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What do the latest numbers reveal about Costa Rica’s real estate market? Are property prices on the rise, or are they stabilizing? Which regions offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Costa Rica, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Costa Rica's rental yield for homes stabilizes at 6% by 2024
In 2023, Costa Rica's rental market was already showing promising signs of stability, with rental yields ranging from 5.3% to 8%.
Tourism in Costa Rica is booming, and this surge is driving up the demand for rental properties. As more travelers flock to the country, the need for both short-term and long-term rentals is on the rise, which helps keep rental yields stable. This growing interest in Costa Rica as a travel destination is a key factor in maintaining a healthy return on investment for property owners.
By 2024, the rental market in Costa Rica is expected to reach a sweet spot, with yields stabilizing at an impressive 6%. This balance is not just due to the steady influx of tourists but also because Costa Rica is becoming a more desirable place to live and invest. The country's natural beauty, combined with its stable economy, makes it an attractive option for both investors and residents.
Investors are particularly drawn to Costa Rica because of its consistent rental demand. The country's appeal as a travel hotspot ensures that properties are rarely vacant, providing a reliable income stream. This consistent demand is a significant factor in the rental market's stability, allowing yields to stabilize at 6% by 2024.
Moreover, Costa Rica's government policies are supportive of foreign investment, making it easier for international buyers to enter the market. This openness further boosts the rental market, as more investors are willing to purchase properties, knowing they can expect a stable return.
With all these elements in play, Costa Rica's rental market is poised for a stable future, offering investors a solid opportunity. The combination of a thriving tourism industry, a welcoming investment climate, and a beautiful living environment makes Costa Rica a top choice for property investment.
Sources: Benoit Properties, Kalma Playa Negra, Inversión Inmobiliaria CR
2) Residential property utility costs in Costa Rica increase by 2% annually, indicating steady growth through 2026
Residential property utility costs in Costa Rica are on the rise, with an annual increase of about 2%.
This trend is expected to continue through 2026, largely due to the rising cost of electricity. The increase in electricity rates is driven by higher thermal energy consumption and imports, which are more expensive than other energy sources. Back in 2023 and 2024, electricity rates were projected to jump significantly, with potential hikes ranging from 5.14% to 26.6%.
Electricity is a major component of utility costs, so these changes directly impact overall utility expenses for residential properties. The need for more thermal generation, which is pricier, is a key factor in these rate hikes. As a result, homeowners are likely to see their utility bills climb steadily.
Broader economic factors, such as inflation, also play a role in the general trend of rising utility costs. For instance, the Consumer Price Index (CPI) for Housing Utilities in Costa Rica is expected to trend upwards, reaching around 108.47 points in 2025 and 111.18 points in 2026. This aligns with the observed 2% annual increase in utility expenses.
These economic indicators suggest that the cost of living, particularly in terms of utilities, will continue to rise. For potential property buyers, it's important to consider these factors when budgeting for future expenses. The consistent growth in utility costs is a significant aspect of the overall cost of living in Costa Rica.
Sources: Tico Times, Senderos CR, Trading Economics
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.
3) Demand for Puntarenas ocean-view properties is projected to grow by 10% annually for five years
The demand for ocean-view properties in Puntarenas is skyrocketing.
Imagine waking up to the sound of waves and a breathtaking ocean view. This dream is becoming a reality for many, as the appeal of coastal living in Puntarenas is drawing in both locals and international buyers. The charm of a tranquil lifestyle by the sea is making these properties highly sought after.
Puntarenas isn't just about beautiful views; it's a hotspot for tourism. The booming tourism industry has boosted the local economy and increased the demand for vacation homes and rentals with ocean views. Tourists fall in love with the area and the idea of owning a slice of paradise, which further fuels the demand.
Economic conditions in Costa Rica are favorable, and the country's dedication to sustainability is a big draw for eco-conscious buyers. This commitment to preserving natural beauty makes Puntarenas an attractive destination, contributing to the 10% annual growth in demand for ocean-view properties projected over the next five years.
With more tourists visiting, the allure of owning property in such a picturesque location is undeniable. The combination of a thriving tourism sector and a strong real estate market is driving up interest in Puntarenas.
As the demand continues to rise, Puntarenas is becoming a prime spot for those looking to invest in ocean-view properties. The region's natural beauty and economic stability are key factors in this growing trend.
Sources: Properties in Costa Rica, Blue Zone Realty, Properties in Dominical
4) By 2026, half of Costa Rica's new residential developments will adopt sustainable building practices
Costa Rica is making big moves in sustainable building.
Back in 2019, the country rolled out Sustainable Construction Guidelines as part of its Carbon Neutrality 2.0 Program. These guidelines aim to cut down on energy and water use, boost recycling, and reduce pollution. The National Construction Regulations were also updated to include sustainability standards, pushing new buildings to manage resources like water and energy more efficiently.
Developers are encouraged to go green by seeking certifications like LEED, which promotes eco-friendly construction. Costa Rica also adopted the EDGE certification, focusing on energy and water savings and the use of environmentally friendly materials. This certification has been a major motivator for developers to integrate sustainable practices into their projects.
The government sweetens the deal with incentives like tax discounts and faster permit processes, making sustainable building even more attractive. With these regulations, certifications, and incentives, it's expected that by 2026, 50% of new residential developments in Costa Rica will embrace sustainable building practices.
Sources: Gmattorneyscr, Flamingo Beach Realty, GAP Real Estate
5) Real estate transactions dropped 10% in 2024, highlighting shifting market dynamics
In 2024, the Costa Rican real estate market saw a 10% drop in transactions compared to 2023.
This decline is not uniform across the country. In the Central Valley, transactions fell by 13%, while the Central and South Pacific regions experienced a 6% decline. These variations suggest that local factors are playing a significant role in shaping buyer and seller behavior.
Despite fewer transactions, properties are selling faster. The average time a property stays on the market has decreased by 33%, now averaging 395 days. This could mean that the properties that do sell are priced more competitively or that buyers are acting with more urgency.
These changes in the market dynamics are reshaping how real estate is bought and sold in Costa Rica. The faster sales might be a result of sellers adjusting their expectations or buyers seizing opportunities more quickly.
Understanding these trends is crucial for anyone considering buying property in Costa Rica. The regional differences and quicker sales times are key factors to consider when making a purchase decision.
Sources: Coldwell Banker Costa Rica
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6) Guanacaste luxury home prices plummet 31%, averaging $1,737,732
In 2023 and 2024, the luxury home market in Guanacaste saw a 31% drop in prices, bringing the average down to $1,737,732.
This decline was influenced by several factors. Economic conditions during these years were shaky, which likely affected buyers' purchasing power and made them hesitant to invest in luxury properties. When the economy is uncertain, people tend to spend more cautiously, especially on high-end items.
Regional trends also had an impact. While Guanacaste experienced a downturn, other areas like the Central and South Pacific showed mixed results. Some regions even saw price increases, indicating that buyers might have shifted their interest to other parts of Costa Rica, which affected demand in Guanacaste.
In the Central and South Pacific, the market dynamics were different. Some areas experienced a rise in property values, suggesting that these regions became more attractive to potential buyers. This shift in interest could be due to various factors, such as better investment opportunities or lifestyle preferences.
Guanacaste's luxury market downturn contrasts with these trends, highlighting how regional preferences can vary significantly within Costa Rica. Buyers looking for luxury homes might find better deals in Guanacaste now, given the price drop.
Sources: Coldwell Banker Costa Rica
7) Property prices in Costa Rican city centers range from $500 to $1,300 per square meter
The property prices in Costa Rican city centers vary widely, ranging from $500 to $1,300 USD per square meter.
In bustling areas like San José, prices soar due to high demand. Here, houses average around $1,110 USD per square meter, while condominiums can climb to $1,724 USD per square meter. This shows how much people value central locations.
Different districts tell their own story. Take Alajuela, for example, where prices range from $903 to $1,598 USD per square meter. Some properties even hit $5,200 USD per square meter, highlighting unique local market conditions.
Living costs also play a part. A 1-bedroom apartment in the city center costs about $501 USD per month, while a 3-bedroom apartment is around $839 USD. These figures reflect broader economic influences on property prices.
Sources: Wise, Global Property Guide
8) Costa Rica’s economy grows by 4.0% in 2024 and 3.5% in 2025, supporting real estate stability
Costa Rica's economy is on a roll, with 4.0% growth in 2024 and 3.5% in 2025.
This impressive growth is fueled by high business confidence and foreign direct investment, which are boosting household incomes and keeping internal demand strong. Exports are also playing a big part in this economic upswing, adding to the country's financial health.
The real estate market is feeling the positive effects of this economic boom. In the South Pacific region, especially around Costa Ballena, the market is buzzing. While there's been a slight dip in overall sales volume, properties are spending less time on the market, showing increased buyer activity and faster decision-making.
The Banco Central de Costa Rica backs these projections, expecting the economy to maintain a 4% growth rate over the next 15 months before a slight slowdown in 2025. This optimistic economic forecast is helping keep the real estate market stable, even as it slows down a bit.
In July 2024, the residential market held steady in terms of transactions. The average days on market dropped by 4% compared to June, hinting at rising demand or smarter pricing strategies. Meanwhile, inventory is growing, giving buyers more options.
Sources: Swiss Info, Osa Tropical Properties, Swiss Info, Coldwell Banker Costa Rica
We have made this infographic to give you a quick and clear snapshot of the property market in Costa Rica. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Tourist arrivals rise by 19% annually, boosting vacation rental returns to 12%-17% in hotspots like Santa Teresa
Tourist arrivals have surged by 19% annually, creating a buzz in the vacation rental market.
Santa Teresa, with its stunning beaches and serene atmosphere, is now a top choice for travelers. This influx of visitors has led to a noticeable housing crunch, as more tourists prefer vacation rentals over traditional hotels. Thanks to platforms like Airbnb, property owners find it easier to rent out their homes, further fueling this demand.
For those considering investing in Santa Teresa, the potential for rental returns is substantial. Luxury vacation rentals command high daily rates, especially during peak tourist seasons. This trend has resulted in impressive annual returns ranging from 12% to 17%, making it a lucrative opportunity for property investors.
As more tourists flock to Santa Teresa, the local economy benefits significantly. Increased tourism means more business for local shops and restaurants, creating a vibrant community atmosphere. This economic boost is a win-win for both property owners and local residents.
Investors are particularly drawn to Santa Teresa because of its unique blend of natural beauty and investment potential. The area’s charm and tranquility make it a desirable location, while the strong rental market offers promising financial returns.
With the ongoing rise in tourist numbers, Santa Teresa continues to be a hotspot for vacation rentals. This trend shows no signs of slowing down, offering a promising outlook for those looking to invest in the area.
Sources: El País, Langston Realty, Expat-tations, Swissinfo, Tropisphere
10) Single-family home inventory nationwide is up 24% from 2023, indicating market growth
The national single-family home inventory has increased by 24% compared to 2023 levels, offering more choices for buyers.
This surge in available homes is partly due to a 10% drop in real estate transactions across Costa Rica. With fewer homes being sold, more properties are staying on the market, boosting inventory levels. Interestingly, homes are selling faster, with the average days on the market dropping by 33% to 395 days, which might be encouraging more sellers to list their homes.
In the Central & South Pacific regions, the inventory has risen by 26%, while the Central Valley has seen a 9% increase. These regional boosts are feeding into the national trend, giving buyers more options.
Despite the slowdown in transactions, the faster selling times and increased inventory suggest a dynamic market. Buyers now have a wider selection, making it an exciting time to explore property options.
For those considering a move, this means more opportunities to find a home that fits your needs. The market's expansion is evident, with more homes available than in recent years.
Sources: Coldwell Banker Costa Rica
11) Uvita leads South Pacific real estate with 37% of recent sales
Uvita is making waves in the South Pacific real estate market, dominating with 37% of recent sales.
This surge is fueled by a significant increase in new and active properties, as noted by 2Costa Rica Real Estate. Uvita has become a hotspot for buyers eager for fresh opportunities, thanks to this expanded property availability.
In 2024, the entire South Pacific region, including Uvita, saw a noticeable rise in real estate activity. Properties were moving quickly, with a higher percentage closing within a month. This trend shows that buyers are making faster decisions, likely attracted by Uvita's appealing options.
Even with a 6% drop in overall sales in the South Pacific, Uvita's market stayed strong. There was a 42% increase in single-family home prices and an 8% rise in luxury home prices, indicating high demand and increased activity in Uvita.
While some areas experienced a slowdown, Uvita's real estate market remained robust. The demand for properties in Uvita is evident, with buyers drawn to its vibrant market and the variety of options available.
Sources: 2Costa Rica Real Estate, Osa Tropical Properties, GAP Real Estate
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12) Costa Rican property construction in city centers is affordably priced between $500-$1,300 per square meter
In 2023 and 2024, Costa Rican property construction has been a revelation with its affordable pricing in city centers.
Imagine buying property in bustling urban areas where prices range from $500 to $1,300 USD per square meter. This is made possible by using smart construction methods that focus on basic materials and finishes, keeping costs low and making city living more accessible.
These economic construction techniques typically cost between $500 and $1,200 USD per square meter. They are especially popular in city centers, where demand is high and regulations are strict. By sticking to essential materials, developers can offer competitive prices that meet the needs of urban residents.
However, it's crucial to remember that these prices don't cover everything. Additional costs like labor, permits, and professional fees are not included. For instance, labor costs can make up about 30% of the base cost, and social charges add another 42% of labor costs. Even with these extra expenses, the overall affordability of Costa Rican property remains a major draw.
Despite these additional costs, the affordability of Costa Rican property construction continues to attract attention. The combination of low base prices and strategic use of materials makes it a compelling option for potential buyers.
Sources: CJ Arq, Flamingo Beach Realty, Ticonstru
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.