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Costa Rica's property market is showing promising signs as of September 2025, with prices stabilizing after a correction period and strong rental demand in key areas. Property prices have rebounded 6.65% year-over-year in 2025 following a significant correction in 2023-2024, making it an opportune time for buyers who missed the previous peak. The market offers attractive opportunities for both investors seeking rental income and individuals looking for relocation or second homes, particularly in coastal regions and the Central Valley.
If you want to go deeper, you can check our pack of documents related to the real estate market in Costa Rica, based on reliable facts and data, not opinions or rumors.
Costa Rica's property market offers good buying opportunities in September 2025, with national average prices at $1,021/m² and regional variations from $500/m² to over $6,000/m² in luxury coastal areas.
The market has stabilized after a 2023-2024 correction, showing 6.65% year-over-year growth in 2025, while offering strong rental yields of 6-17% and improved economic fundamentals supporting long-term growth.
| Region | Average Price per m² | Key Characteristics |
|---|---|---|
| San José (Central Valley) | $1,110-$1,180 | Urban hub, strong rental demand, average home $476,000 |
| Southern Zone (Uvita, Ojochal) | Variable | Strongest growth +42% YoY, average home $893,000 |
| Guanacaste (coastal) | $966-$6,302 | Luxury market, down 31% YoY, average $1.7M |
| Caribbean Coast | $971 | More affordable, infrastructure improvements |
| Other city centers | $500-$1,300 | Alajuela up to $1,598/m² |
| National Average | $1,021 | Up 16.4% from 2023, 40% below 2022 peak |
What are the current average property prices in different regions of Costa Rica?
As of September 2025, Costa Rica's property market shows significant regional variation in pricing, with the national average sitting at $1,021 per square meter.
San José and the Central Valley command the highest prices for urban properties, with houses averaging $1,110-$1,180 per square meter and condos reaching up to $2,343 per square meter. The average home price in this region is $476,000, though this represents a 13% year-over-year decrease from previous highs.
The Southern Zone, including areas like Uvita and Ojochal, has experienced the strongest growth with a remarkable 42% year-over-year increase, pushing average home prices to $893,000. Guanacaste's coastal luxury market shows prices ranging from $966 to $6,302 per square meter, though luxury home averages have decreased 31% year-over-year to $1.7 million.
More affordable options can be found along the Caribbean Coast at $971 per square meter for houses, while other city centers typically range from $500-$1,300 per square meter, with some districts like Alajuela reaching up to $1,598 per square meter.
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How have property prices in Costa Rica changed over the past few years?
Costa Rica's property market has experienced significant volatility over the past few years, following a classic boom-bust-recovery cycle.
Property prices rose rapidly through 2021-2022, reaching peak levels driven by pandemic-era demand and international investment. However, 2023-2024 brought a substantial correction, particularly affecting luxury properties and single-family homes, with median prices for single-family homes dropping by 30-41% in some markets.
The market began stabilizing in late 2024 and has shown positive momentum in 2025. National year-over-year growth reached 8.92% in 2024, followed by 6.65% growth in 2025. Current national average prices remain approximately 40% below the 2022 peak, but this correction has created opportunities for buyers.
Apartments and urban condos have demonstrated more resilience throughout this cycle, especially in San José, while certain regions like the Southern Zone continue to see double-digit gains despite the broader market correction.
What's the current economic outlook and job market situation in Costa Rica?
Costa Rica's economic fundamentals remain strong as of September 2025, providing a solid foundation for property investment.
The country's economy is projected to grow 3.5-4% in real GDP terms for 2025-2026, driven by key sectors including tourism resurgence, digital services expansion, and foreign direct investment in eco-development projects. This growth rate positions Costa Rica favorably compared to many regional peers.
The job market has shown steady recovery following the pandemic disruption, with particular strength in tourism, technology, and construction sectors. These growing industries are attracting both local and international workers, creating sustained demand for housing in urban and tourist areas.
While some rural and luxury markets are still adjusting from previous oversupply issues, the broader economic trajectory supports continued property market recovery and long-term appreciation potential.
Are there any major infrastructure or development projects that could affect property values?
Several significant infrastructure improvements are currently underway across Costa Rica, creating positive impacts for property values in affected regions.
| Region | Infrastructure Projects | Expected Impact |
|---|---|---|
| Southern Zone | Road improvements, internet upgrades | Driving demand and price growth |
| Osa Peninsula | Access road developments | Increased accessibility for investors |
| Caribbean Coast | Port upgrades, road connectivity | Enhanced tourism and commerce |
| San José Metro | Urban infrastructure upgrades | Boosting expat and remote worker inflows |
| Coastal Areas | New marinas and eco-developments | Premium property value increases |
| National | Green building incentives | Accelerating sustainable development |
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How strong is the rental demand in different areas of Costa Rica?
Rental demand across Costa Rica remains robust as of September 2025, driven by tourism recovery and the growing digital nomad population.
Short-term rental demand is particularly strong in coastal and urban markets, with beach areas delivering impressive yields of 7-17% annually and urban areas generating 6-9% returns. Popular destinations like Uvita, Ojochal, Central Pacific regions, and Escazú are experiencing heightened rental demand with low vacancy rates and high occupancy levels.
The combination of international tourism recovery and the influx of remote workers has created sustained demand for both short-term vacation rentals and longer-term housing solutions. Properties in well-located areas with good amenities and internet connectivity command premium rental rates.
Tourist areas benefit from year-round demand due to Costa Rica's stable climate and growing reputation as a sustainable tourism destination, while urban areas like San José attract business travelers and relocating professionals.
What are the current mortgage interest rates and financing options for property buyers?
Financing options for property purchases in Costa Rica are accessible to both residents and foreigners as of September 2025.
Average mortgage interest rates currently range from 7-8.5% for fixed-rate loans, with rates varying based on the lender and currency denomination. USD and Euro-denominated loans typically offer lower rates compared to Costa Rican colón loans.
Foreign buyers have access to both local and offshore bank financing, though most lenders require a 20-30% down payment and proof of income or residency status. Loan terms typically range from 10-25 years, depending on the borrower's profile and property type.
Local banks, international banks with Costa Rican operations, and specialized offshore lenders all provide financing options, making it relatively straightforward for qualified buyers to secure funding for their property purchases.
What taxes, fees, and legal costs should I factor into my property purchase?
Property purchases in Costa Rica involve several mandatory fees and taxes that buyers must budget for beyond the purchase price.
| Fee Type | Rate | Description |
|---|---|---|
| Transfer Tax | 1.5% | Of total sale price |
| Legal Fees | 1-1.25% | Attorney representation |
| Notary/Registration | 0.5-1% | Document processing and registration |
| Escrow Fees | 0.25-0.5% | Transaction security services |
| Annual Property Tax | 0.25% | Of registered property value |
| Capital Gains Tax | 15% | On sale (exemptions available for primary residence) |
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How easy is it for foreigners to buy and own property in Costa Rica?
Foreign property ownership in Costa Rica is straightforward and offers the same rights as local citizens for most property types.
Foreigners face no special restrictions when purchasing property and enjoy equal ownership rights as Costa Rican nationals, except for properties in the Maritime Zone (beachfront concessions) which have special regulations. Most international buyers can purchase property in their individual names or through Costa Rican corporations.
Corporation structures are commonly used for privacy protection and tax efficiency, though they're not required for ownership. The legal process is well-established and transparent, with numerous experienced attorneys specializing in foreign buyer transactions.
Permanent residency is not required for property ownership, though it can be helpful for financing options and extended stays in the country. The entire purchase process typically takes 30-60 days from offer acceptance to closing.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Costa Rica versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the natural disaster risks I should consider when buying property?
Costa Rica's location exposes properties to certain natural disaster risks that buyers should carefully evaluate before purchasing.
Earthquake risk is moderate to high, particularly in central regions and the north Pacific areas due to the country's position along several fault lines. Properties in these areas should meet current seismic building codes and buyers should consider earthquake insurance coverage.
Flooding and landslides pose risks in select regions, particularly the Caribbean coast, Southern Pacific areas, and mountainous regions during heavy rainfall seasons. Proper due diligence includes site evaluation, topographical analysis, and review of historical weather patterns for the specific location.
Hurricane risk remains relatively low since Costa Rica sits outside the main Atlantic hurricane corridor, though the Caribbean coast can occasionally experience tropical storm effects. Professional property inspections, appropriate insurance coverage, and understanding local emergency procedures are essential for any property purchase.
What's the cost of living in different regions where I might buy property?
Living costs in Costa Rica vary significantly by region and lifestyle choices, with urban areas generally more expensive than rural locations.
In San José and the Central Valley, monthly living expenses for a single person range from $1,500-$2,200, while couples typically spend $2,000-$3,500 monthly. One-bedroom apartments rent for $550-$850 per month in these urban areas.
Beach towns like Nosara and Tamarindo command higher costs, with apartment rentals starting around $900 for small to medium units and villas ranging from $2,000-$4,000 monthly. These coastal areas require personal transportation, as public transit options are limited.
Local produce and labor costs remain lower than US or European standards, but imported goods, private healthcare, and international-standard amenities carry premium pricing. Remote coastal or mountain areas may offer lower housing costs but require careful budgeting for transportation and imported necessities.
How competitive is the real estate market right now and how quickly are properties selling?
Costa Rica's property market has become notably more efficient and competitive as of September 2025, representing a significant improvement from previous years.
Average time on market has decreased dramatically, dropping from 591 days to 354 days, representing a 40% reduction year-over-year. This improvement reflects renewed buyer interest, better pricing strategies by sellers, and increased market liquidity following the correction period.
The most competitive areas include the Southern Zone, San José metropolitan area, and select coastal markets in the mid-range price segments. These regions see properties moving quickly due to strong fundamentals and attractive pricing relative to peak levels.
The luxury segment in Guanacaste has become more buyer-friendly following significant price corrections, offering negotiating opportunities for qualified purchasers. Overall market conditions favor prepared buyers who can move quickly on well-priced properties in desirable locations.
Do I have a clear plan for how long I'll keep the property and what I'll use it for?
Successful property investment in Costa Rica requires a well-defined strategy and realistic timeline for your investment goals.
1. **Investment Timeline Planning:** Properties should be purchased with a minimum 5-year holding period in mind, as Costa Rica's market cycles can take several years to complete and transaction costs make short-term flipping uneconomical.2. **Usage Strategy Options:** Consider whether you'll use the property as a primary residence, vacation home, rental investment, or combination of uses, as this affects location choice, property type, and management requirements.3. **Rental Income Potential:** Coastal and eco-tourism areas offer strong short-term rental income, while urban areas provide stable long-term rental opportunities for those seeking consistent cash flow.4. **Exit Strategy Considerations:** Choose regions with strong fundamentals and avoid areas facing potential oversupply or slow price appreciation, particularly in the luxury tourist markets that may take longer to recover.5. **Market Cycle Awareness:** Current market conditions favor buyers, but future appreciation will depend on location choice, property condition, and broader economic factors affecting Costa Rica's growth trajectory.It's something we develop in our Costa Rica property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Costa Rica's property market in September 2025 presents compelling opportunities for both investors and those seeking relocation or second homes.
With prices stabilized after a significant correction, strong rental yields, improving infrastructure, and accessible foreign ownership laws, the timing appears favorable for qualified buyers with clear investment strategies and adequate financial resources.