Property In Buy And Hold Areas

[Ali]

I have been looking around in Costa Rica for the last few months and two areas in particular have really caught my eye for investment.  Carrillo and Marbella.  Two completely different areas, but both with great potential.  What are your immeadiate thoughts on this area as we as growth in teh next 5 years?

 

[Russ]

Hello Ali, welcome to our forums.

We don't have any realtors working in those areas and I have not been there, but in some general terms I can discuss development and property values in general.  

In most countries and cities development follows a certain pattern.  It was often said in the 1980s & 1990s that Costa Rica was like California in the 1950s.  (or Hawaii).  While obviously this was hyperbole, there were certain similarities as far as the great climate, great surfing, and tourism on the upswing.  

When you ask now about Marbella and Carrillo, some people might be tempted to compare them to Tamarindo in the 1970s and 1980s.  This is true in that they are sure to be in a low level of development.  

I would suggest that the next 5 years would be too short of a time frame to expect any dramatic rise in prices.  The 3 hottest areas in Nicoya at this time are Flamingo, Tamarindo and Playas del Coco. Their development has been spurred by increases in full time residents, increases in tourism, increased projects and promotion by developers, and finally, the new airport in Liberia.  

The two areas you mention are bound to increase in development as land becomes more scarce the above mentioned places.  People who can't afford those areas will look farther afield.  Developers who build out their projects will expand their area of coverage too.  There are several issues that could retard, or speed up progress in any beach area:

Reputable developers - When reputable developers take an interest in an area and complete projects the whole area benefits.

Infrastructure - Things like good roads, schools, cableTV, and telephone lines all make the area more attractive to buyers.

Amenities - Tourists allow restaurants, hotels and tour companies to function in the area which in turn attract more tourists and possible residents.  No area will take off in a big way until tourists discover it and/or hotels and tour operaters bring tourists.  

Anyway, those are some guidelines.  As always a reputable realtor specializing in the area can give you more specific information and time frames according to your objectives and area of investment.

Please don't hesitate to ask further questions in this or another forum.