Real Estate in Costa Rica starting to sell again

Property in Costa Rica has been hit hard by the recession of the last few years.  However, while the housing market may be nowhere near as buoyant as it was in the boom of 2006 there are signs that it is reviving.

Leading experts have noted that residential property in Costa Rica has started to sell again with a good range of properties for sale at affordable prices.

‘Timid awakening’ in sales of property in Costa Rica

Aleyda Bonilla, president of the Costa Rican Chamber of Real Estate Brokers, said: “There has been a timid awakening in selling homes and condos on Pacific beaches, while the GAM [greater San José metropolitan area] residential sector has been growing at a steady pace, with an excellent range of properties.”

Les Nunez from Playa Hermosa First Realty agrees.  He said: “Middle and lower priced homes… are really starting to move now, as opposed to the top end. So, anything between USD300,000 [£185,800] and under, you’re getting good inquires and even purchases now.”

Construction rises for first time in over two years

The improvement in demand for property in Costa Rica has boosted both construction and the mortgage market.  Private construction rose by 0.7 per cent between February 2010 and February 2011 – the first private construction index rise in 25 months. 

Property in Costa Rica has become more affordable over recent years, in part to the weakness of the Costa Rican currency.  Property transactions in Costa Rica are typically quoted in US dollars and Inside Costa Rica reports that ‘the Costa Rican colon decreased in value during 2010, from USD1 = 557 colones to USD1 = 493 colones, so real estate has become cheaper from the Costa Rican point of view.’

Costa Rica also has some of the best housing stock in Latin America.  74 per cent of property in Costa Rica is owner occupied while 17 per cent is rented.  Fewer than one in ten houses are considered to be in ‘bad condition’.