January 17, 2025 in Real Estate in Costa Rica, Tips for Buyers, Tips for Sellers

At Osa Tropical Properties, we pride ourselves on delivering unmatched insights into the real estate market in South Pacific Costa Rica, with a particular focus on the vibrant Costa Ballena region, including Dominical, Uvita, Ojochal, and their surrounding towns. As the only real estate company in the region committed to this level of detailed data collection and analysis, we go above and beyond to ensure our clients and readers have access to the most accurate and actionable market insights available.

January 10, 2025 in Real Estate in Costa Rica

This week at our Osa Tropical Properties team meeting, our broker Kevin Champagne shared valuable insights into the real estate cycles shaping the Costa Ballena region. He reflected on recent conversations with current sellers who purchased properties during the peak of the market two years ago, at the height of the COVID-19 boom. During that time, inventory was low, and demand was unprecedentedly high as people sought safer, more peaceful places to live and invest.

Fast forward to today, and the market has shifted dramatically. We now see higher inventory levels and lower general demand, although certain types of properties remain highly sought after. This evolving cycle underscores the need for a nuanced understanding of real estate trends—a topic we’ll explore further in our upcoming 2024 market report, where we’ll analyze the trends that defined the past year.

The Cyclical Nature of Real Estate in Costa Rica

Kevin’s reflections remind us that the current market isn’t an anomaly but part of a repeating cycle that has played out over the years. He drew comparisons to 2004, a year when demand for Costa Rica real estate skyrocketed due to a booming property market driven by both local and international factors. During that period, many raw land properties were sold, either for future development or as speculative investments. The Costa Ballena region, with its stunning natural beauty and growing reputation as a peaceful haven, became a hotspot for buyers seeking a tropical escape.

At the same time, the strong global economy—particularly in the United States and other developed nations—played a significant role. Low interest rates, rising property values, and increased disposable income allowed many international buyers to invest in Costa Rica. For many, it was an opportunity to secure their piece of paradise while capitalizing on favorable economic conditions. Political fatigue and a desire for a more tranquil lifestyle further fueled demand. This cycle reached its peak in 2008 before being disrupted by the U.S. market crash, which had ripple effects globally, including in Costa Rica.

The pattern repeated in the years that followed, with periods of growth and downturn shaped by different economic and social factors. Understanding these cycles is crucial for buyers and sellers looking to navigate the market effectively.

Price Reductions: A Sign of the Times

Out of the 821 properties listed on our website across Costa Ballena—encompassing Dominical, Uvita, and Ojochal—15 experienced price reductions in the first 10 days of 2025. This is a clear signal that today’s saturated market is overpriced for current buyers. While this doesn’t mean prices won’t rebound in the future, it’s evident that this is not a market for top-dollar sales.

Properties commanding premium prices today are brand new, exceptionally well-built, and situated in prime locations, offering stunning views, proximity to attractions, and ample privacy. However, the broader trend of price reductions affirms the cyclical nature of the market. For instance, one property recently saw a $400,000 reduction, nearly 30% off its original price. On average, price reductions since the start of the year are around 10% even before offers are negotiated, and many properties sell for an additional 10% below the reduced price.

Coaching Sellers in a Challenging Market

Interestingly, many significant price reductions come from agents who lack the experience to properly educate and coach their clients. Amateur agents may “buy” listings by agreeing to unrealistically high valuations, only to drop the price weeks later when market realities set in. At OTP, we prioritize transparency and client education from the outset to ensure fair pricing and informed decisions.

The Road Ahead

As we navigate the current cycle, it’s clear that trends will continue to evolve. The Costa Ballena region’s enduring appeal—its natural beauty, tranquil lifestyle, and sense of community—will always attract buyers. For now, understanding and adapting to the realities of the market is key for sellers and agents alike.

Stay tuned for our 2024 market report next week, where we’ll dive deeper into the trends shaping this year and beyond. Whether you’re buying, selling, or simply curious about the market, there’s much to learn from the stories these cycles tell.

October 25, 2024 in Life in Costa Rica, Discover Costa Ballena, Discover Costa Ballena, Discover Costa Rica, Tips for Buyers, Real Estate in Costa Rica, Buying Process, Tips for Sellers, Selling Process, Buying Process, Discover Costa Rica, Tips for Buyers

As we review the past quarter’s sales in the Costa Ballena real estate market, the data reveals an interesting landscape that, while not rapidly expanding, highlights certain areas of resilience and opportunity. The effects of global economic uncertainty and the upcoming U.S. election have tempered what has historically been a lively market.Here are some of the trends that realtors have noticed in the North, Central, and Southern regions of Costa Ballena (including Dominical, Uvita, and Ojochal and their surrounding areas) over the last three and a half months.

August 2, 2024 in Real Estate in Costa Rica, Tips for Buyers, Tips for Sellers

South Pacific Costa Rica has experienced notable shifts in its real estate market in the first half of 2024. This article delves into the significant trends and emerging threats impacting the Costa Ballena real estate market, providing a detailed comparison with the previous year. Whether you’re an investor, a real estate professional, or someone considering a move to this picturesque region, understanding these dynamics is crucial and we are here to help.

May 13, 2023 in Tips for Sellers, Tips for Buyers, Real Estate in Costa Rica

The search for a great realtor in Costa Rica may sometimes seem like a daunting tasks. But there are a few hallmarks of the best realtors that can tell you that this person will go above and beyond in representing you in your Costa Rica real estate transactions. Finding a great realtor in Costa Ballena (the area from North of Dominical to South of Ojochal) is not as easy as it may seem. Some people choose their real estate agent based on global brand recognition. Others may be referred to an agent by friends and acquaintances. Still others will walk into the first local real estate office they come across and ask about what they have available for sale. 

Pocket Listings

Where problems may arise can often only be seen after a transaction has been completed; when the property purchaser may learn over time that their realtor has omitted a lot of helpful information that could have landed them a better deal. Good realtors will have a well-managed website with lots of great listings for buyers to peruse on their own time. They largely rely on their website listings to bring them new buyer leads for the properties listed in their internal system.  A great realtor will additionally have an arsenal of pocket listings that, for one reason or another, they have chosen not to market to the broader public yet. A pocket listing can be kept from being listed on an MLS service for a variety of reasons. The listing agent may not have had a chance to upload the property details (maybe there are renters in the home and the property has not yet been adequately staged to make the listing presentable). Another reason could be that the seller is a very private type person who does not yet want to share their home with the public. Some people simply don’t want to list their property because it is so unique that they prefer to quietly wait for the “perfect buyer” who wants nothing more than to buy their specific property for whatever the value the two parties deem that it is worth (the wider market may not understand why some sellers value their properties at the prices they choose and they may assume that the real estate market is being overvalued).

Off-Market Properties

A great realtor will show their buyers every property that they want to see, including those that are not quite ‘on the market.’ We know people in the local community who have abundant land for sale in Ojochal, Uvita, and Costa Rica and can approach those who we know would consider selling if the right buyer and right offer were to come to them.

Staying Informed

There is a lot to know about our dynamic real estate market in Costa Rica. Staying informed about is one of the flagstones of a good agent. A great agent will go a step beyond and update their clients on the state of the real estate market and any listing updates on a regular basis (see our latest Costa Rica Rental Market Report and our 2022 Costa Rica Real Estate Market Report for more examples of the kind of data that only Osa Tropical Properties gives their clients). A passionate realtor will show you far beyond what you can see on “MLS” sites like Point2Homes. Our office has our own ‘multiple listing service’ where we gather listing data from all over the Costa Ballena and we work hard to ensure that it is up-to-date with prices, listing status, and share all of this information on a weekly basis with our database. Want to be the most informed about real estate in Costa Ballena? Sign up to our weekly newsletter below to stay in the know about all things related to Costa Rica real estate. 

May 13, 2023 in Buying Process, Real Estate in Costa Rica, Tips for Buyers

Why Is There No Zillow In Costa Rica? If you thought you could find real estate in Costa Rica on Zillow, this article is for you. Costa Rica is a country famous for its lush, plentiful jungles and the local real estate market is often viewed as one of them! People from the United States who come to Costa Rica looking to buy property are used to operating in one of the most transparent real estate markets in the world. Websites like Zillow and Trulia are universally used in the U.S. to find out the important details about a property before even contacting an agent. But this is not the case in Costa Rica and new buyers can feel confused and overwhelmed by the lack of a central MLS system for the country. If you are one of those new buyers feeling confused or overwhelmed without the handy Zillow app you’re used to, here is a guide explaining how Costa Rica real estate works and why choosing the right broker is key to finding the best property for you.

Why is there no MLS in Costa Rica?

On Multiple Listing Services (MLS) in the U.S., Canada, and other parts of the world, you can only promote properties through a licensed real estate agent. You must register with your license number and the brokerage firm you work for. There is no official MLS in Costa Rica, although there have been many attempts made and there are currently a few websites that claim to be an MLS here. Websites claiming to be an MLS are misleading as it is nearly impossible to have such a system in this country. There are currently very few properties with official addresses and most properties are designated by description and plano number. Costa Rica’s best property web portals are locally managed by individual brokerages, which strive to share their exclusive listings with other brokerages and to include listings from other offices in their website. Our office website has a curated list of most of the properties for sale in our Costa Ballena communities, with the rare exception of properties that we have determined are not worth listing because of major issues such as a lack of access to utilities or improper title. Websites like Zillow would not likely account for these details and may misrepresent the true market situation.

Finding a realtor in Costa Rica

When it is time to contact a real estate agent in Costa Rica, foreigners often come with the expectation of working with a licensed realtor like they would be in the U.S. or Canada. This is not a guarantee in Costa Rica, nor is it mandated by law. However, if you can get past the idea that Costa Rica should operate like the U.S., we would like to explain why an app like Zillow is not the best option for learning about properties in Costa Rica and why you should spend the time to find a great realtor to help you in your search. Good market comparables are how people decide if a property is priced appropriately. But properties in Costa Rica are typically very unique with people often designing their dream homes with the expectation that someone else will one day enjoy their dream when they sell. It takes an experienced eye with years of practice to know what the market will value a property when it goes on the market. Our office has listed thousands of properties since we opened in 2006 and we have seen all manner of construction and condition. We have also witnessed what hundreds of buyers and potential buyers have valued different homes and lots for sale in Costa Rica. There is no algorithm that could replicate the knowledge base of a good local agent.

Costa Rica real estate practices

In the U.S., you must be licensed to be a realtor. This requires a certain amount of time and effort to study and pass the real estate agent exam. Realtors must also work for an existing brokerage firm and cannot start their own company. Not following the rules can get you in trouble with the real estate commission and this gives buyers confidence that their realtor will work with integrity.  Costa Rica has something of a real estate chamber called “Camara de Corredores de BienesRaíces”. Realtors in Costa Rica can choose to participate in their course to become a member of the chamber. In this course, realtors learn about the legal types of properties in Costa Rica, as well as basic sales training and how to close a property. This is an optional course and not a requirement for practicing real estate in Costa Rica, however the majority of realtors in our region do opt to take the course and have been licensed in the U.S. or Canada prior to moving here.  Being licensed in Costa Rica does not guarantee that a realtor will be honest and do their job to the best of their abilities. But this is also the case outside of Costa Rica. Our Osa Tropical Properties agents have all opted into the chamber in Costa Rica and we practice real estate with integrity because it is what we believe is right, not because we are mandated to act as such. Our dozens of client testimonials are posted on our website and attest to our abilities as agent and our trustworthiness in this role. Because we live in such small communities, we know that word gets around and we do our very best to make sure that message is glowingly positive.

Market analysis tools like Zillow in Costa Rica

Sales prices in the U.S. are recorded in various databases like Zillow that users can reference for free. This makes the real market value of a property transparent. Zillow has a wide range of market data with their market analysis tool “Zestimate” which has average sales prices, price ranges, price forecasts, and average market rent. There is no formal organization or company that records sales prices in Costa Rica. At the closing of a property in Costa Rica, the current tax value of the property is recorded with the national registry. This value is typically much below the actual sales price. But a good realtor in Costa Rica will have a record of this information in a private database that we are happy to share with clients. We do this because properties are very unique in Costa Rica and to understand cost differences can often require a more detailed explanation than figures can represent on their own.  Our office also puts out a quarterly market report where we offer salient data and descriptions of what is happening in our local real estate market that our clients find helpful.  If you find a good realtor in Costa Rica, they will act as your personal Zillow app, providing you with personalized information that helps you find the right property for you. Contact our team to get your free market report for mid year 2021. 

May 12, 2023 in Discover Costa Rica, Discover Costa Ballena, Life in Costa Rica

As of the beginning of September, select tourists from the United States will be permitted to enter Costa Rica with certain stipulations. Tourists have been coming into Costa Rica from the European Union, Canada, parts of Asia and Oceania since the start of August, 2020. To protect the health of their people, the Government of Costa Rica has established sanitary control measures for all passengers upon arrival in the country. 

Select U.S. Citizens Permitted To Enter Costa Rica

As of September 1, 2020, U.S. residents of the states of New York, New Jersey, Maine, Connecticut, New Hampshire, Vermont, Maryland, Virginia, and Washington D.C. may enter Costa Rica as tourists. On September 15, Colorado, Pennsylvania and Massachusetts may enter Costa Rica. Tourists from the U.S. must have a valid driver's license from one of the nine soon-to-be permitted states to prove that they are residents. No other form of documentation proving residency is acceptable for this process at this time. Accompanying minors are not required to have a driver’s license.  

Airlines Flying to Costa Rica

Those who meet the Ministry of Health’s criteria for travel to Costa Rica are able to do so from any commercial designated flight departure point, which currently include Frankfurt, Germany and Madrid, Spain. However, they must demonstrate they have remained at that designated departure point for 14 days prior to their flight. As of September 1, 2020, Commercial flights from the United States to Costa Rica will resume on a limited basis from New York’s JFK and LGA airports, as well as Newark ERW airport. Citizens from States that are approved for entry into Costa Rica may fly indirectly thru non-approved U.S. States as long as they do not leave the airport during their layover.

Stipulations for Tourists Entering Costa Rica

To enter Costa Rica, tourists must complete a digital epidemiological health pass upon entering the country. This involves visiting this website and inputting your individual information. Each passenger must answer this health pass individually for each entry into Costa Rica. If the passenger is a minor or a dependent person, the health pass survey must be completed by the legal guardian. This form can be filled out several times to enter relatives traveling with you. After completing the health pass questionnaire, travelers will receive a QR code and an alphanumeric code that they must carry on their mobile or printed on paper to go through customs. Tourists must also obtain a negative PCR-RT coronavirus test from within 48 hours of their departure from the United States. On September 1st, the time limit will extend to 72 hours. If their tests return negative, tourists and non-residents of Costa Rica do not need to quarantine upon entering Costa Rica. If any tourist is diagnosed with COVID-19 during their trip to Costa Rica, they will receive a quarantine order upon diagnosis, which will be for at least 14 days.  Travel insurance must also be purchased by tourists prior to entering Costa Rica. Travel insurance must be obtained from one of the authorized insurers in Costa Rica, or another international provider that offers coverage for accommodation and medical expenses generated by COVID-19. The travel insurance must cover a minimum of $50,000 USD for medical expenses in cases of COVID-19 in Costa Rica and a minimum of $2,000 USD for extended lodging expenses due to the pandemic. If the purchased international travel insurance doesn’t meet the requirements, the tourist then must purchase travel insurance offered by one of the authorized Costa Rican insurers. Costa Rica’s two sanctioned providers include INS Group and Sagicoa. 

Residents of Costa Rica Returning To The Country

Costa Rica has changed their entry requirements to now allow Costa Rican residents who left the country after March 25, 2020 to return. Residents of Costa Rica may enter the country regardless of which U.S. state or country they are coming from. They are required to present:

• Their passport
• Valid DIMEX
• Evidence that Caja payments are up to date for each person entering
• A completed health pass

Costa Rican residents can enter from any country via air and they will be required to quarantine 14 days. If the residents enters from an authorized country, the quarantine requirement is waived as long as they have a negative PCR coronavirus test within 48 hours of the flight (72 hours on September 1) and have been in the departing country for at least 14 days without showing symptoms. 

Testing Positive Or Displaying Symptoms of COVID-19 When Entering Costa Rica

Anyone arriving who displays COVID-19 related symptoms will be tested at the airport. If you are required to get tested for COVID-19 while in Costa Rica, tests are available in select hospitals in San José for a cost of about $100. Results should be available within 48 hours and anyone required to be tested must quarantine until a negative result is obtained. If the person being tested receives a positive result, they will be required to quarantine for 14 days. The Ministry of Health will be following up with all quarantining individuals.

Visa Extensions for Residents and Tourists

The Costa Rica Directorate of Migration has announced that tourists who entered the country after December 17, 2019 have been granted an extension of stay on their tourist visa until November 18, 2020.

Current Restrictions For Residents and Tourists In Costa Rica

Although Costa Rica continues to see a rise in the number of COVID-19 cases, the government of Costa Rica has implemented a series of measures to curb the number of new infections. These restrictions vary in intensity depending on the designation of each geographic zone.  Areas under Orange Alert are restricted by the type of businesses that are allowed to operate, as well as their hours. There are tighter restrictions on vehicle operating days and hours. In Yellow Alert locations, most businesses are allowed to continue operating, although with restricted hours. Visits to beaches and open-air tourism are allowed with restricted hours. All beaches open from 5am to 2:30pm daily regardless of location. National Parks continue to operate in Yellow and Orange areas throughout the month. All outside, open air activities are allowed.  There are no inter-city or inter-province travel restrictions and no curfew, only driving time and license plate restrictions. The current driving restrictions for Yellow and Orange Alert zones are:

• Driving is permitted 5 AM to 9 PM Monday through Friday (with the correct license plate)
• Driving is permitted 5 AM to 7 PM on Saturday and Sunday (with the correct license plate)
• Monday – Vehicles with last license plate digit ending in 1 and 2 can’t drive.
• Tuesday: Vehicles with last license plate digit ending in 3 and 4 can’t drive.
• Wednesday: Vehicles with last license plate digit ending in 5 and 6 can’t drive.
• Thursday: Vehicles with last license plate digit ending in 7 and 8 can’t drive.
• Friday: Vehicles with last license plate digit ending in 9 and 0 can’t drive.
• Saturday: Vehicles with last license plate digit ending in an even number can’t drive
• Sunday: Vehicles with last license plate digit ending in an odd number can’t drive.
• Rental cars are exempt from driving restrictions.

Costa Rica’s National Emergency Commission makes frequent updates to their website on business and vehicle restrictions in the different colored zones. The Government of Costa Rica has mandated the use of masks while waiting at bus stops and on public transportation. Masks are also mandated in all public and private establishments, except within your own home or accommodations. Any individuals who violate a mandated sanitary order or restriction will be subject to a fine between 450,200 to 2,300,000 colones depending on the violation.

May 12, 2023 in Tips for Sellers, Tips for Buyers, Real Estate in Costa Rica

The Costa Ballena real estate market is seeing a lot of attention from international investors. People are continuing to dream about living their best life as an expat in Costa Rica. And as the world begins to discuss reopening businesses and borders, more and more people are visiting our website and social media channels and contacting our office with questions about how they, too, can make a change for the better. We have been seeing the same amount of website traffic as last year since the start of the pandemic and a growth in the last two weeks.  Our team at Osa Tropical Properties attributes the growth in interest in Costa Rica real estate to a number of factors, the first of which is Costa Rica’s low numbers for coronavirus cases and deaths. Not only was the national response swift and robust but the natural geography of the region allows for a strong separation between regions, as well as within communities. Those who are currently thinking about moving abroad are looking for an escape hatch and a place with minimal safety issues.

The Effects of COVID-19 on Costa Ballena Real Estate

After three months of tough restrictions, Osa is now free of active COVID-19 cases and much of the country’s case load is in decline. As a result, Costa Rica is planning a very gradual reopening for international tourists over the course of the next year. It may be months before international tourists can freely book flights to Costa Rica and there will be many guidelines for tourism businesses in the meantime. The Costa Rican Tourism Board (ICT) is promoting domestic tourism during the coronavirus crisis, though outbreaks in the Northern Zone have led to reapplied measures. In 2019, Costa Rica welcomed 3.1 million foreign visitors, 4.1% more than in 2018. The United States is the country from which the most tourists visit Costa Rica — almost 1.3 million people last year. The 2020 end of year figures are likely to see a sharp decline; however, we are excited by the number of new inquiries, offers, and property closings for the year to date. 

Comparing Costa Ballena Real Estate Figures to Last Year

May of last year was one of the slowest months for real estate closings in Costa Ballena, with three reported closings. Compared to May 2020, we have seen 7 property closings totaling over $2.5 million USD. June was one of the busiest months for closings last year, with around 20 closings grossing around $7.25 million USD. This figure was so high because of the Capital Gains Tax being implemented on July 1st of that year. But in the first 2 weeks of June this year, the market has grossed around $3.5 million USD over 6 property deals so far. Our office has had two closings this month and is expecting a third before the end of June. A number of closings have been delayed due to escrow companies and banks closing, as well as slow real estate markets around the world. However, with banks and businesses reopening, we are seeing deals move forward again.

Who is Dreaming About Moving to Costa Rica?

The majority of our office’s recent inquiries have been for large acreages, especially those with the best views and for the best price. The most typical requests for property viewings, both virtually and in person, have been for houses with over 10 acres, an ocean or mountain view, somewhere near a river, and at a budget of around $500k. Cool altitude and privacy are two big features being highlighted by recent property seekers. These typically pre-retirement buyers want to be more sustainable and have access to their own food and water. Families are also preferring the large acreage to provide more space for their children to run around. A growing desire to work remotely is also invigorating interest in tropical properties. According to the U.S. Census Bureau, nearly one-third of the U.S. workforce, and half of all “information workers”, are able to work from home. Though the number of people working partially or fully remote has been on the rise for years now, the COVID-19 pandemic may have pressed the fast-forward button on this trend. It’s no secret that people value freedom of choice. The vast majority of people recently polled would like to have the option to work remotely for the rest of their careers. "A lot of people have gotten comfortable that they don’t have to squeeze a nine-day vacation into six. They can take the extra days and maybe work a couple half-days remotely,” said vacation-rental company Vrbo president Jeff Hurst. "I do think we’re going to start to see people be more creative on how they think about working from any house, as opposed to just their own house, or any destination as opposed [to] from just their office.”

Investors Continuing to Think About Costa Ballena Real Estate

Real estate investors are taking advantage of this slightly quieter market, having more opportunities to preview new listings before the rest of the world. Even with less buyers currently in the country, great listings that are well-positioned are receiving fast and full price offers. Investors are getting the sense that now is a good time to buy great rental properties because as soon as the borders open, those properties are likely to be booked to capacity. The desire to travel has not gone away with COVID. In a recent survey by Skift Research, the research arm of the travel trade publication, one-third of Americans said they hope to travel within three months after restrictions are lifted. People will instead be looking for getaways that sense of freedom with personal control. Road trips, private vacation home stays, and prime nature destinations are all forecasting as the most popular near-future travel plans. More than half of American travelers say they plan to avoid crowded destinations when they resume traveling.

Costa Ballena is the Perfect Post-COVID Travel Destination

The pandemic has created a greater demand for experiences away from crowds. Until a coronavirus vaccine is found, that preference for private travel will probably continue. And Costa Rica’s Southern Zone, with its many national parks, nature reserves, and private preserves, will continue to be a destination that is favored by those who want to “get away from it all.” In April, Airbnb added a new feature on its homepage advertising “monthly stays” to accommodate the growing interest of long-term travel. At the peak of the pandemic shutdowns, about 40 percent of Airbnb’s bookings were long-term. The long-term travel trend will be more beneficial for home rentals than hotels, as they offer travelers a more comfortable stay at a more affordable price. An Airbnb with a kitchen and a garage is more approachable for day-to-day living than a 400-room hotel where a traveler is bound to room service and outside restaurants.

May 12, 2023 in Buying Process, Selling Process, Real Estate in Costa Rica, Discover Costa Ballena

Our Osa Tropical Properties office is taking this time of social distancing to adapt our business to meet the needs of today’s Costa Ballena real estate clients.

May 12, 2023 in Real Estate in Costa Rica, Tips for Sellers, Tips for Buyers

As we approach the end of the year and the end of a decade, it is feeling like the appropriate time for a thorough recap of what's been going on in our Costa Ballena real estate market. We are proud to report that our office and the region as a whole are closing out the 2010s showing significant incremental growth in the number of properties sold year-on-year and their combined value. Our office has worked diligently all year to collect as many details as we could about what is happening in our local Costa Rica real estate market, for our sake as much as yours, and you may not find these numbers easily available anywhere else. Below, you will have a chance to read many of our office findings, including trends and threats we’ve noticed in our market to-date, general buyer profiles of investors in our region, what property seekers are looking for in Costa Rica, and the preferred terms of the transaction in Costa Rica real estate in 2019.

An Overview of the Types of Properties Sold in 2019

As is the case every year, homes in Costa Ballena are the most popular category of real estate listings being sold in 2019. But it was hard to miss the particularly quick turnover of newly-built modern luxury homes with fantastic ocean views in 2019. There is a growing number of high-end property developers in our region who are attracting buyers over $1m USD. These international real estate investors are looking for well-built, brand new properties that require very little maintenance off the bat and will rent for a good return. Our Costa Ballena region has seen a significant uptick in renters and rental prices in recent years, especially on the most spectacular luxury properties. With the rise in the number of luxury developers building in this region, older luxury homes are sitting on the market for longer than in years past while newly-built constructions are being sold before completion. Just under 4% of the properties sold in the Costa Ballena in 2019 were turnkey businesses like B&Bs, hotels, or restaurants.

One of the most popular preferences that we noticed in 2019 buyers was the request for moderately-sized homes. Many of today's buyers are looking for no more than 3 bedrooms -- something not too big but that they can still host guests. Other features that topped the 2019 list of buyer preferences include the property having a pool, ocean view, and acreage. Buyers notably continued to request privacy in the listings that they wanted to see, as well as the typical tropical amenities that most visitors want to enjoy, like some type of water feature and A/C. 

Mountain views and river views were still very popular, especially in the mid-range price brackets for homes and lots. And new, beachside developments saw a rise in the number of properties built and sold in 2019. Small developments like Villas del Sol in central Uvita have been incredibly popular in 2019, thanks to its prime location -- just a 15 minute walk from gorgeous Playa Chaman. Location is a high-priority item for adventure travelers who want to participate in multiple activities while staying in the Costa Ballena and central Uvita is ideal for this growing market of renters.

The most popular listing price range in our office in 2019 continued to be properties under $100,000. This bracket encompasses the majority of lots for sale in Costa Ballena. Vacant lots represented a third of the number of transactions to go through our office in 2019 but only 8% of our total sales. The majority of homes sold through our office in 2019 were valued between $300,000-$400,000 and we saw a growing market of buyers in the $600,000-$700,000 range over previous years.

Our office continues to predominantly represent properties in the Ojochal area. It is no surprise to us to note that the majority of the properties sold by our Osa Tropical Properties office in 2019 were in Ojochal. Within this popular international expat community, Phase 10 and the entrance region of Calle Soluna/Calle Estrellas represented our biggest grossing regions. And Calle, Perezoso, Calle Tucan and Phase 5 were also favored. Buyers like the price range in the Ojochal area, as well as the great diversity of restaurants, shopping, and services.

General Client Profiles in 2019

A wide assortment of people found themselves interested in purchasing properties in Costa Rica in 2019. And of those drawn into our laid-back coastal and mountainside villages, the majority seemed to find a connection in their affinity for nature, peace, and community. Many new travelers to Costa Rica fell in love with our region of the country this past year and called into our office to say so. It is a story that we've heard numerous times over the years: they've been all over the world and as soon as they arrived here, they knew that this was where they want to be. They received a friendly welcome in a beautiful location and the pieces aligned. Now, every time they come back, they want to stay longer. This is the story that keeps us engaged and excited to be ambassadors for these adventurous souls who want to claim their part of pura vida and 2019 felt like a great year for the number of prospective buyers who felt inspired to live a life here.

US buyers appear to be particularly drawn in by the social system in Costa Rica. They are finding that the highly-rated universal health care in Costa Rica is a great alternative to expensive health insurance rates in the US. Many others told us that they want to get away from oppressive political turmoil happening in the US and elsewhere around the world. As a bastion of peaceful living, in harmony with nature, Costa Rica, and the Costa Ballena especially, is a breath of fresh air. Our strong communities are made up of active individuals who want to make a difference. And this ethic continued to inspire others, especially as Costa Rica's president graces the cover of Time Magazine, representing the positive influence that this environmentally-proactive country aims to have over the world.

A surprising number of Canadians came through our office in 2019, thanks to windfall gains from some of the stronger Canadian real estate markets. Canadian investors are finding good value in Costa Rica real estate despite the strength of the US dollar. We also noticed a rise in the number of buyers from the Asia-Pacific, with more Australians and Chinese arriving in 2019 than in previous years. 2019 saw clients arriving to our office from Scotland, Holland, Austria, Germany, Sweden, Switzerland, Belgium, France, China, Australia, Qatar, Mexico, and from all over the US and Canada.

A significant number of "prepper" investors seeking the ultimate in privacy in real estate in Costa Rica found what they were looking for in 2019 in the less developed parts of the Costa Ballena. Those looking to buy 50+ acres with special features like private water sources and waterfalls found the self-sustainable properties they were looking for in our fertile and temperate location. Many of these undeveloped properties were still priced in a desirable range in 2019, between $300,000-$400,000. These types of buyers, in particular, appreciate that the Costa Ballena is less busy and greener than other parts of Costa Rica.

Most buyers in 2019 were in their mid-50s, in pre-retirement age, looking for a good investment that they can also potentially enjoy in the future. And a few more buyers with elementary school-aged children came into our office in 2019. Those with teenage children continued to feel a deficiency in finding adequate schooling for their older kids, especially if they do not speak Spanish. English-language high school is still developing in our region and there are few options available for US-accreditation.

Trends in Costa Ballena Real Estate

In 2019, our most popular months for receiving offers at Osa Tropical Properties were at the height of the high season between January and March. Most new listings were released on the market toward the end of 2018 in time for the biggest rush of visitors to Costa Rica. Other brokers in the region reported the majority of their 2019 closings happening in the months of April, June, July, and September. We don’t have information about when their offers came through; however, our average office closing time in 2019 was 1¾ months, indicating that the majority of the offers from other real estate offices in the Costa Ballena occurred at the start of the year as well.

We saw our biggest lull in offers between July and September, which picked back up again in October. This may be surprising since October is traditionally the rainiest month in the Costa Ballena. But this is a real estate trend that holds true annually. Many price reductions happen around mid-year to take advantage of the early season buyers who start arriving in late September and early October as soon as the kids are back in school and as the winter cold approaches. This is the time of year that buyers of Costa Rica real estate get serious about making offers. And it is, in fact, the time of year that we had two 2-week closings in a row -- some of the fastest on record in our region.

The average sale price in 2019 for homes in the Costa Ballena was around $550,000, which has held steady compared to 2018. However, the number of total sales in the region increased year-on-year, telling us that more homes are selling in the lower price brackets compared to years past.

Our Osa Tropical Properties agents have reported that close to 50% of real estate transactions in 2019 have been with investors wanting a rental home. Those not ready to retire still want to buy now and rent their homes until they are ready to move here more permanently. They predict that Costa Ballena's real estate market will continue to grow in the coming years and that now is a good time to invest. 

A growing number of buyers from the US in 2019 also chose to use their IRA to invest in Costa Rica for a great return. Some of our past clients have reported a 6-8% return on investment in the last year, with one luxury home buyer telling us that they’ve earned a 10% return on investment in the last 8 months, seeing an average of 70% occupancy rates in their 3-bedroom, modern, luxury property. Another set of our 2019 sellers used their IRA to build a stunning, luxury, three-bedroom house that they built and sold within the year. And they were also able to use their IRA to pay for all of the home's fixtures, furniture, appliances, and interior design, making this transaction an easy and clean return on investment that they plan to emulate again in 2020.

Cash offers were still preferred by sellers in 2019, but more were willing to offer private financing as an option to sweeten a deal. This option paid off quite well for sellers who did not need to liquidate all of their Costa Rica property assets right away. Many sellers in 2019 chose to accept the first offer they received if it was close enough to their asking price, especially if their property had been on the market for over a year. But low offers were generally countered or rejected this past year and higher offers were subsequently accepted. Particularly in the case of a listing that were less than 6 months old, a low offer typically meant that the potential buyers were testing the flexibility of the sellers and not necessarily that they found the property to be over-valued.

The listings that stayed on the market for longest tended to be homes that are at least 10 years old and properties that are without the more attractive features, like ocean views and privacy. And the fastest closings were on homes under $400,000, especially those really great deals under $200,000 that had something unique, like a great location or a really spectacular river view. In saying that, not every home valued lower than the rest on the market sold quickly in 2019. Buyers were almost always looking for something unique; either that they can market to the lower-budget rental community, or some great quality that they themselves could enjoy.

Trends in Costa Rica Property Investors

Costa Rica continued to experience significant increases in the number of tourists coming through the country in 2019. More airlines inaugurated direct flights to Costa Rica from all around the world than in many years past. And in the Costa Ballena, our ecotourism industry is attracting more visitors every year. Restaurants in the Costa Ballena began advertising high season hours around June and July of 2019, taking advantage of the influx of tourists that we received to our region during that time.

September and October felt quiet for tourism, which appears to be our region’s annual downtime. But we did notice more buyer leads contacting our office with inquiries around that time over previous years. Most of these buyer leads arrived around November and December to view properties and a number of offers came in just before the holidays.

Some 2019 investors were feeling so excited by the market that they purchased multiple single-home properties in strategic locations. They will undoubtedly be looking to hire or even create their own property management company to look after their roster of rental homes. The need for more, good-quality property managers is a major trend that we have been noticing year-on-year in the Costa Ballena. Vacation rental sites in 2019 frequently experienced a shortage of quality rentals in the most popular markets and this inspired investors to put more of their money into the Costa Ballena.

Threats in Costa Rica Real Estate

Sellers in our market typically rejected low offers in 2019. Sellers held firm to keeping close to the replacement cost of their property, even when it was not a prime listing for the current market of buyers. This inflexibility in the market pushed away some less committed buyers in 2019 who were hoping for more favorable terms from a more desperate market.

Those with overpriced listings were finding themselves shopping around different realtors in 2019. Unrealistic expectations and bad advice led to some great listings still sitting on the market going into 2020. Osa Tropical Properties agents always evaluate the comparable listings that have been recently sold in our market before quoting a potential client on what we think their home is worth in today's market. Nevertheless, more property sellers took to marketing their home privately in 2019 through avenues like Facebook and other online marketplaces, though largely unsuccessfully. For Sale By Owner homes represented a minuscule fraction of the total properties sold in Costa Ballena in 2019 and foreign buyers in Costa Rica still want to hire a local representative who can vouch for the quality of a property and its value.

Buying a property in Costa Rica with a good water source also became increasingly important in 2019. Water concessions have become critical to obtaining a building permit in Costa Rica. This new variable accounted for the decrease in the number of transactions that came through our office in 2019, with less expensive lots not selling because buyers would not be able to obtain a water concession under the current requirements within a comfortable time frame or budget. As a result, very few great ocean view lots with a valid water concession were left for long on the market in 2019.

Why Clients Choose Osa Tropical Properties

We are noticing that many more visitors are coming to our South Pacific region of Costa Rica to explore real estate in our Costa Ballena communities on their own. 2019 was a great year for this because of our regions improved roads and signage. GPS programs like Waze and Google Maps have become more reliably detailed on even the smaller roads in the Costa Ballena, making it easier for potential buyers to explore the feeling of our different communities. And more of those adventurous investors ended up calling or driving to our office in 2019 when they were ready to ask us more detailed questions about the area, having seen our property sign or an ad in one of our local magazines.

Based on our research, our office's biggest lead source for buyers in 2019 was our Osa Tropical Properties website. Many clients and friends in the area have commented that our website is the best version on an MLS in the whole of the Southern Zone. We work hard to create great resources for buyers and sellers of real estate in the Costa Ballena: helpful articles, 360 videos, drone videos, property walk-throughs, interviews, testimonials, and more. Our office also increased advertising for our exclusive listings in 2019, spending more money on global MLS services, which helped us sell some of our most challenging listings of the year.

When it all boils down, though, most big decisions will come down to numbers. Our Osa Tropical Properties office total number of transactions in 2019 may have been less than in 2018. But the value of those sales was far greater year-on-year. Our office experienced a gross increase in sales of 37% over 2018, which had already grown by 24% the previous year. Out of the over 60 real estate agents in the Costa Ballena, our four Osa Tropical Properties agents represented around 14% of the total listings sold in the Costa Ballena in 2019. Value-wise, this accounted for almost 25% of the total sales generated in our Costa Rica real estate market. We attribute this success to our excellent reputation with our clients, which continued to extend out into the world thanks to their great referrals. And more of our past clients received referral fees for recommending buyers to our office than in previous years combined.

All in all, 2019 was a great year for our office and for many sellers in our Costa Ballena region. There are still challenging listings that fit into some less-popular categories. But with the growth in the popularity of ecotourism and luxury development in our region, it feels like only a matter of time before the rest of the world catches on to one of the best kept secret places to live.

If you are interested in working with our highly-recommended expert team of realtors, contact our office in Coronado de Osa, 3 miles south of the entrance to Ojochal. Ask us about any of the figures quoted in this article and we will be happy to provide more information about how we obtained them, as well as more detailed breakdowns of our South Pacific Costa Rica real estate market in 2019. And sign up to our Osa Tropical Properties weekly newsletter below if you haven’t done so yet to stay up-to-date with what’s happening in the Costa Ballena real estate market.

May 12, 2023

This month’s Osa Tropical Properties real estate market report for South Pacific Costa Rica highlights the strengths and weaknesses in Costa Rica’s plan for promoting its top industry.

South Pacific Costa Rica’s real estate markets have grown significantly in recent years. 2019 has been our strongest year on record at Osa Tropical Properties. Retirees and non-pensioned investors looking for a simpler, more beautiful life, are finding value in our local property market in increasing numbers. Although we saw the typical decline in new inquiries between July and August, September has seen more inquiries than in previous years and we anticipate a busy high season in 2020. With the strong push for growth in tourism from Costa Rica's government comes a growing number of inquiries about what is on offer in our local real estate market. And based on Costa Rica’s recent international accolades, ad campaigns, and popular environmental policy, we can confidently forecast continued growth in tourism.  

In a world becoming more sensitized to the importance of protecting wilderness environments, it is easy to see Costa Rica’s appeal. It’s why many of us international residents have chosen to be here. We may or may not be headed for a global recession, but one thing’s for certain: Costa Rica is taking every measure to protect and promote its resources. Growth in tourism and promoting this country as a safe place for investment are top priorities for the current government.

World-Class Eco-Tourism Destination

Costa Rica’s president, Carlos Alvarado, attended a ceremony this week in New York City to receive the award for policy leadership from the United Nations’ 2019 Champions of the Earth.  The UN declared that Costa Rica “sets an example for the region and for the world” with its plan to decarbonize its economy by 2050.

“Receiving the Champions of the Earth award on behalf of Costa Rica, its entire population, the past generations who protected the environment, and future generations fills me with pride and emotion for what Costa Rica has achieved and for what we can continue to do because we can achieve even more,” said President Alvarado. “I feel very proud to be Costa Rican.” 

Costa Rica’s plan for decarbonization includes a new transportation system in the country’s capital that is focused on walking, biking, and an electric train. The country’s plan also includes better management of waste, cattle, agriculture, construction, and cargo. This is also the fifth year in a row that Costa Rica has run on more than 98% clean, renewable energy, according to data from the National Center for Energy Control (CENCE).

More Honors for Costa Rica

This honored designation is accompanied by Costa Rica receiving the top destination on Conde Nast Traveler’s list of the 40 most beautiful countries. The travel guide’s choice was based on the experiences that Costa Rica offers, like security, life expectancy, and natural resources. 

Travelers value the all-around attractiveness of Costa Rica, where nature reigns supreme in all its powerful beauty. 26% of this country’s entire territory is protected, hosting nearly 5% of the world’s total biodiversity. A high literacy rate, good health care, and a dynamic economy make this a friendly country that is ready and willing to welcome a growing number of tourists. Just in the first half of this year, Costa Rica saw 1,549,812 international arrivals by air, an increase of 8% over last year.

Growing Infrastructure

The Costa Rican government is also growing infrastructure to match the expansion of the economy. A new commercial route between Costa Rica and China has been inaugurated this month, offering an unprecedented opportunity for exporters of fresh produce, and for Costa Rica to receive goods directly from China. Costa Rica has also signed a five-year contract with Loksys International to improve the country’s freight and haulage tracking system. Ian McDermot, Managing Director of Loksys Intl said, “The growth of the Latin American economy is well documented and the secure collection, transportation, and delivery of cargo around the continent is the lifeblood of this expansion.”

Affordable Living in Costa Rica

Expats who choose to spend their retirement in Costa Rica are able to live on their Social Security check and still save money. Two people can live well on $2000 USD per month while still living a beautiful if relatively simple life. Within this budget for two, you may spend $300-$500 in groceries and $50-$100 on power, unless you love to run the A/C continuously. Car expenses like gas and maintenance can add another $200-$400 to the monthly total in our hilly South Pacific region. And contributing to the mandatory universal health care system costs about $90 per couple per month (depending on if you have an income or pension). And a $2000 USD per month pension is sufficient for a retired couple to receive residency. 

With an initial outlay of $200,000 USD for a property in Costa Rica, a non-pensioned couple has a clear path to residency. For the homeowners in Costa Rica, $2000 in monthly expenses per couple can easily encompass weekly outings to the many gourmet restaurants and lively, entertaining bars, as well as regular eco-adventure tours.

Retiring in the United States, on the other hand, requires a lot more planning and saving ahead of time. According to NerdWallet’s retirement calculator, a 35 year old who is earning $80,000 USD in pre-tax income would need over $1200 in savings per month to retire at 67, including their pension. And investors are finding value in Costa Rica's property market, which is heating up significantly in the vacation rentals market.

When it comes to a more beautiful and more affordable quality of life, it’s easy to see why Costa Rica is loved by so many. The growing number of expats and visitors to our Costa Ballena region are bringing more diversity to the local economy and the Costa Rican government is actively welcoming more visitors in the hopes of being able to better navigate a constantly changing global economic climate.

If you receive our weekly newsletter, you probably noticed that quite a few properties have sold this past month in our region of Costa Rica. If you don't currently get our newsletter and would like to receive weekly market updates about real estate in the Costa Ballena, sign up below.

May 11, 2023 in Tips for Sellers, Tips for Buyers, Real Estate in Costa Rica

If you spend any time reading expat message boards about buying property in Costa Rica, you will see a lot of commentary about how important it is to rent first and try it out. This may have been advisable since the global economic recession in 2009. But for the few years prior to that, development in Costa Rica was booming. A huge number of houses in Ojochal were built between 2004 and 2008. After that, investment and development virtually came to a halt for a number of years. This has changed in a big way over the last two years.

Commercial development in the Costa Ballena

New, modern construction is happening everywhere in our Costa Ballena region. Beautiful ocean view homes in scenic mountainside locations are being built at record pace, with numerous local construction companies and architectural firms cropping up to fill those job orders. These companies and the materials that they use did not exist 10 years ago, showing the swift pace that this region is modernizing.

Just in the last year, a number of new stores and restaurants have opened. Ojochal has the newly-built Plaza Tangara (replacing one that burned down in an accidental fire 2 years ago) with a doctor’s office, pharmacy, salon and spa, and the iconic Citrus Restaurant, one of many culinary delights in the international community of Ojochal. The highway side Jucaloa supermarket is also being upgraded to a new larger location behind its current one. And the Cinco Ventanas plaza is about to get a revival, including the reopening of the gas station, which is incredibly exciting for the local community.

The Costa Ballena's commercial hub, Uvita, is currently witnessing a substantial upgrade to its BM supermarket. This nationwide chain supermarket already stocks many imported items and will likely see expansion of that list. And the long-standing Pacific Pool business is moving to a new standalone location with a massive showroom, showing that business must be going well.

One of the biggest pieces of recent local news is that Walmart is coming to the second biggest city in Costa Rica: San Isidro de El General, also known as Perez Zeledon. The Costa Ballena is about a 40 minutes drive from Perez and there is much excitement about this store opening. The opening of this store will likely pave the way for more big box stores to open in this already large city. Perez Zeledon is also the likely site for a future international airport, which will open our beloved South Pacific communities even more to the rest of the world.

Furnishing a new home in our region

When it comes to furnishing a new home, buyers used to either import furniture (often at great cost and with little success of the furniture surviving this climate) or traveling to San José. The capital of Costa Rica has long had most of the quality items that expats expect, but it also used to be the only place in Costa Rica where you could find many items. This 3 hour drive from the Costa Ballena used to take 4-5 hours only 10 years ago, which was a lot of time to spend driving for just shopping. It also used to be difficult to find a moving company that would bring items from the city to our region. Thankfully, this is no longer the case.

Bodegon de Asia is one new furniture store near Jacó (less than a 2 hour drive away) and it is huge. They recently expanded to 10x their original size and deliver to our area. Riviera Home Center is another notable furniture store in Jacó. It has a small showroom but a huge warehouse that they will take you to and many catalogs to shop through. Basically, you can find any shape, size, material, quality and color you want. The famous Sarchi furniture manufacturers have also opened a location in Jaco so you don’t have to drive to Sarchi to bring their iconic pieces into your home.

And when it comes to shopping in San José, the company Varma will deliver everything you need to our region. Just give them your receipts and they’ll go to any number of stores to pick up the items you purchased and deliver them to your door.

Increases in investment

New roads are being planned for many local communities in the Costa Ballena. These new roads will cut the driving distance to the highway from 20 minutes to 5 minutes in some instances and making for smoother, safer drives. Dominical, Uvita and Ojochal have all had significant portions of their main roads paved in the last 2 years, welcoming more traffic to each of these communities.

All of the above indicators point to a surge in new construction and refurbishing old construction. This means that investment in Costa Rica is growing and this is reflective of our Costa Ballena region. For these and many other reasons, we suggest to potential buyers that maybe they don’t rent for a year. Instead, we recommend that potential buyers travel around the different regions of Costa Rica and to pick the community that inspires them the most. Our buyers have often traveled most regions of Costa Rica before visiting here and immediately falling in love. This is a dramatically beautiful region where the mountains meet the sea, with pristine coastlines and wild, unpopulated beaches that are absolutely breathtaking. 

Renting long term is not ideal in a rising price market and this is where we are finding ourselves today with many prospects for continued growth. But when it comes to those who use their Costa Rica property for income while they are away, local property managers are reporting that there are often more short-term renters than there are rentals, especially during the high season between December and April. Luxury vacation rentals in Costa Ballena with spectacular ocean views and amenities are rented at least 50% of the year, according to Christine Schiferl from Jaguar Property Management.

Starting around June, we receive a boost in tourism in Costa Rica, with a number of North American and European families using their summer holidays to visit. European businesses often require their employees to take holidays in the summer and many of these visitors will use this time to explore real estate and the possibility of enjoying a Costa Rica property over a longer period of time. With the growing number of airlines and ports opening regular direct flights to and from Costa Rica, the possibility of owning a property in Costa Rica has expanded to more parts of the world.

Expanding prospects

Now is a great time to jump in and build a new home or buy an existing home while prices are still climbing. It is difficult to predict what the world economies will do in the near future, but for now, in Costa Rica, the trends in real estate are pointing towards growth.

Our Osa Tropical properties agents have recently had a number of closings mainly on homes within the $350,000 - $450,000 range. This average range has already grown around $50,000 from this same period last year. We have also had a record number of luxury home closings in our office and in the region in general. Coupled with the huge number of brand new modern homes coming onto the market, we are excited to see much more foreign money coming into the country.

Thanks to development in our region, the growing number of expats coming to our region are bringing jobs and growth, which is plainly evident in the housing and commercial improvements being made in our local communities and the upgrades in the cars that local Costa Ricans drive. Thanks to more foreign money coming in, many locals are directly benefitting and hoping for additional growth.

Excitingly, despite all of this development, Costa Rica has doubled its forest cover in the last 35 years. Thanks to a change in government regulations, Costa Rica’s priorities shifted from logging to promoting eco-tourism in 1983. These initiatives have led to Costa Rica having 52% forest cover and a wide variety of abundant natural wonders that continue to draw the world to marvel at the beauty and purity of this land.

This feeling of inspiration lingers in more than a few people and we are witnessing an increasing pull for many to embrace the pura vida way of life more fully by investing in real estate in Costa Rica. When you are ready, we welcome you to contact us with any questions about real estate or life in general in Costa Rica.