How Real Estate Buyers are Impacting the Costa Rica Vacation Rental Market

All throughout the United States, real estate markets have been on fire, and while much of that has been fueled by many sprawling from one state to another, the second home market has been a huge factor in driving up prices throughout the country. Access to inexpensive financing along with many people benefiting financially from stock gains, or growth of their real estate investments has created an unprecedented time in which Americans have a lot of money at their grasps, and many of them are looking to use that money to purchase second homes and vacation properties. And those markets have not been limited to just the U.S., as Americans are looking at options all over the world, including Costa Rica.

It is no surprise that much of that demand has spilled over to Costa Rica. Costa Rica is in a prime position to cater to exactly what most are seeking in a vacation rental or second home. After months of restrictions many from large cities and urban areas people are now spending more time outside, being more active, biking, hiking, and doing other outdoor activities. Costa Rica, check! Those disgruntled with government controls, politics, and racial tension are looking to escape all that and go somewhere where they can forget it all. Costa Rica check! Remote workers are looking where they can be in similar working time zones and still be able to get back home in a quick flight. Costa Rica check! Investors are looking for markets that have not peeked and still have room for growth and upside. Costa Rica check! And the life is short crowd, those who after a year of uncertainty, pondering, reflecting, have realized life is short and want to focus more on living a better life. The lifestyle change, something healthier, something happier, something better. Costa Rica CHECK!!! And it is that last group that is making an impact in the Costa Rica vacation rental market.

Now you would think, a wave of foreigners buying vacation homes in Costa Rica would create a flood of new inventory for vacation rentals in Costa Rica, but that is not necessarily the case. The important thing to understand about Costa Rica real estate is our activity is not primarily new development. Unlike many other markets, new development in Costa Rica is slow and limited and because of that in many areas, we are seeing some of the opposite, where we are seeing a decrease in vacation rentals. While yes we are seeing those buyers, a tremendous amount of the buyers we have are seeking second homes where they can spend a significant amount of time and not looking to rent out their property. In the Jaco area, most property management companies are scrambling for more inventory as buyers are purchasing and then notifying them that they have no intent to rent. Just in the past year, I’ve seen a majority of all my buyers tell me they don’t plan to rent out their property, and for the Jaco area that is not typical. As the tourism market slowly grows back and Costa Rica demand continues to grow this is a very interesting trend to keep an eye on.

If you have more questions or interest Costa Rica real estate please inquire here.