The Costa Rica Real Estate 2018 market looks positive as we exit 2017. Here is your free Costa Rica market report for 2017/2018:
2017 Real Estate Market Values & Influencers
2017 was our top producing year in our 10-year history that we attribute to the following conditions.
- Growth of the North American Markets: The performance of the stock market and increase in real estate values all over North America has provided extra purchasing power. Additionally, some are recognizing that these markets may be nearing a correction meaning that now is a great time to cash out of the stock market and diversify with real estate in Costa Rica. We are even seeing clients with more bitcoin than they know what to do with, so they are purchasing property as well.
- The US election: As with every election we have folks that are unsatisfied with the direction of the United States and others on the complete opposite side of the coin who now feel more secure with their finances.
- Caribbean hurricanes: Our hearts and prayers go out to everyone who was devastated by the hurricanes that tore through the Caribbean this year where we have many RE/MAX affiliate offices. A side affect of these storms is that tourists changed their vacation plans and are ending up in Costa Rica. I hear over and over again from folks that come in our office that they had plans to visit the Caribbean but were forced to change their plans.
- Regional development: Progress is apparent in Jaco Beach where 6 new commercial developments came to completion in 2017 with the most notable being the Jaco Walk plaza that is pictured to the right. This plaza alone hosts 98 commercial stores and ample parking. This family friendly plaza is a favorite of ours with EXCELLENT cuisine and entertainment.
- Announcement of the Orotina Airport: Pictured below is a rendering of the Orotina International airport that is expected to open in 2027. In May of 2017 the president of Costa Rica signed an executive decree to start the process of acquiring 370 privately owned properties to facilitate this project. Once complete, the current international airport in San Jose will facilitate regional flights and the Orotina airport will become the countries main international airport. This is great news for us on the Central Pacific because Orotina is only a 30-minute drive from Jaco Beach. However, it’s no secret that things move slow in Costa Rica, but we believe that this airport will be a reality even if it is behind schedule.
Costa Rica Real Estate 2018 Market Outlook
Prices are still low: Real estate values in the Central Pacific have yet to recover to their pre-2008 values. We attribute that to the difficulty of foreigners in obtaining financing here in Costa Rica. Obtaining a loan from a local bank is possible but extremely difficult and the rates aren’t pretty. For that reason we have been selling many properties with Seller financing. We also see clients using home equity lines on their North American residence as well as self-directed IRA’s to purchase property down here.
Please let us know if we can assist with any questions or help with any real estate needs!
Costa Rica Real Estate Hot Spots
The Garabito area surrounding Jaco continues to be a hot spot with affordable options starting below $100,000 within walking distance to the ocean and an increasing amount of luxury residence.