The Santa Teresa real estate market experienced significant growth during 2021 and 2022, along with similar areas in Costa Rica.
This was a period of high demand, with properties sometimes selling for double their pre-pandemic prices.
However, the market has since slowed down and is Experiencing a market adjustment, with sellers needing to adjust their prices to reflect current market values.
Areas of Investment:
- North Santa Teresa and Playa Hermosa saw the most growth during the pandemic due to the family-friendly beach and the presence of a private school. Many people moved to this area with their families, seeking a location that was close to town but not in the center.
- The center of Santa Teresa remains the commercial hub with restaurants and shops.
- Manzanillo, located north of Santa Teresa, is an attractive area for investment, as it did not experience the same price surge as other areas during the pandemic. Land in Manzanillo is considerably less expensive than in Santa Teresa.
Types of Properties:
The real estate market in Santa Teresa is primarily driven by residential properties, such as vacation homes, secondary homes, and rental properties.
There is also a growing interest in commercial properties to support the expanding community.
However, large-scale developments like hotels are less common due to challenges with infrastructure and permits.
Market Trends:
- The market is currently experiencing a slowdown with more opportunities for buyers who are looking for value.
- Sellers who are willing to adjust their prices are seeing more activity.
- The low season for rentals can be a good time to buy, as sellers are typically more open to negotiations.
Legal Considerations:
- In Costa Rica, attorneys sometimes also serve as notary publics, handling both due diligence and title transfers, so choosing the right attorney is critical.
- Real estate transactions are not as highly regulated as in some other countries, like the United States.
- It’s important to be aware of local customs when buying, and to ensure that all due diligence is done to avoid problems after the purchase.
- It is important to hire a company that can offer you an Escrow service to mitigate the risks associated with real estate transactions. If you have questions about this topic, you can consult it here.
Future Outlook: The market correction is expected to continue, with opportunities for buyers who are willing to purchase properties at real market values.
