Costa Rica – These Low Prices Will Surprise You

Friday, February 19, 2010

Dear Reader,

Costa Rica elected her first female president on Sunday February 7th. Laura Chinchilla will take over from Oscar Arias. She was his vice president before resigning 6 months ago to focus on her campaign. Her election caught the attention of the world’s press because she is female. It caught my attention because it is good news for those of us with an interest in Costa Rica’s Southern Zone and the “Forgotten Province” of Limon. The new president has committed to follow through on President Arias’ visionary plans to bring investment and infrastructure to Costa Rica’s underdeveloped areas.

Two areas that should be on your radar are the Southern Zone and the forgotten province of Limón.

President Arias is a guy who is liked by many…for many reasons. In 1987, the folks in Oslo awarded him a Nobel peace prize. Last year, Honduras faced a constitutional crisis. Arias brokered a deal. He’s still the go-to guy to figure things out in Central America. Fifty universities have awarded him honorary degrees (including Harvard and Princeton). He has convinced foreign multinationals to establish regional HQs here. As he leaves office people in his “poor” country live longer, and are far happier than people in the US.

Just before the election, the Southern Zone’s Coastal Highway was officially opened. This project was thirty years in the making…thirty years to get from promises and planning stages to the official opening last month. Back in 1979, the then Costa Rican president Rodrigo Carazo Odio planned a coastal highway. Work started on the highway many years later, but ground to a halt in the 1990s. The highway only got back on track three years ago, thanks to President Arias.

A major new hospital also opened in this area. Locals and expats now have access to top class medical treatment on their doorstep. This is important because a hospital of this size and standard was required before the planned upgrade of the airport could go through.

This part of Costa Rica remained undiscovered because it was difficult to get to. Real estate prices stayed low for the same reason. That’s changed. The scenery here is stunning. The beaches are pristine. It’s home to numerous parks and reserves, with almost two-thirds of the land preserved. You won’t see high-rises or mega-resorts. Instead, you’ll come across boutique or family-run hotels, tiny restaurants, and a relaxed pace of life that’s easy to get used to.

President Arias hasn’t just left his mark on the Pacific side of Costa Rica. In June of 2009, he kick-started the gentrification of Limón, in Costa Rica’s Forgotten Province. The Forgotten Province is on Costa Rica’s Caribbean coast. The water is clear, the sand white, and the pace of life is tranquil. Back from the coast, you have the Talamanca Mountains, with views of the ocean and the surrounding mountains and valleys. The breeze is fresh and the wildlife abundant—70% of the coast is protected.

Limón was forgotten when the United Fruit Company pulled out in the 1960s. The United Fruit Company had maintained the city, the infrastructure and even built the railroad connecting Limón with San José. President Arias allocated $80m for the restoration of cultural buildings in the city of Limón, and improvements to tourist infrastructure. This initial investment was designed to kick-start a $900 million investment to upgrade tourism amenities and infrastructure in the province as a whole. The ports of Limón and Moin are due for modernization, with Moin expected to double cruise ship arrivals in the next three years from the current 250 arrivals a year to 500.

The new president has vowed to take up where her predecessor left off. This is good news for those of us with an interest in these two areas. Real estate prices stayed low for reasons that have changed, or are set to change.

In the 1980s, International Living recommended buying real estate in Northern Costa Rica. This part of Costa Rica caught on…and became the No. 1 destination among foreign retirees and investors. Through the 1990s, the market boomed. Prices for beachfront property along the Pacific coast increased 6-, 8-, 10-fold, and more. Today you could pay $600,000 for a half-acre ocean view lot.

Thing is: there are nicer parts of Costa Rica that haven’t yet caught on. Here, you can buy a ¾-acre lot in a high-end gated community for $39,000. Places like Costa Rica’s Southern Zone and the forgotten province of Limón.

The best way to check out either Costa Rica’s Southern Zone or Limón is with a Pathfinder Chill Weekend. A Chill Weekend is an opportunity to enjoy a short vacation in exchange for allowing a developer the opportunity to showcase a property or development he is promoting. No strings, no pressure, no hard sell, just a chance to familiarize yourself with the ins-and-outs of buying a home overseas, and savor the culture, activities, and lifestyle of another country. Best of all, your trip is subsidized by the developer.

Pathfinder readers are invited for a FREE three-day trip to Limón as guests of the folks at Grand View Estates (Book your spot here). Steve Linder at Pacific Lots will be your host in the Southern Zone. Steve charges $250 for his 3-day trip: (Book your spot with Steve here).

Ronan McMahon