Is Costa Rica Real Estate Still Affordable?

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Many publications (depending upon who they represent!) will represent that Costa Rican real estate is grossly overpriced and that there are really no “bargains” any longer. These so called “experts” will represent that prices in Dominical, Escazu Properties, Tamarindo, and Playa Flamingo and Papagayo have increased ten times in value and that the average sales prices is approaching prices in the States.

So … are these claims true or false?

Well, quite candidly (from someone who lives in Costa Rica) there definitely are areas which should probably be consider overpriced (unless of course, you are one who can buy a $500,000 house and not blink an eye) as they have received publicity and of course, are definitely gorgeous without any doubt. BUT. these are areas which are overpriced simply because of publicity. Remember, it is all about supply and demand.

… is real estate in general overpriced?

As in any city or state, there are areas which are overlooked and which are still stunning and gorgeous. There are areas of Punta Leona, or Jaco Beach, for example, which are being sold at levels approaching those of California or Florida (at its prime!). But there are areas only 15 minutes away which share the same water and the same views and yet sell for less than 20% of the higher priced competition. … who is? It is your choice.

There are houses and land represented on the website which are stunning … and yet very few people bother to check as to what comparables really are … because sometimes prices are cheap by comparison. A home which is selling for $200,000 on the internet may, in reality, only cost $75,000 to build.

How can you know what is not true and true?

Simple … as in the States or Canada or your own hometown … do your homework, do not buy sight unseen and make sure that you have the best legal representation. You wouldn’t buy without due diligence in the states … don’t do it in Costa Rica either. Costa Rica has no MLS, and very few rules and regulations that pertain to your protection … it is truly a country and system of “let the buyer beware!”

But … in a roundabout way … no, real estate in Costa Rica is ┬ábargain real estate … depending upon where you look AND who you talk to.