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 275 of Costa Rica real estate and investments with me, your host, Richard Bexon. In continuing the theme of the wrap up of 2025 and the outlook of 2026, we’re going to get broker David Car here. He has the Coldwell Brokerage here in the Central Pacific, kind of that Jaco, Los Sueños, Bajuco, Playa Hermosa area.
So we’re going to get him on and get an idea of kind of what happened in the market in 2025 and what he thinks is going to happen in 2026 and where he thinks the opportunity to invest in his market is, as well as that kind of just get an idea of what happened as well. But yeah, we’ll get into the podcast there with him in a minute. Remember, guys, if you’re looking to invest here in Costa Rica, we do a variety of different stuff and we have a variety of investments available as well.
If anyone’s interested in getting involved in Maranon, Antonio or Arenal, where those projects are actually filling up very, very quickly. I think we’ve just nearly done with Villa number five and moving on to Villa number six and also in Arenal as well. So and also trying to buy a little bit more land in Arenal, just that the market there is just keeps pushing us.
The data keeps telling us from tourism to real estate to the hotel occupancy and average daily rates just keeps screaming at us over there. So we’re about to deliver the area’s most luxury Villa. That was a syndication deal that we did back probably about 16 months ago that I think in a week filled up.
So if anyone’s interested in knowing a little bit more, feel free to email us info at investing costa rica.com. That’s info at investing costa rica.com. Or just look at the description down below and all of our contact details will be there.
But let’s get straight to the podcast. Good afternoon, David, how you doing?
David Karr
Richard on a Monday afternoon. I don’t know if we’ve ever gone afternoon. I must be eager.
I’m gonna go.
Richard Bexon
Monday is usually my busiest time, you know, busiest day of the week, as I’m sure it is you, it’s kind of just getting the troops aligned. And then we’ll just throw in their delivery of Manuel Antonio treehouse four as well. And then a five bedroom villa in Arenal because why not?
David Karr
Yeah, you’re not busy at all.
Richard Bexon
So it’s not always, always time. Actually, someone said to me the other day, they were like, Rich, I don’t know how you’ve been so consistent with these podcasts. And I’m like, it’s discipline, dude.
David Karr
Yeah, yeah, for sure. Anyway, I feel like it’s been a while, probably about a year or so. So I’m happy to be on.
Richard Bexon
Awesome. No, it’s great to get your kind of your outlook. You know, I think we’re kind of wrapping up here 2025 and taking outlook of 2026.
But I mean, how would you summarize 2025 in I would say your real estate market, which is really the Central Pacific?
2025 market performance
David Karr
Yeah. Um, I, you know, I would say kind of flatlined a little bit, right? We didn’t see, you know, necessarily real ups or downs.
It just kind of stayed flat. I think there’s that transition period that we expected to see. And that’s kind of what we’ve been getting.
You know, it’s going to be interesting kind of moving forward to see how that plays out. You know, does that stay the same, which I think we’re kind of seeing, right? We’re starting to go back to where the buyers, I think we had this, this time during COVID where you had buyers that for the first time were anxious and they weren’t as selective, right?
I think, you know, in here doing this 20 years, by and large, most people, when they’re buying a property in Costa Rica, they have their wishlists, they have their parameters, and they’re just very, very, they’re very specific on what they want. And they just don’t want to sacrifice. And during COVID, we saw that was a little bit different.
People were like, I’ll take it. Fine. Close enough.
I’ll take it. And I think we’re transitioning back to that where people are, I’m not in a rush. I’m going to wait for what I want.
And that definitely has been something that we’ve been, you know, have to, as, as people that handle the sales, we’ve had to be more patient with clients. So we’re back to kind of that, that trend, I would say.
Richard Bexon
How would you say demand has been? Have you still the amount of leads coming in pretty similar, or is that kind of just flattened out a little bit as well? Have you seen?
David Karr
Yeah, it’s definitely down. We’re definitely down on overall leads. But I would say that, you know, there’s still buyers, there’s plenty of buyers out there.
And, you know, it coincides with, we still don’t have a ton of inventory. And I say that in our markets selectively in that, you know, on, on the surface, it does look like we have a lot of inventory. But again, if you’re selective, and you’re going to say, yeah, but I want this and this and this, then it starts getting pretty tight.
And we just don’t have people selling, you know, in large, they’re not exiting in large quantities either. So it’s kind of a little bit of a paradox, which often that is what we see with Costa Rica real estate. And I think we’re just returning back to a lot of those trends and paradoxes that we’ve normally dealt with that you’re familiar with.
Richard Bexon
Yeah, I mean, look, if we ignored, you know, 2020 to 2024, and look that let’s say 2025, compared to 2019, how would you the water levels higher, it’s kind of the same a little bit lower, because we’ve definitely stabilized, right? In 2019, we kind of stabilized a little bit of like, we hit those stabilizations, and we just stay there steady. And I mean, I think that’s what is just steady.
David Karr
Yep, yep. Yeah, no, for sure. I think I think we’re back to that spot where we’re just kind of holding steady.
And, you know, by and large, right, Costa Rica has never been huge appreciations.
Richard Bexon
Yep.
David Karr
And, and I think we saw a peak on that, you know, during COVID. And now we’re back to kind of that that same spot where it’s just, you know, barely going above, you know, what inflation is doing. And, and it’s hard right now, right?
Because with inflation, especially you have the manipulation of what’s going on here in Costa Rica, dollar, Costa Rica currency, I mean, it’s, it’s very hard to really examine that. Yeah. So and and hot go is still undervalued compared to the rest of the country.
I mean, we’re still seeing opportunities to be on the beach with a two in front of it, which you can’t do anyway. 2025, like that, that just that blows my mind, right? On the sand, ocean view beachfront, we just put one under contract last week.
Hi, tubes. Yeah, I mean, that’s just insane that that’s still that still can be found.
Richard Bexon
Yeah. Well, I mean, I think that that’s the attraction of, you know, how it’s got great infrastructure, you know, multiple ways in and out. It’s got good water.
You know, it’s got great restaurants and stuff. Again, it’s not for everyone. But like, I think for the for the individual that’s that’s, you know, looking for something that’s easy, flying to the airport, drive an hour and 30 minutes when there’s no traffic, of course.
And then basically chill out your beachfront condo, go out for dinner and kind of come back and like do some tours up in the mountains and stuff. Maybe go fishing. I think it’s a great product.
David Karr
It’s I always say with Hakko, I’m a convenience snob. Yep. If you like convenience, there may not be a better spot in the country, you know, and especially as traffic just continues to now be really an issue throughout Costa Rica.
Lifestyle and submarkets in Jaco area
Richard Bexon
Yeah.
David Karr
Right. There’s something to be said that when you come to Hakko, you can just be in Hakko and do quite a bit. You don’t have to get in a car.
You don’t have to deal with traffic. And I think that there’s a big appeal for that, for that urban night, that more of that type of demographic. And those are the people we get.
Right. Those are the people we want. If you want to be secluded in the jungle and away from everything, we still have that in this area.
It’s not Hakko, but we still have from Tarkalis, Punta Leona, Estoril, Hermosa. We have those pockets here. So I think the biggest thing with Hakko that I think people get confused on is they think too much that, oh, I don’t want to be in Hakko.
Well, Hakko is more than Hakko. Hakko is the Central Pacific. And there’s something for everyone in this region.
Richard Bexon
I mean, I think there’s a lot of opportunity potentially in Playa Hermosa, which is just, you know, south of you guys as well. I mean, you know, there’s some nice stuff happening now. I was in Mistico on their beachfront development at the moment where we’re doing a house down there and, you know, they’re putting in their hotel there, you know, their beachfront hotel.
They’ve got their beach club up, which is beautiful. I mean, they did do a great job on that. And they’ve got oceanfront and ocean view lots available, which is pretty insane.
David Karr
And I don’t know if you’ve seen their conceptual homes that they’re starting to do. Saw the model home of that a couple of weeks ago. Looks amazing.
They are starting to get some restaurants, so they’re getting momentum over there. And that’s a great community, especially for, you know, someone that wants to spend a good amount of time here, possibly live here. And a great contrast to what Hakko is.
So, yeah, there’s definitely a lot of options. Again, it’s just what is the client looking for and what are they willing to maybe pivot on? Because that’s the biggest thing I think, especially as Americans are used to choices, right?
They’re used to going to the aisle at the store and having 20 or 30 pieces of gum to choose from, you know, or cereal. And here that’s not necessarily the case. So, you know, you just have to kind of settle in on what are the most important factors, kind of go from there.
Rental performance and expectations
Richard Bexon
I mean, I think you mentioned it there, which is just like, look, if you’re going to own a property in Hakko, don’t expect, you know, inflationary 2%, 3%, 4%, you know, increase in the asset appreciation. I mean, is it from a rental perspective? Because there are a lot of rentals in the area.
Is it like, I’ll basically cover my costs or I’ll make a couple of percent? Because, you know, sometimes I see numbers thrown around. I’m like, hey, I’m going to make 10%.
And I’m like, guys, I’ve been in this business for 20 years and it’s difficult enough for me to make 10%. And I have a luxury travel network, if that makes sense. How the hell are you doing that on a two-bedroom condo in Hakko, if that makes sense?
David Karr
You’re not, it’s not realistic. On condos, you’re just, you’re, it’s very, very rare that someone is going to get a real big return. If they are, it’s because maybe they’re self-managing, they’re just on all cylinders for the most part.
Now we do see properties where people can make money, but they are different animals, right? There are larger properties, bigger investments, but the smaller, you know, retail condo per se is really set up for someone to do everything on the owner’s behalf, not have to worry about anything and have it pay for all its holding costs, maybe pay for their vacation to come down here and pay for, you know, cover their usage of the unit. So that’s really what it’s set up for.
And even despite, you know, some of the saturation of the market and maybe some, you know, downturn of the tourism, we’re still seeing people at least pay their bills, right? So if you go into this, Hey, I’m happy if it just covers the bills, you’re by and large, you’re going to be happy. And I do think that we are one of the trends that we are seeing is we are seeing definitely that pullback from again, during that COVID rush, I think throughout the world, you just had a trend of people buying a vacation rental property, thinking that they were going to, Hey, I got some extra money, right?
I want to invest buying close to their, their Lake home. They’re in Costa Rica, wherever people were just seeking these types of properties that they can put on Airbnb, Costa Rica included. And I think some of that has been pulled back where people are realizing, Hey, I don’t know what I’m doing.
I’m not getting the returns. I thought I need that cash elsewhere. So I think we’re going back to more of that focus on lifestyle and user people that want it.
They just want to enjoy and use it.
Richard Bexon
Yeah. So, I mean, look, it sounds like 2025 kind of, we’ve maybe sort of switched to a buyer’s market. It got a little, it basically stabilized, I think is the word it’s stabilized.
What’s your prediction on 2026, David? Because from a tourism point of view is this 2026 high season is looking really good. I mean, really good dude for a lot of people.
2026 outlook and buyer strategy
David Karr
Yeah. I think, I think there will be some buying opportunities. I want to be careful in saying that, you know, in that depending on how, how selective you are, right.
If you’re pretty open, for example, if someone said, Hey, I just want something near the beach with these parameters, right. And they were pretty open. Okay.
You know what? We can find you something. And if you probably hang tight, I think that there’s going to be some opportunities, but the problem is, is I say that, and then people call me up and say, Oh yeah, great.
I’m going to wait, but I want this floor with this view with only in this property. So like it’s all, it’s all dependent on what you’re open to getting, right. So if you’re real selective, understand that.
Yeah. You’re, you may not in a deal, a deal I’m talking 10%, 15% off, maybe some of these highs that we’re seeing, that doesn’t mean you’re going to steal something 50% off.
Richard Bexon
Yeah.
David Karr
Oh. And, and, you know, as, as we typically see in Costa Rica, but I encourage people to understand if you are getting something that is 50% off, that probably means it was overpriced or it’s a garbage property, right?
Richard Bexon
Somebody bought something the other day was like, Rich, this property is too good to be true. Like this cost per square meter. And then I looked at it and it was like, it’s a possession property.
And they were like, well, does that mean it’s got a planner? And I’m like, it’s like a possession. You don’t have like a legal title, right.
If that makes sense, you need to go through that process where it’s a judicial process. You have to get all the neighbors, et cetera, et cetera. It could take a year and a half, two years.
And he was like, well, should I buy it? And I’m like, not unless you have all of the neighbor’s signature and are in the process throughout the whole thing, you know, but yeah. I mean, usually when it is too good to be true, it typically is too good to be true.
You know, and you and I look at a lot of deals that come across our desk where things are good, too good to be true. The thing is we know the questions to ask and you know, what’s yeah. But just a lot of people here come here and they don’t, and they end up buying it.
And then they realized of like, oh, I’m stuck and can’t get out of this.
David Karr
Yeah. And I, and, and again, right. Work with pros, work with pros, do your homework and, and get that education.
You know, it’s, I, I, I kind of have some, some marketing where I, I kind of, I throw it like, like stocks, right. If I’m going to go and put a million dollars in a stock market, I’m probably going to consult with someone, right. I’m going to have a conversation with someone that does and, and find someone that’s accredited and sharp and work.
But, you know, down here they spend a million dollars cash and they just, they, they deal with the person that they saw on the sign and that’s it. And they don’t ask questions. So do your homework, you know, deal with pros and get educated, you know, work with that person to understand, Hey, are you overpaying?
Hey, what does half a million get you? What does a hundred get you? And understand your market, understand your options so that you can make the best decision possible.
Richard Bexon
So I agree. I mean, I think if someone’s not saying anything negative about something and it’s all rainbows and unicorns, as I like to say, be wary for sure, for sure.
David Karr
And just slow it down. And, and, and again, I think we’re going back to seeing that. So, you know, going back to kind of that outlook for 26, I think that there, there will be some opportunities to get a lower price than maybe we’ve seen in the past.
But with that said, I would say if the property is there today that fits what you’re looking for, don’t be afraid to buy that because you, you just may not see another one again, depending on how selective you are.
Richard Bexon
Yeah. So, I mean, you mentioned that when we were talking about, here’s some vacation rentals that get good returns, but in, but in general, I mean, what would, if someone’s looking for an investment or return in your market, where, where would, what would you advise them to do, David? I mean, again, you mentioned that like a million bucks, maybe even more, like, where is the opportunity you think where you’re just like, look, I can see this coming.
It might take a little bit, but like there’s huge opportunity potentially there.
Best-performing product types
David Karr
Specifically in this market, I like five to six bedroom houses, five to six bedroom houses. We’ve seen that even off of the beach in the middle of HACO, they are producing great returns. So imagine what that would do on the beach or closer to the beach or ocean view.
So, and, and, and I think what, what the market has missed is that we have a huge amount of two and three bedroom condos in HACO. That’s what we have the majority of. And then after that, it jumps to eight, nine, 10 bedroom houses that cater towards the larger groups of parties and things of that nature.
Well, what if it’s three couples, right? Or four individuals, and then, you know, they, they don’t, they want a house, but they don’t want an eight bedroom house. They don’t need any bedroom house.
So the huge gap in that, in that smaller section, and also too, from an ROI standpoint, that’s where you can make some numbers crunch, because what happens is we, we have, you know, some clients right now that they’re getting some of these beachfront lots and they’re building big houses because they’re buying big lots. That’s all that’s left. And you get a thousand meters on the beachfront.
Well, you’re not going to put a 2000, 3000 square foot house. And so that’s what ends up happening. So there’s, there’s just not a lot of opportunities to crunch and make that four or five bedroom, six bedroom house.
So if you can land there, you can spend less. And I think you have less competition in the market.
Richard Bexon
Yeah. I mean, look, I mean, it was kind of a loaded question to an extent because, you know, I’m building four, you know, beachfront luxury homes that are, you know, I mean, all in three, $4 million. So we kind of know what’s coming, you know, and there’s only so much titled land and so close.
And I’m surprised it’s taken this long David, to be honest.
David Karr
And I think Richard, that’s a different spot because I think that’s, while, while those are rental opportunities, I think more what that is, is the luxury end user market that we are. And that’s another dead spot that we have, you know, as more and more people. I mean, we have a lot of legacy buyers.
We have a lot of retirees. We have a lot of people that like, look, I don’t want to rent. I want a nice house that I can spend four or five months here.
I don’t want a two bedroom condo. Right. So we don’t have that.
We don’t have luxury end user properties in the area. So, and, and if you see a lot of, you know, a lot of these guys that are building or are building, no, no, I’m building for myself. And, and, and again, that’s where I think that four or five bedroom, six bedroom house is versatile, where if you rent, you can rent to that, that segment of the market, that’s kind of that dead spot, or you can cater because guess what?
The eight, nine, 10 bedroom house, that’s never going to sell to the end user. Yep. It’s always going to sell to the investor.
So, so I’m real, real bullish on that section of the market.
Richard Bexon
When you’ve, you’ve got some nice properties. I mean, Caddo Blanco is, you know, spectacular. I mean, you know, eight beachfront in a private community, not directly in HACO, but like you can be there in 10 minutes that you’re kind of there, but you’re not, if that makes sense.
David Karr
For sure.
Richard Bexon
And some beautiful stuff going there. I mean, look, when we’re designing with the owners of that stuff and the architects is I’m like, look, you need to design as if this will be a vacation rental at some point. And they’re like, well, what do you mean?
And I’m like, big laundry room, if that makes sense. Industrial washer dryer with a 10 bedrooms, like storage areas, like movement for staff, like those kinds of things, you know, what typically is not thought of.
David Karr
Yeah. Yeah, yeah, no, for sure. And, you know, we are seeing pockets of luxury come into the market.
We kind of talked about that, I think last year and now, I mean, Clorida’s is gorgeous. We have, you know, a couple other hotels that have remodeled. So we, we are seeing, and we’ve got what, three houses that are all going to be over probably $2 million builds.
So we are seeing that market emerge. So it’s kind of dark in here, but we’re losing light. I’m not used to going this late.
But yeah, so I’m excited. I think that, you know, we’re continuing to evolve in this area and just kind of change. You know, I always tell people Hakko is still young.
You know, if we’re kind of an adult, I would say we’re 21, 22, we’re, you know, starting to kind of like, all right, now we’re graduating a little bit. And I think that’s what you kind of see with Hakko is like, all right, now we’re getting past, you know, it’s not just a party town, but yeah, there’s people that, that want to spend money here. There’s people that want to be here and not just party.
They want to spend time here. So we’re definitely seeing those changes.
Personal investment preferences and closing
Richard Bexon
Awesome. Well, David, my last question for you is I’ve kept you long enough. And as you said, it’s getting dark.
If you had $500,000 to invest in Costa Rica into a business or real estate, what would you invest it in and why? You can’t give it to me.
David Karr
So, you know what? I’m back to a land grab. I’m back to, in fact, you can help me find it.
I want to get a little farm, something, you know, with sustainable living, have my, you know, in case things get crazy one day, my family compound, something like that. So I’m on, I’m actually on the lookout for that. So if you see anything, let me know.
Richard Bexon
Funny. I’ll take it. Well, there’s a new development.
It’s actually a condominium of agricultural lots, which is pretty interesting. I’ve been buried in Santa Barbara, which I’ve seen that they’re putting all the infrastructure in place. And I’ve been very impressed, stunning views, man.
Anyway, so I’ll send you details on it just because I’m interested of like, you know, I’m at some point going to build my next house. So I just not too sure how far I want to go from the airport, just because I seem to, all I seem to be doing is going to the airport. Yeah.
David Karr
That would be my sweet spot is something by the airport. You know, I’m kind of thinking something as I grow older that I’m going to want to be near, you know, all those important to be near. So for sure.
Awesome.
Richard Bexon
Well, David, it’s been an absolute pleasure getting you here on the podcast and thanks very much for sharing all of your experience and your knowledge with us. And anyone that wants to contact David can, all of his contact details will be in the description down below, but appreciate you taking the time to chat with us, bud. Pleasure.
David Karr
We’ll chat soon.
Richard Bexon
Sounds good, man. Have a good one. Guys, hope you enjoyed that podcast there with David karr.
You know, I mean, I think HACO is a particular market for some people. There is definitely opportunities in that market, you know, on that high end home. We’re actually doing four beachfront homes in that area, which again, as I said, if you’d have contacted me a few years back and said, hey, multi-million dollar homes in HACO, I’d be like, yeah, probably a little bit of a risk, but I had a buddy that did it and built a nine bedroom home there and is doing very, very well with it.
And we’re actually about to build him another six bedroom home. So yeah, just beautiful, stunning, brand new, you know, modern tropical beachfront homes where you can literally just walk out and be on the sand. But if there’s any interest in chatting with David again, all of his contact details are there down in the description down below.
Remember guys, if you are looking to invest in Costa Rica, also real estate, you need a buyer’s rep. You can reach out to us as well. We have some people out here in the office that will help you.
Very impartial. We’ll just give you no BS, no rainbows and unicorns, as I like to say, but just give you the reality of what ownership and investing could be like, and also where you should be investing in the market here in Costa Rica as well, based on the data that we have from tourism and also real estate data and also kind of some trends out there as well. So if there’s any interest, info at investingcostarica.com.
Remember, if you’re also enjoying this podcast, guys, please hit the subscribe button. As I said, we’re 275 episodes in, a lot of effort goes into these. So please give us five stars, write us a review, or if there’s anything, guys, there’s no obligation.
We’re not going to sell you on anything. If you want a hand with anything or just a bit of advice, I’m a sucker for helping people. Just email us info at investingcostarica.com.
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But happy festive guys, happy holidays to everyone and hope everyone has a great Christmas.
Closing
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