Saturday, November 25, 2023

Another land appraisal in Costa Rica


Here was a property that measured 4 square miles of ocean view land, of which there are plenty in Costa Rica due to the sloping topography. It is not uncommon for properties this size to be marketed to developers, but they are not necessarily publicly marketed, making comparable properties, particularly closed saled, hard to find.

This particular property, at its closest point to the ocean, extended as close as 1000 feet to the water. As is often the case, the developers of such a parcel try to secure a beach parcel, too, often with the label “Beach Club”, to establish an identity as a beachfront property, but such a parcel is not necessarily contiguous, as was in this case, so the developer of an ocean resort property with a noncontiguous beach club has the added difficulty of purchasing a connecting easement or parcel, or else have the added burden of transporting hotel guests to the beach. In this case, the distance was slight. In Costa Rica, the best beach parcels (closest to the water) are on leasehold parcels on "concession land" which is owned by the municipality and typically leased at favorable rates. This "concession land" is the land belt immediately inland from the undeveloped "Maritime Zone" preserved as public beaches. 

Comparable sales ranged from $12,200 per hectare to $19,500 per hectare (indicating a significant discount for extra large size), and could be adjusted for distance from beach, with the cheapest parcel being no closer than 2 kilometers to the water, but still possessing ocean views.

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