Oceanview lots/land for sale in Costa Rica (pacific side)

[DaveT]

Hello,
Great website - have read many of the posts and found to be extremely helpful.
Some friends and I from the States are looking into real estate investing in Costa Rica - we are targeting oceanview lots/land on the Pacific side to buy and hold for 3 to 10 years - we are trying to find areas that are not already heavily commercialized (i.e. inflated prices), but do have some development activity.  Long range ocean view, electricity/water set-up, and road accessability would all be prerequisites.
Any thoughts on specific cities/regions would be appreciated.  One place we were looking at is Ocotal/Coco Beach - has anyone looked into this area?
Is there a way to run "comps" on Costa Rican land? 
Thanks in advance, Dave

[Fran]

Hi Dave,
I think I have a good recomendation for your searching.
A friend of mine, has recently bought a beautiful farm in the Pacific coast of Costa Rica, whit I supposed is a very good price.
This is an ocean view farm of 24.7 ac aprox, and he bought it for something like $90.000.
[contact info deleted]

Lot of luk

[Russ]

Hi Dave, thanks for stopping by and am glad you found what you were looking for.

No realtors in the group currently cover Ocotal/Hermosa, but this is a growing area with some reputable realtors and builders helping investors. The area is maybe more developed than what you are looking for, but certainly the prospects for appreciation are excellent over the next 3 - 10 years.

I would suggest that you look into the Caribbean side, as this area is just opening up to a wider audience.
Try Caribe Sur Real Estate - 

The Samara area is also an up and coming area:
ABC Real Estate Samara Beach

These areas (like Ocotal) aren't so much panoramic ocean view as very close to the beach or on the hills behind the beach.
Dale at Tucan Realty ( troporg@racsa.co.cr has some large properties that are in Esparza or that have long range sunset / ocean views.

As for comparing properties it is, as you suggest, difficult to get accurate information that is objective. (like for example tax records in the US are, or widely published industry figures).  However you can definitely compare prices and areas.  You look at the surrounding infrastructure and level of tourism activity.  This means everything from road access, to electricity, to restaurants, attractions and tours in the area.  The price of the land goes up according to the level of development of the area. 

Beach areas like Tamarindo and Flamingo have high prices because of geographic limitations (ie, limited ocean view or beach sites) and a surrounding infrastructure that has created a strong demand for properties in that area (schools, restaurants, broadband Internet, abundance of tours and tourism related activities) So if someone is asking a price that is similar to property in these areas, but their area doesn't have a similar infrastructure, then you will know that they are overpriced. 

This type of comparing of course takes a lot of legwork, but once you define an area of interest working with a reputable, knowledgable realtor specializing in that area will ease your task enormously. 

I hope that helps somewhat and please don't hesitate to ask if you need further information or clarification.

[DaveT]

Russ,
Thanks for the reply - very informative.
Can you help identify where Esperza is - I could not find on the map?
Do you have any current recommendations for what you think is an up and coming area and conversely are there any areas that you would avoid investing within Costa Rica - I think you did this in a posting about a year ago and found it very helpful.  I know this is pure speculation, but it seems like you (and the other realtors on the site) have an excellent vibe for what is going on in CR.
Thanks, Dave

[Russ]

Esparza is inland from Puntarenas.  It is a big intersection with restaurants and gas stations that you cross as you head out from San Jose on the road to Puntarenas. 

I went back through the posts you mention and here is an updated take on some of the areas in Costa Rica. 
Guanacaste
The 3 hottest areas in Guanacaste at this time are Flamingo, Tamarindo and Playas del Coco. 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 Four Seasons Resort in Papagayo is a nice boost for that area and is getting Costa Rica mentions in the "jet set" press.  Another luxury hotel is going in at Hacienda Pinilla which is very near Tamarindo and will provide a boost to that project and the area too.  Prices reflect all of this development and

Caribbean
They are talking about making the Limon airport an international airport.  This we would expect to spur development, as the Liberia airport did.  Another factor is that Puerto Viejo was declared a township.  This means that the property on the beach can be titled by certain owners, who are then likely to sell it to developers.  Who of course would develop it and cause prices to rise in the surrounding area too.  This area should see good appreciation even without the airport.  The southern Caribbean is developing as a true eco-tourism area with a lot of serious environmental projects and tours in the area.

Nicoya
The peninsula is still up and coming. Prices are getting more expensive, development seems to be eco-friendly and on a smaller scale than in Guanacaste.  Samara is really taking off now.  Mal País - Montezuma - Santa Teresa are all getting more well known.

Dominical and Points South
The area south of Dominical, which has a lot of nature and is also up and coming. In Golfito they are planning more marinas.  This an area that is relatively inexpensive currently and has good potential for the right developer or investor. 

Central Valley
The Central Valley is seeing more development and a more active market.  A lot of positive things are going on with the economy and we are now seeing more and more hi-rise condominiums in Escazú and other west side.   The east side has seen a real growth in the last two years and a good rise in prices. The road from San Pedro to Curridabat is completely commercialized and even along the highway from Curridabat towards Cartago you are seeing huge stores go in and new developments.

As to areas to stay away from the only one I have heard about is in the Northern Zone, around San Carlos.  In some areas they are growing pineapple for export.  The land has become prohibitively expensive for other kinds of farming near these areas, because the pineapple industry is more lucrative.  The exception here would be around Arenal, which seems to always be growing little by little and is a very nice area.

That's a brief sketch of my take on the markets around the country.  I see the climate for investors and developers as very positive.  There was an article recently in the New York Times about Central America being a place for baby boomers to retire too.  The writers take was that since real estate is so expensive in Florida and California, baby boomers are looking at Central America as a place where they can get a second or retirement home that is affordable.  That would be a huge market and would be a strong force for growth in the coming 10-25 years, which would underpin all of the development we have seen recently.

[ginger]

Have you seen these guys:  iguanalandcompany dot com A friend of mine bought some land from them and said there were awesome views for a moderate price.


Ginger

[Russ]

I believe these are the guys who just started writing the San Ramon News in the community section of the Tico Times. Doesn't necessarily mean they are (or aren't) reputable, but maybe not a bad sign. It isn't clear from the site whether they are developers or realtors - maybe both? The site is nice and the prices seem reasonable so I would go ahead and ask them for references and more information on the company.

Rather than post individual comments for every developer (or scam artist) that crops up, I am working on an article that will assist people in determining what to think about a particular project.  I will run it by the realtors for suggestions and accuracy then post it on the forum, so stay tuned.