Spotlight on...Costa Rica
Date: 11/30/2007Costa Rica is not a “new” destination for International Living. Back in the early 1980s, we regularly encouraged readers to put Costa Rica at the top of their list of overseas retirement havens. Readers who took our advice reaped big rewards. Costa Rica caught on…and became the No. 1 destination among foreign retirees and investors looking for land buys with big upsides. The upsides were realized. Through the 1990s, the market boomed. Prices for beachfront property along the Pacific coast increased 6-, 8-, 10-fold, and more… But as property prices rose in Costa Rica, we (and our readers) began looking elsewhere.
But things are changing, and today it makes sense for you to take a look at this Central American country again. Specifically, the long stretches of deserted and undeveloped beaches on the Caribbean coast, and in the Central Valley, where real estate prices haven’t risen nearly as much as they have in the fashionable North Pacific.
Whether expats live in this beautiful country full- or part-time, they relish the climate, neighborly atmosphere, low cost of living, excellent health care, stable democracy, and countless ways to have fun.
A couple of decades ago, Costa Rica was near the top of the list for almost anyone interested in a home in the sun. Then things started to change. Prices rose, the bureaucracy became stifling, and the country abandoned its famed pensionado program that provided financial incentives to foreigners on a fixed income.
Today the situation is improving for the foreign investor. Prices have risen elsewhere in Central America, and in some places now match those found in Costa Rica. But Costa Rica offers advantages not found in some other Latin American locations. Property prices now seem more reasonable, though cars and some other items are still unreasonably expensive. The bureaucracy is far from streamlined, but it’s forging ahead with transportation improvements, as well as reformed property rules that will make title searches more efficient. The pensionado program hasn’t been reinstated, but other changes have helped residents. You can now live in a growing number of inexpensive areas that were once too remote to consider before highway and airport improvements.
A slice of the Caribbean for $57,000
The Caribbean Coast is an exotic area—sparsely populated with splendid beaches, excellent fishing, and great water sports. Moreover, few places in the world offer more opportunities for getting close to nature.
But Costa Rica’s Caribbean coast—a wild and rugged region that stretches some 125 miles from the Panama border to Nicaragua—is hot and rainy for much of the year. Transportation is often difficult; medical facilities aren’t plentiful; and crime can be a problem in the major city of Puerto Limón.
Nevertheless, smart property shoppers are keeping an eye on the Province of Limón, which encompasses all of the Caribbean coast. Real estate prices are low and stand a good chance of rising faster than they will in most other parts of the country.
The government is addressing many of Limón’s problems, and more developers are showing an interest in the area. So are local airlines. In 2006, for instance, Sansa Airlines began flying from San José to Limón, where ground transportation is available to Cahuita, Puerto Viejo, Manzanillo, and other towns. It was the first time in more than 20 years that commuter flights were offered in and out of Limón.
The Caribbean coast is also called the Atlantic coast, and newcomers often wonder which one is correct. Well, they’re both accurate, because the Caribbean Sea is part of the greater Atlantic Ocean.
Property listings on the Caribbean coast
• Large ocean-view building lots near Cahuita. Several parcels are available, including those with a view of the ocean, the river, and the jungle. The price of a 1.4-acre lot with a jungle view is $57,000. A 1.9-acre parcel with an ocean view is $230,000.
• A house with rental units near the beach at Puerto Viejo. This two-bedroom, one-bathroom house has a phone line, satellite TV, and fully furnished kitchen. The property includes guest houses that can be used for family and friends or for rental income. Price: $180,000.
• A two-bedroom house within walking distance of the beach at Cahuita. The 2,000-square-foot residence has two bathrooms, master bedroom, guest bedroom, large dining area, kitchen, TV room, laundry room, and an upstairs veranda that faces the garden. Price: $230,000.
Culture and a cool climate in the Central Valley
About two-thirds of Costa Rica’s population lives in the Central Valley, which is actually a plateau, as its Spanish name, Meseta Central, suggests. While coastal areas are typically hot and muggy, especially during the rainy season, the Valley’s altitude of 3,000 to 5,000 feet makes it comparatively cool all year around.
San José, Alajuela, Cartago, Heredia, and several other major cities are in the Central Valley, which covers a land area of 3,500 square miles. That means there are plenty of cultural activities for the thousands of American and European expats who live in the area. San José, in fact, was an insignificant village until 1824, when the country’s first elected head of state decided to move the government there from the colonial capital of Cartago.
Today, the decision might sound like a mixed blessing. While moving the capital symbolized a fresh start for the country, it also created a city without much of the Spanish colonial architecture that makes many other Latin American capitals so elegant. The Central Valley, however, has many smaller towns known for their beauty and charm, including Sarchi, Grecia, Zarcero, and Orosí.
The many Americans with second homes in the Valley enjoy going to art galleries, handicraft shops, boutiques, bars, restaurants, flower markets, and friendly village churches. The area also has excellent hotels and medical facilities, and it’s the site of the country’s major American school (the Country Day School in Escazú, near San José) and the Juan Santamaria International Airport, 14 miles from San José.
One expert on the area, Christopher Howard, says the expat lifestyle in the Central Valley is different from what it is in many Latin American countries. In the Valley, Howard says, expats from the U.S., Canada, and Europe don’t usually live in isolated “expat communities.” Except in a few towns such as Escazú, most expats buy property in areas where neighbors are predominantly Costa Rican.
Howard, author of New Golden Door to Retirement and Living in Costa Rica, says that many expats are now looking to Central Valley towns to the west of San José, including San Ramón, Grecia, and Atenas. The towns are within easy driving distance of the international airport as well as the Pacific coast. Atenas, for example, has a population of fewer than 20,000 (including its sprawling suburbs), but the area is known for being safe and clean. Atenas, like several other towns in the Central Valley, has health and fitness centers, swimming pools, tennis courts, excellent restaurants, dentists, physicians, many fascinating shops, and one of the best street markets in the country.
Though you can spend several million dollars on a residence in the Central Valley, the area also has real estate that appeals to budget-minded shoppers.
Property listings in the Central Valley
• A charming two-bedroom, one-bathroom house in the San Isidro suburb of Grecia, one of the friendliest towns in the Valley. The 1,200-square-foot house has a dining room, laundry room, living room, and terrace.
• A three-bedroom, two-bathroom house in a secure development in the mountains west of San José. The 3,500-square-foot house has a dining room, family room, living room, and terrace. Price: $160,000.
• Recently built 1,500-square-foot condominium in Cariari, a block from the Cariari Golf and Country Club and 20 minutes from San José. The residence has two bedrooms, 2.5 bathrooms, a dining room, kitchen, living room, and balcony. Price: $185,000.
Read related articles: