As we close out August and the end of the Summer Travel season, it is a great time to reflect on the year to date, market conditions in the areas we work, and predominantly on the Manuel Antonio area, which is my home and main area of expertise. 2018 has been an INCREDIBLY dynamic year in the Manuel Antonio area with strong tourism figures and a very robust real estate market in terms of total volume. In my opinion, there are a host of factors driving the sales, rentals, and overall interest in this region, and we will look at a few of the top drivers in our opinion here, as well as some insight as to what is selling.
First and foremost, Manuel Antonio’s popularity is quite simply due to the fact that it is an absolutely STUNNING destination with a unique mix of breathtaking natural surroundings, international flair, luxury hotels, condos, and homes, as well as a very real Costa Rican community and sense of authenticity, which many travelers long for when visiting Costa Rica. Manuel Antonio National Park, with its iconic beaches, intense biodiversity, and wildlife, is a huge draw, and the new Marina Pez Vela is another very important anchor attracting anglers and yachts from around the globe. The international press, social media buzz, and experience that visitors take away are feeding an ever-growing desire and demand for the experience and opportunity to own here.
Second: A strong US and Global economy is allowing for more and more investors to consider a second home or investments here. The demographics of the USA, Canada, and Europe, which have an aging baby boomer demographic who have consolidated a lot of wealth during their lives but who now want to start ENJOYING life, creating lasting memories and legacies with their loved ones, kids, and grandkids combined with the strong overall economic conditions certainly combine to make Costa Rica and the Manuel Antonio area a booming area for investments.
Third: Manuel Antonio is, without a doubt, one of the best investment destinations in Costa Rica and all of Central America due to the pure supply and demand dynamic. Unlike so many other tropical destinations, where purchasing starts and ends with a LOVE for an area and property, the Manuel Antonio area, with its park, Marina Pez Vela, and finite area, has one of the purest supply and demand dynamics on the planet. Just 7 kilometers between the town of Quepos and Manuel Antonio National Park, and an “island-like” dynamic of rainforest and mountains limits the total amount of development here. Hotels, condos, luxury homes, and villas appreciate here average occupancy rates at least double those common in other regions of Costa Rica, so while investors here do LOVE this area, which is where any decision should start, there is also a very real dynamic investment environment here which allows for ownership that feeds the soul AND the wallet.
Fourth: Memories of a Hurricane. Last year's devastation of so many of the Caribbean islands and the Florida Keys has both travellers and investors looking at and for alternative destinations. As someone with a LOT of friends and colleagues living, working, and with roots in some of the most devoted areas, there is no doubt that they will rebuild and find bright futures again. That being said, Costa Rica is blessed with a geographic location that has it free from hurricanes and natural disasters, which are not only hazards for personal integrity and enjoyment, but also play huge roles in insurance rates, property taxes, and other elements that are incredibly low in Costa Rica. There is also no doubt that the tourism figures in Costa Rica are growing due to the devastation in Puerto Rico, the Keys, and other tropical destinations, as individual travelers and agency wholesalers look to help direct clients to other unique tropical experiences in the region.
So, these are a few of the market drivers on a macro level bringing people to Manuel Antonio. Now, what is selling? This is perhaps the most interesting element as the market has seen solid growth and sales in virtually all of our categories, which is quite a change from previous years. 2016 and 2017 saw a focus on sales only on heavily reduced properties and fire sales. While there are certainly still some motivated sellers and true buyer opportunities, 2018 has seen a spike in movement in raw land sales for spec homes, several 7-figure estate sales for luxury finished homes, and a sale of the Monte Mar estate, which was a multi-acre, multi-home sale well over $3,000,000, the largest home sale in this area in recent years. Any and all new products with quality finishes, views, and good locations are being moved relatively quickly, as the increase in boat owners and other investors looking to secure high-quality property here in Manuel Antonio is at the highest levels ever. Those high-level investors who can find the perfect turnkey home, along with experienced local developers, are now buying up the remaining single-family home sites and lots to begin spec home building to fill the void in the market. Many investors ask where the best opportunities are, and there is NO DOUBT that in Manuel Antonio, some of the best investment options out there are on older homes which are located on AMAZING lots, but need renovation, remodels, or upgrades to bring them to present-day market conditions and demands. For investors with vision, capital, and the willingness to take on a project, watch out for a LOT of movement in this market in 2019.