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Costa Rica's real estate market is experiencing dynamic shifts as of September 2025, with distinct regional patterns emerging across the country.
While luxury coastal properties in Guanacaste have undergone significant price corrections from their 2024 peaks, the Central Valley and South Pacific regions continue showing resilience, and the Caribbean coast presents emerging opportunities for strategic investors.
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.
The Costa Rica property market shows mixed signals in September 2025, with coastal luxury properties down 31-36% from 2024 peaks while urban and mid-market segments remain stable.
Rental yields average 7.84% nationally, with condos in beach towns and San José offering the strongest investment potential for both income and appreciation.
| Region | Average Price Range | Market Status | Investment Outlook |
|---|---|---|---|
| San José (Central Valley) | $180,000 - $533,647 | Stable, +12% YoY growth | Strong for rentals & resale |
| Guanacaste (North Pacific) | $550,000 - $1.7M | Buyer's market, -36% correction | Opportunity for negotiation |
| Puntarenas (South Pacific) | $456,200 - $992,571 | Growing, +42% YoY | High potential undervalued |
| Limón (Caribbean) | $150,000 - $300,000 | Emerging, minimal change | Speculative entry point |
What's the current average sale price for residential and commercial properties in Costa Rica by region?
Costa Rica's residential property prices vary dramatically by region as of September 2025, with the Central Valley offering the most affordable entry points and coastal areas commanding premium prices.
In San José and the Central Valley, apartments average $2,343 per square meter, while median house prices have corrected to approximately $533,647 from their mid-2024 peak of $907,769. Premium suburbs like Escazú and Santa Ana maintain higher valuations with mid-list prices up 9.2% year-over-year, reflecting continued strong demand from expats and affluent locals.
Guanacaste Province, particularly the North Pacific coast, shows the most dramatic price movements with median homes now at $967,506, representing a 36% year-over-year decline from 2024 peaks. Luxury homes in this region average around $1.7 million, down 31% year-over-year. High-demand beach towns like Tamarindo, Nosara, and Playa del Coco see homes priced between $550,000 and $1.7 million, with condos ranging from $1,400 to $3,154 per square meter.
The Puntarenas region, covering both Central and South Pacific areas, presents mixed dynamics. Jaco shows resilience with 2-bedroom condos averaging 6% price growth in the first half of 2025 and home prices near $992,571. Manuel Antonio maintains an average of $893,000, while the Southern Zone including Dominical, Uvita, and Ojochal shows remarkable growth with homes averaging $456,200 to $1,683,000, up 42% year-over-year.
The Caribbean coast in Limón Province remains the most affordable option, with apartments at $1,133 per square meter and houses at $971 per square meter, showing minimal price changes over the past year.
How have prices changed over the past 12 months, and what's the short-term forecast for the next year?
The Costa Rica real estate market experienced a significant shift from seller's to buyer's market between 2024 and 2025, particularly affecting luxury and new development segments.
Post-pandemic price peaks reached in 2023-2024 have undergone sharp corrections, especially in Guanacaste and other coastal luxury markets, with decreases ranging from 31% to 36%. In contrast, the Central Valley and South Pacific regions have demonstrated remarkable resilience, maintaining steady appreciation despite broader market volatility.
Over the next 12 months, market analysts expect stabilization with steady prices in metropolitan areas and premium tourist destinations. The South Pacific region is projected to continue its opportunity-driven growth trajectory, while moderate rebounds are anticipated in mid-range and commercial property sectors.
Tourism recovery, sustained remote work trends, strong dollar inflows, and limited new inventory continue creating upward pressure, particularly for condos and beach-town vacation homes. It's something we develop in our Costa Rica property pack.
What's the medium-term projection for property values over the next three to five years?
Medium-term projections for Costa Rica's real estate market from 2025 to 2030 indicate gradual but consistent increases nationally, with annual appreciation rates of 5-12% projected in favored coastal and premium urban zones.
Urban areas in the Central Valley are expected to maintain stable, sustainable growth patterns, benefiting from consistent local demand and expatriate interest. Strong short-term rental markets near beaches and national parks should drive above-average appreciation in tourism-dependent areas.
The Caribbean coast, particularly around Limón, is anticipated to gain momentum as eco-tourism expands and infrastructure improvements attract more international attention. This region represents one of the most promising medium-term growth opportunities given its current undervaluation relative to Pacific coast properties.
Commercial real estate, especially Class A office space and mixed-use developments in business and tourism centers, is projected to see increased demand as Costa Rica continues attracting international businesses and remote workers.
What's the long-term outlook for the real estate market over the next decade?
Costa Rica's long-term real estate outlook through 2035 remains fundamentally positive, supported by the country's continued appeal to international buyers, retirees, and remote workers.
The combination of political stability, favorable climate, established expatriate communities, and growing eco-tourism sector creates a strong foundation for sustained property appreciation, particularly in high-growth tourism hubs and major metropolitan areas.
Demographic trends favor continued international investment, as North American and European retirees increasingly choose Costa Rica for relocation, while younger remote workers are attracted by the country's digital nomad-friendly policies and infrastructure improvements.
However, long-term risks include potential regulatory and taxation changes, climate-related challenges, rising construction costs, and supply constraints in prime locations. Environmental regulations may also impact development patterns, potentially creating scarcity premiums in certain areas while limiting growth in others.
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Which regions and cities in Costa Rica are currently seeing the fastest growth in demand?
As of September 2025, several specific regions and cities are experiencing exceptional demand growth, led by South Pacific coastal towns and premium Central Valley suburbs.
Jaco, Tamarindo, Nosara, and Santa Teresa rank as top performers for both demand and price growth, particularly for condos and short-term rental properties. These beach towns benefit from established tourism infrastructure, international airport accessibility, and strong rental income potential.
The South Pacific region, including Dominical, Uvita, and the broader Costa Ballena area, shows remarkable growth momentum with 42% year-over-year price increases. This region attracts buyers seeking alternatives to the more expensive Guanacaste markets while still offering excellent beach access and eco-tourism opportunities.
San José's premium suburbs, particularly Escazú and Santa Ana, maintain constant demand from both expatriates and affluent locals, supported by strong resale markets and high rental yields. These areas benefit from proximity to international businesses, excellent healthcare facilities, and established expatriate communities.
Emerging markets include the Caribbean coast around Limón and various eco-tourism destinations, which are beginning to attract investors seeking undervalued properties with long-term appreciation potential.
Which property types are performing best right now?
Condominiums are currently the best-performing property type across Costa Rica, experiencing the highest price increases in main beach towns and San José.
Beach town condos are particularly attractive for rental income generation and remote work accommodation, benefiting from strong short-term rental demand and lower maintenance requirements compared to single-family homes. In San José, modern condos with amenities appeal to young professionals and expatriate workers.
Single-family homes show stable performance, especially in the mid-market urban segments, though luxury coastal homes have experienced price corrections. Mid-range family homes in established neighborhoods maintain steady demand and reliable appreciation.
Luxury estates are undergoing price correction but still command high values in premier zones like Santa Teresa and Papagayo Peninsula. This creates opportunities for buyers willing to negotiate in previously overheated luxury markets.
Commercial buildings, particularly Class A office space, retail properties, and mixed-use developments near business and tourism centers, are seeing increasing demand as Costa Rica attracts more international businesses and remote workers. It's something we develop in our Costa Rica property pack.
What's the average rental yield by property type and location, and how has that changed recently?
Costa Rica's rental yields average 7.84% gross nationally as of Q2 2025, representing an increase from 7.27% in Q3 2024, driven by strong rental demand and price corrections in key areas.
San José offers the highest rental yields, reaching up to 8.6% for well-located apartments and condos, benefiting from consistent demand from young professionals, students, and expatriate workers. The capital's diverse economy and job market support steady rental income.
Escazú and Santa Ana, despite higher property prices, deliver solid yields around 7.5%, supported by premium rental rates and low vacancy rates among expatriate and executive housing markets.
Beach destinations like Jaco and Tamarindo typically generate 6-8% yields for condos, though returns can be higher in undersupplied markets or for properties with strong short-term rental potential. Seasonal fluctuations affect these markets, with peak earnings during dry season months.
The improvement in rental yields reflects both increased rental demand from population growth and remote work trends, combined with property price corrections in previously overvalued markets, creating more attractive income-to-price ratios for investors.
What are the current inventory levels and how many months of supply are on the market in different areas?
Inventory levels vary significantly across Costa Rica's regions, creating distinct market conditions from buyer's markets to competitive seller environments.
Coastal luxury inventory has increased substantially, particularly in Guanacaste, creating favorable conditions for buyers in the high-end segment. This shift from the supply-constrained conditions of 2023-2024 allows for more negotiation and selection among premium properties.
The mid-market segment remains tighter, especially in the South Pacific region and premium Central Valley suburbs, where quality properties still generate multiple offers and quick sales. These areas maintain limited listing inventory relative to demand.
Jaco and Tamarindo show mixed conditions with limited listings for quality condos, new builds, and gated communities, where some properties fetch above-asking prices due to strong competition among buyers.
The South Pacific maintains relatively balanced inventory with steady absorption rates, making it the most opportunistic region for finding value while still having reasonable selection for buyers.
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's the typical budget range to enter the market in each major region for living, renting out, or reselling?
| Region | Entry-Level (Living) | Rental Investment | Resale Potential |
|---|---|---|---|
| San José (Urban) | $180,000 - $350,000 | $250,000+ | Quick resale, stable market |
| Escazú/Santa Ana | $400,000+ | $500,000+ | High demand, premium resale |
| Guanacaste (Tamarindo) | $550,000+ (home) | $350,000+ (condo) | Volume discounts possible |
| South Pacific | $400,000+ | $300,000+ | Rising values, growth potential |
| Limón (Caribbean) | $150,000 - $300,000 | $200,000+ | Higher risk, upside potential |
Where are the best opportunities right now for buying undervalued or high-potential properties?
The South Pacific region, particularly towns like Dominical, Uvita, and Ojochal, presents the most compelling opportunities for undervalued properties with high appreciation potential.
These areas remain significantly undervalued compared to similar beach destinations in Guanacaste, while offering strong eco-tourism appeal, growing infrastructure, and increasing rental demand. Properties here benefit from proximity to national parks, whale watching, and adventure tourism activities.
The emerging Caribbean coast around Limón offers speculative opportunities for buyers willing to accept higher risk in exchange for potentially substantial long-term gains. Early-stage eco-developments and waterfront properties represent the most affordable entry points into Costa Rica's real estate market.
Mid-range homes in the Central Valley provide stable, undervalued opportunities compared to coastal luxury properties, offering more accessible pricing with steady rental demand from local workers and expatriates seeking suburban living.
Select commercial properties in fast-growing tourism centers, particularly mixed-use developments and boutique hotel opportunities, offer potential for both income generation and appreciation as tourism continues recovering and expanding. It's something we develop in our Costa Rica property pack.
What are the key risks or challenges in the market for buyers in the short, medium, and long term?
Short-term risks include increased luxury inventory and potential price corrections if tourism or international investment slows significantly.
The current buyer's market in high-end coastal properties could extend longer than expected if economic conditions deteriorate globally, potentially leading to further price reductions. Currency fluctuations affecting the U.S. dollar could also impact international buyer purchasing power.
Medium-term challenges include rising construction costs, potential regulatory or tax changes affecting foreign ownership, and environmental compliance requirements that could increase development costs or limit building opportunities in certain areas.
Long-term risks encompass climate-related challenges including sea level rise and extreme weather events, infrastructure development lag in growing areas, and the risk of oversupply in high-growth tourist corridors if development outpaces demand.
Additional concerns include Costa Rica's dependence on global travel trends, potential changes in remote work policies affecting expatriate demand, and the country's ability to maintain political and economic stability that has historically attracted international investment.
Given today's conditions, where, what property type, and at what budget would you recommend buying for each goal?
For personal living, urban and expatriate suburbs like Escazú, Santa Ana, and west San José offer the best combination of stability, amenities, and established communities.
These areas provide excellent healthcare access, international schools, shopping, and social infrastructure for long-term residents. Budget $400,000 to $800,000 for a mid-range house or modern condo with amenities and security features.
For rental income generation, focus on condos in Jaco, Tamarindo, or San José where rental yields range from 7% to 8.5%. Budget $300,000 or more for properties in walkable, amenities-rich neighborhoods near tourism attractions or business centers. These properties benefit from both short-term vacation rental potential and long-term residential demand.
For resale profit potential, target the South Pacific region including Uvita and Dominical, or scout eco-luxury and boutique developments in emerging areas. Up-and-coming Limón areas offer entry-level speculative opportunities. Budget $200,000 to $350,000 for lots or smaller properties, up to $600,000 for Class A or pre-construction opportunities.
Overall strategy should avoid overpaying in luxury-segment Guanacaste unless negotiating post-correction prices. Prioritize emerging markets and mid-range options for the best combination of yield, appreciation potential, and liquidity when eventual resale becomes necessary.
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 real estate market in September 2025 presents a complex landscape of opportunities and challenges across different regions and property types.
While coastal luxury markets undergo necessary corrections, emerging areas like the South Pacific and strategic urban investments continue offering attractive returns for informed buyers willing to research thoroughly before committing.
Sources
- The LatinVestor - Costa Rica Real Estate Forecast
- Global Property Guide - Costa Rica Price History
- The LatinVestor - Costa Rica Buy Property
- 2 Costa Rica Real Estate - Market 2025 Trends
- Playa Lagarto Real Estate - Costa Rica 2025-2028
- RE/MAX - Jaco Real Estate Market April 2025
- OSA Tropical Properties - Costa Ballena 2025 Market Pulse
- AB LATAM - Future of Real Estate Costa Rica 2025