Costa Rica’s Southern Zone Poised for Major Development

Posted by Jaime Lopez on March 30, 2012 in Business

An article published by International Living, a leading organization that provided information for people interested in real estate, retirement and relocation abroad, extols the charms and relative obscurity of our Zona Sur and calls it one of theWorld’s Best Real Estate Markets in 2012.

On the list published by International Living, Costa Rica’s southern zone placed third on a list of 27 locations around the world. The winner was Ecuador’s North Coast, followed by Tulum in Mexico. Here’s the selection criteria explained by International Living:

“These are markets on the upswing. The mainstream hasn’t heard of them yet. And in them today you’ll get excellent bang for your buck as well as great pro?t potential.

That’s why I’ve created this Global Real Estate Index. Here you’ll ?nd listed the 27 places in the world today that boast the most attractive, and potentially lucrative, real estate opportunities.”

The text accompanying the Zona Sur listing further explains that:

“Costa Rica has done a great job selling itself. That’s why, in places, a half acre lot could set you back up to $600,000. Costa Rica’s Southern Zone stayed off the radar, though. And it’s nicer than up north, the area most folks know.

Bright, thick, green jungle canopy rolls down to a coast of sandy beaches and rocky points. It’s truly stunning. And, while prices in other parts of the country soared, prices here stayed low. It was dif?cult to get to. But a new, smoothly-paved coastal highway has changed that.

Located only a few minutes from a little town where you have restaurants and cafés, the entry price for a lot at the gold-standard project in this area is a modest $40,000. It’s very good value for money. Because of the new road, I expect prices will rise. And that makes the appreciation potential strong, too.”

The author, Ronan McMahon, is referring to the recently built Costanera Sur highway that runs along the Pacific. The town he mentions is probably Quepos. One thing that Mr. McMahon did not mention, but that will definitely bolster his argument in favor of real estate investment in our southern zone, is the proposal for construction of a new international airport in the region.

Support and Opposition to Development in the Southern Zone

According to financial news media outlet El Financiero, the environmental impact studies of the airport are currently underway, and construction is slated to begin in 2014. The director of Costa Rica’s Civil Aviation Authority, Jorge Fernandez, explained to El Financiero that the airport will minimize greenhouse gas emissions, utilize renewable energy sources, and will recycle and repurpose all waste generated by its operations. In his words, Fernandez stated that the airport would be “a pilot plan unique in Latin America.”

In the Osa Peninsula, which forms part of our southern zone, there have been numerous reports of environmental damage caused by real estate development in the last few years. In 2010, there were 60 reports of contamination, according to El Financiero.

The growth of tourism and investment in the area has increased considerably in the last few years -85 percent from 2008 to 2009. The number of hotel rooms in the area is also on the upswing.

The Osa Peninsula is also home to staunch environmentalists, expatriates and locals alike, who will be paying close attention to development in the area to ensure it does not encroach on their rights as protectors of the environment.