Homes in Ojochal are what the real estate market in South Pacific Costa Rica is seeking. Property prices are rising and everyone is wondering how far they will go. Real estate investors and those seeking a new style of living are converging in Costa Rica and prices for homes and land in this country are elevating. Global real estate markets are shifting due to changes in the work environment and more people are working from home. But while markets in other boom areas are declining as mortgage rates go up and stock prices go down, Costa Rica is not quite as affected this time around because the reasons people are moving here are beyond financial gain. As a result, many property sellers in Ojochal today are seeing strong gains, anyway.
Property sellers in the current market are justified in asking for much higher prices than what they purchased for in recent years because there is a serious lack of inventory in a lot of key markets in Costa Ballena. Buyers who are unable to find a turnkey home in their desired area are more willing to buy fixer-uppers and raw land than in previous years and properties that used to sit on the market for a long time are now getting snapped up soon after listing (and sometimes before!)
Property value increases in Costa Ballena are being seen across the board, from basic single-family homes to income properties and luxury houses. When looking at what properties are selling for today versus what they have sold for in recent years, we can see a strong shift in prices that ranges from around 6% per year to over 23% year-over-year. Some of these gains are achieved through significant investment like renovations or adding new features. Other properties have simply found their time to shine in today’s real estate boom.
To better understand what is happening in the real estate market in our area, we have put together this comparative market analysis that shows what properties have sold for recently versus what they were purchased for in years past. We have chosen to focus on Ojochal and the surrounding area for this particular analysis, although we have the data to create more reports for Uvita, Dominical, and even more niche markets. The selection of homes in this report sold at least twice in recent years and will show the increases in property values across recent years.
Property owners selling their real estate in Costa Rica quickly do so for a variety of reasons, be it speculation, opportunity, or unforeseen circumstances in their lives propelling them to sell more quickly than the average real estate investor. And with the changes in the market, more people are coming out with big gains, giving motivation to others to consider selling now while the market is hot.
Comparative Market Analysis for Homes In Ojochal (2017-2022)
Based on the seven unique properties in this report, the average value increase of homes in Ojochal and the surrounding area over the last five years is 15.5%. We do not know all of the renovations and additions that were done to these seven homes but based on our knowledge of local real estate and our observations of the following listings then and now, we have given our assessment of the investment the properties received between their sales prices in previous years compared to the past year. Minimal investment would include cosmetic items and would be less than 5% of the purchase price. Moderate investment might include some replacement and refurbishment up to 10% of the property’s purchase value. And high investment (which this particular report does not show) would be entirely new additions to the structure or replacement of major items like the roof.
It is important to note that of the majority of the properties in our market being resold, the ones that make the most gains are the properties that received some improvement. Land buyers who subdivide, make building plantels, and bring utilities onto the site or home buyers who add onto the home or renovate are the future property sellers who stand to make the biggest gains.
On the other hand, just because the market is hotter in general doesn’t mean that every property is what buyers are looking for today. Not every property in Ojochal is positioned for what the majority of the market wants. And with the exception of one property, each of these homes in Ojochal underwent at least some renovations to better position them for today’s buyers.
We do not have a crystal ball and we cannot claim to know with certainty what our Costa Ballena real estate market will do in the future. What we perceive, however, is demand increasing every day as buyers and fellow realtors in our region contact our office asking for properties for which there is no more inventory. Ocean view homes in Ojochal and other unique properties like the ones below are what the market is demanding. It is not our opinion about what the market wants – it is what buyers are willing to pay for these properties in Ojochal today.
Size: 2 Bedroom home and studio cabin on 0.64 acres
Sold 1: 2019 for $186,000
Sold 2: October 2021 for $309,000
Estimated investment: Moderate for paint, new furnishings, and pool refurbishment
Price difference: $123,000 (increased value of 66% over 3 years or 22% average value increase per year)
This small and simple home with studio cabin sold most recently in October of 2021, kicking off last year’s high season of real estate, selling for $10,000 more than asking price within a month of listing. This unusually fast sale for higher than list price was a portent for things to come, telling us that the market was shifting and that older properties in need of renovation are suddenly a hot commodity. This property is old but so private, tranquil, and with beautiful mountain views.
When this home first sold in 2019, it was listed for about three years and sold for basically replacement value of the construction. Those buyers spent time and money in updating the furnishings and painting in light colors. Their efforts brightened up this home and cabin, which didn’t need any major work to make it comfortable and move-in ready, other than refurbishing and tiling the pool and strategically limbing some trees to expose more of the mountain view. It is now being used as a short-term rental home that earns a steady income in Ojochal’s hot rental market.
Size: 3 Bedrooms on 0.25 acres
Sold 1: March 2021 for $612,500
Sold 2: February 2022 for $754,000
Estimated investment: Minimal
Price difference: $140,000 (increased value of 23.2% over 1 year)
Casa Sea La Vie in Ojochal was sold in March of 2021 and without changing a thing, it was put back on the market in June of 2021 for $759,000. Despite the popularity of the size and design of the home, the market was not yet ready to stomach such a price spike at that time. However, the home did receive a successful offer by the end of 2021 and closed in February of 2022 for $754,000.
Built in 2020, this brand new three bedroom home on a small lot was one of the most expensive properties to sell in Ojochal the first time around and sent shockwaves through our market about the growing potential of spec homes in Ojochal, where young, wealthy families are opting for turnkey modern homes to rent so they can earn an income while deciding on their next move.
Size: 4 Bedroom main house and 2 bedroom guest house on 0.6 acres
Sold 1: 2019 for $600,000
Sold 2: December 2021 for $800,000
Estimated investment: Moderate for new pool tiling and small property upgrades like decorative stonework and landscaped garden paths
Price difference: $200,000 (2 year increase of 33% or 16.5% average increase per year)
This four bedroom family home was in excellent condition when bought in 2019 and most of the interior was unchanged between sales. The pool was retiled and extensive stonework was added to the exterior of the property, including garden paths.
This style of home with an additional guest house is popular with the multi-generational families moving to Costa Rica and those looking for additional income, whether renting out the smaller or larger house and living in the other.
Size: 3 Bedrooms
Sold 1: March 2021 for $285,000
Sold 2: March 2022 for $340,000
Estimated Investment: Minimal
Price difference: $35,000 (1 year value increase of 19.3%)
This home sold for $285,000 in March of 2021 after 1 month on the market (at 96.6% of its list price of $295,000). It was then listed again in October of 2021 for $349,900 and received a contract in February and closed in March for 97% of the list value.
Not much was changed in the three bedroom home other than about half the furniture changed out for a more modern style and a coat of paint was applied to the interior and exterior. The location on the paved road has made this a popular property for those who really want ease of access (a rare quality in Ojochal real estate) and who don’t mind being located close to their neighbors and many North Americans are used to this style of home.
Size: 3 Bedrooms on 0.21 acres
Sold 1: 2019 for $429,000
Sold 2: March 2022 for $580,000
Estimated investment: Minimal
Price difference: $151,000 (3 year value increase of 35.2% or 11.7% average increase per year)
This three bedroom contemporary bungalow with a mid-sized pool, funky decor, and absolutely incredible views sold at the start of 2019 for $429,000 after being listed on the market for around two years. Since then, it has continued to operate as a vacation rental, generating a solid income. This year’s sellers made very few changes to the rental before selling it again in March of this year. This property was a great long-term rental during the pandemic that has now led to a net sales profit, too.
Size: 3 Bedrooms on 0.54 acres
Sold 1: 2017 for $525,000
Sold 2: June 2022 for $695,000
Estimated investment: Minimal
Price difference: $170,000 (5 year value increase of 32.4% or 6.5% average per year)
This Chontales bungalow sold in 2017 after having spent almost a full year on the market. Listed again in June of 2021, this home sold one year later for full price as the area surrounding was seeing an increase in action. Very minimal changes/upgrades were made to this 3 bedroom contemporary home with an ocean view and the price increase is a result of comparable homes in Ojochal and Uvita being sold for much higher prices, pushing buyers with slightly lower budgets further south.
Size: 3 Bedrooms on 0.46 acres
Sold 1: December 2020 for $597,000
Sold 2: April 2022 for $715,000
Estimated investment: Minimal
Potential price difference: $123,000 (increased value of 19.7% over 2 years or 9.8% average per year)
This modern home in Chontales closed was relisted in January 2022 with very few changes made to the property since it was purchased in 2020. It was listed this year for $769,000 originally and reduced to $715,000 in April due to a need to sell quickly. Despite being the most expensive property for sale in Chontales at the time, the sale closed in August as the comparable listings in Chontales sold earlier in the year.
Interested to know our take on today’s value of your home in Ojochal, Uvita, or Dominical? Whether you are buying or selling, our team of agents are here to offer expert advise on how to maximize your real estate investment in Costa Ballena. Contact us below for more info.