Editor's Note: Blue Zone Realty International President Tim Fenton talks about the state of the Costa Rica real estate market during the 2nd quarter of 2020.
The second quarter of 2020 was, to the surprise of many, fairly strong in real estate sales. The Costa Ballena (Whale’s Coast) is a majestic region along the Southern Pacific coast of Costa Rica, and our offices there performed quite well during this quarter with a number of sales in the entry level market for first-time second home buyers. The majority of the sales were below $500,000USD with the highest sale price during this period being $3,125,000USD. Several of our recent sales were accomplished with live virtual video tours, as the borders of Costa Rica remain closed to international travelers.
Photo Credit: Blue Zone Realty International
The properties which are currently in highest demand are newly built vacation homes and luxury homes. Home prices at this time range between $215 per square foot, to $300 per square foot depending on the size of the lot, and the quality of the view. Stunning ocean view homes on 1.5 – 3 acres are still relatively available, most featuring 3 bedrooms, panoramic ocean views, large inviting pools, and incredible indoor and outdoor entertaining spaces and reliable internet. It should be noted that there was a popular trend in the second quarter of 2020 of people looking for larger spaces, with lots of privacy, and access to outdoor activities such as walking and hiking, waterfalls, easy access to some of the spectacular beaches in this area, and abundant wildlife. Larger estate size properties have been receiving a measurable increase in web traffic and inquiries. We expect this trend to continue into 2021.
Photo Credit: Blue Zone Realty International
The pent-up desire for homes with the ambiance of a retreat, and the modern conveniences of a luxury home continues to grow, and we are anticipating that as more countries start to loosen restrictions on social activities and travel, the demand for these properties will strengthen. Costa Rica has announced that it will gradually allow international travel beginning on August 1 2020, but it is not yet known which countries will be the first to be granted entry. Most are speculating that Canada and some countries in the European Union will resume flights in August, but it is unclear whether or not the United States will be amongst the first countries who will be able to travel to Costa Rica.
Photo Credit: Blue Zone Realty International
We are often asked if it is a buyer’s market or a seller’s market. The answer is that it is definitely a buyer’s market, however the inventory level in certain home categories is fragile, and prices have remained steady throughout the pandemic. Over the past 4 months, we have received low offers from ‘bargain hunters’ on certain high-end properties which have been outright declined or signed back at a price much closer to the asking price. For the patient investor, however, there are deals to be had in each of the price ranges and in each of the price classifications of homes.
Some may be wondering “what makes the Costa Ballena regions of Costa Rica haute?” Costa Rica is, in our opinion, the most idyllic country in Latin America. The government is stable and democratic, the people are known as the ‘happiest people on earth’, and the climate is wonderful. Approximately 25% of the land is protected, and there is a strong emphasis on environmentalism.
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Property is not only affordable, but foreigners are free to purchase property with all of the same ownership rights as citizens, and residency is fairly simple to obtain. The Costa Ballena region of Costa Rica is lush, tropical, and tranquil. The weather is steady at around 85F, and the topography is breathtaking. The terrain along the Costa Ballena is known for its iconic ocean vistas, its dramatic mountains, and its uncrowded beaches. This is where the mountains rise from the sea, and the sunsets are moving. There is not a lot of ‘night life’ in this region of Costa Rica, but here in the Osa Peninsula, we are known as the most bio-diverse area on the entire planet. Tropical birds, monkeys, and even sloths are common place and often seen from the comfort of your own terrace or while you sit poolside with a refreshing drink. What I love most about this market is the unblemished wildlife, the vast rainforests, and the pristine, uncrowded beaches. Daily life in Costa Rica, and in particular along the Costa Ballena, is better than most vacations. We invite you to come and experience if for yourself.
Photo Credit: Blue Zone Realty International
Tim Fenton,
President, Blue Zone Realty International.
