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3 Key Trends Right Now in Costa Rica Real Estate: Uvita, Land, and Luxury Properties
3 Key Trends Right Now in Costa Rica Real Estate: Uvita, Land, and Luxury Properties

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.

Your Dream Rental Awaits: Bahia Ballena Market Overview
Your Dream Rental Awaits: Bahia Ballena Market Overview

May 13, 2023 in Real Estate in Costa Rica

Welcome to the breathtaking beauty of Bahia Ballena, a hidden gem nestled along the unspoiled coast of Costa Rica. This is an idyllic destination that will take your breath away with its grandiose mountain vistas and captivating ocean views. This is Bahia Ballena – where the mountains meet the sea and high elevation living among beautiful tropical wilderness is what makes the towns of Dominical, Uvita, and Ojochal so popular with expats and tourists. In this article, we will provide you with a comprehensive market overview of Bahia Ballena, giving you a sneak peek into the rental landscape of this tropical paradise. From stunning coastal properties to lush jungle hideaways, Bahia Ballena offers a wide range of options for those seeking a truly unforgettable experience. Whether you're planning to purchase real estate for partial retirement or full-time vacation rental income, this market overview will equip you with valuable insights and tips to help you make informed decisions and find the perfect rental property that fulfills your dreams of owning a home in Costa Rica. 

Bahia Ballena Rental Market Overview

Bahia Ballena, located on the southwestern coast of Costa Rica, is a popular tourist destination known for its pristine beaches, lush rainforests, and abundant wildlife. It offers a range of rental properties, including vacation homes, villas, and condos, catering to tourists and expats seeking a tropical getaway.

  • Rental market in Bahia Ballena is primarily driven by the tourism industry, with demand fluctuating seasonally.
  • High season typically falls between December and April when tourists from around the world visit the area for its warm weather and peak tourist activities.
  • Low season usually occurs between May and November, with fewer tourists and reduced rental demand.
  • Rental rates may vary depending on the location, size, condition, and amenities of the property, as well as the duration of the rental period.

Rental Market Trends

  • The COVID-19 pandemic has impacted the travel and tourism industry worldwide, including in Costa Rica. Travel restrictions, lockdowns, and safety measures have affected the rental market in Bahia Ballena, with decreased demand and lower occupancy rates in some cases.
  • Eco-friendly and sustainable rentals are gaining popularity in Bahia Ballena, as travelers seek environmentally conscious accommodations in line with the area's focus on eco-tourism and conservation.
  • Visitors are drawn to this region for its nature and biodiversity. Rentals that are situated amongst nature and have a water feature (river, waterfall, close access to the beach) are the most popular with discerning travelers.
  • Short-term vacation rentals, such as through platforms like Airbnb, VRBO, and HomeAway, are prevalent in Bahia Ballena, offering flexible rental options for tourists and travelers.

Market Predictions

  • The rental market in Bahia Ballena is expected to gradually recover as travel restrictions ease and tourism picks up post-pandemic.
  • The demand for eco-friendly and sustainable rentals is expected to continue growing as travelers become more conscious of environmental concerns and seek responsible travel options.
  • Short-term vacation rentals may remain popular, offering flexible accommodation options for tourists and travelers visiting the area.

A Comprehensive Look into Bahia Ballena's Rental Market

As per the latest report by AirDNA, a leading provider of short-term rental data analytics, Bahia Ballena is currently witnessing an impressive surge in demand for vacation rentals, with a score of 62 out of 100. This indicates that the region is experiencing an above-average demand for vacation rentals, making it an attractive option for property owners and investors looking to capitalize on this trend. The vacation rental market in this area has an average daily rate of $220, with March being the peak season with the highest rates at $239 per night, and September offering the lowest rates at $190 per night. It's worth noting that rates for vacation rentals can vary depending on the type of accommodation and the specific location within the area. The average occupancy rate for vacation rentals in Bahia Ballena is 67%, with the highest occupancy rate in February at 82% and the lowest in September at 40%. The average monthly revenue for vacation rentals in this region is $2,540. As of now, there are 1,564 active vacation rentals in Bahia Ballena, with 75% being single-family homes. Compared to last quarter, the number of active rentals in the region has grown by 13%, and there has been a 25.6% increase in the first quarter of 2022. Among the active rentals in Bahia Ballena, Airbnb hosts the majority with 75%, while VRBO hosts 16%. The average rental size for properties in this region is 2.5 bedrooms accommodating an average of 6.1 guests. The top amenities for vacation rentals in Bahia Ballena, in order of importance, are internet, parking, kitchen, air conditioning, washer, and pool. The least essential amenities are an electric clothes dryer, cable TV, hot tub, and indoor heating. Please note that actual rental market conditions in Bahia Ballena, Costa Rica may vary, and it's important to consult with local real estate professionals or market research firms for accurate and up-to-date rental market data before making any decisions related to real estate investments or rentals. 

Pocket Listings And Other Hallmarks Of A Great Realtor in Costa Rica
Pocket Listings And Other Hallmarks Of A Great Realtor in Costa Rica

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. 

Why Is There No Zillow In Costa Rica?

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.