Costa Rica Property and Real Estate News

When looking for property and real estate in a foreign country like Costa Rica it's important to keep up with happenings in the country, the people, and with various property developments. Posts to this blog provide brief updates on items of interest for anyone who has purchased or may be looking for purchase property and real estate in the central and southern coastal regions of Costa Rica.

Ives Kena Update April 2008

Was in CR again in mid April for 2 weeks. Things moving along with Paradigma's Ives Kena project but nothing to see yet. Eric was meeting with mayor of Golfito this week. He hopes to have full permitting by the end of the year, ahead of schedule. Also plans to begin building entry feature and 3 showhomes along the road this fall. Project is now about 75% sold and will be moving into more a retail sales mode late this year. Prices continue to increase.

Paradigma's other projects in the central area are now getting a bit of traction. Just last week they finally (6-12 months longer than usual) got the last permit from INVU and can now proceed with that development.

There has been a bit of a slowdown in real estate because of the US slump. However tourism is still up again in CR I think up 13% this year over last, another record high. Plans continue for expansion in tourism with new hotels and infrastructure because of it. So hopefully as things start to pick up again in real estate, this project will be getting closer to the actual development and then building stage.

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Disclaimer while all information is thought to be true

Feb 2008 Property Tour

We hosted a “property tour” of Paradigma’s projects through the central pacific area and down to Golfito and spent some time at the Paradigma’s office in San Jose. We also revisited a couple of prime developments in the central pacific area that offer beach homes 200 – 500 meters from the ocean starting from $129K. If you’re looking for an immediate vacation property email info@trazzure.com for more information.

We also test drove many hotels and B&Bs..... If you are planning on visiting Costa Rica we will give you our top 10 list of places to stay, dine and enjoy. We found a great fish burger joint that is a must. If you’re looking for a romantic quiet get away have we got a suggestion for you!!!!

We travelled from the north to the deep south and we still prefer the Central and Southern regions. Everyone seemed to agree that these regions are significantly more lush and beautiful than the north. Many stated that the further south you travel the more it feels like Maui.....

Paradigma’s projects in the Central Pacific area have experienced a number of delays over the past year with getting permits and/or changes to permits previously approved.

One project that appears to be progressing well for Paradigma is Villa Ives Kena in Golfito. The building lots are over 60% sold and the project is on track to receive full permitting by the end of the 2008, ahead of schedule. Paradigma is looking to start building model homes here before the end of the year.

The Villa Bungalow project just received final permits. The entry feature is under construction and the lots are staked out.

The Rio del Mar condo project has 3 buildings (12 units of executive townhouse condos) partially complete. With the change in the local municipal government the previously approved building permits are being reviewed because the buildings have an under-drive garage which the new municipality says makes them a 3 storey structure whereas the previous administration approved them as a 2 storey structure, because with the terrain of the land the garage was built into the side of a hill and basically underground. This issue is expected to be resolved by the end of March to allow building to proceed once again.

The Villa Michelle Marie project is awaiting the last permit from the government agency that approves the water rights. Because of the changes introduced by the government last year several projects were delayed as permits were reviewed and re-approved. In the meantime Paradigma has proceeded to build 4 model homes on the site of which one is near completion, and the others are to be completed over the next few months. It is nice to see that the quality and building standards for their homes is very good. We have a bevy of photos for you to view on these homes if you are interested.

The Renaissance of Golfito

The landscape in and around Golfito is improving which is a plus for Paradigma’s Ives Kena project. In conversation with yatchers that have recently starting visiting and have become residents of Golfito, it is becoming a new destination that is highly sought after by the sport fishing and nature loving community.

You can start to notice a few of the old banana worker homes are being renovated and refurbished, starting to add a new character to the town. An article in the Tico Times Feb 15, 2008 edition titled “ Golfito Retains the Flavor of the Good Old Days, talks about how the Golfito Renaissance has started and that the old banana worker homes that you could have got for $40,000 two years ago, would go for close to $300,000 today.

The renewed interest in this little town can be attributed to the construction currently underway of a a major new marina for the town and plans for an new international airport less than one hour north.

While the southern region has always been the most remote area of the country it has also been the most beautiful and is the only town to be totally surrounded by environmentally protected areas. An abundance of wildlife can be found in the area with monkeys, sloths, parrots and macaws. And the sea life is also extrordinary with whales, dolphins and all sorts of fish which provide worldclass sport fishing.

Bahia Escondida Marina Progressing

Construction work on the new marina in Golfito continues. The construction at this point consists of bringing in fill to ready site for building of the marina piers and condominiums. As there is a large swing here in the water depth between low and high tide that has to be taken into account during construction of the marina.

Golfito's Bahia Escondida marina project will provide slips for 217 boats ranging in size from 50 to 210 feet and house 350 condomniium units plus a 5 star hotel, restaurants, shops, spa and yatch club.

Current projections are to have completed the land fill work by October 2008 and to complete the first phase of the marina and first set of condominiums in 2009. Below is a picture of the site taken Feb 2008.

Signs of the New International Airport

Signs of the new international airport are starting to appear -- literally -- along with further reports of the government commitment to completion of the first phase of the new airport in Palmar Sur by 2010.

The first phase of construction is to provide a regional airport to land planes of up to 50 passengers and will then be expanded to handle the larger 737 planes following that. With strong governmental support for it's development, a new international airport for southern Costa Rica could soon be a reality in the next few years. However, we haven't been able to see any real evidence of progress, other than this real estate sign.

A number of articles published in the Tico Times outline specifc details on progress towards the new international airport for Costa Rica.

Southern Zone Airport Advances March 31,2006
Ministers Promote Southern Development – May 25, 2007
Permit to Allow for Southern Zone Airport – July 20, 2007
Concerns Grow as Osa Airport Plans Proceed – August 3, 2007

Another article in the Tico Times Feb 15, 2008 edition about Golfito states: "The government also recently announced its commitment to a new international airport, the country's third, in Palmar Sur, to the northwest. It would put the Southern Zone, the remotest region in the country, within a few-hour flight of most major cities in North America."

Bright Outlook for Costa Rica in 2008

Looking back on 2007, it was a very good year in Costa Rica and there is very much to celebrate. The economy is growing and the benefit is that new infrastructure improvements, like airports, highways and ports, are in the works. And the country still maintains its focus on environmental issues. President Oscar Arias recently planted the five millionth tree of 2007 and by the end of the year, Costa Rica will have planted nearly 6.5 million trees, which should absorb 111,000 tons of carbon dioxide a year.

Real estate is booming in Costa Rica ... more and more foreigners and locals are buying homes at the beach and in the mountains. Exports have been growing as well and this year will set a national record breaking the $9 billion dollar amount. Exports were up 14.3% in the first 10 months of 2007, over the the same period in 2006. The increase in trade includes various sectors such as: agriculture, processed foods, and computer components.

The government has done a very good job of attracting industry and new business investment ... and there are more jobs for Costa Ricans than ever before. Still, because, so many companies that are setting up shop here, some are having a difficult time finding skilled workers. In 2007, several job fairs were held, some of the positions that need to be filled include teachers and jobs in precision mechanics and agricultural fields.

The time time has never been better for anyone thinking about moving to Costa Rica. If 2007 is any indication, 2008 will be a banner year for Costa Rica.

Costa Rica Third Happiest in the World

A new study called the Happy Planet Index, was compiled by a British research organization called the New Economics Foundation to rank the various countries in term of the "happiness" of it people. Costa Rica ranked third among all countries as having the most "happy" citizens. The study looks at life satisfaction, life expectancy, and the ecological footprint, -- or the amount of land needed to sustain the population.

Costa Rica earned an score of 66 on a scale of 0 to 100. The study shows Costa Rica has one of the world's lowest ecological footprints and a higher-than-average life expectancy.

Pura Vida, the namesake phrase of Costa Rica, meaning "the pure life" is representative of the Tico's lifestyle and attitude for simple pleasures and happiness in life.

The US ranked 150th while the number one and two countries were Vanuatu and Colombia.

Construction Underway on Golfito's New Marina

Construction is underway on the new Bahia Escondida project in Golfito. The first phase of construction involves bringing fill into the waterfront area where the new hotel and condos will be built.

This is good news for pre-construction buyers who in early 2006 invested more than $22 million dollars into the project in just 3 months.

Once the domain of Chiquita Banana then mostly surfers and backpackers, the town of Golfito is destined to be the crown jewel of Costa Rica's South Pacific coast.

With the Bahia Escondida Marina project and 5 Star waterfront hotel, and Ives Kena, Paradigma's luxury eco-golf resort development, the town is about to undergo a swift transformation to a highly sought after tourist destination.

Soon to be boasting the largest and most complete state-of-the art marina on Costa Rica's Pacific coast, Bahia Escondida's marina features golf cart concierge service, covered piers, a high-speed fuel dock and slips accommodating vessels up to 150-feet.

Located on the idyllic South Pacific coastal area, Bahia Escondida is a boater's dream, with a 217-slip marina, the closest Costa Rican sheltered bay to the Panama Canal.

Bahia Escondida includes multi-family condos, town homes and private residences, boutique shops, restaurants, a luxury hotel and yacht club boasting the largest and most complete state-of-the art marina on the country's Pacific coast.

Costa Rica Approves CAFTA

Costa Rica voted on the Dominican Republic-Central American Free Trade Agreement, DR-CAFTA in the nations first ever referendum. This was the first time in history that a country has put a Free Trade Agreement to a popular vote.

The CAFTA agreement was approved by a slim majority. 52% of voters approved and 48% rejected the agreement. By law, a recount by hand must be completed by election officials. The recount could take a week to complete however with the majority of the yes votes and the typical margin of error, the outcome is not likely to change.

The CAFTA agreement has been point of contention curing the past four years and caused social and political conflict.

Under CAFTA, 80% of goods from the U.S. goods will now enter Costa Rica tax-free, and in return Costa Rica will receive duty-free access to the U.S. market for nearly all of its exports.

CAFTA also opens Costa Rica’s insurance and telecommunications markets—currently under government monopoly—to competition.

Those opposed to CAFTA felt that Costa Rican businesses may not be able to compete with a flood of cheap products from the U.S. such as subsidized agricultural products, and state-run hospitals would no longer be able to get cheap, generic medicines for low-income Costa Ricans because of US intellectual property laws.

The approval of CAFTA is generally good news for foreign investment in Costa Rica. Further developments in tourism and trade are likely to flourish under the new agreement.

Luxury Golf Course Resort for Southern Pacific

Paradigma Construccion Ltda. announced completion of the master plan for the Villa Ives Kena luxury golf course resort near Golfito in Costa Rica.

The development which includes over 1700 home building sites will surround an 18 hole eco-golf course with nine holes set in the rainforest.

This luxury eco-resort provides 24 hour security in a guarded and gated community, set in the rolling hills between the ocean and the rainforest. The resort is intended to be a community for it's residents while providing common facilities and a level of service and amenities as suitable for the adjacent 5 star hotels.

The development will include a retail complex with shops and restaurants, a medical clinic, pharmacy and spa and provide a true luxury eco experience.

Lots in this new development are available at pre-development pricing and may be one of the best real estate investment values available today in Costa Rica.

Increased Tourism Spurs Airport Upgrades

Flights to Costa Rica flights from international points have risen 37% since last year, from 1,380 monthly flights to 1,888. Over 832,604 tourists visited Costa Rica in the first six months of 2007. This volume of tourism traffic was an increase of more than 50,000 over the same period in 2006.

The Liberia airport saw over 237,199 tourists in the first half of the year, a growth of 15.7% over last year.

Just outside of San Jose, the Juan Santamaría International Airport, welcomed over 595,405 foreign tourists in the first six months of 2007, with a growth rate of 3.1% over the same period the previous year.

While tourism and real estate continue to boom in the northern province of Guanacaste, the Liberia airport is struggling to keep pace. A new, $15-million terminal is planned for Liberia as while an upgrade to the Juan Santamaria airport in San Jose is already underway.

Costa Rica Debt Pardoned for Conservation

U.S. and Costa Rica officials along with two environmental are currently working on an agreement that to pardon $15-million dollars of Costa Rica's debt to the U.S. in exchange for Costa Rica's pledge to pay this money into a trust fund to pay for conservation projects in the country.

While approx. $1.5 million a year is to be paid to the fund, with interest the debt total amount of $15 million will amount to over $26 million contributed to the conservation trust over 16 years.

The “Debt-for-Nature” swap, is a debt-pardoning tool that the U.S. and other countries have used to promote tropical forest conservation around the world. Panama and El Salvador have these agreements, and Guatemala last year signed what was then heralded as the largest Debt-for-Nature contract ever signed, for a total of $24 million.

The conservation projects will be targeted toward six priority areas: the southern Osa Peninsula, home of the famous Corcovado National Park; Guanacaste’s Rincón de la Vieja National Park; La Amistad Biosphere Reserve; the Nicoya Peninsula; Tortuguero National Park; and at La Maquenque Wildlife Refuge.

Discussions began on the "Debt-for-Nature” agreement when when Costa Rican President Oscar Arias met with U.S. President George Bush in December in 2006.

President Arias has also announced plans for Costa Rica to become the world’s first carbon-neutral nation by 2021, largely by expanding and protecting Costa Rica’s forests.

More Americans Investing in Costa Rica

In the United Stated this year second home sales surged to capture one third of the US market. The trends in real estate are changing. More than ever, Americans are venturing into international destinations due to better values and prices as well as a higher growth potential.

It's estimated that close to 100,000 Americans and Canadian have been lured to Costa Rica. Some of the main reasons for it's popularity are the weather, political stability, and good health care.

People have often compared the real estate opportunities in Costa Rica and Central America opportunities to the "Wild West," where you can get a piece of undeveloped land at a fraction of what it would cost in the U.S.

Costa Rica also has the advantage of an active tourism board and a reputation as peaceful and environmentally friendly. And it has been a democracy for over 200 the longest of any country in the Americas.

Updating Costa Rica's Property Value Registry

The Costa Rica Finance Ministry, Ministerio de la Hacienda, announced plans to assess and update values for all property nationwide.

With the help of outside contracted companies, the Hacienda plans to update the the central listing of property values "values registry", a system that hasn’t been updated for over a decade, as well as the official records of property boundaries, features and values called which is called "castrades".

An updated values listing is expected to help municipalities in assessing property taxes. Currently in Costa Rica land is routinely registered at much less than it's true value and Hacienda estimates most properties are assessed at only 20% to 25% of their actual value. The project for property re-evaluation is expected to bring property values to around 50% of their true market value, which would double the tax and provide an influx of funds for cash-strapped local governments.

The values registry is to be completely updated by 2009, and over over 510,000 properties will have to be visited to make sure the actual properties match up to the registration of each cadastre.

One benefit of updating the systems will be that property value information will be available on the internet allowing standardized comparisons for real estate purchasers.

The downside though will be higher property taxes. However with a tax rate of one quarter of one percent of the registered value of the property, the tax rates in Costa Rica remain extremely low in comparison to many other countries.

International Airport for Southern Costa Rica

President Arias, Transport Minister Karla Gonzalez, and Civil Aviation Commission president Viviana Martin were in the southern town of Palmar Sur where they met with Marvin Orozco, president of the Souther Zone Regional Development Board to sign document allowing for construction of a new airport in the Sierpe valley on the Osa pennisula.

The construction will be done in stages with the first phase include an 1800 meter runway to accommodate medium sized airplanes carrying up to 50 passengers.

The second stage of construction will accommodate the larger international aircraft such as 737 jets.

Arias stated that the new airport could open up opportunities for the Southern Zone the way the Daniel Oduber International Airport in Liberia helped spur development in the northern province of Guanacaste.

New Marina and 5 Star Hotel for Golfito

The future home of mega yacht pleasure cruisers and fishing enthusiasts, Bahia Escondida is slated to be a premier bayside village and marina located just off the southeastern side of Costa Rica's Golfo Dulce. This marina development will soon have the bragging rights for the best equipped, largest and most complete state of the art marina on the country's Pacific coast.

It's been stated that the location, capacity and amenities of this marina will open up a whole new destination that, previously was not available to mega yachts.

And the town of Golfito, once the home to the Chiquita banana empire, may be the best kept secret in Central America. Reminiscent of Mexico's Puerto Vallarta, Bahia Escondida's developers plan to integrate Golfito's old town culture, hospitality and authenticity into an amenity-filled village rich in natural beauty, turning it into a world-class playground for yachtsmen and water sports enthusiasts.

Golfito's Bahia Escondida is a $350 million project spanning 214 acres surrounded by a protected rainforest. The community offers a mix of condominiums, town homes and private residences, boutique shops, restaurants, a luxury hotel, spa and yacht club boasting the largest and most complete state-of-the art marina on the country's Pacific coast. It also will provide a waterfront pedestrian village, the first of it's kind in Costa Rica.

New Construction Regulations in Costa Rica

The government of Costa Rican is currently finalizing a presidential decree which will limit the height, density and land use for development within five kilometers inland from the coastal waterline.

In Costa Rica, the first 50 meters is from the water high-tide line is public property and cannot be built on under any circumstances. The next 150 meters is state property, called the Maritime Concession Zone which has restrictions on use and ownership. This land can be developed with a concession granted from the government.

The new regulations would limit the height for developments to 45 feet or 4 stories, within the Maritime Zone.

Different height restrictions are already in place as you go further inland. For the first kilometer beyond the Maritime Zone, structure cannot be built higher than 60 feet, or about five stories and the height limit is approx. 10 stories for buildings within the next 4 kilometers.

The brother President Oscar Arias, Rodrigo Arias, Minister of the Presidency, stated that the regulations are intended to control development while the coastal municipalities come up with their own zoning plans, so as to better organize development in their areas. As the municipalities approve zoning plans, those plans will replace the restrictions imposed by the presidential decree.

Various government officials, institutions and ministries are reviewing the decree. It was originally planned for two years but officials are now looking to extend it beyond the current administration and some would like to see it extended for up to 10 years.

Tourism Minster Carlos Ricardo Benavides insisted the decree is “a transition rule,” meant only to hold things together while the municipalities get their zoning plans in place, a process that has, in some cases, lasted years.

The decree will allow a grace period after it is officially announced, and developers already working on projects are to be excluded from the new regulations.

Saudi Prince Investing in Costa Rica

Saudi Arabian Prince Al-Waleed bin Talal visited Costa Rica on a combined vacation and investment scouting trip.

The prince, with a fortune of $20.3 billion, was listed by Forbes magazine as the 13th-richest billionaire in the world.

Along with Bill Gates, Prince bin Talal is a principal shareholder in the Four Seasons chain of hotels, known for their exclusive, luxury resorts.

The 52-year-old prince and his 48-person entourage arrived in Liberia at Daniel Oduber International Airport on a 747 jet, and spend the weekend at the Four Seasons hotel in the northern province of Guanacaste.

He flew by helicopter to San José on the Sunday and met with president Oscar Arias.

In a press conference held later the prince announced he would be investing in at least six more hotels in Costa Rica, two of those on the Papagayo Gulf, and possibly multiple resorts in the southern pacific region of Costa Rica.

Large Scale Investment in Costa Rica Tourism

In the spring Mel Gibson decided Costa Rica was the perfect location for his private retreat. Now Steve Case, the founder of AOL and Sol Kerzner the developer of the 5 star Paradise Island resort in the Bahamas, have set their sights on Costa Rica.

On August 3, Steve Case alongside president Arias announced plans for an $800 million luxury resort for Punta Cacique on northern Pacific coast in the Guanacaste province.

An Exclusive Resort project, (recently acquired by Case’s Revolution LLC). The development, will include a golf course designed by Tom Doak and a tennis and fitness center designed by world champions André Agassi and Steffi Graff. The resort will also encompass two luxury hotels, including a One & Only five-star hotel (by the Sol Kerzner, developer of Paradise Island Atlantis in the Bahamas), and a Miraval Life in Balance spa and resort—as well as time-share homes, private villas, and apartments. A resort shopping and entertainment center will support the community and favor local products over high-end international brands and feature regional dishes (prepared by local chefs) at its restaurants.

The project will be located on 650 acres once owned by former president Daniel Oduber (the namesake of Guanacaste’s international airport in Liberia). Case says only 20% of the property will be developed, and he plans to plant one million trees along area riverbanks and establish a $1-million scholarship fund for local environmental initiatives. “I hope that this will define a new type of resort, that improves the life of the local community and is in harmony with the environment,” Case said.

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