What happening in the Central Valley Real Estate Market with Mariel Gracia

Mariel Gracia, Real Estate Consultant in the Central Valley of Costa Rica (San Jose, Heredia, Alajuela), and I chat about what is happening in the Central Valley and how it acts and performs compared to the coastal areas of Costa Rica. We chat about where she believes the opportunity is and why families love to…

Key Takeaways from "What happening in the Central Valley Real Estate Market with Mariel Gracia" Episode

  • EP-238

    Episode

  • 00:25:31

    Length

  • March 12, 2025

    Episode Date

  • Central Valley Market Dynamics

    Post-pandemic buyer demographics have shifted from 50/50 local-foreign to 80% Americans

    Three distinct buyer segments: families relocating for 4-20 years, retirees seeking healthcare proximity, and digital nomads

    Central Valley market remains stable without the "fire sale" price reductions seen in coastal areas

  • Value Proposition & Lifestyle Benefits

    Significant price advantage over coastal properties ($250K for 3-bedroom townhouse vs. 1-bedroom at the beach)

    Perfect climate (65-85°F), proximity to beaches, mountains, and urban amenities

    Superior educational options including international schools and American university programs

  • Strategic Investment Recommendations

    Current hotspots: Escazú (expat-friendly, developed), Santa Ana (green spaces), Rohrmoser (urban living)

    Future growth areas: Los Reyes/Guácima (family-friendly), Atenas (retirees), Arenal/La Fortuna (emerging development)

    Consider the 30-minute commute rule when investing to account for increasing traffic challenges

Costa Rica Central Valley: Investment Hotspots and Market Trends with Mariel Gracia

Host:
Richard Bexon

Real estate expert Mariel Gracia reveals why American buyers are flocking to Costa Rica's Central Valley, offering superior value with $250K townhouses versus beach condos at the same price. Learn about top investment areas including Escazú, Santa Ana, and emerging hotspots like Los Reyes and Atenas, plus strategic buying tips for families, retirees, and digital nomads in this evolving market.

Introduction

Richard Bexon: Good afternoon, Mariel. How are you doing?

Mariel Gracia: How are you, Richard? Really good, and you?

Richard Bexon: Very, very good. I appreciate you taking time out of what I know is a very busy day for you, and you’ve also become a mother last year, so congratulations, but very much appreciate you taking time to share your knowledge with everybody here on the podcast.

Mariel Gracia: Thank you for your time. I’m happy to share my content.

Costa Rica Central Valley Market Trends

Richard Bexon: Awesome. Well, Mariel, I mean, the first question I’d like to ask is just to give people a little bit of an idea of kind of what’s happening in the market. We’ve seen quite a bit of volatility in Western markets recently. I think that that’s probably here to stay for the foreseeable future. You know, I don’t have a crystal ball, but you know, I think it probably is. But I mean, what are you seeing happening here kind of in the more Central Valley market?

Mariel Gracia: So I am seeing a lot of increase on demand on the Central Valley, and there has been since January a lot of movement and a lot of American Canadians specifically moving to the Central Valley, honestly, like never before because of their political situation, regardless of what party they’re from. But also, I think more foreigners are investing on the Central Valley because it has amenities that the coast doesn’t, like hospitals and more private schools. So that makes the Central Valley more appealing right now.

Richard Bexon: Yeah. I mean, I think people just need to understand. I mean, the climate here is spectacular. I mean, I live up here in the Central Valley. We’re talking here, guys. There’s basically by the San Jose Airport, we have like San Jose, Areria, Catargo, Aleguela and the mountains around it. And you can literally get majority of climates that you want by just going higher or going lower.

Mariel Gracia: There are so many microclimates within a 20 minute drive, which is very interesting. But I’m also starting to see. So originally, I have always sold specifically Escazú and Santana, like only those two cities. We also cover as a company more areas within the Central Valley. But now our clients don’t want only to live in Escazú and Santana. They are exploring further areas such as Atenas, Ciudad Colón or Los Reyes. So it’s getting very interesting.

Richard Bexon: Yeah. I mean, I think it’s kind of just all pushing out west, if that makes sense.

Mariel Gracia: Correct. I would say in terms of the Central Valley, when it comes to foreigners, they always prefer the west side of the Central Valley, like you’re saying. And the east side, like Corrida, Monteran area is more for the Costa Rican families.

Geographic and Cultural Distribution

Richard Bexon: Yeah. Yeah. Yeah. I mean, I definitely agree. I think the eastern side of San Jose is very much more, I’d say Costa Rican families, but has a Costa Rican flavor as well. I mean, but you’ve got like Barrio Escalante over there, which is very hip as well. Some great restaurants. I mean, I think some of the best restaurants are probably in that part of the city.

Mariel Gracia: I think so, too. The cuisine there, it’s amazing.

Richard Bexon: Yeah. So, I mean, basically, you’ve seen a lot more demand kind of, I suppose, post-November here in the Central Valley. And is it more families are doing that demand? Are they looking to relocate here or investors or?

Mariel Gracia: It’s a combination, I would say, of three specific niche markets. So the first and most like bigger niche market would be families that are moving long term, let’s say from four years to 20 years, that have small kids. So they’re putting them in private schools within the Central Valley. Then I would say the second most important niche is older couples that are around 60 years plus that want to retire in the Central Valley, but close to hospitals like SEMA or Clinica Iulica. And then another niche, which is not that popular, but I’m starting to see clients invest with this scenario would be like young couples that are in digital moments. They want to live in the city because they feel that they have more amenities and more services than in the beach.

Central Valley vs. Coastal Market Comparison

Richard Bexon: Yeah. And how recently has the market behaved in the Central Valley as a beach? Because, you know, at the beach, I’m seeing words like price reductions, even a couple of fire sales, even though they’re not fire sales, if that makes like those words a year ago were not being used. You know, now they are. I mean, is any of that reaching the Central Valley or not really?

Mariel Gracia: To be honest, not really. There’s always a 10 to 15 percent margin of negotiation when it comes to a sale. But I wouldn’t say that we’re on the fire sale phase yet, to be honest.

Richard Bexon: And I mean, you know, typically buyers in the Central Valley, I mean, what percent would you say are local? Is it like 90 percent locals and 10 percent I mean, how does your mix of clientele look?

Mariel Gracia: So from on the pandemic, it was like 80 percent foreigners, 20 percent Costa Ricans.

Richard Bexon: Yeah.

Mariel Gracia: That post pandemic, it was like 50 50.

Richard Bexon: Yeah.

Mariel Gracia: But right now we’re seeing a swap. And I was talking to that with my colleagues where I would say 80 percent of the clients are Americans, specifically from the United States. So it’s very interesting. Well, I mean, I have a projection and a gut feeling that it’s going to remain the same until the end of the year.

Value Proposition of Central Valley Properties

Richard Bexon: Yeah. Well, I mean, there’s great value in the Central Valley for properties as well. I mean, you know, the beach is very expensive, whereas here in the Central Valley is I mean, there are wide options from one hundred and fifty thousand dollars up to, you know, millions and millions, of course. I agree. You know, so, yeah, it’s a wider gambit. And at the beach for one hundred and fifty thousand dollars, you don’t really get much at all.

Mariel Gracia: No, it’s very interesting because in, for example, in San Jose, you can easily get a three bedroom townhouse with a nice garden for two hundred and fifty thousand dollars. So that’s great value on the beach that would get you a one bedroom apartment or a loft.

Richard Bexon: Yeah, definitely. Definitely. Well, I mean, you know, I think it’s interesting for anyone listening here is just because, you know, living here in the Central Valley is great because the climate is like sixty five to eighty five, you know, sixty five at night, eighty five during the day. If you want to be at the beach in an hour and a half, you can be at the closest beach. If you want to be in the jungle, I mean, literally probably within 20 minutes you could be there. If you want to be in the mountains, 20 or 30 minutes like it really offers everything. Great schools, international baccalaureate, American high schools, you know, and all the facilities of living in a big city basically without feeling like you’re in a city, because I don’t think people understand of like, OK, there’s four million people in the Central Valley, but like it’s not like that’s all spread out. Like you go 30 minutes out and like you can not have neighbors if you want to.

Mariel Gracia: It is. It’s so interesting because not only that sense of of uniqueness and exclusivity, but I also think it’s so like it’s so appealing to foreigners, but also to Costa Ricans, because you can if you want, you never get bored. You can easily take a road trip on the weekends and go to a waterfall or go to the forest. So it offers like the best of both worlds, a little bit of city, but it’s also a very cozy part of the country.

Investment Considerations

Richard Bexon: Yeah, yeah, I agree. Do you think I mean, a lot of people look to Costa Rica to invest as well. A lot of people are trying to diversify out. Do you think it’s more it’s a better, I would say, investment to invest in the Central Valley compared to the beach areas or what are the opportunities? Where do you think those opportunities lie?

Mariel Gracia: I think if you have a family now that I’m a mom, I would definitely invest in the Central Valley and set up the coast because I truly believe we definitely have a better standard of education, of higher education. So I would really invest in the Central Valley right now. Actually, today I had a closing and I was talking to the buyers that were also starting to see universities from abroad, like the University of Texas is in Escazul and the students graduate with an American diploma. So that’s another great option.

Richard Bexon: Yeah, I agree. I agree. I mean, it’s I mean, you have to really come down to the Central Valley just to understand how metropolitan it really is. You know, if you want, you know, New World, you can have New World. If you want old Tico World, you can have old Tico World. Like there’s a mix of everything here.

Mariel Gracia: Right. And I also I also think it’s so important that before any client buys a property, they sit down with their agent or just sit down as a family and check their priorities, because if they are nature lovers and love the ocean, clearly they should invest in the coast. Yeah. But if they want to be to have like a social gatherings and go out at night to nice restaurants, I think the city is the best option.

Financing Options in Costa Rica

Richard Bexon: Mariel, this question always comes up from people looking to move or invest in Costa Rica, like. And maybe it’s easier in the Central Valley, like is it easier to get financing on properties for foreigners in the Central Valley than at the beach?

Mariel Gracia: Not as easy, but there are options like, for example, Banco General. The general manager is a really good friend of mine and they will finance foreigners.

Richard Bexon: Yeah.

Mariel Gracia: If you have a corporation here. So I do know a lot of like a lot of entities that will finance foreigners.

Richard Bexon: OK. Yeah. I’ve always wondered, like, is it easier in the city than it is at the beach? Because, again, you know, sometimes if the bank did have to foreclose on a property, it would be a little easier to do that in the city and then resell it because the local market is pretty strong here.

Mariel Gracia: So another phenomenon I’m seeing right now, which is pretty common, it’s like the fourth case I’m seeing within a month is that there is so much demand in the city that owner financing is becoming very normal.

Richard Bexon: Yeah.

Mariel Gracia: And a lot of clients prefer that because the owner financing like PERC is that it’s given fixed rate for the time frame being. So that’s very interesting.

Current and Future Investment Hotspots

Richard Bexon: Yeah. What are the areas of the Central Valley that are doing really well at the moment? You would be like, look, that’s a good place to invest. And then I’m going to ask you the same question of like in five years, like where would you be investing for five years?

Mariel Gracia: Excellent. So right now, I think the the top three cities to invest are first, Escazú.

Richard Bexon: Yep.

Mariel Gracia: I think that’s the most developed city within the Central Valley. And it has a very expat feeling. So most of my clients buy in Escazú. Second, Santana. I think the beauty of Santana is that it’s developed, but it also has a lot of green areas. So if you’re looking for a garden and green area, that’s a place to invest. And third, I would say Romaser and Savannah. It’s the surroundings of the National Stadium. That’s like for urban lovers or for vertical rise living. But that’s the place to be.

Richard Bexon: And not those three areas. I mean, if you were investing for the long term, where would you be investing?

Mariel Gracia: Believe it or not, I love Los Regis, which is this gated community in Guasima. I think Guasima, it’s up and coming. So I would invest there. There’s nice, like big amount of land for a good price. So I think that we’ll have a lot of appraisal. And I also believe Atenas will have a lot of appraisal in the short medium term range. Because Atenas is known for having the best climate in the country. And it also has that expat community, but it has this huge area of green space.

Richard Bexon: But I mean, would you move a family to Atenas? Or do you think it’s more kind of retirees? Because it’s been known as like a retiree destination, right?

Mariel Gracia: I think Atenas would be for retirees or for older couples. Then for families, I would definitely move with my daughter and my partner to Todos Regis. I think that’s a family community. It’s five minutes away from country school. So it’s a good option.

Location and Commuting Considerations

Richard Bexon: Yeah. No, I mean, look, I owned a lot in Los Manzanos for years, Mariela. We were going to move out there. It’s just that sometimes the traffic getting in and out. And I have two good neighbors. My neighbors are great. So in the end, we just decided, okay, I’m just going to build into my garden a little bit and kind of extend the house. But I agree, Los Reyes, Esmeralda, all those areas out there are just absolutely beautiful. Because like, again, you can be in the city in 20, 30 minutes. You have all the schools out there. Like you don’t really ever need to leave if you don’t want to.

Mariel Gracia: Right. And that takes me to another point that I wanted to share with you, which is traffic is becoming heavier. That’s a reality. But something that I always tell to potential clients or to friends is invest on a maximum 30 minute drive radio from your work. Yeah. That’s my number one tip. Like if you work in Escazú, it doesn’t make a lot of sense to move to Los Reyes, right? Because it can take you an hour. So always invest where your social circle is, but also where you work.

Richard Bexon: Yeah.

Mariel Gracia: So it’s easier to commute.

Emerging Areas for Development

Richard Bexon: Which areas of the country do you think are going to see the most development? Well, let’s just say around the Central Valley area, because Grecia is moving pretty fast at the moment because we have the free trade zone going out there. San Ramon maybe is getting, because it keeps kind of moving out a little bit. I mean, which of the areas that you think, you know, that I would say for any of the speculative investors out there, because like Los Reyes is established and like non-established areas, which areas would you say, you know, you could take a punt on those?

Mariel Gracia: I would definitely bet on, believe it or not, on Arenal. Arenal is getting, they are investing so much in infrastructure, close to La Fortuna, but also the outskirts. And I would also say the outskirts of Chiripo. A lot of clients of mine from Europe are moving there and they’re building community and restaurants. So I would be putting my money on those assets. Those are the top cities.

Richard Bexon: I did not pay you to say Arenal, because again, we have a lot of investments in Arenal. But look, I agree. I mean, one that keeps coming on my radar is Monteverde. So next week I’m going to Monteverde to scout out and kind of take a look at some stuff, you know, because I mean, you know, I have an investment fund and we sit on, you know, millions of dollars of cash and I’m always looking to kind of develop, I would say, cool stuff. Like I just don’t want to develop land. I want to kind of build cool stuff and change kind of the face of, I would say, tourism and construction a little bit in Costa Rica, even though I annoy the crap out of the architects, I’m sure. But yeah, I agree with you on La Fortuna.

Coastal Market Observations

Mariel Gracia: And you didn’t ask me, but I personally think because I like to research the whole country, right, as a macro scale. Before, like on the past five years, the common destination for coastal investment was Guanacaste, like Tamarindo, Papagayo. But I think right now, the place that people want to live is Manuel Antonio. Yeah, like that’s what I’m seeing and what I am perceiving because it’s closer to the city and that’s more appealing. It’s only a three hour drive.

Richard Bexon: But I mean, the problem with, I see the problem with Manuel Antonio, Mariel, because we’re invested there as well. And again, this is not a paid advertisement and I’ve not even, I don’t think Mariel is even aware, but like there’s not that much land, if that makes sense, like out the back of Manuel Antonio, there is as you get out towards Quepos and all that kind of Managua and everything out there. But like in Manuel Antonio, I mean, it literally is a mountain and like there’s not that much land available.

Mariel Gracia: That’s true. But that’s when you’re going to start seeing a lot of resales. Yeah. Like something that we’re starting to see here, it’s that, believe it or not, here in the Central Valley, you have a lot of, you have a lot of product, you have a lot of listings compared to the coast, which you have a limited portfolio. But something I’m starting to see and we’re facing right now is that clients wanting this specific product that maybe we don’t have enough. So we’re knocking on doors of previous sales we did to see where our clients from the past want to resell.

Market Needs and Developer Opportunities

Richard Bexon: Yep. Well, I’ve got a, I’m actually having lunch with Scott tomorrow because I’m like, Scott, what do you want me to buy and remodel? Like, tell me what you want me to do. So I always ask that question to anyone in real estate of like, what do you wish that you had? You know, because a lot of the time I’ll go and develop it, but typically I’m asking tourism, what do you wish that you had? And, you know, and then we go and do it. But I’m also want to ask the realtors and be like, what do you wish you had?

Mariel Gracia: If I can give you my feedback.

Richard Bexon: Yeah. I’d love it.

Mariel Gracia: But my clients want, and I, what I wish we had as a country from a realtor’s point of view, I think we need more one level homes because everything is becoming vertical, but my clients that want to retire here cannot have staircases. Yep. So I think that’s what we need. We need one level layout without semi-stairs. And I think developers should focus on that. I know it’s more expensive because vertical clearly.

Richard Bexon: Not always though. I mean, yes, a little bit, but sometimes not, you know, if it’s done properly. So, but, but yeah, it’s, it’s, it’s, I got a sense that this year is going to be interesting, Mariel, but just because I think the pieces are going to continue to move. If that makes sense as they have done over the past couple of years until we find some form of settling, but I don’t know what that settling looks like or when it’s going to happen.

Mariel Gracia: I think so too. I think Costa Rica is getting well-positioned worldwide speaking.

Tourism and Visitation Trends

Richard Bexon: And I think a lot of people will come here. We finally got the ICT arrival numbers for January. And I think we were only down, like, I think it was like a percent or something, 1.4%. It wasn’t that much. And from North, from North America, Canadians was the biggest drop, but like, you know, the U S didn’t, it was a 0.4%. I think, I think we were down from Europe, like 9%. But, you know, there’s a lot of things happening in Europe at the moment with elections and everything as well, but pretty interesting that in January from the United States, we did not see quite the opposite. We read, you know, we went up a little bit.

Mariel Gracia: Wow. That’s amazing.

How Would You Invest $500,000 Inheritance in Costa Rica?

Richard Bexon: So, yeah, I was, I was expecting to see the numbers actually a little worse because, uh, you know, when they take 20 odd days to come out, usually the ICT is like polishing them a little bit. So, uh, so yeah, we’re going to dive a little bit deeper into those numbers and see what’s happening there, but Mariel, I’ve kept you long enough. So my last question for you, which I’d love to ask everyone, if you inherited $500,000 and you had to invest it into a business or into real estate in Costa Rica, what would you invest it in and why?

Mariel Gracia: I would buy, um, I would buy land in Guanacaste from a developer. I know that sells, um, the parcels, like a 5,000 square meter parcel for 50K. I would buy like four and then build a house in each one of them and rent them an Airbnb because clearly I believe in real estate because that’s what I do. I like things that I can touch that are solid. And I, and I think that Costa Rica will have great appraisals. So yeah, property management is the way to go.

Richard Bexon: Whereabouts in Guanacaste are those lots, Mariel, if you don’t want me asking.

Mariel Gracia: Those lots, they have different projects, but they are in Miramar, close to Liberia and they are an ocean view.

Richard Bexon: Wow. Wow. Beautiful. Well, Mariel, I very much appreciate your time and sharing all of your knowledge and expertise with us here on the podcast. Anyone that wants to contact Mariel, I’ll put all of the contact details down in the description, but very much appreciate you joining us on the podcast.

Mariel Gracia: Thank you so much for your time. You have a lovely week.

Richard Bexon: You too. Bye.

Mariel Gracia: Thank you.

Richard Bexon

Managing Director

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