South Costa Rica the next boom

Southern Costa Rica remains under the radar in terms of property development because it is hard to get to but it could be the next property hotspot according to a global real estate trends expert.

Ronan McMahon, executive director of Pathfinder, and contributing editor to Real Estate Trend Alert, believes that the area that runs south of Quepos to the border with Panama has it all.

Landscapes are dramatic; there are panoramic ocean views, lush tropical rainforest and sheer jungle-clad slopes, rising sharply away from pristine stretches of sandy beaches.

'In a country with an established real estate market like Costa Rica, this sounds like just the type of place that would attract a lot of fervent investors. But it remains under the radar in terms of property development because it's hard to get to,' he says.

For example the Costanera Highway is unpaved between Quepos and Dominical and the airports are small. 'The airport in Palmar Sur is a one-woman show,' adds McMahon. 'She issues tickets, checks baggage, and answers queries, all while you sit on a wooden bench overlooking the small strip, alongside your other co-passengers, all 11 of them. There is no duty-free or airport food here.'

But these are exactly the kind conditions forward looking investors ought to look for when scouting for a good real estate opportunity as the property prices are low at the moment and infrastructure is set to improve.

Road improvements on the Costanera Highway are already underway and scheduled for completion in two to three years. This should cut the 90-minute trip from Quepos to Dominical to 25 minutes. Combined with plans to construct an international airport in Palmar Norte, due to begin this year and to be completed in 2010 (funds have been allocated by the government), property prices are almost certain to climb.

He reports that for now, pricing is among the lowest in Costa Rica. A 1.25-acre-lot close to Ojochal is available for as little as $55,000. Construction costs are roughly $85 a square foot.

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