March 2020 brought on many unforeseen challenges with the arrival of the COVID 19 virus and the quick effects of the pandemic. Speculation and uncertainty quickly transposed into a real estate boom in Costa Rica, similar to what we’ve seen in many areas of the US, Canada and Europe.
Foreign Investment in Costa Rica
In Costa Rica, potential foreign clients were not able to arrive on planes but were still eager to invest in a property or home in the tropics. As an industry, we had to adapt – and quickly. Virtual tours became the norm for many real estate agents, and properties sold without the client ever visiting it in person. Large properties, stunning views, local waterfalls, pristine beaches and a calm environment in nature have become an even greater draw, especially for those enduring seemingly endless lockdowns in large urban centers.
Add to that, those that can now work from anywhere with good internet service are realizing that Costa Rica is actually an option for them now – expanding the demographic into younger age groups, frequently with families, which has in turn increased demand.
Where are we now?
The first quarter of 2021 was an astonishing success! The Blue Zone International office has sold more real estate in Q1 2021 than in any other 12 month period. (based on value)
Our agency is seeing homes currently selling at 98-99% of asking price, and 10% of our sales have been at or above list price.
It’s a good time to buy before we get to the point of bidding wars becoming the norm. Our stats show we are heading in that direction, as well as additional price increases. There were 391% more closings in Q1 2021 than in Q1 2020.
Many expats that may have opted to sell their Costa Rican home have decided staying put was their best option for a safe place to isolate, especially the rural areas like the coastal towns. What would have been the usual addition of inventory to the market is much less this year with foreign owners opting to stay in Costa Rica. This translates to increased demand without a corresponding increase in inventory.
The Real Estate Market
Sellers that choose to stay in their current geographic area have to buy back into an inflated market, however, those that opt to “cash out” for example in New York and buy in Costa Rica are seeing huge opportunity and quick equity gains as our market continues to grow. Luxury home sales and commercial sales set new records, based both on price and the number of sales. The average sale price was 52% higher in the first quarter of 2021 vs. the same period in 2020.
If you are realizing its possible to upgrade your lifestyle to enjoy our miles of beaches with stunning valley and coastline views, and come out the other side with a calm environment in nature to quarantine, “bubble” with select friends, and ride out the pandemic – NOW is a great time to buy.
And if you are a property owner – take advantage of this real estate boom and list your property today!
