Costa Rica Real Estate – Condo Prices November 2007

After a delightful steak dinner at my place with my developer friend Brian Timmons, we started comparing real estate prices in the USA and Europe with prices of the new condos we see going up in our area west of San Jose, Costa Rica.

Over the last ten years we have certainly seen a dramatic increase in real estate prices here in Costa Rica. Yes! The amount of people from the USA that are buying appears to have decreased slightly over the last few months however, the amount of buyers from Canada, Europe and other Central and Latin American countries has increased.

It should be noted that this is not a scientific study but more informal research conducted online over a period of three days using what we feel is the most up to date and accurate information available.

Here in the Central Valley area, you have to look hard to find a new luxury condo apartment for sale for more than $2,000 per square meter. Sure you can easily pay that for ocean front property but, in and around the capital city, even in the most exclusive areas known as the ‘Beverly Hills’ of Costa Rica – Escazu, you will only find condos that are selling for $2,000 + per square meter in the ritziest of new buildings in the most exquisite locations.

And for $2,000 per square meter – or $186 per square foot – you should be getting top-of-the-line everything everywhere…

Unfortunately finding worthwhile comparisons is hard work even in the USA which is a well regulated and well documented market and the most recent data we have for you today comes from Trulia.com, a real estate search engine, Condo.com which is supposedly “The World’s Largest Condo Marketplace” and the Global Property Guide.

But in doing this research, there is a lot of conflicting data. For example although our chart – data courtesy of Condo.com – shows Las Vegas as having an average price per square foot of US$267,87 the following article in the Las Vegas Market Review states that:

In Las Vegas, “Existing and under-construction, high-rise condos have a median price-per-square-foot of nearly $599, compared to a median price per square foot of $443…”

For European prices we consulted with the Global Property Guide where we found the following prices for a modest – certainly not top of the line – 120 square meter (1,291 square feet) apartment. (The exchange rate for Euro:US$ was up to date as of 26 October 2007)

The European countries coloured in red show prices per square foot/meter which are far more expensive than the best of the best luxury condos prices we have in Escazu and Santa Ana where you will find the highest priced real estate nearest the capital city San Jose of Costa Rica.

If you are like most expats, you would not be buying an ‘average’ condo in Costa Rica that is marketed to the average buyer that is probably earning less than most retiree’s Social Security payment, you would probably be looking only at luxury condos and, if we had to list the prices of only ‘luxury’ condos in the USA and Europe, these numbers would look like chump change and Costa Rica condo prices would look even more affordable than they are now…

The US cities coloured in red show prices per square foot/meter which are considerably more than the luxury condos prices we have in Escazu and Santa Ana where you will find the highest priced real estate nearest the capital city San Jose of Costa Rica.

Panama Real Estate Prices:

A handful of people have also considered retirement in Panama where the Panama Bay area has been unflatteringly described as “… the biggest toilet in the city.”

“Three years ago, the average ocean front-side condo at Balboa Avenue was priced at $450 per square meter. Nowadays, prices have skyrocketed up to $3,500 and even higher in certain building complexes, up to $5000M2! ”

In Panama City “Today you see very little less than $200 a square foot other than the very lowest floors and undesirable units. To get a new unit with a valuable view the price will be from about $250 to well over $500 per square foot on the Punta Pacifica.” And in a city where you really need air conditioning, “Air-conditioning is not included in most units.”

But in fairness to Panama – and also to Costa Rica – “The cost to live in one of these new high-rise towers including city cost of living, association maintenance fees, property taxes is less than half of what you will pay in a comparable situation in the US.”

Costa Rica Real Condos: Fees and property taxes.

“Condo fees can vary dramatically, based on a building’s location, age and amenities, among other factors… Two of the main culprits for higher fees are utilities and insurance costs.”

Thankfully, Costa Rica does not suffer from any kind of litigation explosion problem as do our friends ‘up North’ so Costa Rica condo fees are lower because of that than they would be in the USA and our utility costs – most of which is renewable energy – are low.

1. It also helps tremendously that Costa Rica home insurance costs are really, really low and…
2. At only 0.25% Costa Rica property taxes are so low that I officially complained about having to pay only $70 per year in property taxes on my vacation home in the mountains.
3. And don’t forget that there are zero capital gains taxes on the sale of your Costa Rica real estate no matter how much money you make. If you are a non-Costa Rican resident/citizen, you may have to pay taxes on those profits to you own country but you do not pay any capital gains taxes to Costa Rica.

What’s Your Point Scott?

Whatever way you look at it, we would suggest that Costa Rica real estate remains a very attractive and affordable investment and, it just happens to be a wonderful place to live and retire.

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Written by Scott Oliver, author of How To Buy Costa Rica Real Estate Without Losing Your Camisa and Costa Rica’s Guide To Making Money Offshore and founder of www.WeLoveCostaRica.com.

If you have a serious interest in buying real estate in the Central Valley area where you will find tens of thousands of fellow Americans, the best health care, shopping and entertainment and still be able to easily visit the beaches on either coast, please contact us using the form below:

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.