Comparing Costa Rica Real Estate Prices and Global Property Prices.

Our American friends have seen serious declines in most US real estate markets – home prices have fallen almost 30 percent from their June 2006 peak – but just because that’s happening in the USA, does not necessarily mean that it’s also happening throughout Costa Rica.

In some areas – especially along the Pacific coast which experienced the most stratospheric price increases during the boom – real estate prices have declined but in other areas, especially in the Central Valley area which surrounds the capital city San José where there is a lack of quality real estate product available – prices have remained remarkably stable.

Detailed below are the Global Property Guide Prices (per square meter prices) for a 120 square meter apartment (1,292 square feet) in a variety of European cities in US dollars:

1. Monaco – US$59,814 per square meter – Yup! That means $7.17 million for a 1,292 square foot apartment
2. London, England – US$23,358
3. Russia, Moscow – US$18,487
4. Singapore – US$16,644
5. Hong Kong – US$16,422
6. Paris, France – US$16,015
7. Tokyo, Japan – US$12,884
8. New York, NY. USA – US$12,029
9. Geneva, Switzerland – US$11,974
10. Mumbai, India – US$10,265
11. Luxembourg – US$8,464
12. Athens, Greece – US$8,410
13. Helsinki, Finland – US$8,229
14. Bermuda – US$7,886
15. Toronto, Canada – – US$7,538
16. Dublin, Ireland – US$7,279

Global Property Guide lists the average price per square meter for Costa Rica as US$1,654 in November 2010 but does not make it clear where they got that number from…

According to the Costa Rica Chamber of Construction in May 2011 (a more up to date number perhaps?), the average price of a 90M2 house in an urban area is around ¢65,8 million (US$131,863) which would be US$1,465M2 so the average price per square meter in urban areas – where land prices are amongst the highest in the country – is US$1,465 which translates into US$136 per square foot.

Land prices in other parts of the Central Valley area are far more affordable and many of our VIP Members have built their own homes in Costa Rica for way less than US$136 per square foot.

As an example, in late 2008 I bought 5,000M2 of land for just $8M2 where I built my own vacation home. When completed in 2009 the home measured about 1,800 square feet plus the bodega (storage area), plus garage and cost less than US$100K fully furnished.

So my girlfriend and I built our own home and furnished it in Costa Rica for about US$77 per square foot and that price includes the cost of the land…

Forgetting the land for a moment, if you divide the cost of the furnished home alone by the 1,800 square feet, we would be talking about an overall cost of less than US$60 per square foot.

You can certainly find luxury homes in Costa Rica for $2,000 – US$3,000 per square meter but, you can also buy a modern, brand new, very comfortable home or apartment within an hour of the business, cultural and entertainment centre of San Jose, the capital of Costa Rica for US$1,000 – $1,500 per square meter.

In the 2011 Best Places to Retire List: The Sunbelt Rules… You’ll find these top ten destinations and we’ve included Miami condos too since so many of our buyers also look at Miami real estate:

1. Asheville, NC – Average price per square foot = $87
2. Sarasota, FL – Average price per square foot = $131
3. Prescott, AZ – Average price per square foot = $111
4. Ft. Myers, FL – Average price per square foot = $82
5. Austin, TX – Average price per square foot = $85
6. Paris, TN – Average price per square foot = $50
7. Green Valley, AZ – Average price per square foot = $99
8. Beaufort, SC – Average price per square foot = $112
9. Venice, FL – Average price per square foot = $117
10. San Diego, CA – Average price per square foot = $258
11. Miami, FL – New condo prices rose from US$298 in 2009 to US$304 per square foot in 2010.
12. San José, Costa Rica – Average price per square foot in an urban area of Costa Rica. = US$136
13. The cost to build my own vacation home in Costa Rica? Less than US$60 per square foot.

And, don’t forget that for many big ticket items, the cost of living in Costa Rica is also more affordable!

1. Property taxes in Costa Rica are only 0.25% which is a fraction of what you would pay in most European countries and in the USA.
2. Home and flood insurance costs are are a fraction of what you would pay in the USA. In Florida you’d pay about US$1,100 per month and for the same sized home in Costa Rica? US$18
3. Health insurance costs are a fraction of what you would pay in the USA. Most married couple pay less than US$150 per month for the basic state health care coverage.
4. With so many states in the US bankrupt, do you really think taxes in the US are going lower? They must go higher.
5. With US public pensions “facing a shortfall of $2,500 billion that will force state and local governments to sell assets and make deep cuts to services,” the roads in the US are going to look more and more like the roads in Costa Rica, so why not make the move to Costa Rica now?

Jee! Jee! (That’s Spanish for Hee! Hee!)

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Written by Scott Oliver, author of 1. Costa Rica Real Estate Scams & How To Avoid Them, 2. How To Buy Costa Rica Real Estate Without Losing Your Camisa, and 3. Costa Rica’s Guide To Making Money Offshore.

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.