Buying real estate in Costa Rica?

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What are the current trends in Costa Rica real estate market?

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Authored by the expert who managed and guided the team behind the Costa Rica Property Pack

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Everything you need to know before buying real estate is included in our Costa Rica Property Pack

The Costa Rica real estate market in June 2025 shows regional divergence with stabilization after post-pandemic corrections. The Southern Zone leads growth with 42% appreciation while Guanacaste luxury properties face significant cooling with drops up to 31%. Foreign buyers continue to dominate transactions at 40%, primarily driven by remote work trends and infrastructure developments.

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.

How this content was created 🔎📝

At TheLatinvestor, we explore the Costa Rica real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like San José, Tamarindo, and Manuel Antonio. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the average property price today in Costa Rica, and how has it changed over the past 6–12 months?

The national average property price in Costa Rica stands at $1,021 per square meter as of June 2025.

This represents a 16.4% increase from 2023 levels, showing the market's recovery momentum after the post-pandemic correction period. However, prices remain 40% below the 2022 peaks, indicating substantial room for growth in many segments.

Regional variations are significant across the country. The Southern Zone experienced the strongest growth with home prices surging 42% year-over-year to an average of $893,000. Central Valley house prices declined 13% to $476,000 average, while Guanacaste luxury homes dropped dramatically by 31% to $1.7 million average.

San José apartments bucked the trend with 12% year-over-year growth, reflecting strong urban rental demand. Land prices increased 30% in development-ready areas, particularly around emerging infrastructure projects.

As we reach mid-2025, the market shows clear stabilization with selective growth in undervalued regions rather than broad-based appreciation.

Which regions are currently seeing the highest demand and fastest price appreciation?

The Southern Zone leads Costa Rica's real estate appreciation with 42% year-over-year growth, driven by infrastructure upgrades and eco-tourism development.

Uvita and Ojochal within the Southern Zone show particularly strong buyer interest, with property sales up 37% in Uvita alone. These areas benefit from new road connections and marina developments in the Osa Peninsula, making previously remote locations more accessible to buyers.

The Caribbean Coast emerges as a secondary growth market with 3-5% appreciation, attracting eco-conscious developers and investors seeking lower entry points. Puerto Viejo and surrounding areas see increased interest from buyers looking for sustainable development opportunities.

Central Valley markets like Escazú maintain stable demand with 4-6% growth, supported by expat communities and urban amenities. San José's apartment market specifically shows resilience with 12% growth as rental demand from digital nomads and local professionals increases.

Conversely, Guanacaste faces cooling conditions with luxury segments down 31%, though mid-range properties show more stability in established beach towns like Tamarindo and Nosara.

What are the rental yields and occupancy rates by area and property type—short term vs long term?

Short-term rental properties in beach areas generate the highest yields in Costa Rica's market, with gross returns ranging from 7-10% in standard locations.

Location/Property Type Short-Term Yield Long-Term Yield Occupancy Rate
Tamarindo Beachfront 12-17% 6-8% 70-85%
Manuel Antonio Condos 7-10% 5-7% 65-80%
San José Apartments N/A 7.5-8.6% 90-95%
Escazú Houses 4-6% 8.6% 85-90%
Uvita/Ojochal Homes 8-12% 7-9% 60-75%
Santa Teresa Villas 10-15% 6-8% 70-80%

Premium beachfront properties achieve the highest yields, with some reaching 12-17% gross returns when managed as vacation rentals. Two-bedroom homes in Uvita and Ojochal command $2,000+ monthly rental rates during peak season.

The vacation rental market grew 24% since 2024, driven by Costa Rica's digital nomad visa program allowing two-year stays. Long-term rentals in urban areas like San José provide more stable returns at 7.5-8.6% with occupancy rates above 90%.

It's something we develop in our Costa Rica property pack.

What are the most in-demand property types right now—houses, condos, land, luxury villas, etc.?

Eco-friendly homes with solar panels and water-saving features dominate buyer preferences in Costa Rica's current market.

These sustainable properties command premium prices in Guanacaste and the Southern Zone, where environmental consciousness aligns with long-term cost savings. Buyers specifically seek homes with renewable energy systems, rainwater collection, and native landscaping.

Beachfront villas remain highly sought after despite limited supply, with prices typically 3× higher than inland properties. Santa Teresa beachfront properties appreciated 35% over five years, reflecting scarcity value and tourism appeal.

Luxury condos in Tamarindo and Nosara attract tech-savvy remote workers, with price ranges from $400,000 to $2 million. These properties feature high-speed internet infrastructure, modern amenities, and concierge services tailored to digital nomads.

Development-ready land in the Southern Zone and Ojochal offers opportunities under $100,000 for custom builds. Investors target parcels with existing infrastructure access and proper zoning for residential development.

How do prices compare between beachfront, urban, rural, and mountain areas?

Beachfront properties command the highest premiums in Costa Rica, with prices significantly exceeding inland alternatives across all regions.

Location Category Houses (per m²) Condos (per m²) Premium vs Inland
Guanacaste Beachfront $2,725-$3,298 $2,896 300-400%
Guanacaste Inland $2,221 $2,200 Base level
San José Urban $1,180 $2,343 N/A
Caribbean Beachfront $1,500-$2,500 $1,133 200-250%
Caribbean Inland $971 $1,000 Base level
Rural/Mountain Areas $500-$800 Limited supply 50-70% discount

Urban properties in San José show the highest condo prices at $2,343 per square meter, reflecting infrastructure density and amenities. However, house prices remain lower at $1,180 per square meter due to space constraints and urban planning restrictions.

Rural and mountain areas offer significant value opportunities at $500-$800 per square meter for houses, though buyers must consider infrastructure limitations and accessibility challenges. These areas attract eco-conscious buyers seeking larger parcels for sustainable development projects.

Are there signs of overvaluation, saturation, or cooling in any key markets like Tamarindo, San José, Nosara, or Santa Teresa?

Guanacaste's luxury real estate segment shows clear signs of market saturation with properties averaging 180+ days on the market.

Tamarindo luxury condos experienced a 25-30% price decline from peak levels, with sales volume down 39% year-over-year. The oversupply of high-end properties priced above $1 million creates a buyer's market in this segment, particularly for oceanfront units.

Jacó inventory increased 15% as developers struggle to move luxury properties, indicating potential overvaluation in beach markets that experienced rapid appreciation during 2021-2022. Properties above $2 million face extended marketing periods.

Conversely, the Southern Zone markets including Uvita show strong fundamentals with sales up 37% and limited inventory. Central Valley rental markets remain stable with consistent occupancy rates above 90% for quality properties.

San José's apartment market demonstrates resilience with 12% year-over-year growth, supported by steady rental demand from professionals and digital nomads. No significant cooling appears in the urban rental or mid-range purchase markets.

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What are the main factors currently driving buyer interest—infrastructure projects, remote work, tourism, expats, etc.?

Remote work policies and Costa Rica's digital nomad visa program serve as primary drivers of current real estate demand.

The two-year digital nomad visa allows extended stays, creating sustained rental demand in coastal areas with reliable internet infrastructure. Tech workers from North America specifically target properties in Tamarindo, Nosara, and Santa Teresa for their combination of lifestyle amenities and connectivity.

Infrastructure improvements in the Southern Zone drive appreciation through improved accessibility. New road connections to Uvita and Ojochal reduce travel times from San José, making these areas viable for both tourism and permanent residence.

Marina developments in the Osa Peninsula attract luxury buyers seeking yacht access and waterfront lifestyles. These projects create anchor points for surrounding real estate appreciation.

U.S. and Canadian investors dominate foreign purchases, representing approximately 40% of all transactions. Their motivations include diversification, lifestyle changes, and rental income generation through vacation properties.

It's something we develop in our Costa Rica property pack.

What are the local vs foreign buyer ratios right now, and how are foreign buyers affecting prices and inventory?

Foreign buyers represent 40% of all Costa Rica real estate transactions as of June 2025, with U.S. and Canadian investors leading this demographic.

This foreign buyer concentration creates upward pressure on prices in popular expat destinations like Guanacaste beach towns and Central Valley communities. Local buyers increasingly compete with international cash purchases, particularly in the $200,000-$500,000 price range.

Foreign investment patterns show distinct preferences for turnkey properties with rental potential, driving demand for condos and furnished homes in tourist areas. This creates inventory shortages for local buyers seeking primary residences in desirable coastal locations.

U.S. dollar strength provides purchasing power advantages for North American buyers, enabling quick cash transactions that local buyers struggle to match. Remote work income streams from developed countries allow foreign buyers to pay premium prices for lifestyle properties.

The government's residence-by-investment programs encourage foreign real estate purchases, requiring minimum investments of $200,000 in designated areas. This policy framework supports continued foreign buyer activity and market liquidity.

infographics rental yields citiesCosta Rica

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 expected trend for the next 6–12 months and 3–5 years in terms of price growth, supply, and demand?

Costa Rica's real estate market expects modest 3-5% growth in established areas over the next 6-12 months, with stronger 8-10% appreciation in the Southern Zone and Caribbean Coast.

The correction phase in Guanacaste luxury properties will likely continue through 2025, creating opportunities for buyers in the $1-3 million range. Inventory levels should normalize by late 2025 as oversupply gets absorbed.

Infrastructure completion in the Southern Zone will drive sustained demand through 2026-2027, particularly for development-ready land and eco-friendly properties. The region's proximity to national parks and improved access routes support long-term appreciation potential.

Remote work trends indicate sustained demand for tech-enabled properties in coastal areas over the 3-5 year horizon. Digital nomad programs and improved internet infrastructure will continue attracting international buyers seeking lifestyle properties.

Sustainable and eco-friendly properties are positioned to lead appreciation over the next 3-5 years as environmental regulations tighten and buyer preferences shift toward green features. Solar-equipped homes and properties with water conservation systems will command premium valuations.

What are the average acquisition and holding costs (legal, tax, maintenance) depending on region and property type?

Total acquisition costs in Costa Rica range from 3.5% to 6% of the purchase price, depending on property value and location.

Cost Category Percentage/Amount Details
Transfer Tax 1.5% of value Government tax on property transfers
Legal Fees 1-1.5% of value Attorney fees for due diligence and closing
Notary/Registration 1-2% of value Notarization and property registry costs
Property Tax (Annual) 0.25% of assessed value Based on municipal assessment
Luxury Tax (Annual) 0.25-0.55% Properties valued above $230,000
Maintenance (Annual) $1,000-$2,000 Varies by property type and location

Annual holding costs include property tax at 0.25% of assessed value, with luxury tax ranging from 0.25% to 0.55% for properties exceeding $230,000 in value. Coastal properties typically face higher maintenance costs due to salt air and humidity.

Rental property expenses consume 20-30% of gross income when including property management fees of $100-$150 monthly, maintenance reserves, and tax obligations. Beachfront properties require additional hurricane insurance and higher maintenance budgets.

If you're looking to buy now, where are the top opportunities for each goal: living, rental income, or resale?

For rental income generation, Tamarindo and Manuel Antonio offer the strongest opportunities with short-term rental yields reaching 10%+ for well-positioned properties.

1. **Rental Income Focus ($200,000-$500,000 budget)**: Target 2-3 bedroom condos in established beach towns with proven vacation rental track records. Tamarindo condos near the beach center and Manuel Antonio properties with ocean views generate consistent bookings year-round.2. **Resale Appreciation (under $100,000 budget)**: Ojochal and Southern Zone land purchases offer the highest appreciation potential over 5-10 year holding periods. Buy development-ready parcels before infrastructure completion for maximum returns.3. **Lifestyle/Primary Residence ($500,000+ budget)**: Escazú and Nosara provide the best combination of amenities, safety, and community for permanent living. These areas offer established expat communities, quality healthcare access, and reliable infrastructure.4. **Emerging Opportunities**: Caribbean Coast properties in Puerto Viejo area offer lower entry costs with eco-development potential. Target sustainable properties aligned with environmental tourism growth.5. **Value Plays**: Guanacaste luxury properties present discounted opportunities for patient buyers willing to hold through the current market correction.

It's something we develop in our Costa Rica property pack.

What is the ideal budget range and strategy for entering the market today, depending on your objective and location?

Entry-level investment opportunities in Costa Rica start at $100,000-$200,000 for land and smaller properties, while luxury lifestyle purchases require $500,000+ budgets.

For first-time buyers targeting rental income, a $250,000-$400,000 budget allows access to quality condos in Tamarindo or Manuel Antonio with proven rental history. Focus on properties within walking distance of beaches and restaurants to maximize occupancy rates.

Land banking strategies work best with $50,000-$150,000 budgets in emerging areas like the Southern Zone or Caribbean Coast. Target parcels with existing road access and utility connections to minimize development costs and timeline risks.

Luxury buyers with $750,000+ budgets should consider the current Guanacaste market correction as a timing opportunity. Premium beachfront properties trade at 25-30% discounts from 2022 peaks, offering attractive entry points for long-term holders.

Cash purchases provide significant negotiating advantages in Costa Rica's market, with sellers often accepting 10-15% below asking prices for quick closings. Financing options exist but typically require larger down payments and higher interest rates for foreign buyers.

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.

Sources

  1. Costa Rica Real Estate Prices Drop
  2. Housing Market Costa Rica
  3. Real Estate Dropping Costa Rica
  4. GAP Real Estate Market Update 2025
  5. Costa Rica Investment Emerging Real Estate
  6. Guanacaste Costa Rica Price Forecasts
  7. San Jose Property
  8. Coldwell Banker CR Market Trends 2025
  9. Coldwell Banker Samara Investment Trends
  10. Osa Property Management Rental Trends