years, and it is
now difficult to find land near the ocean at a reasonable price compared to the
rest of the country. The Caribbean coastal areas although not as popular as the
Pacific areas are also gaining in popularity. The difficulty in travel to this side
of the country, the deluges from hurricanes, and the difference in the makeup
of the social structure occupying these coastal areas has hampered rapid
development of the area, but there are some beginnings now occurring.

There are two international airports in Costa Rica, one near San Jose the Capital,
the other in Liberia. The nearness to these international airports make these two
areas the most popular. The southern region of Costa Rica is difficult to reach because
of the poor road systems which take a long time to negotiate, and the lack of an
international airport. There is talk of an airport being constructed somewhere near
the Osa peninsula on the Pacific coast, but as yet there are no definite plans
to my knowledge.

The difficult travel to this area prohibits the rapid development of the southern region
which is occurring in other parts of Costa Rica. Although there are some very nice
areas around San Isidro de General, Tinamaste, and further south which have been
populated by some Americans, the poor road systems, distance from the international
airport, and other factors have limited the growth in this area.

Along the coastal areas from Jaco down to Quepos there has been much activity
in building and construction of hotels, resorts, and communities, and there is a new
highway already under construction directly from San Jose to the coast. Further down
around Quepos there are also many resorts and hotels due primarily to the nearness of
Manuel Antonio Park which is a very large tourist attraction.

Those desiring coastal properties will find that the best access at present to the
beach areas will be in the upper Nicoya peninsula near the international airport
in Liberia. However, expect to pay premium prices for these properties, and suffer
the consequences of over development of the area for a considerable time, because
building and construction has overrun the infrastructure with limited water and
electric in the area.

The beach areas along the central Pacific coast also offer many possibilities at a
lower cost than that of the upper peninsula and will perhaps remain so until the
highway from San Jose to the coast is finished which will bring the international
airport near San Jose much closer to the coast in terms of travel time.

One of the most popular regions of Costa Rica for some Americans is the central
valley around San Jose including Escazu, Heredia, and Alajuela, which is due in
large part to the close proximity to cultural areas of San Jose, the international
airport, gated communities and condominiums, and the shopping districts.

Further north and west of San Jose you will find Grecia, Sarchi, and Naranjo, and
even further in the western central valley, the towns of Palmares and San Ramon
which has excellent weather and a growing community of Americans.

For those who like it cool year round there is Zarcero which is north, northwest of
San Jose which is sometimes called "little Switzerland" because of the cool
weather, many dairy cattle, and mountainous areas.

So what of the prospects of safe investment in Costa Rica real estate. Many believe
that Costa Rica represents one of, if not the best of all investments in Central America
due to the cultural nature of the people, the safety, strong democratic government,
and a stable economy. At present there are over 60,000 foreign families, most of them
American now retired in Costa Rica and there are strong ties between the U.S. and
Costa Rica, with a free trade agreement looming on the horizon.

With all of this, is it no wonder that so many of the "baby boomer" generation are now
investing in and choosing to make their vacation and retirement homes in Costa Rica.
As has been said, you have only to visit it once and you will fall in love with it.