With the holiday season around the corner, real estate analysts in Costa Rica are busy preparing their forecasts for 2015. The housing market in Costa Rica has changed considerably in the last two years, and one of the most noticeable factors is the reduced participation of foreign buyers during the green (rainy) season of 2014. This does not mean that real estate agents in Costa Rica have not been active; in fact, they have been very busy, but the trends they have been reacting to are decidedly different.

Longtime readers of The Costa Rica Star will recall that foreign house hunters looking for beachfront homes or country houses located in spacious lots were the saviors of the real estate market circa 2012. According to a recent report published in business daily La Republica, sourced from a major brokerage in western San Jose as well as the Chamber of Real Estate Agents in Costa Rica, current demand is concentrated in the Greater San Jose Metropolitan Area (Spanish initials: GAM), and expat buyers looking for bargains are scarce.

What real estate agents and mortgage lenders in Costa Rica are seeing now is a strong demand for vertical housing solutions and gated communities in the GAM. There is also a strong interest in new construction properties, particularly those that can be obtained for less than $135K. Planned neighborhoods located within security walls and gates are very attractive now, but Tico buyers no longer insist on detached single-family homes with their own backyards and gardens; they are willing to live in townhouse-like arrangements with communal playgrounds and green areas.

As recently reported by The Costa Rica Star, condominium towers are literally on the rise, particularly those that offer luxurious finishes and amenities as well as plenty of security. Mixed-used communities that are zoned for both residential, commercial and even educational purposes are also very popular. The same goes for low-rise condominium towers located close to shopping centers or districts.

For the time being, beach houses, mountain cabins and country homes are giving way to suburban housing solutions in places such as Ciudad Colon, Santa Ana, La Guacima, and Alajuela. Escazu and La Sabana are still very much in demand, but pricing in those two areas has become nearly prohibitive. Demand for exurban housing is at an all-time low, which may create opportunities for property investors who are willing to wait a long time until the real estate market in Costa Rica shifts again, which could happen in the next 24 months.