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Thinking about buying a 3-bedroom apartment in Escazú? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other regions like Santa Ana or Tamarindo where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Costa Rica Property Pack.
Will property prices increase in Costa Rica in 2025?
Yes, property prices in Costa Rica are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Costa Rica remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Costa Rica’s price growth remain strong.
The country's appeal as a tropical paradise with stable governance and a growing expat community continues to attract buyers, making any significant price drops unlikely.
Signals pointing to a property price increase in Costa Rica
Here are some factors suggesting prices could increase:
The ongoing popularity of Costa Rica as a top destination for retirees and expats is expected to continue in 2025, maintaining strong demand for properties, particularly in coastal and tourist-friendly areas.
Costa Rica's stable political environment and favorable property ownership laws for foreigners make it an attractive investment destination, encouraging more international buyers to enter the market.
The country's commitment to sustainability and eco-friendly living is drawing environmentally conscious buyers, which is expected to boost demand for properties in eco-friendly developments.
Infrastructure improvements, such as road expansions and airport upgrades, are set to enhance accessibility to popular regions, potentially increasing property values in those areas.
The growing trend of remote work is leading more individuals to seek properties in Costa Rica, where they can enjoy a high quality of life while working remotely, thus increasing demand.
Signals pointing to a property price decrease in Costa Rica
Here are some factors suggesting prices could fall:
Economic uncertainties, including potential inflation and currency fluctuations, could impact the purchasing power of both local and international buyers, potentially dampening demand.
Rising construction costs and supply chain disruptions could slow down new property developments, limiting the availability of new homes and potentially affecting market dynamics.
If global economic conditions worsen, there could be a decrease in foreign investment, which might lead to a slowdown in property demand, particularly from international buyers.
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If property prices go up in Costa Rica, how much would they increase by?
If real estate prices in Costa Rica were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Costa Rica appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom beachfront condo in Tamarindo for $250,000 today, don't be surprised if it's priced between $257,500 and $267,500 this time next year.
To give you a better understanding, here is a table that shows 7 types of Costa Rican real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 ($) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Beachfront Condo (60 sqm / 646 sqft) | $300,000 | $309,000 | $315,000 | $321,000 |
| Mountain Villa (75 sqm / 807 sqft) | $450,000 | $463,500 | $472,500 | $481,500 |
| Luxury Estate (100 sqm / 1,076 sqft) | $1,000,000 | $1,030,000 | $1,050,000 | $1,070,000 |
| City Apartment (30 sqm / 323 sqft) | $150,000 | $154,500 | $157,500 | $160,500 |
| Eco-Friendly Home (80 sqm / 861 sqft) | $500,000 | $515,000 | $525,000 | $535,000 |
| Gated Community House (150 sqm / 1,615 sqft) | $750,000 | $772,500 | $787,500 | $802,500 |
| Investment Property (50 sqm / 538 sqft) | $200,000 | $206,000 | $210,000 | $214,000 |
Everything you need to know is included in our Property Pack for Costa Rica
If real estate prices go up in Costa Rica, which areas are likely to see the biggest increases?
Today, people who want to move to Costa Rica are looking for natural beauty, modern amenities, and vibrant communities, which Escazú delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Santa Ana has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Costa Rican market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Escazú | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Santa Ana | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Costa Rica. |
| Tamarindo | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| San José | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Nosara | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Jaco | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Puerto Viejo | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| La Fortuna | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Liberia | Medium-High | Its proximity to major tourist attractions, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Monteverde | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Manuel Antonio | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Arenal | High | Upcoming restoration of natural parks and high-profile eco-tourism projects are driving a renewed focus on this central, scenic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Costa Rica?
In 2025, Costa Rica real estate trends focus on eco-friendly homes, beachfront properties, sustainable jungle retreats, and tech-equipped residences—all driving higher demand and prices. Here is a summary.
- Eco-Friendly Homes:
With Costa Rica's strong commitment to sustainability, properties that incorporate renewable energy sources and sustainable materials are highly sought after. These homes appeal to environmentally conscious buyers and are expected to see significant appreciation.
- Beachfront Properties:
Given Costa Rica's stunning coastlines, beachfront properties remain a top investment choice. The allure of ocean views and direct beach access continues to attract both international buyers and locals, driving up property values.
- Sustainable Jungle Retreats:
Properties nestled in Costa Rica's lush jungles offer a unique blend of seclusion and natural beauty. These retreats, often designed with sustainability in mind, are becoming increasingly popular among those seeking a tranquil lifestyle, contributing to their value appreciation.
- Tech-Equipped Residences:
As remote work becomes more prevalent, homes equipped with smart technology and reliable internet connectivity are in high demand. These properties cater to digital nomads and tech-savvy individuals, making them a valuable investment in 2025.
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