Market Conditions for Southern Pacific, Costa Rica Reported by Kathleen Chiras, Consumer Consultant Updated October 13, 2009.

Current Market Rating: 1 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 2 1 2 3 4 5 Falling Rising

The US recession has had an impact on the market, which makes now a great time to consider a purchase. Last week one of our brokers said, We may be approaching the downward trend in prices, but I don't think we are quite there yet".

Another broker reports that prices have dropped 20-40% from this same time last year. I asked him for an example and he told me of a prime 9-acre property with two recently-built houses (totally 3100 sf), only a short distance from the beach that has been reduced in asking priceto only $465,000 over the past few months. The sellers are really motivated and he says most buyers are finding great "fire sales". Many readily offer seller financing.

One of the silver linings in these economic times is the decrease in cost of construction. The price of construction materials such as steel and concrete has dropped, and with fewer projects under construction, builders have a larger pool of workers to draw from.

Those looking to build their dream retirement home can take advantage of the reduced construction costs, with U.S. style construction and finishes at just $70 to $120 a square foot.

As of fall, 2009, our brokers in the Costa Rica report the following for the southern coastal areas:

Buyers are looking for excellent deals, and a true Buyers Market has emerged as a result of the economic crisis.

"We have also noticed less sales on smaller ocean view lots and more sales (and interest) with larger farms and reforestation projects."

Non-prime properties are selling for 40% below peaks of last year. However, it is commonly thought that some sellers had artificially high expectations for quick re-sales with 50% or more profits, that were simply not realistic. Prime big ocean-view properties are still in demand, but some sellers wanting to sell right now are willing to negotiate for up to well below listed price.

Look out for "developer specials", as the economic downturn has resulted in some developers not having the cash flow they originally projected. Have your buyer broker help you determine if the development is well enough funded to complete on their promises.

The southern Pacific zone of Costa Rica has many projects under construction with beautiful ocean-view lot + house or condo packages becoming popular.

A few of the developments I have seen down in the areas just north of the Osa Penninsula have lots ranging from $65,000 to $350,000. A good broker will help you come up with your assumptions for a financial property analysis that will help you determine if you might make money on cash flow or appreciation. Because property taxes are so low, a buy and hold strategy may work well for those hoping to retire in 3-5 years.

New developments oftentimes offer short-term financing, and some more traditional types of loans are starting to appear with large developers.

Please visit http://Costa-Rica-Land-For-Sale.com for personal accounts of the buying experience in Costa Rica, and to read about a 25 acre farm I have for sale there.

I also offer a tent platform for donation-rent in Dominical for only $35/night. See http://www.CampingInCostaRica.com

You may also visit http://www.BuyerAgentSearch.com for information on buyer agents and brokers who can serve you in many parts of the world Feel free to call direct for a personal consultation: 303-670-0246. --Kathleen


Approximate Location Boundaries: Southwestern Section Of Costa Rica

Location Characteristics: Includes the Osa Peninsula, an area that is 90% protected as a national park. Also includes the towns of Drake, Palmare Norte, Golfito Buenos Aires, Uvita. The town of Dominical is located near the regional division between Southern Pacific and Central Pacific.

You will find many ocean-view properties and undeveloped land or land that is just beginning to be developed. Due to smaller population and many national parks in this area, there is feeling of jungle and wilderness here more than in other parts of Costa Rica.

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