The housing market in Costa Rica has been picking up steam in 2014, particularly in the Central Valley and the sprawling Greater San Jose Metropolitan Area (Spanish initials: GAM). The real estate sector, both commercial and residential, enjoyed strong performance in the bottom half of 2013, and the rising middle class seems to be in a hurry to own a piece of the GAM. This urgency is leaving the door wide open in smaller markets such as Playas del Coco in the province of Guanacaste.

As we head into the green (rainy) season in Costa Rica, a marked contrast in pricing and demand is emerging between certain markets. Higher prices in the GAM and certain upscale subdivisions along the Gold Coast in the province of Guanacaste are creating excellent opportunities in Playas del Coco, a community where cozy apartments and quiet beach condos can still be found for less than $50,000. Such prices are unheard of in the bustling GAM or in the tourist magnets along the Central Pacific Coast.

In a lengthy December interview with former legislator, Minister of Culture (before ICT), Cornell graduate and respected analyst Luis Manuel Chacon Jimenez, Diana Salas of business weekly El Financiero elicited sharp observations on the state of the real estate market in Costa Rica. Mr. Chacon pointed out that opportunistic investors who swooped down like vultures in the wake of the crash of the financial markets in 2008 found resilient sellers in the Central Valley and beyond. By 2013, however, flexibility had returned to the markets:

It was a great year for foreign investment and business activity. Hot money and speculative investors need not apply; we now have solid real estate opportunities.

We may have [had] a period of uncertainty due to the elections, but it should be smooth sailing after that. The market is absorbing new construction projects nicely, which will turn into stronger demand.

Prices in the Central Valley have been skyrocketing since President Luis Guillermo Solis took office. Consider the average three-bedroom listings in Belen, not far from the new Hard Rock Cafe. At $240,000, these homes in the GAM actually priced higher than these homes in Sarasota, Florida (which, unlike Belen, is a lot closer to the beach).

In Playas del Coco, however, house hunters can still find bargains such as:

• $35,000 for Marina Loft 213, located in a condo with a gorgeous, lagoon-shaped swimming pool and 24-hour security.
• $42,500 for Green Forest 14 in Las Palmas, a studio located almost on the beach and just a short walk away from downtown.
• $45,000 for Ventimiglia 2, a one-bedroom, fully furnished and air-conditioned apartment in a building that features a swimming pool, security and more.
• $40,000 for Cocomarindo 96, a unit in a low-rise condo with a look that resembles Mediterranean villas, featuring a unique swimming pool with wet bar.

Playas del Coco is one of the closest beach towns to the Daniel Oduber International Airport in Liberia (LIR), and it is the most tranquil and affordable of the Gold Coast beaches. What makes it more appealing and affordable than contiguous beaches is the fact that families from the Central Valley have been flocking to this beach for decades before expats arrived. Such was not the case in other spots in Costa Rica, where major resorts and mansions built by expat celebrities and the super wealthy set the pace of the housing market. For the time being, Playas del Coco is one of the few places where home buyers in Costa Rica can still find listings under $50,000.

Investors should keep in mind that development of Playas del Coco is definitely underway, but at more measured and sustainable pace. Real estate activity here is steady rather than speculative. Still, interested home shoppers should not take too long: An uptick in sales is beginning to emerge among oceanfront condos with panoramic views and new construction units.