The Future for Guanacaste – Vacation, Invest and Retire

Guanacaste has posted some great numbers in 2011 however things still seem to be slow in talking with many hoteliers, restaurateurs and retailers. Our real estate friends in Guanacaste are positive and things seem to be picking up a bit, but our friends in Atenas are talking about a slump. Their situations were completely reversed a year ago. Many other factors on the table are very positive for Guanacaste and we are predicting big things here in the next ten years instead of the up and down market in the last few years.

One very notable positive is that Costa Rica has returned to the top ten places to invest in Real Estate in the world, this by the highly respected International Living Magazine after an eleven year hiatus. The reason given for being taken off the list originally were exorbitant real estate prices. This has changed, and is great news for those people that were careful or lucky with their finances and are looking to invest in a way of life that is often not affordable in the United States or Canada anymore.

Daniel Obuder International Airport in Liberia reported a record month in January 2011, the first month of 2011 saw 31,637 foreign visitors, and this is a 28.2% increase over the same period of 2010.

So why are businesses still hurting? Several factors contribute to this,  first and foremost is the “All Inclusive” model and second, overbuilding.

All Inclusive Resorts:
Many big resorts such as Paradisus Conchal, Melia Cariari, and the Barcelo chains do not encourage guests to leave the resorts. These huge conglomerates have enormous marketing budgets and include everything from cocktails, to spa treatments, golf, and even contain their own tourism shops. The little guy finds it hard to compete. We very much would like to encourage guests to explore the native regions, get out and meet the people instead of filling the coffers of corporate giants. There is a heck of a lot more to Costa Rica than the inside of a fenced up resort.

Huge resorts like Playa Conchal, do not encourage their guests to leave - this is understandable - but not good for the little guy.

Over Building:
The second reason has to do with simple supply and demand; in the recent boom cycle for example much of Tamarindo was terribly overbuilt. Many commercial areas are vacant. Even with the ones still open for business there are essentially too many stores and hotels catering to too few people. This will find a way to work itself out ultimately through natural Darwinian economics, however to truly savvy investors this spells opportunity.

A big mystery has been why the central valley region, areas like Atenas have suffered a reversal over the past year. Atenas especially received a lot of attention from the AARP which voted it one of the best places to retire in the world. This has changed the psychology of many owners reports Dennis Easters of Pure Life Development in Atenas. Prices have become somewhat inflexible downward, people realize they have something special and are holding on to prices that do not make sense considering the state of the economy in the United States. However Easters predicts correctly that the reasons for Atenas’ recent positive attention, the fact that it is one of the most beautiful and accessible parts of the world will ultimately overcome any short term lulls and the market will level out.

According to Rebecca Clower of Blue Water Properties of Costa Rica, Real Estate in Guanacaste is finally looking up. “It is a very exciting time,” she says.

“There are many great things happening here, the infrastructure of the area  is finally catching up,” and added her reasons why.

• Roads are in great condition, areas that were previously inaccessible have been opened up.
• Major expansion is taking place at the Liberia International Airport,
• The government is installing a world class telecommunications infrastructure with their Frontera a Frontera initiative.
• There are hundreds of millions of private project dollars pouring into Medical Infrastructure mainly poised to capture Medical Tourism dollars. This includes the Cima annex which has already broken ground near the Liberia Airport. This is a $165 million dollar mixed use project that includes hospital, recovery and living facilities. Just across the street is another project by the Sun Ranch Valley group that while currently in delay their spokespeople claim the project is a definite go. This mixed use development is similar to the Cima Hospital project and includes a Robert Trent Jones championship Golf Course and mixed living retirement community as well.

Mrs. Clower is excited about the Gold Coast and Playa Conchal areas that she serves.  Couple this wonderful infrastructural development news with the fact that Real Estate prices have fallen to more reasonable levels makes Guanacaste a truly  ground floor opportunity at the moment. These major investments by big players cannot be ignored.

As mentioned earlier Costa Rica and especially the province of Guanacaste has returned as one of the top ten places in the world to both retire and invest according to many pundits and experts. But you must see for yourself to believe the paradise that awaits you.

The scenery is stunning, the beaches virgin, the people friendly, and most importantly, opportunity is knocking.

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