Authored by the expert who managed and guided the team behind the Costa Rica Property Pack
Everything you need to know before buying real estate is included in our Costa Rica Property Pack
Costa Rica's property market in 2025 shows strong recovery momentum after significant price corrections in 2022-2023.
The national average price of $1,021/m² represents a 16.4% increase from 2023, though still 40% below peak levels. Regional variations are substantial, with the Southern Zone leading growth at 42% year-over-year, while Guanacaste luxury properties continue adjusting downward by 31%. International buyers represent 40% of all transactions, driving demand in coastal and eco-tourism focused areas.
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 is experiencing strong recovery with 16.4% national price growth in 2025, led by the Southern Zone's 42% surge and stable 8% rental yields.
International buyers drive 40% of transactions, focusing on eco-tourism properties and urban condos, while government infrastructure projects and Golden Visa programs support continued growth.
| Region | Avg Price/m² | YoY Change | Rental Yield | Key Property Types |
|---|---|---|---|---|
| San José | $2,343 | +12% | 8.35% | Urban condos, apartments |
| Central Valley | $1,180 | +5% | 7.2% | Single-family homes |
| Southern Zone | $893 (avg house) | +42% | 9.5% | Eco-lodges, mountain homes |
| Guanacaste | $2,221 | -31% | 8.8% | Beachfront condos, villas |
| Caribbean Coast | $971 | +4% | 7.1% | Eco-properties |
| National Average | $1,021 | +16.4% | 7.84% | Mixed residential |
What's the current average price per square meter in Costa Rica, and how has it changed over the past 12 months?
As of September 2025, Costa Rica's national average property price stands at $1,021 per square meter, representing a strong 16.4% increase from 2023 levels.
This recovery follows the significant market correction of 2022-2023, with current prices still approximately 40% below the 2022 peak. The growth varies dramatically across regions, with urban San José leading at $2,343/m² (up 12% year-over-year) and the Central Valley maintaining steady growth at $1,180/m² (up 4-6%).
The Southern Zone has experienced the most dramatic appreciation, with average house prices reaching $893,000 and showing 42% year-over-year growth. This surge is driven by new infrastructure developments and the growing eco-tourism sector in areas like Uvita and Ojochal.
In contrast, Guanacaste's luxury market continues its correction phase, with prices at $2,221/m² but down 31% year-over-year as the market adjusts from previous overvaluation. The Caribbean Coast presents emerging opportunities at $971/m² with modest 3-5% annual growth.
It's something we develop in our Costa Rica property pack.
Which regions or cities are seeing the fastest short-term price growth right now?
The Southern Zone dominates short-term growth with an exceptional 42% year-over-year increase, making it the fastest-growing region in Costa Rica's property market.
This growth centers around Uvita and Ojochal, where new infrastructure projects and eco-development initiatives are attracting both international investors and local buyers. The region benefits from improved road access and growing recognition as a sustainable tourism destination.
San José's urban apartment market follows with 12% year-over-year growth, driven by strong rental demand from expatriates, digital nomads, and young professionals. The capital's condo market particularly benefits from Costa Rica's growing reputation as a remote work destination.
The Caribbean Coast represents an emerging growth market with 3-5% annual increases, positioning itself as the next hotspot for eco-tourism investment. Areas like Puerto Viejo and Limón are attracting buyers seeking lower entry prices with strong appreciation potential.
Meanwhile, traditional beach markets in Guanacaste are experiencing stabilization rather than growth, creating opportunities for value-conscious buyers as prices adjust to more sustainable levels.
Which areas are projected to grow the most over the next three to five years?
Market forecasts indicate annual national appreciation of 5-12% through 2030, with coastal and tourism-focused markets expected to outperform the upper range.
The Southern Zone and Caribbean Coast are projected to lead long-term growth, supported by emerging eco-tourism infrastructure and lower current valuations compared to established beach markets. These areas benefit from government infrastructure investment and increasing international recognition.
Guanacaste and Central Pacific regions are expected to stabilize and recover from recent corrections, with strongest growth projected in previously underpriced or emerging areas rather than established luxury enclaves. Recovery will be gradual but sustainable.
San José's urban market should maintain steady 6-8% annual growth, supported by Costa Rica's expanding service economy and continued immigration of remote workers and retirees. The Central Valley's suburban markets will likely track national averages with 5-7% annual appreciation.
Infrastructure projects, particularly improved coastal access roads and the expansion of renewable energy networks, will drive appreciation in previously remote but scenic areas throughout the country.
What are the most in-demand property types in each key region?
| Region | Most In-Demand Type | Price Range | Key Features | Target Buyers |
|---|---|---|---|---|
| San José | Urban condos & apartments | $150,000-$350,000 | Modern amenities, security | Digital nomads, professionals |
| Central Valley | Gated community homes | $450,000-$600,000 | Family-friendly, expat services | Retirees, families |
| Guanacaste | Beachfront condos | $250,000-$600,000 | Ocean views, rental potential | Vacation home buyers |
| Southern Zone | Eco-lodges & mountain homes | $300,000-$800,000 | Sustainability features | Eco-investors, lifestyle buyers |
| Caribbean Coast | Sustainable housing | $150,000-$400,000 | Environmental integration | Eco-conscious buyers |
| Manuel Antonio | Luxury villas | $1,000,000+ | Premium locations, views | High-net-worth investors |
| Santa Teresa | Boutique developments | $400,000-$900,000 | Surf proximity, modern design | Lifestyle investors |
Don't lose money on your property in Costa Rica
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How does the rental yield compare across different regions and property types?
Costa Rica's national average rental yield stands at 7.84% gross as of Q2 2025, representing one of the stronger yields in Central America.
San José leads with 8.35% average yields, reaching up to 9.23% for well-located 3-bedroom condos in prime districts. The capital benefits from consistent rental demand from expatriates, digital nomads, and local professionals seeking modern amenities.
Beach towns typically deliver 7-10% yields for long-term rentals, but short-term vacation rentals in tourist hotspots can achieve up to 17% gross yields. Areas like Tamarindo, Manuel Antonio, and Santa Teresa command premium rates during peak season.
The Central Valley suburbs (Santa Ana, Escazú, Heredia) generate 6.98-8.37% yields for apartments, with furnished properties and short-term rentals commanding significant premiums over unfurnished long-term leases.
Land investments don't provide traditional rental yields but show 10-15% annual appreciation potential near major infrastructure projects, making them attractive for medium-term capital appreciation strategies.
What are the current sales volumes, and how do they compare to last year?
Costa Rica's property sales volume surged 30.77% year-over-year in early 2025, indicating strong market recovery and renewed buyer confidence.
This significant increase stems from the combination of price corrections making properties more affordable and increased international buyer interest. The market has found a sweet spot between attractive pricing and quality inventory availability.
Inventory levels increased 15-24% year-over-year, providing buyers with substantially more choices than in previous years. Active listings rose 16.19%, creating a more balanced market dynamic between buyers and sellers.
Average days on market dropped dramatically by 42%, from 593 days to 342 days for homes, demonstrating that well-priced properties sell much faster than during the correction period. This indicates pricing has reached market-clearing levels in most regions.
Condo sales present a mixed picture, with inventory up 4.8% but sales volume down 31%, suggesting greater buyer selectivity in the apartment segment. Single-family homes show median prices down 25.3% but increased buyer activity at current price levels.
Which areas currently have the highest inventory and longest selling times?
Guanacaste's luxury segment currently maintains the highest inventory levels and longest selling times, as the market continues adjusting from previous overvaluation.
High-end properties in established beach towns like Tamarindo and Nosara often require 8-12 months to sell, particularly for properties priced above $1.5 million. This creates opportunities for buyers willing to negotiate on premium properties.
The Central Valley's mid-range housing market ($300,000-$500,000) shows moderate inventory levels with 4-6 month average selling times. Properties in this segment benefit from steady expat demand but face competition from new construction.
Urban San José has the shortest selling times at 2-4 months for well-priced condos under $250,000, reflecting strong rental investment demand and limited quality inventory in prime locations.
Rural properties throughout the country typically require 6-10 months to sell, depending on location and accessibility. Properties with unique features like water access or mountain views sell faster than standard rural homes.
What's the typical budget range for buyers in the main markets, and what does it get you?
Budget expectations vary significantly across Costa Rica's diverse property markets, with entry points ranging from $100,000 to $250,000 depending on location and property type.
In San José, Escazú, and Santa Ana, apartments range from $150,000-$350,000, while single-family homes typically cost $450,000-$600,000. Luxury properties in these areas start at $800,000 and can exceed $2,000,000 for premium locations.
Coastal regions including Guanacaste and the Southern Zone see condos and apartments priced between $250,000-$600,000, with luxury villas and beachfront properties ranging from $1,000,000 to $5,000,000 for the most exclusive locations.
Central Valley rural and town properties offer the most affordable entry points, with older homes or renovation projects available for $100,000-$250,000, particularly outside main expat enclaves.
For perspective, $150,000-$250,000 will secure a quality 1-2 bedroom condo in San José's prime areas, while $400,000+ is needed for modern family homes in the best expat suburbs with full amenities and services.
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.
Where are international buyers most active, and what are they purchasing?
International buyers represent 40% of all Costa Rican real estate transactions in 2025, making them a dominant force in the property market.
Guanacaste leads international buyer activity, particularly in Tamarindo, Nosara, and Playa Flamingo, where foreign buyers focus on vacation rentals, resort condos, and beachfront properties. These areas benefit from established expat infrastructure and proven rental markets.
The Southern Zone attracts eco-conscious international buyers seeking unique properties in Uvita and Ojochal. These buyers typically purchase eco-lodges, sustainable homes, and land for development, drawn by the region's environmental focus and growth potential.
San José and expat-heavy suburbs like Escazú and Santa Ana see strong international demand for urban apartments and condos, particularly from digital nomads and remote workers seeking modern amenities and reliable infrastructure.
Purchase motivations center on remote work opportunities, eco-lifestyle preferences, long-term rental income potential, and properties suitable for relocation or retirement. Many buyers seek properties that can serve multiple purposes, from personal use to rental income generation.
Which locations are offering the best opportunities for buying to live in versus buying to rent out or resell?
The optimal location choice depends heavily on your primary objective, with different regions excelling for lifestyle versus investment purposes.
For buying to live, Central Valley suburbs including Escazú, Santa Ana, and Heredia offer the best combination of urban conveniences, expat infrastructure, and high-quality amenities. These areas provide excellent healthcare, international schools, and established expat communities.
Rural mountain towns like Atenas, Grecia, and Orosí provide excellent value for lifestyle buyers seeking affordability, peaceful living, and lower entry costs while maintaining reasonable access to services and amenities.
For rental and resale investment, beach regions including Tamarindo, Nosara, Manuel Antonio, and Santa Teresa deliver the highest rental yields and strongest tourist demand, supporting both short-term and long-term rental strategies.
San José urban condos excel for furnished long-term rentals and digital nomad accommodation, benefiting from consistent demand and lower maintenance requirements compared to coastal properties.
It's something we develop in our Costa Rica property pack.
What government policies, tax incentives, or infrastructure projects are influencing the market now?
Costa Rica's Golden Visa residency program significantly impacts the property market, requiring a minimum $150,000 investment (or $100,000 for forestry/eco projects) with property titled in personal name rather than corporate structure.
The program provides strong protections for foreign buyers, granting equivalent property rights to locals outside maritime zones. This creates confidence for international investment and supports sustained foreign buyer activity.
Tax incentives include low annual property taxes at 0.25% of assessed value and reasonable closing costs of 5-10% of purchase price for foreigners, representing significantly lower tax burdens than North American markets.
Major infrastructure projects are driving regional demand, including upgrades to Route 32, Circunvalación Norte, and coastal road improvements. These projects particularly benefit the Southern Zone and Central Valley by improving accessibility and connectivity.
Sustainability requirements and incentives for green buildings support market demand in eco-tourism areas, aligning with international buyer preferences for environmentally conscious developments and creating premium value for certified green properties.
If you were to buy today, which specific area, property type, and budget range would offer the best positioning for your goal?
For maximum rental yield potential, focus on San José, Tamarindo, Manuel Antonio, or Santa Teresa with condos, apartments, or eco-lodges in the $250,000-$500,000 range.
For best appreciation potential, target the Southern Zone or Caribbean Coast properties, particularly land near new infrastructure projects or eco-tourism developments. These areas offer the strongest growth fundamentals for the next 3-5 years.
For lifestyle and relocation purposes, Central Valley suburbs or rural towns close to amenities provide the best combination of affordability, infrastructure, and expat services. Budget $300,000-$600,000 for quality homes in established expat areas.
The optimal budget range of $250,000-$500,000 secures high-quality condos or homes in most top markets, while $1,000,000+ provides access to luxury properties or prime beachfront locations with maximum rental and appreciation potential.
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 2025 presents compelling opportunities across multiple segments, from high-yield urban rentals to appreciation-focused eco-tourism properties.
The combination of price stabilization, infrastructure investment, and strong international demand creates a favorable environment for both lifestyle and investment buyers seeking quality properties at reasonable valuations.
Sources
- The LatinVestor - Costa Rica Real Estate Market Trends
- The LatinVestor - Housing Market Costa Rica
- The LatinVestor - San José Property
- The LatinVestor - Costa Rica Real Estate Forecast
- Global Property Guide - Costa Rica Rental Yields
- Dave Ed Hollander - Market Update January 2025
- Dominical Realty - June 2025 Market Report
- CitizenX - Costa Rica Golden Visa