Pavones Real Estate Rebound

Last year it seemed as if the local real estate market came to a screeching halt. This year, things have picked up, surprising some local brokers.
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More sales have taken place in the Pavones area in the first few months of 2009 than all of 2008.
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One local broker has sold 5 lots in the first three months of this year. Contemplating their retirement options with smaller 401Ks, his clients are rediscovering Costa Rica. He said, "Hard financial decisions force people to rethink their life plans, and that seems to be when the Pavones area gets back on people's radar screens. Costa Rica is their plan B." This broker reports good demand for raw land priced under $100,000.

With few high quality residential homes available for under $500,000, Encanto is now accepting deposits for its Phase 1 residences (pictured here: the Aguas Verdes 2 family duplex). Encanto has responded to the changing mortgage market by offering the area's first Fractional Equity Ownership option, priced in the market's sweet spot between $50,000 and $100,000. Surprisingly, there is still strong interest in traditional whole ownership at Encanto, located in Cuervito de Pavones, in the hills overlooking the beaches of Playa Zancudo.
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Encanto is breaking new ground in the Pavones area, selling turn-key residences with resort amenities.
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Encanto is designed for "ownership made easy," with a rainwater-fed pool, concierge services, local transportation, gear garages, and hiking trails. Stylish, high-quality interiors are provided by the premier Costa Rican firm, Tamarindo Pacific Interiors.

Bank-financed developments in our area and throughout Costa Rica have been put on hold or cancelled altogether. However, Encanto is in the conservative position of being an all-equity-financed project with no debt. Said local project manager Lisa LaMagna, "We sleep really well at night knowing we aren't owned by Banco Nacional."

Freddie Wiggins of Pavones Point Realty, said, "More people are coming to our area because it's so much cheaper and more beautiful than the central Pacific or Guanacaste. Once people get here, they either love it or hate it. This place is paradise, it's magic." He called Pavones "recession proof."

Freddie recently sold Lago Correntoso (pictured, right). While he will not divulge the sales price, the palabra del calle is that the house sold for $1.2 to $1.3 million. This for a 5,000 square foot housing compound of superior construction with local hardwoods, a stunning ocean view, and pool, all on a shy 2 hectares (4 ¾ acres) of lush hillside.
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The Lago Correntoso home sale is the first to break through the $1,000,000 level.
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Marketing has become increasingly high-tech. Brokers depend on their web sites to draw people to the area and position themselves as a local resource. Nathalie Donohue of Costa Rica Horizon.com has provided a wealth of "insider" information and services.


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Pavones real estate 2010 wrap-up, December 2010