There might be a b… b… A b-b-b… Hmmm I can’t quite bring myself to say that word, maybe later. Let’s just say that we seem to be experiencing a hot time in the real estate business in Costa Rica’s southern pacific zone. I feel like we are at a new beginning of sorts here in Costa Rica’s southern pacific zone.
From where I sit, overlooking the industries of real estate and hospitality, I’d say we are at the beginning of a new day here. What exactly this means for real estate is a bit hard to say.
Hospitality Sector: Vacation rentals and restaurants are enjoying a brisk business. ICT, the Ministry of Tourism for Costa Rica says that the overall numbers are up. However, the numbers for Hotels are down. I find this interesting. Hotel occupancy is generally the indicator of how tourism as a whole is doing. Costa Rica may be an exception since so many find alternate lodgings, such as vacation rentals, B & B’s, hostels and so on. Pam, over at the Flutterby House (beach hostel) in Uvita says that they are having a swell year.
From Frank Walker’s March Newsletter:
Where Have All The Tourists Gone??? – If you listen to the ministry of tourism people are flocking to Costa Rica. However, figures from the hotel industry tell a different story. Figures indicate that the occupancy rate for 2012 was just slightly above 54%. That’s below 2011 figures. Industry wide the breakeven point is 74% occupancy. A recent survey by the Camera National Turismo which is separate from the ministry of tourism revealed that for the two months of December 2012 and January 2013 which are supposed to be the height of the tourist season occupancy rates ranged from a low of 22.1% in the central valley to 45.3% in Guanacaste.
Real Estate: There have been a number of sales here on luxury homes above the $2 million mark. One fellow come into the area and has so far purchased a hotel and a number of high-end homes. Reportedly he pulled out of his homeland entirely and has chosen to work with his available resources in this way. Not to discuss the merit of his strategy, but the effect of his acquisitions – they can skew the trends a bit. He is one buyer that caused a number of high-end sales.
In recent discussions with realtors, across the board they are BUSY.