Introduction
The number one Costa Rica real estate and investment podcast, bringing you experts from all over Costa Rica.
Good afternoon, guys, and welcome to episode 282 of Costa Rica real estate and investments with me, your host Richard Bexson, excuse the raspy voice today. I have a bit of man flu going on here, as you could probably hear by it, which some people say is worse than worse than childbirth. So, but yeah, I’m sure there are some women out there grinning at the moment.
Anyway, today we’re joined by Bob Davey. He’s the principal of Christie’s International Real Estate here in Costa Rica, also general partner of Las Catalinas, one of Costa Rica’s most successful beach developments. Bob’s lived and invested in Costa Rica for longer than I have over 30 years.
And I don’t think anyone has probably had as much influence on the evolution of luxury real estate in Guanacaste in Costa Rica than he has. So today we’ll be talking to him about what’s really happening in Costa Rica real estate, what’s changed, and what investors often misunderstand. So I’m looking very much forward to this one.
Again, it’s been a time coming to get Bob on the podcast, and I’m very grateful that he’s taken the time. Remember, guys, if you are looking here to invest in Costa Rica, purchase real estate, looking for a buyer’s reps, looking to develop construction here, we are fully integrated all the way from, I would say, design all the way through to property management of the majority of our own properties. But we also have investment opportunities that are available to our, I would say, community of listeners out there.
You can email us info at investingcostarica.com. That’s info at investingcostarica.com. Or better yet, just check in the description down below for all of our contact details.
You can organize a time to chat with someone in the office or even me, guys. Again, I get all the emails, info at investingcostarica.com. We’re suckers for helping anyone.
You’re never wasting our time. So feel free to have the conversation with us, guys. But anyway, let’s get straight into the podcast.
Good afternoon, Bob. How are you doing? I’m great.
I’m great. Nice to be with you always. No, not at all.
It’s an absolute pleasure and an honor to have you here on the podcast. I mean, I was actually mentioning in the intro, like you’ve got more experience in Costa Rica than me. And I think there are very few people that have been here as many years as you have, Bob.
Bob Davey
I’d like to say I came over here with Christopher Columbus. Yeah. And then anybody that was here earlier than us in 1990 was crazy.
But yes, we’ve watched a lot of evolution. We love Costa Rica. I’m from Southern California, from Newport Beach.
And so that was a natural transition for me to be looking west out my window out to the ocean and see the same Catalina Island name that I see back home. No, just a little warmer water, right? Yeah.
Eighty five degree water was the big hook for an old surfer, young surfer at the time.
Richard Bexon
I can imagine. I can imagine. Well, look, Bob, I mean, globally, you know, 2025 was politically and economically volatile.
And it doesn’t look like 2026 is going to be any calmer. I mean, from your long term perspective, how insulated or exposed do you think Costa Rica really is to like this global instability?
Bob Davey
I’d like to say that Costa Rica is pretty bulletproof to all the noise on the outside. You know, we we have a good, wholesome lifestyle in Costa Rica. The security, you know, outside of of the organized gang problems that they’re having right now is, you know, it’s really safe to live here.
We don’t really need to to lock our doors and windows. So it’s a special, special place in regards to that. And, you know, we’re not we’re not subject to all of the monetary problems.
I mean, the stock market going up and down doesn’t harm us. Recessions of real estate in the United States do not harm us. We are a cash market.
So people come down here actually with their capital in the luxury segment and they are ready to buy property and invest in big investments, medium sized investments without looking for conventional financing, even though you can get conventional financing now for investments in Costa Rica. It’s not the norm and it’s not really easy. It’s not difficult, but it’s more expensive than what people are used to in Europe and North America.
So we don’t really rely on funding. Our customers are more cash investment based.
Richard Bexon
Yeah, I mean, that certainly makes for, I would somewhat say, more of a stable real estate market kind of going forwards as well. I mean, if you strip away the hype, how would you describe Costa Rica’s real estate market today?
Bob Davey
Well, it keeps charging along because of the lifestyle everybody’s looking for. We have the climate. We have some of the most wonderful people on the planet as far as the culture.
The Costa Rican people are so accommodating. So they’re just another neighbor. Europe’s easy to get here.
North America is like being in another state to live in Costa Rica because we can go back and forth daily, nonstop to most of the feeder cities, to all of the feeder cities, I should say. So, I mean, we just are super fortunate to have so much goodwill. There’s a lot of places that wish they had our goodwill.
The Bahamas doesn’t really have all of the buttons or all of the boxes checked that we have. Mexico definitely doesn’t. So we’re just really fortunate to have all of this goodwill.
I can explain what are the negative things here shortly, but all in all, we are a destination that everybody wants to be coming to to visit. And we have so many investors moving here with their families now. The K through 12 stores that are up and down the Pacific coast and in the Central Valley feed that market for our investors.
Parents that can live, that can work in two different careers and travel back and forth because of the Internet and because of high-quality Internet bandwidth.
Richard Bexon
I mean, we’re just another state in the U.S. for living. Bob, do you think we’re in a buyer’s market today? I mean, I think post-pandemic was definitely a seller’s market, but do you think that has switched a little bit more into a buyer’s market?
Bob Davey
Yeah, definitely. There’s been a correction since the pandemic. Prices got a little crazy.
I’d like to say the spec developers got greedy and trying to make too much profit. So that’s settling right now. The luxury market is more sophisticated.
It’s not just pick a number but this is what we’re going to sell it at. I mean, there’s an entry level and a replacement cost for an investment. You have a cost of your land, you have cost of your construction, and then you have what’s a fair return on investment for these developers.
Our general real estate market, that got out of whack for a while. It’s coming back to earth as more inventory’s sitting longer now and there’s a lot of inventory that’s just not selling until people come back to reality regarding that.
Richard Bexon
I think the difficulty is going to be, Bob, having a construction company myself, is just the exchange rate and the cost that potentially it costs to build that home, and then the reality of the pricing today, whereas the market value might actually be below replacement value, if that made sense, of what it costs you to build it. And I think that’s where I think a few issues may arise.
Bob Davey
The Central Valley is definitely a below market value, below replacement cost sale right now. I mean, if we’re not in a really high end gated community, it’s hard to move property in the Central Valley right now, and people are selling really nice houses for under replacement cost. So that is part of the big correction that’s going on.
The beach replacement cost isn’t being exited out of at the point yet, but it’s coming. I mean, I think that we have a little bit of clearing out to do with inventory, but certain gated communities are strong. The luxury segment, once again, you’re not getting anything for replacement value there.
Richard Bexon
Yeah. I mean, Bob, when location-wise, where are you seeing real demand versus speculative noise? I always thought that Santa Teresa had a lot of speculative noise, if that makes sense.
And it was an area where some people would ask me, hey, Rich, what do you think? And I’m like, man, it feels too fashionable for me, and I don’t like fashionable destinations, because fashion comes and goes, if that makes sense. But I mean, where are you seeing real demand versus speculative noise in Costa Rica?
Bob Davey
Yeah, Santa Teresa is a slow market right now. It is a speculative destination, and their pricing got a little ambitious. That’s correcting right now.
So their absorption really slowed down, but it’s starting to pick up. We have some successful agents living there, and it is picking up. I’d say the most velocity is in the gated communities.
Reserva Conchal has done really well for the last couple of years. Hacienda Pena has done really well over the last couple of years. Playa Grande, I mean, it has just exploded over the last five years.
Mar Vista, Las Catalinas, I mean, there’s been a lot of velocity in those gated communities. Playa del Coco is a lower price point. A lot of Canadian investment over there.
They have a ton of inventory. So they’ve actually had nice velocity there at a different lower price point. So I think all in all, when you’re delivering a good atmosphere, a nice gated community, it’s doing well.
Richard Bexon
Yeah. I mean, what do you think foreign investors consistently misunderstand about Costa Rica, both positively and negatively, when they first arrive?
Bob Davey
Well, I think there’s a false sense of cost of living. I mean, we are not Mexico. Costa Rica, everything’s imported here.
So when somebody goes into the store and they see all the items that they recognize and that’s what they want to buy, that’s going to cost you a lot more money than if you know how to choose the different items that are locally manufactured or imported through Latin America and Europe. I mean, there’s ways to shop and be thrifty here. So cost of living, because of the decline in the value of the dollar versus the cloney, like you mentioned, that’s created a lot of this inflation that we have.
You know, gasoline is really expensive here. Electricity is comparable to the cost of New York, or not New York, but San Diego. I think we’re at like $23, $24 a kilowatt hour.
So there’s no bargain there, but we do have great electrical service, 220 and 110. Internet service is inexpensive. And if you go to Starlink, you get 300 plus megabytes.
ESA’s supplying you with 100 to 200. So we’re even with anywhere in the world as far as bandwidth and reliability of our home internet, work internet and cell phone coverage.
Richard Bexon
Yeah. I mean, it’s amazing how people sometimes are like, wait, my internet here is better than it is back home sometimes and cheaper. So yeah.
And I think people are blown away sometimes by their water bills. Like in some areas of Costa Rica, other areas it’s very expensive, but in other areas it’s not. I mean, I live in a condominium developed here in the Central Valley.
I don’t pay anything for water because the condominium has its own well, which is kind of unheard of in most locations.
Bob Davey
Yeah. The utility costs, you’re right. They fluctuate.
And all in all, they’re not that bad. I mean, depending on the budget you’re on and the location that you choose, you know, people ask me, well, how much is the electric bill? And I’m like, well, how much is your electric bill at home?
Okay. It’s all relative. You have a really good service.
I mean, the electric companies are probably the most efficient public service in the whole country. They’re 24, 7, 365. Power rarely goes out.
They have it quickly if it does. So, you know, our cost of living is probably one of the main concerns. I’m not concerned with security, but cost of living is what the complaints are.
You know, I like to watch people that go to the grocery store and see their face when I know that it’s tourists and they get their bill and I’m watching what they’re checking out.
Richard Bexon
So you just have to be smart about what you’re doing. Yeah, definitely. I mean, look, my electricity bill per month is 60 bucks.
You don’t have it on all the time. You know, I open my windows, but I live at 3000 feet. So it’s, you know, it’s pretty cool here.
But yeah, I mean, what do you think is the most common and sometimes the most expensive mistake you see foreign buyers and investors making Costa Rica?
Bob Davey
That’s easy. It’s choosing your consultants wisely. I like to say the learning curve in Costa Rica is very expensive, but it doesn’t have to be.
So that’s our success in our company is making sure that we are giving everybody the most sound advice. We’re protecting them is what we like to say is we have a short list of anybody that will recommend for anything, whether it’s transportation, architect, builder, interior decorator, labor. We’re very cautious on who we recommend because our whole reputation relies on the experience our customers have and our friends or anybody that we’re helping and giving advice to.
We have advice that we dish out because we’ve learned over a long period of time who’s who and how to identify who we’re going to actually recommend.
Richard Bexon
It’s funny because I think a lot of people in their home country are a little bit distrusting, but they arrive here, they have a pina colada and it’s like he was such a nice guy. And I mean, like anything from your taxi drivers trying to sell you a piece of real estate or something, you know, it’s like you just yeah, I agree. I think you just, you know, I mean, your investment is only as good as the team that you’ve got it here in Costa Rica.
I couldn’t agree more with you there, Bob. So I mean, you’ve been involved in some of the most thoughtful luxury developments in Costa Rica. In your opinion, what separates projects that succeed and others that don’t?
Bob Davey
No, it’s easy. It starts with the sponsors, the developer. I mean, we know who we want to engage with.
If we’re going to do any pre-sales, we probably have the most success in selling pre-sales than anybody out there. And I can list the whole list of all the successful projects that we started off a paper. And we do that only when we have 100% confidence that we have professional developer and promoters that are working on this project, that they’re funded because we have to deliver what we promise.
I like to say we make commitments with care and we live up to them. So that starts with us vetting our partners, our developers, everybody that we have a responsible responsibility to deliver what we’re promising. And that’s because we’re promised what we have to deliver.
So we have to believe in that and then deliver it. So definitely it starts with us making sure we only align with credible people that are going to deliver on their promises.
Richard Bexon
Well, I mean, there’s a lot of projects out there in Costa Rica at the moment. A lot of people bought land and often stuff comes across my desk. Investors looking to invest in Costa Rica.
Hey, Rich, could you take a look at this pre-development deal here where it’s like, hey, if you give the developer $500,000, you’ll get a home with four bedrooms at some point. And the land is just there, if that makes sense. There’s no infrastructure, you don’t know where their permitting is.
For someone that doesn’t have the experience to go to Christie’s or is looking at a project at the moment to invest into, what would be your advice to them? Because again, not everyone can understand how deep the pockets are of the sponsors. I mean, maybe you guys do, but there’s a lot of developments out there.
Bob Davey
Well, I mean, we verify how deep their pockets are, first of all, and there’s nothing wrong with somebody trying to raise money to deliver their project, okay. And they may have the best intentions on the planet and the greatest design. They put a team of architects together and they just don’t have the funds to deliver what this beautiful project shows you on paper.
That’s where we separate ourselves from them. They may be the most well-intentioned and maybe they’ve been successful in other places, but we are not going to go raise money for speculators that we don’t have 100% confidence in.
Richard Bexon
And that’s just the bottom line on it. Yeah. Yeah.
I mean, it’s just going to be interesting over the next coming years because I think we might see some graveyards of projects where maybe sponsors didn’t have the pockets that they thought or didn’t understand the complexities and the investment required to put an infrastructure in projects, even before we sold the first piece of land. Yeah.
Bob Davey
I mean, anything can happen. I mean, even a well-funded project, things can go sideways. So we’re not going to start out when they don’t have funds to deliver.
Richard Bexon
Yeah. I agree.
Bob Davey
I mean, trying to raise money in pre-sales, you know, there’s very few groups that we will do that for, but there are, but they’re out there. I mean, and they’re here and they’re part of the groups that I just mentioned. You know, they, we know they’re going to always deliver.
Richard Bexon
Yeah. Yeah. If you could go back to your first five years of investing in Costa Rica, Bob, what would you do differently?
Bob Davey
Well, I mean, I like to say the learning curve can be expensive, but it doesn’t have to be. I, you know, my first project I came down here to do back in 1990, I lost my investment and it was my own fault. We had all great intentions.
I had a bad promoter that I aligned myself with and believed in, and then I figured it out as we were going along and yeah. So it didn’t work out, but you know, that’s why you have a portfolio. You don’t want to put all your eggs in one basket, right?
Yep. So I think just paying attention and maybe, I mean, always align yourself with the right people. Triple check who you are doing business with and anybody can fail and anybody can make a bad decision, you know, mistakes are how you learn.
So you just have to be cautious on who you align yourself with. That’s, that’s where, you know, I failed at the very beginning and it was okay. You know, everything’s a stepping stone and I was in a new country and I was relying on people that knew.
And so that’s just how it is.
Richard Bexon
Hey, Bob, it was no different for me from developing our first property in Playa del Coco, you know, which was via Buenondo. I mean, we went way over budget, way over time, but, and then we turned into a hotel and, you know, I lost money doing that, but it was kind of my masters that really taught me how to build the way to do it and then also how to operate afterwards as well. So, I mean, I think we have to go through those cycles, no?
Bob Davey
Yeah. You know, I get people that come down here and just, for instance, a guy will tell me, all right, we’re off and running. Thank you very much.
I’m from California. I’ll show everybody how to do this now. And I just, you know, I see the crystal ball I’m looking into and not that person’s face.
And I’m like, there’s a failure about to happen.
Richard Bexon
Well, I think it’s what people do is they look at the game from above and go, the board looks exactly the same. Like you guys are playing chess up in North America, if that makes sense. And you look at the board and the colors of the pieces and the board look the same.
The problem is we’re playing checkers and it moves different and the rules are different. Like some of it looks the same, but the rules of the game are different. And I think if you try and apply them, I mean, you’re going to get spanked.
There’s no way about it, you know? So, I mean, it’s, yeah, I mean, I always say to people, look, there are easier ways to make money than in Costa Rica. I mean, if you want to make like, you know, but from a lifestyle investment, I think this is the best country in the world to do it.
Bob Davey
Oh, yeah. I mean, that’s how we sell our real estate is we live the lifestyle we’re selling. The people coming down here investing want to live like we live.
You know, we live farm to table, ocean to table, really wholesome family atmosphere, you know, perfect weather. I mean, we like to surf and golf and fish and travel and do all of these things. And then there’s other activities for ladies that, you know, aren’t into all the outdoor stuff, but we live in paradise.
Richard Bexon
Lifestyle is how we live and lifestyle is what we sell. Yeah, definitely. Okay, Bob, my last question for you is I’ve kept you long enough.
If you suddenly had $500,000, you inherited it and you had to deploy it in Costa Rica today and you couldn’t touch it for 10 years, where would you put it and why, Bob?
Bob Davey
You know, if we’re talking about putting it into real estate, I would go find some really good condo project. I mean, I have half a dozen of them in the top of my head that I would put deposits on and go through the build, just knowing, you know, who’s doing what and what it’s going to be like in five years. I like to say, you know, be in a good positions.
If you’re going to be in the Central Valley, be near the gated communities or inside them. That’s where the action is right now for the Central Valley. If you’re out in the coast, be with a seasoned developer, get into some of their pre-sale product because they’re going to deliver it.
People will be asking you to buy you out, you know, before the construction is done. So, I like pre-sale construction and that’s my answer. I would be tying up small things in that way.
Richard Bexon
I think that’s smart. I mean, if you can find a developer that has a history of delivering and get some of the pre-sale stuff, yeah, I mean, I think that there’s a huge opportunity there for sure. So, yeah.
Well, Bob, it’s been an absolute pleasure having you here on the podcast, sir. And anyone that wants to reach out to you, I’ll put all of your contact details down in the description, but very much appreciate you taking the time and sharing your knowledge and experience with us. Thank you, Richard.
It’s always a pleasure. Have a great day. You too.
There is someone that’s been doing business in Costa Rica for, wow, 35 years, I think as you mentioned, as Bob mentioned there. I mean, he first came down in the 90s and tried to do a project and just realized he didn’t align himself with the right people. And I think that’s everything in Costa Rica, guys.
You just really need to align yourself with the right people and do your research. So, yeah. But again, if anyone wants to chat with Bob, all of his contact details are down there in the description.
Remember, if you’re enjoying this podcast, guys, please give us five stars, a thumbs up or pass the pod and share it with people. There’s a huge amount. I mean, 280 plus episodes here.
We’re getting pretty close to the 300th episode here. So I need to start thinking about maybe we could probably potentially get the whoever the new president’s going to be on that podcast. We’ll see if we can make that one.
But I’m not too sure whether my contacts go that deep, but you never know. And remember, if you’re looking to do anything in Costa Rica and just want some advice, as Bob mentioned there, you’re only as good as your team. We can refer you out to people.
Again, if we can’t help, we’re not just going to take business, take business. The only thing we have in Costa Rica is our reputation. So we’re happy to share our Rolodex.
Again, you can email us info at investingcostarica.com. That’s info at investingcostarica.com. But until the next podcast, we’ll see you soon.
Bye.
Outro
The number one Costa Rica real estate and investment podcast, bringing you experts from all over Costa Rica.
