costa rica real estate market report
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. 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. 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. 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. 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.The Cyclical Nature of Real Estate in Costa Rica
Price Reductions: A Sign of the Times
Coaching Sellers in a Challenging Market
The Road Ahead
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.
May 13, 2023
There are many tropical destinations where people can move or invest but few tick as many boxes as Costa Rica. Buyers today are looking for larger spaces with more distance from neighbors and Costa Rica presents some intriguing options. It is far less expensive to live here and buy real estate than in more traditional tropical beach destinations like Hawaii, and it is one of the most politically stable nations in Central and South America with one of the lowest poverty rates. The beauty of Costa Rica is mesmerizing and the more time that people spend here, the more confident they become in their desire to move to Costa Rica. Recent road improvements have meant that the Southern Zone is now easily reachable, yet restrictions on development mean that it will stay boutique. By owning the right property, you can tap into an already large and growing demand for rentals in our popular Costa Ballena communities. More than a quarter (28%) of Costa Rica's environment is protected by marine and terrestrial national parks, reserves, and wildlife refuges. The rich ocean waters are warm all year and home to whales, dolphins, and turtles. The coastline is a long stretch of sandy beaches, natural, unspoiled, and uncrowded. All this is why the Southern Zone is compared with Hawaii and Tahiti — without the high price tag. Total sold and under contract: 104 Sold properties: 69 Under contract: 35 Houses sold: 61 Land sold: 39 Commercial properties sold: 4 Potential new buyer leads visited our website in the first quarter of 2022 at a slightly lower rate than the same time frame last year. However, the page views per user have increased. People currently visiting our website are more serious buyers looking at multiple properties at a time, making comparisons and staying connected with the market movements. However, traffic to our website has increased by 16% over the last quarter and 74% over pre-pandemic levels. This indicates that more people were not traveling last year and were looking at properties dreaming of when they could actually visit. The average time on the market for properties sold in this quarter was 363 days with a median of 154 days (the median number takes into account some of the more obscure properties that take years to sell and bring down the average). This has decreased from last quarter by 15%, meaning that buyers in the first quarter of 2022 were making offers on properties at a higher rate. The properties that sold the quickest at the start of 2022 were all priced under $1 million. These properties also tended to have great views, privacy, and good amenities, like a well-maintained pool. The properties sitting on the market for the longest amount of time were often in remote locations and had many more fixer-upper qualities. Costa Ballena’s list-to-sold price ratio was an average of 95% and a median of 98%. This says to us that today’s buyers feel that the list price is true to the current market value, especially when considering that the time on market for many types of listings speeding up. Many more buyers in the first quarter of 2022 offered the asking price to avoid getting into a bidding war with competing offers. The property with the highest list-to-sold ratio went for 7% above market valuation because the home was relatively inexpensive for the location (Dominicalito) while also being quite sizable and with an amazing ocean view. Those that sold for closest to the asking price had large spaces with clean and modern aesthetics. Three-quarters of the properties that sold for their asking price were built in the last 5 years. Some of the largest and smallest homes in the Costa Ballena spent a longer time on the market at an average of about 8 months for both categories. Nevertheless, these homes still sold for an average of 98.5% of their list price. Large farms take longer to sell at around 1.5 years on the market and sold for around 91% of their list price in the first quarter of this year. The lowest list-price-to-sold-price comparisons were in remote locations with a lack of services like power and water on the property. Although the market for self-sustainable living is growing, the vast majority of buyers want the safety of a community around them, even if they value privacy. Costa Ballena is the name that we locally use to refer to the towns of Dominical, Uvita, and Ojochal and the residential communities that surround them. Each town and the communities that branch out from them have their own special characteristics that make them unique from one another and attract different clients with their specific sets of needs and desires. Dominical is a surf town with lots of high-end residential areas surrounding it that attract a lot of luxury tourism. For this reason, you will find many new and modern luxury homes in communities like Escaleras, Costa Verde, and Dominicalito. Uvita is the commercial hub of Costa Ballena with the biggest amount of services and amenities. Lots of families choose Uvita for the ease of getting around on foot and the many schools and activities available for families. Ojochal is the more international town where many languages are spoken. It is the most quiet and tranquil of the three and is the mecca for people who want to live amongst the raw beauty of nature and surrounded by great people. Just north of Dominical is Hatillo, where three homes sold for an average of $462,000. These homes are more remote but all have nice ocean views. Around the center of Dominical, ten properties were sold in the first quarter of 2022 at an average of $536,000 per property (lots and homes included in the average). Up the highway towards San Isidro are Baru, Lagunas, Platanillo, and Tinamastes, which collectively saw five closings since the start of this year. This number is modest but this mountain valley region is still growing in the perception of the real estate community. It is a wonderful location for the still niche market of buyers who want large properties at higher altitudes, which are better for self-sufficient living. Escaleras is the most upscale part of the Costa Ballena, with homes sold in the first quarter averaging $1,412,000. The second most upscale region just south of Escaleras is Dominicalito, where properties (including vacant land) sell for an average of $780,000. This entire region saw around $23,000,000 in property sales so far in 2022. In the area uphill from central Uvita, homes and lots sold for an average of $467,000. There were fourteen closings in this region in the first quarter. Bahia, the lower altitude area that is closest to the Whale’s Tail and other popular tourist activities saw five brand new homes purchased for use as vacation rentals. The average price that these properties sold for was around $360,000. And in the Ballena area just south of central Uvita, there were four closings consisting mainly of vacant ocean view land averaging around $300,000. The central region of Costa Ballena grossed around $9 million in total sales in the first quarter. The village of Ojochal had by far the highest number of closings in the Costa Ballena region (40 closings in town with 10 more in the surrounding communities). The popularity of this area with expats is evident in the visible growth in construction. Turnkey homes sold in this community for an average of $775,000, showing a market increase in Ojochal’s high-end homes. Ten minutes south of Ojochal is Tres Rios where ocean view properties near rivers and waterfalls sold for an average of $607,000 in the first quarter of 2022. Further back in the mountains, Chontales had three properties sold, averaging around $372,000 per sale. In all of Costa Ballena South, properties sales totaled around $17 million. Property sales for the entirety of the Costa Ballena region (Dominical, Uvita, and Ojochal) reached almost $50 million in the first quarter of 2022. Costa Ballena real estate buyers are looking for a variety of property types and construction styles for their ideal Costa Rica homes. Newer modern homes top the list for sought-after qualities, as well as incredible views, and increasingly, an on-site water source. High-end luxury homes accounted for 6.5% of the market in the first quarter and is the smallest market in the region, although responsible for a large portion of the total sold value for the region. The most popular construction types are mid-range priced contemporary and modern homes, representing almost 60% of the local real estate market share. Colonial homes and simple constructions are still significant parts of the market, showing 24.5% of sales and 11% respectively. A basic ocean view is what the majority of buyers still want, although these properties are more scarce and are increasing in value. Standard ocean view homes in Costa Ballena accounted for 31% of properties sold. 12.6% of buyers settled for a nice ocean view window at a lower purchase price. Around 9% of buyers splashed out for a premium priced luxury ocean view of the Whale’s Tail or in the cliffs above Dominical. Another 18% of buyers saw the magic in the mountain view and chose their Costa Rica property for reasons other than a nice ocean view. Thirteen percent of buyers found their perfect income-generating properties in lower-lying areas that are closer to town and amenities. And nearly 10% of buyers preferred the peace and remoteness of a property surrounded by jungle with nature as their primary view. Digital nomads are still waiting to be legalized to stay for extended periods in Costa Rica. However, many young foreigners awaiting the regulation to be issued are buying properties now before more people come to settle here when the digital nomad legislation goes active. Strict control is being maintained over the environmental impact of tourist and residential developments, fostering a sense of exclusivity. Our Southern Zone region is especially known for protecting the environment and the sense of being one of the last to get to be here is really driving the market. Retirees who are being drawn to Costa Rica in 2022 are looking to simplify their lives while affluent buyers of Costa Rica real estate are making more health-driven lifestyle choices to improve their quality of life. Families moving to Costa Rica have been one of the hottest segments of buyers, especially in Ojochal and Uvita. Two new educational facilities have opened in Ojochal in response to the increase in demand: Life Project Education and Osa Jungle Academy. Buyers looking to make rental income who do their research and pick the right property for them are finding great success in 2022. Buyer demand for second homes is up significantly, while other areas of the market are normalizing, according to a recent report from Redfin, Costa Rica is almost without direct competition for luxury tourism. Celebrities visiting Costa Rica are often in the news and bring even more notoriety to the country’s eco-tourism scene. Costa Rica has developed a mature luxury market with a wide range of high-end properties in a variety of settings that attract foreign buyers from around the world. The country has become a haven for yachting and sailing communities as well as for surfers and sport fishing enthusiasts. The topography of this region and proximity to tourism activities keeps this region strong in the rentals market. People visiting here want to feel secluded in nature with amazing views of the coast, the lush, jungle-covered mountains, and the green valleys. Airline passenger numbers entering Costa Rica edged closer toward pre-pandemic levels in the first quarter of 2022, despite the Delta and Omicron variants' surges. Globally, business travel has slowed in the last two years, but a new kind of traveler has helped fill the gap: remote workers, who are coming to Costa Rica in droves. Working from anywhere means leisure travel is no longer limited to vacation. Some have even become full-time digital nomads, traveling from one location to the next without keeping a permanent home. Rather than cramming vacations into a few months in the summer and a few weeks in the winter, untethered travelers are now expanding the green season in Costa Rica (May-November), when leisure travel usually dips. The peak travel season has become flatter and broader in our region of Costa Rica. Tourist and accommodation businesses are enjoying a longer high season, and vacationers are competing feverishly when booking accommodations for the rest of the year. Booking sites like Airbnb and VRBO are seeing higher demand for spring and summer leisure travel despite added costs to plane tickets and road trips from rising fuel prices. Oil has soared to over $100 a barrel as Russia's invasion of Ukraine jolts global markets. But U.S. carriers Delta Air Lines, United Airlines, and American Airlines all recently reported a strong rebound in travel demand after the blip caused by the Omicron coronavirus variant. AirDNA data said the booking pace for travel in the northern hemisphere spring is 49% higher than this time last year and 26% higher than pre-pandemic 2019. According to AirDNA (an AirBnb rental analysis website), rentals in Escaleras (the most upscale part of Dominical) received an annual revenue of $46,000,000 USD in 2021, with an average nightly rate of around $400 and average occupancy of 57% in 2021. The average nightly rate for a rental in Uvita was $270 with an expected occupancy of about 48% during this time period while the average daily rate for a rental property in Ojochal was around $150 with a 43% expected occupancy rate for the month of June in the off-season. Nearly all rentals in the Costa Ballena were between 90-100% occupancy in the high season between December 2021 and March 2022. Vacasa, which is a leading vacation rental management platform that represents more than 35,000 vacation homes throughout North America, Belize and Costa Rica, shared in a recent Vacation Buyer Report that 42% of buyers are looking to purchase a vacation home in a beach destination. “Forty-two percent of buyers looking to purchase a vacation home chose a beach destination as the market type they’d be most interested in investing in and for good reason,” said Daned Kirkham, Senior Director of Real Estate for Vacasa. “While beach destinations will nearly always draw in a steady stream of guests, buyers can also earn more on homes with the amenities that guests seek most such as beachfront or beach adjacent, a private pool or hot tub, and being pet-friendly. Guests can enjoy working and living from any location largely due to remote and hybrid work environments. Homeowners also benefit from increased income from these longer stays, which often occur during shoulder seasons when there tends to be more availability.” Record-setting momentum continued for short-term rentals (STR), with year-over-year bookings not only exceeding 2021’s numbers but 2020 and 2019’s pre-pandemic numbers as well. Short-term rental demand is greater than ever before in Costa Ballena. Many factors are driving this trend, like the North American and European tourism habits of traveling to beach destinations in the winter months. While there are plenty of great places to retire in the U.S., Costa Rica offers cheaper housing, better healthcare, and excellent tax incentives, as well as incredible beaches, jungles, and wildlife. The 2022 Retirement Index from International Living is an annual list of destinations where a retired couple can live comfortably on as little as $2,000 a month. Now in its 31st year, countries are quantified across 10 categories: Housing, Benefits & Discounts, Visas & Residence, Fitting In/Entertainment, Development, Climate, Healthcare, Governance, Opportunity, and Cost of Living. The top 10 countries for 2022 are a mix of cultural hubs in Europe and outdoor havens in Central and South America and Costa Rica is yet again near the top, in second place. It is rated highly with retirees for its nature and its established communities of expats who love the pura vida lifestyle and the more relaxed, outdoor-oriented pace of life and ease of travel. With the sales growth of 2021 leading into 2022, new landowners in Costa Rica are encountering problems to find builders for their project, or even to receive a quote for construction. Building permits are lagging due to volume and wait times for ordering materials (as well as increased prices) are all make it more challenging to build your dream home in Costa Rica at this time. Many more potential buyers are backing out of deals in 2022 because the stress of competition is too much for them with multiple competing offers more prevalent this year. With so many more tourists and investors coming to Costa Rica, people are seeing the growth of this region and are speeding to make offers on real estate, later second-guessing their choices. These buyers will often lose out on the property to the next buyers and will continue making offers on other properties as they become more accustomed to the idea of owning real estate in Costa Rica. With the increase in real estate transactions in 2022, prices continue to rise, both in properties and in the cost of living, pricing more potential buyers out of the market. The United States continues to be the biggest market for purchasing properties in Costa Rica, accounting for 35% of new website leads coming into our office. Canadian buyers represented around 18.5% of our new leads and France nearly 4%. This has changed from pre-pandemic times when the U.S. accounted for more than 41% of our market and France was just over 1%. Our website traffic also indicates that UK, Germany, and Switzerland are all growing markets that will likely continue to expand in 2022. Australians and Israelis are two new markets that are showing strong interest in Costa Rica real estate in 2022. Last year saw a shift in our real estate market towards favoring sellers, with sold property price increases reflecting this trend. This has attracted significantly more buyers to purchase properties in Costa Ballena sight-unseen than ever before as people rush to get into the market before prices increase further. The overall number of listings for sale at the start of 2022 fell by 13% compared to last quarter. Of the over 300 properties that were for sale in Costa Ballena at the start of 2022, 17 were taken off the market by listers who decided to keep their properties after all. The most typical reason for this was that they wanted to keep the property for themselves after seeing the increasing value of their property in light of the travel restrictions during the pandemic and the resounding international interest in Costa Rica creating high rental returns. Our Osa Tropical Properties team of expert realtors want prospective buyers to know all of the ins and outs of our market. We have the knowledge and the tools to help those looking to invest in Costa Rica and will offer detailed one-on-one service from start to sold and beyond. Here are just a few helpful tips to get you started in your property search in 2022: To learn more about the intricacies of our real estate market, contact our team via the form below. Market Research For First Quarter of 2022
Listings in Costa Ballena in 2022
New Buyer Leads
Listing Time On Market
List-to-Sold Price Comparisons
Property Values In Costa Ballena
Costa Ballena North
Costa Ballena Central
Costa Ballena South
Popular Qualities in Properties Sold in 2022
Construction Styles
Sought After Views
Prices for high-end view properties sold in the first quarter of 2022 in Costa Ballena were:
Trends in Costa Ballena Real Estate in 2022
Increased Tourism Creating Higher Demand
Rental Market Report For 2022
Retirement in Costa Rica Rated Second In The World in 2022
Threats to Costa Ballena Real Estate in 2022
New Buyers in 2022
Expert Advice For Our Clients
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. 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). 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. 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. Pocket Listings
Off-Market Properties
Staying Informed
May 13, 2023 in Tips for Buyers, Real Estate in Costa Rica, Tips for Sellers
Our July to September Costa Rica Real Estate Market Report shows that homes and land are both hot on the market in Costa Ballena, Costa Rica in the third quarter of 2021. There are almost no homes left on the market with an ocean view under $400,000-$450,000, say Osa Tropical Properties agents in October of 2021. In fifteen years of representing the Costa Ballena real estate market, these are the highest prices for listings that our office has seen in that time. "Turnkey, two-bedroom, ocean view homes with land and privacy and prices of more than $500,000 are selling right now," says Kevin Champagne, the owner of Osa Tropical Properties. And homes in Ojochal, Uvita, and Dominical today are selling for more than 93% of their list price with the majority of properties selling in under three months. These are just a few of the signs of a very strong seller’s market in Costa Ballena, and this is in the traditionally quietest quarter of the year. Read on to learn more about how and why today’s real estate market in South Pacific Costa Rica is so strong. Potential property sellers are contacting our office in growing numbers asking if now is the right time for them to list. With supply so low in the area and an influx of new interest in Costa Ballena properties, “it has become a seller’s market,” said Kevin. Inquiries from foreign buyers remained steady in the third quarter, even after the borders were shut last year. They have since increased exponentially, with many more buyers putting in offers 'sight unseen' if they are unwilling or unable to travel at this time. There is an almost desperate demand for Costa Rica properties from buyers looking to escape big population centers and severe quarantine measures. Increased attention on Costa Rica as an escape destination is coming from people in high-pressure societies looking to move to a place with more natural beauty, peace-loving ethics, and a great sense of community. This attention has new sellers of in-demand properties in Costa Rica feeling encouraged by the amount of very quick solds in the area, despite only experiencing about one third of the tourism traffic of 2019. One of Osa Tropical Properties’ newest realtors, Katherine Apsey, has seen seller confidence grow in the last year that she has worked in our office. She has had dozens of would-be sellers approach her asking if she thinks that now is the best time for them to list or if they should wait for the market to grow. Katherine, a savvy investor who has owned real estate in multiple international locations, including Ojochal, Costa Rica, says “we learned a huge lesson with Covid that you don't know what the future is going to bring, so if you are interested in listing, do it now. People are experiencing more of a sense of urgency to buy than ever before.” But she is hesitant to say that sellers should wait to get top dollar. “I would say that it depends on their situation,” says Katherine. “If they want to sell and buy something else here, they will get a premium price and they will also pay a premium. If you are going to move back to Canada, don't sit around and wait for predictions. If you are thinking of moving elsewhere and want to get the max price on your property, you may be able to wait it out but the market may also take a sudden correction if situations change.” According to a study by the Biodiversity Finance Initiative (BIOFIN) of the United Nations Development Program (UNDP), the total annual value of Costa Rica’s natural capital is roughly around USD $14.5 billion, which equates to about 23% of the country’s entire GDP. Ecotourism is the main source of foreign exchange in the country. Costa Rica's Minister of Environment and Energy (MINAE), Andrea Meza, says, “more than a million people visit Costa Rica each year to observe biodiversity, generating an important contribution to the Gross Domestic Product. Certainly, ecotourism is just one of the many uses for biodiversity.” The latest data shows that Costa Rica maintains 4% of the planet’s total biodiversity in a territory that represents 0.03% of the earth’s total land and water mass. Costa Rica welcomed around 30,000 fewer international arrivals in August of this year than in July, ending a five-straight month increase in tourism numbers. This is not a big surprise because August through October are generally Costa Rica’s slowest months for receiving visitors. However, comparing August 2021 to the same month in 2019 shows that the country is down around 34% in tourists entering — an ongoing impact of the coronavirus pandemic. Interestingly, though, nearly 22,000 Europeans arrived in Costa Rica in August, marking the highest number of visitors from Europe so far in 2021. “Despite the travel restrictions established by the European Union for its citizens, these figures are encouraging for the gradual recovery of the Costa Rican tourism sector and generate positivism for the end of the year and the beginning of the high season. It also commits us to be vigilant in the application of health protocols,” said Gustavo Segura, Costa Rica’s Tourism Minister. The United States continues to be Costa Rica’s top tourism market. Of the 114,227 international arrivals, two-thirds arrived from the U.S. From January through August 2021, Costa Rica has received nearly 800,000 tourists. This is a far cry from the 3.1 million who visited in 2019 at the peak of Costa Rica’s international tourism. Tourism is one of Costa Rica’s principal economic drivers. Before the pandemic, it contributed to 8.2% of the country’s gross domestic product (GDP) and created 9% of the nation’s jobs, according to the Ministry of Tourism (ICT). Nine airlines are currently offering direct connections between Costa Rica and the United States: Delta, United, Alaska, American, JetBlue, Spirit, Sun Country (seasonally), Frontier and Southwest. All U.S.-based carriers that served Costa Rica before the pandemic have resumed service. In addition, Avianca announced new flights between Costa Rica and the United States that will begin later this year. By the end of 2021, all of Air Canada, Air Transat, Sunwing and WestJet plan to return to Costa Rica. They will offer nonstop service from Toronto, Montreal and Calgary with an emphasis on routes to Guanacaste. With a population of five million people, Costa Rica has done its best to control the spread of the virus in the last year and a half. Travel advisories to Costa Rica continue to warn travelers of the spread of Covid-19; however, there are no specific measures stopping tourists from entering the country. The housing market in the capital region of San Jose has suffered considerably from the poor economy and a glut of inventory. The same has not been true of the market on Costa Rica’s southern Pacific Coast. This region of the country is far less developed, and is only growing with a number of new developments. Many properties went off-market in 2021 as sellers changed their minds about moving and traveling during this pandemic period, causing a further decrease in inventory. Former part-timers and investors in Costa Rica have decided to keep their properties this year because they have decided that they would rather stay in Costa Rica right now than be anywhere else. Road repairs are being done all over our coastal communities as the rainy season comes to an end. Numerous construction projects have been ongoing throughout the year, even in the more difficult rainy season, because of the sheer number of new homes, condos, hotels, and restaurants being built all over the coast. These projects require lots of big machinery, which takes its toll on our dirt roads in the mountains especially, and the municipality is paying for the much-needed repairs. Supplies for construction are becoming more difficult to procure and delays on projects are due to a lack in building supplies creating longer wait times than normal. Labor and materials have increased around 25% in the region according to local builder, David Lopez. https://www.youtube.com/watch?v=ls9ItRpnez8 Interview With A Builder In Costa Rica — Richard Owens Talks To David Lopez in Ojochal, Costa Rica New ASADA water pipes have been installed throughout Ojochal in the last few months, bringing legal water and building permits to developments that previously did not have official access to the aquifers. This development has brought many lots back onto the market and vacant property sales have really heated up in the third quarter because of the availability of legal water allowing for landowners to apply for building permits. Americans were allowed back into Costa Rica last November, and the pent-up demand was such that it proved to be the busiest November in Costa Ballena real estate that our office has seen. But the end of this year is likely to eclipse last year with demand continuing to grow in our market throughout 2021. Digital nomads and foreign real estate buyers are driving the economic and tourism reactivation in the country, including the real estate and rentals market. Digital workers have become a social phenomenon that continues to grow on a global scale and many are finding their new home base in Costa Rica to be working well for them. The country has recently amended its previous requirements for residency applications to include a new investment minimum of $150,000 to apply (down from $200,000 up until August 2021). There are no restrictions on foreign buyers in Costa Rica and deals are commonly done in U.S. dollars. We have also noticed an atypical interest from locals around Costa Rica wanting to move out of the capital region, where the infection rate for Covid-19 is much higher. Some are looking for a second home, while others are looking to move down here permanently. A significant number of Costa Ricans from the GMA have traveled to our Southern Zone region for the first time during the pandemic as international travel options have become more challenging. We have had a few Costa Rican buyers contact our agents saying that they didn’t know their country had such a beautiful, natural region with great cultural and community offerings, and some have decided to buy in the last year so that they can secure a more permanent escape for whenever they feel the need to get out of the city. Americans account for at least 80% of foreign buyers in this area in the third quarter of 2021. The rest are mostly from Canada and Europe. Osa Tropical Properties agent, Marcia Oro, is finding that her potential buyers who had initially decided to visit Costa Rica by the end of the year are considering changing their flights to an earlier time frame because of how quickly listings are going off market. She says “they have concerns that everything that they like will be gone by December.” To those who are still planning to come in December, she is saying not to invest too much attention into what is on the market now and to wait until two weeks before their trip to start picking out listings. “It is very difficult for my clients to deal with the disappointment of seeing properties that excite them go under contract so quickly right now.” Agent Rebecca Rowntree says that some clients have to miss out a couple of times before they learn the hard way that now is the time to act. “Everyone wants an ocean view, privacy, and lots of land for under $150,000 and we basically have nothing to show them,” she says. Buyers in Costa Ballena (Dominical, Uvita, and Ojochal areas) today are typically looking for clean, modern homes in the $300,000-$800,000 range. Homes in Costa Ballena today range in price from $200,000-$8,000,000. Of the 78 homes that went under contract in Costa Ballena between July and September, the average time on the market was around 13.3 months. More significantly, though, the median time on market was 6 months, meaning that the majority of homes sold in six months or less. Six months may still seem like a long time to foreign buyers who are not accustomed to buying destination tropical real estate, which is almost entirely contingent on the buyer’s ability to travel to the destination. However, in our destination real estate market, selling homes in one or two months (or less) is an incredible feat. Despite the inability for many to travel right now, the high number of under contract and sold properties in 2021 has displayed a big shift towards digital sales, with buyers putting in offers on properties sight unseen. That’s not to say that they have not visited Costa Rica before — most of today’s buyers have visited Costa Rica at least twice in the past. But the quick pace of great listings going under contract shows that today’s buyers cannot wait until they are able to travel to buy the property of their dreams at the right price. Of the 25 properties that sold in the third quarter of 2021 in three months or less, regardless of price, the most unifying qualities between them are that they are turnkey, newly-built or remodeled, modern, and fully-equipped homes. Well priced lots with excellent views have also been snapped up in the last three months. It is nearly impossible to find land with good privacy and views for under $200,000. Our region of South Pacific Costa Rica has seen a rise in prices in September, which was the biggest month for sales in the third quarter and all year. Ojochal was the top market for number of closings in the last three months, likely due to the lower average prices on listings. Of the 99 properties sold in Costa Ballena between July and September, the average sales price was $346,700 (median was $339,000) and the average price for a home was $429,000. Dominical properties sold for $628,000 on average (down from $820,000 in the second quarter), which is quite a bit higher than Uvita’s $285,000 average property sold price (down from $400,000 in the second quarter) and $260,000 in Ojochal (up from $244,000 in the second quarter). This is likely due to the higher volume of individual lots sold in both Uvita and Ojochal, as well as the smaller beach homes that are very popular in Uvita right now because of their affordable price bracket, typically listing between $200,000-$300,000. Properties in Costa Ballena sold for just over 93% of their list price on average in the third quarter of 2021. Rentals in Dominical, Uvita, and Ojochal are largely occupied by long term guests. Foreign buyers looking for property, home sellers who are in between selling one property and building another, and digital nomads working from home in the tropics are the biggest market for rentals today, filling many of the available properties in the area. According to Richard Owens, realtor with Osa Tropical Properties who represents a number of rentals in Ojochal and Uvita says that almost all of his available long-term rentals are fully booked for the foreseeable future. But this level of busy is not the case for all rentals. “Those who have luxury short-term rentals are having a harder time filling their homes for the price that they want. I represent some gorgeous listings that can truly be classified as luxury: panoramic ocean views, tropical modern architecture, and gorgeous floral landscaping, but they want $3500 per month at a minimum and it’s not the most sustainable price bracket for long-term rentals. Now, in the short term over the holidays, they are already fully booked. But that’s not the case all year round,” says Richard Prices for listings that have been on the market for a while are staying fairly static despite the over all increase in listing prices. We are seeing new listings coming onto market with higher price tags than historical comparisons, but these are largely the hot-commodity modern, turnkey homes. However, older homes in a more challenging state are taking months, if not years, to sell. Every property has its own story and situation and while there are no “apple-to-apple” comparisons between properties, but there is a formula for how to price properties in Costa Rica and there are simply some qualities that are more difficult for buyers to overlook. Room to negotiate on price is dependent on what buyers are looking for, how rare those qualities are, and the motivation of the sellers. Those who do choose to spend the time and money renovating old properties in Costa Ballena are finding themselves richly rewarded with the amazing views and privacy that older homes in the area tend to have, as well as a much higher price tag that they are able to put on their newly-renovated home once they are ready to sell. Although there is some discussion about the robustness of this real estate bubble, markets all over the world continue to grow and are not showing signs of slowing as Millennials reach the buying age for homes. This huge new market is keeping the current bubble from bursting and is feeding our Costa Rican markets, too, as a wave of digital workers are choosing to work from the tropics. The booming construction market has been ongoing during the rainy season in 2021 throughout Dominical, Uvita, Ojochal, and beyond, while more vacant land is being sold thanks to more water concessions. For now, Costa Ballena real estate looks like it is positioned for a very strong high season coming up.Seller Confidence is Growing in 2021
Costa Rica’s Natural Assets a Big Draw For Investment
Tourism in Costa Rica Slowly Rebounding
More Airlines Flying Direct to Costa Rica Again
Effects of Coronavirus in Costa Rica
New Developments in Costa Ballena
More Buyers For Costa Rica Real Estate
Buyers in Costa Ballena
Average Time on Market for Properties in Costa Rica
Prices on Homes in Costa Rica
Ojochal, Dominical, and Uvita Rentals Market in 2021
Profitable Home Renovations Strategy
The Future of Real Estate in Costa Rica
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. 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. 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. 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. 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.The Cyclical Nature of Real Estate in Costa Rica
Price Reductions: A Sign of the Times
Coaching Sellers in a Challenging Market
The Road Ahead
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.
May 13, 2023
There are many tropical destinations where people can move or invest but few tick as many boxes as Costa Rica. Buyers today are looking for larger spaces with more distance from neighbors and Costa Rica presents some intriguing options. It is far less expensive to live here and buy real estate than in more traditional tropical beach destinations like Hawaii, and it is one of the most politically stable nations in Central and South America with one of the lowest poverty rates. The beauty of Costa Rica is mesmerizing and the more time that people spend here, the more confident they become in their desire to move to Costa Rica. Recent road improvements have meant that the Southern Zone is now easily reachable, yet restrictions on development mean that it will stay boutique. By owning the right property, you can tap into an already large and growing demand for rentals in our popular Costa Ballena communities. More than a quarter (28%) of Costa Rica's environment is protected by marine and terrestrial national parks, reserves, and wildlife refuges. The rich ocean waters are warm all year and home to whales, dolphins, and turtles. The coastline is a long stretch of sandy beaches, natural, unspoiled, and uncrowded. All this is why the Southern Zone is compared with Hawaii and Tahiti — without the high price tag. Total sold and under contract: 104 Sold properties: 69 Under contract: 35 Houses sold: 61 Land sold: 39 Commercial properties sold: 4 Potential new buyer leads visited our website in the first quarter of 2022 at a slightly lower rate than the same time frame last year. However, the page views per user have increased. People currently visiting our website are more serious buyers looking at multiple properties at a time, making comparisons and staying connected with the market movements. However, traffic to our website has increased by 16% over the last quarter and 74% over pre-pandemic levels. This indicates that more people were not traveling last year and were looking at properties dreaming of when they could actually visit. The average time on the market for properties sold in this quarter was 363 days with a median of 154 days (the median number takes into account some of the more obscure properties that take years to sell and bring down the average). This has decreased from last quarter by 15%, meaning that buyers in the first quarter of 2022 were making offers on properties at a higher rate. The properties that sold the quickest at the start of 2022 were all priced under $1 million. These properties also tended to have great views, privacy, and good amenities, like a well-maintained pool. The properties sitting on the market for the longest amount of time were often in remote locations and had many more fixer-upper qualities. Costa Ballena’s list-to-sold price ratio was an average of 95% and a median of 98%. This says to us that today’s buyers feel that the list price is true to the current market value, especially when considering that the time on market for many types of listings speeding up. Many more buyers in the first quarter of 2022 offered the asking price to avoid getting into a bidding war with competing offers. The property with the highest list-to-sold ratio went for 7% above market valuation because the home was relatively inexpensive for the location (Dominicalito) while also being quite sizable and with an amazing ocean view. Those that sold for closest to the asking price had large spaces with clean and modern aesthetics. Three-quarters of the properties that sold for their asking price were built in the last 5 years. Some of the largest and smallest homes in the Costa Ballena spent a longer time on the market at an average of about 8 months for both categories. Nevertheless, these homes still sold for an average of 98.5% of their list price. Large farms take longer to sell at around 1.5 years on the market and sold for around 91% of their list price in the first quarter of this year. The lowest list-price-to-sold-price comparisons were in remote locations with a lack of services like power and water on the property. Although the market for self-sustainable living is growing, the vast majority of buyers want the safety of a community around them, even if they value privacy. Costa Ballena is the name that we locally use to refer to the towns of Dominical, Uvita, and Ojochal and the residential communities that surround them. Each town and the communities that branch out from them have their own special characteristics that make them unique from one another and attract different clients with their specific sets of needs and desires. Dominical is a surf town with lots of high-end residential areas surrounding it that attract a lot of luxury tourism. For this reason, you will find many new and modern luxury homes in communities like Escaleras, Costa Verde, and Dominicalito. Uvita is the commercial hub of Costa Ballena with the biggest amount of services and amenities. Lots of families choose Uvita for the ease of getting around on foot and the many schools and activities available for families. Ojochal is the more international town where many languages are spoken. It is the most quiet and tranquil of the three and is the mecca for people who want to live amongst the raw beauty of nature and surrounded by great people. Just north of Dominical is Hatillo, where three homes sold for an average of $462,000. These homes are more remote but all have nice ocean views. Around the center of Dominical, ten properties were sold in the first quarter of 2022 at an average of $536,000 per property (lots and homes included in the average). Up the highway towards San Isidro are Baru, Lagunas, Platanillo, and Tinamastes, which collectively saw five closings since the start of this year. This number is modest but this mountain valley region is still growing in the perception of the real estate community. It is a wonderful location for the still niche market of buyers who want large properties at higher altitudes, which are better for self-sufficient living. Escaleras is the most upscale part of the Costa Ballena, with homes sold in the first quarter averaging $1,412,000. The second most upscale region just south of Escaleras is Dominicalito, where properties (including vacant land) sell for an average of $780,000. This entire region saw around $23,000,000 in property sales so far in 2022. In the area uphill from central Uvita, homes and lots sold for an average of $467,000. There were fourteen closings in this region in the first quarter. Bahia, the lower altitude area that is closest to the Whale’s Tail and other popular tourist activities saw five brand new homes purchased for use as vacation rentals. The average price that these properties sold for was around $360,000. And in the Ballena area just south of central Uvita, there were four closings consisting mainly of vacant ocean view land averaging around $300,000. The central region of Costa Ballena grossed around $9 million in total sales in the first quarter. The village of Ojochal had by far the highest number of closings in the Costa Ballena region (40 closings in town with 10 more in the surrounding communities). The popularity of this area with expats is evident in the visible growth in construction. Turnkey homes sold in this community for an average of $775,000, showing a market increase in Ojochal’s high-end homes. Ten minutes south of Ojochal is Tres Rios where ocean view properties near rivers and waterfalls sold for an average of $607,000 in the first quarter of 2022. Further back in the mountains, Chontales had three properties sold, averaging around $372,000 per sale. In all of Costa Ballena South, properties sales totaled around $17 million. Property sales for the entirety of the Costa Ballena region (Dominical, Uvita, and Ojochal) reached almost $50 million in the first quarter of 2022. Costa Ballena real estate buyers are looking for a variety of property types and construction styles for their ideal Costa Rica homes. Newer modern homes top the list for sought-after qualities, as well as incredible views, and increasingly, an on-site water source. High-end luxury homes accounted for 6.5% of the market in the first quarter and is the smallest market in the region, although responsible for a large portion of the total sold value for the region. The most popular construction types are mid-range priced contemporary and modern homes, representing almost 60% of the local real estate market share. Colonial homes and simple constructions are still significant parts of the market, showing 24.5% of sales and 11% respectively. A basic ocean view is what the majority of buyers still want, although these properties are more scarce and are increasing in value. Standard ocean view homes in Costa Ballena accounted for 31% of properties sold. 12.6% of buyers settled for a nice ocean view window at a lower purchase price. Around 9% of buyers splashed out for a premium priced luxury ocean view of the Whale’s Tail or in the cliffs above Dominical. Another 18% of buyers saw the magic in the mountain view and chose their Costa Rica property for reasons other than a nice ocean view. Thirteen percent of buyers found their perfect income-generating properties in lower-lying areas that are closer to town and amenities. And nearly 10% of buyers preferred the peace and remoteness of a property surrounded by jungle with nature as their primary view. Digital nomads are still waiting to be legalized to stay for extended periods in Costa Rica. However, many young foreigners awaiting the regulation to be issued are buying properties now before more people come to settle here when the digital nomad legislation goes active. Strict control is being maintained over the environmental impact of tourist and residential developments, fostering a sense of exclusivity. Our Southern Zone region is especially known for protecting the environment and the sense of being one of the last to get to be here is really driving the market. Retirees who are being drawn to Costa Rica in 2022 are looking to simplify their lives while affluent buyers of Costa Rica real estate are making more health-driven lifestyle choices to improve their quality of life. Families moving to Costa Rica have been one of the hottest segments of buyers, especially in Ojochal and Uvita. Two new educational facilities have opened in Ojochal in response to the increase in demand: Life Project Education and Osa Jungle Academy. Buyers looking to make rental income who do their research and pick the right property for them are finding great success in 2022. Buyer demand for second homes is up significantly, while other areas of the market are normalizing, according to a recent report from Redfin, Costa Rica is almost without direct competition for luxury tourism. Celebrities visiting Costa Rica are often in the news and bring even more notoriety to the country’s eco-tourism scene. Costa Rica has developed a mature luxury market with a wide range of high-end properties in a variety of settings that attract foreign buyers from around the world. The country has become a haven for yachting and sailing communities as well as for surfers and sport fishing enthusiasts. The topography of this region and proximity to tourism activities keeps this region strong in the rentals market. People visiting here want to feel secluded in nature with amazing views of the coast, the lush, jungle-covered mountains, and the green valleys. Airline passenger numbers entering Costa Rica edged closer toward pre-pandemic levels in the first quarter of 2022, despite the Delta and Omicron variants' surges. Globally, business travel has slowed in the last two years, but a new kind of traveler has helped fill the gap: remote workers, who are coming to Costa Rica in droves. Working from anywhere means leisure travel is no longer limited to vacation. Some have even become full-time digital nomads, traveling from one location to the next without keeping a permanent home. Rather than cramming vacations into a few months in the summer and a few weeks in the winter, untethered travelers are now expanding the green season in Costa Rica (May-November), when leisure travel usually dips. The peak travel season has become flatter and broader in our region of Costa Rica. Tourist and accommodation businesses are enjoying a longer high season, and vacationers are competing feverishly when booking accommodations for the rest of the year. Booking sites like Airbnb and VRBO are seeing higher demand for spring and summer leisure travel despite added costs to plane tickets and road trips from rising fuel prices. Oil has soared to over $100 a barrel as Russia's invasion of Ukraine jolts global markets. But U.S. carriers Delta Air Lines, United Airlines, and American Airlines all recently reported a strong rebound in travel demand after the blip caused by the Omicron coronavirus variant. AirDNA data said the booking pace for travel in the northern hemisphere spring is 49% higher than this time last year and 26% higher than pre-pandemic 2019. According to AirDNA (an AirBnb rental analysis website), rentals in Escaleras (the most upscale part of Dominical) received an annual revenue of $46,000,000 USD in 2021, with an average nightly rate of around $400 and average occupancy of 57% in 2021. The average nightly rate for a rental in Uvita was $270 with an expected occupancy of about 48% during this time period while the average daily rate for a rental property in Ojochal was around $150 with a 43% expected occupancy rate for the month of June in the off-season. Nearly all rentals in the Costa Ballena were between 90-100% occupancy in the high season between December 2021 and March 2022. Vacasa, which is a leading vacation rental management platform that represents more than 35,000 vacation homes throughout North America, Belize and Costa Rica, shared in a recent Vacation Buyer Report that 42% of buyers are looking to purchase a vacation home in a beach destination. “Forty-two percent of buyers looking to purchase a vacation home chose a beach destination as the market type they’d be most interested in investing in and for good reason,” said Daned Kirkham, Senior Director of Real Estate for Vacasa. “While beach destinations will nearly always draw in a steady stream of guests, buyers can also earn more on homes with the amenities that guests seek most such as beachfront or beach adjacent, a private pool or hot tub, and being pet-friendly. Guests can enjoy working and living from any location largely due to remote and hybrid work environments. Homeowners also benefit from increased income from these longer stays, which often occur during shoulder seasons when there tends to be more availability.” Record-setting momentum continued for short-term rentals (STR), with year-over-year bookings not only exceeding 2021’s numbers but 2020 and 2019’s pre-pandemic numbers as well. Short-term rental demand is greater than ever before in Costa Ballena. Many factors are driving this trend, like the North American and European tourism habits of traveling to beach destinations in the winter months. While there are plenty of great places to retire in the U.S., Costa Rica offers cheaper housing, better healthcare, and excellent tax incentives, as well as incredible beaches, jungles, and wildlife. The 2022 Retirement Index from International Living is an annual list of destinations where a retired couple can live comfortably on as little as $2,000 a month. Now in its 31st year, countries are quantified across 10 categories: Housing, Benefits & Discounts, Visas & Residence, Fitting In/Entertainment, Development, Climate, Healthcare, Governance, Opportunity, and Cost of Living. The top 10 countries for 2022 are a mix of cultural hubs in Europe and outdoor havens in Central and South America and Costa Rica is yet again near the top, in second place. It is rated highly with retirees for its nature and its established communities of expats who love the pura vida lifestyle and the more relaxed, outdoor-oriented pace of life and ease of travel. With the sales growth of 2021 leading into 2022, new landowners in Costa Rica are encountering problems to find builders for their project, or even to receive a quote for construction. Building permits are lagging due to volume and wait times for ordering materials (as well as increased prices) are all make it more challenging to build your dream home in Costa Rica at this time. Many more potential buyers are backing out of deals in 2022 because the stress of competition is too much for them with multiple competing offers more prevalent this year. With so many more tourists and investors coming to Costa Rica, people are seeing the growth of this region and are speeding to make offers on real estate, later second-guessing their choices. These buyers will often lose out on the property to the next buyers and will continue making offers on other properties as they become more accustomed to the idea of owning real estate in Costa Rica. With the increase in real estate transactions in 2022, prices continue to rise, both in properties and in the cost of living, pricing more potential buyers out of the market. The United States continues to be the biggest market for purchasing properties in Costa Rica, accounting for 35% of new website leads coming into our office. Canadian buyers represented around 18.5% of our new leads and France nearly 4%. This has changed from pre-pandemic times when the U.S. accounted for more than 41% of our market and France was just over 1%. Our website traffic also indicates that UK, Germany, and Switzerland are all growing markets that will likely continue to expand in 2022. Australians and Israelis are two new markets that are showing strong interest in Costa Rica real estate in 2022. Last year saw a shift in our real estate market towards favoring sellers, with sold property price increases reflecting this trend. This has attracted significantly more buyers to purchase properties in Costa Ballena sight-unseen than ever before as people rush to get into the market before prices increase further. The overall number of listings for sale at the start of 2022 fell by 13% compared to last quarter. Of the over 300 properties that were for sale in Costa Ballena at the start of 2022, 17 were taken off the market by listers who decided to keep their properties after all. The most typical reason for this was that they wanted to keep the property for themselves after seeing the increasing value of their property in light of the travel restrictions during the pandemic and the resounding international interest in Costa Rica creating high rental returns. Our Osa Tropical Properties team of expert realtors want prospective buyers to know all of the ins and outs of our market. We have the knowledge and the tools to help those looking to invest in Costa Rica and will offer detailed one-on-one service from start to sold and beyond. Here are just a few helpful tips to get you started in your property search in 2022: To learn more about the intricacies of our real estate market, contact our team via the form below. Market Research For First Quarter of 2022
Listings in Costa Ballena in 2022
New Buyer Leads
Listing Time On Market
List-to-Sold Price Comparisons
Property Values In Costa Ballena
Costa Ballena North
Costa Ballena Central
Costa Ballena South
Popular Qualities in Properties Sold in 2022
Construction Styles
Sought After Views
Prices for high-end view properties sold in the first quarter of 2022 in Costa Ballena were:
Trends in Costa Ballena Real Estate in 2022
Increased Tourism Creating Higher Demand
Rental Market Report For 2022
Retirement in Costa Rica Rated Second In The World in 2022
Threats to Costa Ballena Real Estate in 2022
New Buyers in 2022
Expert Advice For Our Clients