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Costa Rica's residential property market in 2025 presents a complex picture of regional corrections and continued growth. After reaching new highs in late 2022, the market has undergone significant adjustments, with national average prices stabilizing at $1,021 per square meter as of June 2025.
Property prices in Costa Rica are showing mixed trends across different regions and property types. While luxury coastal markets experienced substantial corrections of 20-40% from their 2022 peaks, emerging areas like the Southern Zone and certain Central Valley locations continue to appreciate steadily. Foreign investment remains strong at nearly 40% of all transactions, driven by remote work trends and Costa Rica's political stability.
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Costa Rica's property market in 2025 shows selective growth after major corrections, with prices rising in emerging regions while luxury coastal areas stabilize at more accessible levels.
Regional performance varies dramatically, with Guanacaste experiencing 30-40% price drops from peaks while the Southern Zone and Central Valley maintain steady 5-12% annual appreciation.
| Region/Metric | Current Price Range 2025 | 12-Month Change | Market Status |
|---|---|---|---|
| National Average | $1,021/m² | +16.4% from 2023 | Stabilizing after corrections |
| Guanacaste (Tamarindo) | $966-$6,302/m² | -30% to -40% from peak | Correcting, buyer-friendly |
| Central Valley (San José) | $800-$1,110/m² | +4% to +6% | Steady growth |
| Southern Zone (Uvita) | $893,841 avg home | +9% to +10% | Strong appreciation |
| Central Pacific (Jacó) | $230,000 median | +7.5% | Luxury condo demand high |
| Single-Family Homes | $533,647 median | -30% to -41% | Major correction ongoing |
| Land (Select Areas) | Various | +30% | Development potential strong |
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.
How much have property prices increased in Costa Rica over the past 12 months?
Costa Rica's residential property prices have shown significant regional variations over the past 12 months as of June 2025.
The national average price per square meter increased from $877 in 2023 to $1,021 in 2025, representing a 16.4% increase over two years. However, this masks dramatic regional differences occurring throughout 2024 and early 2025.
Single-family homes experienced the most dramatic correction, with median prices dropping 30-41% year-over-year, falling from $907,769 in January 2024 to $533,647 in January 2025. Condominiums saw a more moderate 21% decline in median prices, though luxury coastal condos in tourist areas began rebounding by mid-2025.
Land prices bucked the downward trend entirely, surging 30% in select areas with development potential. This reflects continued investor confidence in Costa Rica's long-term growth prospects despite short-term price corrections in the built housing stock.
It's something we develop in our Costa Rica property pack.
Which regions in Costa Rica have seen the highest property price growth in 2025?
The Southern Zone has emerged as Costa Rica's fastest-growing real estate region in 2025, with annual appreciation rates of 9-10%.
Dominical, Uvita, and Ojochal are experiencing robust demand driven by improved infrastructure access and growing eco-tourism appeal. The average home price in this region reached $893,841, with some sustainable properties appreciating up to 42% as environmentally conscious buyers seek eco-friendly developments.
The Central Pacific region, including Jacó and Herradura, maintains steady growth at 7.5% annually. Luxury condominiums in this area command median prices around $230,000, with particularly strong demand from international buyers seeking vacation rental properties.
Surprisingly, the Central Valley regions of Escazú, Santa Ana, and Heredia posted 9.2% increases in median list prices year-over-year, making them among the most consistent performers. These urban areas benefit from proximity to international airports, quality healthcare, and established expat communities.
What are the current property price forecasts for Costa Rica through 2026?
Property price forecasts for Costa Rica through 2026 indicate selective growth with continued regional divergence.
Coastal regions are projected to see annual appreciation of 5-12%, with the higher end applying to prime beachfront locations in Guanacaste and the Central Pacific. These areas are expected to stabilize in late 2025 before resuming moderate growth as inventory levels normalize.
The Central Valley is forecast to maintain steady 4-6% annual appreciation through 2026, supported by consistent demand from both local buyers and international relocators. San José metropolitan area properties should benefit from continued economic growth projected at 3.5-4.0% annually.
The Southern Zone represents the highest growth potential, with forecasts suggesting 10-15% annual appreciation as infrastructure improvements unlock previously remote areas. The completion of highway upgrades and expanded internet connectivity are expected to drive this outperformance.
Medium-term projections through 2030 suggest nationwide annual appreciation of 6-8%, supported by GDP growth forecasts of 3.1-4.7% and Costa Rica's continued appeal to foreign investors and digital nomads.
Which property types are experiencing the fastest price appreciation in Costa Rica?
Beachfront properties and ocean-view homes are witnessing the most significant appreciation in Costa Rica's 2025 market due to their limited availability and high demand.
Eco-friendly and sustainable homes represent the fastest-growing segment, with properties featuring solar panels, water recycling systems, and energy-efficient designs commanding premium prices. In the Southern Zone, sustainable homes have seen price increases of up to 42%, significantly outperforming conventional properties.
Luxury condominiums in tourist destinations are experiencing strong demand, particularly in the Central Pacific region where they're appreciating at 7.5% annually. These properties benefit from high rental yields of 7-10% driven by robust vacation rental demand.
Land with development potential has emerged as the top performer, surging 30% in select areas. Investors are particularly focused on parcels near planned infrastructure improvements or in emerging eco-tourism zones.
Single-family homes, while correcting significantly from 2022 peaks, are beginning to show signs of stabilization in well-located areas, particularly those offering ocean views or proximity to established expat communities.
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How do current Costa Rica property prices compare to five years ago?
Costa Rica property prices have experienced dramatic appreciation over the five-year period from 2020 to 2025, despite recent corrections.
The national average price per square meter increased by 59.8% over five years, rising from approximately $639/m² in 2020 to $1,021/m² in 2025. This represents substantial real appreciation even after accounting for inflation.
Guanacaste experienced the most spectacular growth, with some areas seeing up to 400% appreciation between 2020 and 2023. Towns like Tamarindo and Playa Flamingo transformed from relatively affordable beach destinations to luxury markets rivaling premium Caribbean destinations.
The Central Valley saw more moderate but steady growth, with San José area properties appreciating approximately 17% over the period. This region's growth was more sustainable, avoiding the dramatic peaks and corrections seen in coastal areas.
Even after the 2024-2025 corrections, luxury coastal properties remain significantly higher than 2020 levels, with most premium beachfront homes still commanding prices 200-300% above their pre-pandemic valuations.
What is driving the current property price trends in Costa Rica?
Foreign investment represents the primary driver of Costa Rica's property price trends, accounting for nearly 40% of all transactions in 2025.
The digital nomad phenomenon and remote work adoption have fundamentally shifted demand patterns. Costa Rica's digital nomad visa program and year-round livability attract buyers from the U.S., Canada, and Europe seeking permanent or semi-permanent relocation options.
Tourism recovery has reached record levels in 2025, with international arrivals exceeding pre-pandemic numbers. This resurgence drives strong demand for vacation rental properties, particularly in coastal regions where rental yields of 7-10% are achievable.
Limited land supply in prime locations creates natural scarcity, especially in beachfront areas where environmental protections restrict new development. The Greater Metropolitan Area faces similar constraints due to urban growth boundaries.
Economic stability plays a crucial role, with GDP growth of 4.0% in 2024 and projected 3.5% in 2025 supporting domestic purchasing power. Costa Rica's political stability and strong property rights for foreigners provide additional confidence for international buyers.
It's something we develop in our Costa Rica property pack.
How do Costa Rica's current mortgage rates and financing options affect property prices?
Current mortgage rates in Costa Rica are influencing property price dynamics through both accessibility and market segmentation effects.
Interest rates on housing loans in national currency averaged 7.92% in June 2024, down 1.61 percentage points from June 2023 as the Central Bank reduced its policy rate. Foreign currency loans averaged 7.88%, showing the narrowing gap between colón and dollar-denominated financing.
The average home-purchase loan application is for ₡48 million (approximately $88,000), according to the Costa Rican Banking Association. This relatively low average reflects the challenge many buyers face in qualifying for larger mortgages, contributing to demand concentration in cash transactions.
Foreign buyers typically rely on cash purchases or financing from their home countries, as local banks require significant income documentation and often limit loan-to-value ratios for non-residents. This cash-heavy market contributes to price resilience in prime locations.
Only 11.8% of Costa Rican households carry mortgages, with 9.1% on primary residences and 2.7% on investment properties. This low mortgage penetration means price movements are less sensitive to interest rate changes than in more leveraged markets.
What impact are foreign buyers having on Costa Rica's property market in 2025?
Foreign buyers are fundamentally reshaping Costa Rica's property market in 2025, representing nearly 40% of all real estate transactions.
American buyers dominate the foreign segment, accounting for approximately 58% of international purchases, followed by Canadians at 10% and Europeans (Germany, France, UK) at 3% each. This concentration creates distinct market dynamics in different regions based on buyer preferences.
Digital nomads and remote workers represent a growing subset of foreign buyers, seeking properties that combine lifestyle amenities with reliable internet infrastructure. This group particularly drives demand in the Southern Zone and certain Central Valley locations offering both natural beauty and connectivity.
Vacation rental investors from abroad are significantly impacting coastal markets, with properties generating 7-10% rental yields in prime tourist areas. Short-term rental demand increased 24% by 2024, further fueling foreign investment in hospitality-oriented properties.
The cash-purchasing power of foreign buyers creates price floors in desirable areas, as international buyers often compete with limited local financing options. This dynamic is particularly pronounced in beachfront markets where environmental restrictions limit supply.
We made this infographic to show you how property prices in Costa Rica compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Are property prices in Costa Rica outpacing inflation and local income growth?
Property prices in Costa Rica are significantly outpacing both inflation and local income growth, creating affordability challenges for domestic buyers.
With property prices increasing 16.4% nationally over two years while inflation averaged only 0.5% in 2023 (down from 7.9% in 2022), real estate appreciation far exceeds cost-of-living increases. This disparity is even more pronounced in coastal areas where prices doubled or tripled over five years.
Local income growth has not kept pace with property appreciation, contributing to the increasing foreign buyer dominance. The average Costa Rican household income struggles to support mortgage payments on properties priced above the national average of $1,021/m².
This dynamic has created a two-tier market where international buyers with foreign currency purchasing power compete for prime properties, while domestic buyers increasingly focus on more affordable inland regions or smaller properties.
The rental market reflects these pressures, with rental demand increasing 8.8% in 2023 as homeownership becomes less accessible for middle-income Costa Ricans. Higher-income families increasingly rent while using capital for investment properties rather than primary residences.
What are the best-performing property investment areas in Costa Rica for 2025?
The Southern Zone emerges as Costa Rica's top-performing property investment region for 2025, offering the optimal combination of growth potential and value.
| Region | Investment Highlights | Annual Appreciation | Key Advantages |
|---|---|---|---|
| Southern Zone (Uvita, Dominical) | Eco-tourism growth, infrastructure improvements, sustainable development focus | 9-10% (up to 42% for eco properties) | Highway upgrades, international airport access, environmental appeal |
| Central Pacific (Jacó, Herradura) | Established vacation rental market, luxury condo demand, proximity to San José | 7.5% | Mature tourism infrastructure, consistent rental yields 7-10% |
| Central Valley (Escazú, Heredia) | Stable growth, expat communities, medical tourism, urban amenities | 4-6% | International schools, healthcare facilities, airport proximity |
| Guanacaste (Select Areas) | Post-correction buying opportunities, luxury market stabilization | 5-12% (recovering from corrections) | Established luxury infrastructure, international airport, beaches |
| Caribbean Coast (Puerto Viejo) | Emerging market, cultural uniqueness, adventure tourism growth | 8-12% projected | Underdeveloped potential, unique Afro-Caribbean culture, lower entry prices |
How does Costa Rica's property market compare to other Central American countries in 2025?
Costa Rica's property market commands premium pricing within Central America while offering superior stability and growth prospects compared to regional competitors.
Costa Rica's coastal properties range from $2,100-$6,300/m² in prime areas like Tamarindo and Nosara, significantly exceeding Panama's comparable coastal markets at $1,750-$2,500/m² and rivaling Mexico's Riviera Maya at $2,000-$3,500/m². This premium reflects Costa Rica's established eco-tourism brand and political stability.
Rental yields in Costa Rica's coastal regions of 7-10% compete favorably with Panama's 6-8% and Mexico's 6-8%, while offering greater regulatory stability and environmental protections that preserve long-term value.
Foreign buyer protections in Costa Rica surpass most regional competitors, with constitutional property rights for foreigners and established legal frameworks. This contrasts with some Central American countries that restrict foreign ownership or lack robust legal enforcement.
GDP growth projections of 3.5-4.0% for Costa Rica exceed most regional averages, while political stability metrics consistently rank Costa Rica among Latin America's top performers. These fundamentals support sustainable property value appreciation compared to more volatile regional markets.
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.
Yes, property prices in Costa Rica are going up, but with significant regional variations and selective growth patterns.
While luxury coastal markets experienced substantial corrections from 2022 peaks, emerging regions like the Southern Zone and sustainable property segments continue robust appreciation of 9-15% annually, supported by strong foreign demand and infrastructure improvements.
Sources
- Costa Rica Law - Real Estate Market Prices 2025
- The Latinvestor - Real Estate Market Analysis
- The Latinvestor - Costa Rica Real Estate Market
- Coldwell Banker - Regional Comparison Guide
- Global Property Guide - Price History
- Dominical Realty - Market Report
- Coldwell Banker Samara - 2025 Trends
- Statista - Market Forecast