It has been a number of years since the incentives to develop resort area property in Costa Rica have looked as positive as they are today. The first niche of opportunity is for moderately-priced, ocean view condos - and that goal may not be as impossible as most would expect.
Demand is strong.... for a basic 2 bedroom, 2 bath, furnished condo, priced under $250,000 (up to $200,000, if unfurnished), that offers attractive features for vacation rental clients. A wave of buying at that price point, since the end of 2012 has virtually cleared some markets. In global vacation destinations like Tamarindo, there are almost none available near beaches, except those that would face challenges attracting vacation rental business because of one or more negative elements.
Some sort of ocean view or walking proximity to beaches is a must.
Land prices are lower.... than they have ever been since the financial crisis began. Many investors in land, who may have held it for the last 5 years, are losing their patience, and are offering great deals. And, holding costs like property taxes are minimal. In the vast majority of Costa Rica, the property tax rate is 1/4 of 1% which translates to just $250.00 per year on a $100,000 real estate investment.
Construction pricing in resort areas can be competitive.... especially since real estate development has not been a driving force for several years. At the same time, reliability and performance of the contractor are crucial in any project, and using the best in Costa Rica would be worth a premium.
The property featured below represents the kind of opportunity outlined above. The per unit land cost could be less than $9,000 for condos with 1) an ocean view setting, 2) adjacencies to attractive beaches, and 3) a location in an emerging exclusive area near to a very desirable mega-project being marketed globally. The potential is definately there to take advantage of the demand for moderately-priced condos, which has been evident for the past year.
If you have been among those who have assumed the time is not right for development in Costa Rica, you may want to give this property, and others like it, a closer look.