Many of our clients have been asking about the trends in the market place in Costa Rica....It is important to first understand that although Costa Rica is a relatively small country, it´s markets are very diverse, and the trends in each location are often vastly different.
As most have surely read, the northern province of Costa Rica has gone through a tremendous corporate who´s who over the past year. In addition to currently operational Four Seasons, JW Marrriot in construction, Hilton in a conversion stage to open in December, names like the Riu, Regent, Ritz Carlton, One and Only, Miraval, Canyon Ranch, Hyatt, Rosewood, Mandarin Oriental and Westin have all put their names in the perverbial hat. Although most of these mega resorts are not yet under development, they have certainly drawn the attention of the boutique developer, and of course, these top dollar land purchases have helped to bring prices up a notch in the area, as well as bring beachfront parcels to a scarce minimum.
Whereas 3 years ago, if you built it, they would come, in preconstruction and sign the check...those days are quickly changing. Some agents fear that this has, in combination with the re market in the states taking a nose dive, hurt the market here and put a dent in sales. Although this, in part is true, I am of the opinion, that this is a much needed, and welcome correction. Clients are getting smarter, and demanding that their developers deliver a better quality, in prime locations, etc...Clients have not stopped spending money, they have just stopped throwing it away. As a broker who enjoys selling, and will only sell a product that gives me confidence for my clients, this is good news.
Although these corporate developments will handle much of their sales in house, at prices well above what the average buyer can afford, my belief is that this will breed boutique developments that will offer a lower price point, tremendous quality, and of course, the parallel benefits of these branded products. One product to look out for is the Ocean Club Resort, on the coast, just to the north of the Hyatt Regency site, and just to the south of Flamingo. This resort is slated to break ground early next year, and will be one of the world´s most exclusive residence and beach club´s to be found. Situated on 10 acres of titled beachfront, this property provides ideal rolling topography and ocean views from within...The project will combine a series of mid rise towers in the back, and detached villas, immersed in a natural surrounding with lush gardens, waterfalls, walking paths, and of course, some of the most sophisticated amenities a resort buyer could hope for....Stay tuned for details, or email to place a REFUNDABLE reservation now before the presales are released.
More to come on the central and southern pacific coast, as well as the real estate development in the central valley, and more specific Escazu.