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Costa Rica's real estate market experienced significant corrections in 2024 but has shown signs of stabilization as of September 2025. The market is currently recovering from a major downturn, with national property prices having dropped 41% year-over-year from January 2024 to January 2025, though some regions are now showing strong growth momentum.
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Costa Rica real estate prices are stabilizing after a significant correction, with the national average now at $1,021 per square meter as of mid-2025.
While some regions like Guanacaste saw drops of 31%, others like the Southern Zone have experienced growth of 42% over the past 12 months.
| Region | Price Change (12 months) | Current Status |
|---|---|---|
| Guanacaste | -31% (luxury segment) | Market correction phase |
| Southern Zone | +42% | Strong growth driven by infrastructure |
| San José Apartments | +12% | Steady urban demand |
| Central Valley | -13% to +9% | Mixed performance by segment |
| Caribbean Coast | +3% to +5% | Moderate recovery |
| Jaco | +3% to +9% | Rental market recovery |
| National Average | -41% (peak to trough) | Stabilizing with selective recovery |
What's the average real estate price in Costa Rica right now compared to September 2024?
As of September 2025, the average real estate price in Costa Rica sits at approximately $1,021 per square meter nationwide.
Compared to September 2024, this represents a significant shift in the market trajectory. While the national median home price had dropped 41% year-over-year from January 2024 to January 2025, the market has since stabilized and begun recovering in many segments.
San José apartments now average $2,343 per square meter, showing a 12% increase year-over-year. However, single-family house prices tell a different story, with median prices dropping from $907,769 to $533,647 during the correction period.
The current pricing reflects a market that has moved past its most dramatic correction phase and is now showing signs of selective recovery, particularly in urban areas and regions with strong infrastructure development.
How have prices changed in the past 3, 6, and 12 months across Costa Rica?
Costa Rica's real estate market has shown distinct patterns of change across different timeframes, with recent months indicating stabilization after a period of significant correction.
Over the past 3 months, the market has demonstrated clear stabilization with select beach and emerging metropolitan areas already rebounding. Places like Jaco and certain Central Valley zones have posted gains of 3-9%.
The 6-month trend shows broad market stabilization, with the Southern Zone and infrastructure-adjacent properties leading the recovery with double-digit percentage gains. This period marked the transition from correction to recovery for many market segments.
Looking at the full 12-month period, the market experienced its most dramatic changes. Guanacaste luxury properties and broader coastal markets declined 31-36%, while some urban and emerging regions posted gains or successfully stabilized.
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Are these price changes backed by reliable data or market speculation?
The price changes in Costa Rica's real estate market are confirmed by reliable market data from multiple authoritative sources, not hearsay or speculation.
Major market surveys, established brokerages, and comprehensive listing platforms including TheLatinvestor, Coldwell Banker, and Costa Rica Financial Times provide the foundation for these figures. Both the direction and scale of changes are validated through actual transaction data and extensive market analyses.
The data comes from tracking actual sales transactions, broker reports, and comprehensive market studies conducted by established real estate firms operating throughout Costa Rica. These sources have been monitoring the market consistently and provide transparent methodologies for their price tracking.
Independent verification through multiple data sources confirms the trends, ensuring that the reported changes reflect actual market conditions rather than isolated incidents or speculative reporting.
Which regions in Costa Rica are experiencing the biggest property price drops?
Guanacaste province leads the price decline, particularly in the luxury home segment where properties have dropped 31% over the past 12 months.
The luxury segment in Guanacaste has been hit hardest due to oversupply conditions, correction following speculative investment, and reduced foreign buyer demand. Properties above $1 million have seen the most significant declines, with some luxury coastal properties dropping up to 36%.
Broader coastal markets throughout Costa Rica have also experienced substantial corrections, though not as severe as Guanacaste's luxury segment. These areas benefited from speculative investment during the pandemic boom but are now adjusting to more sustainable pricing levels.
Central Valley single-family homes have shown mixed performance with declines of up to 13% in certain segments, though this varies significantly by specific location and property type within the region.
Are any areas still showing price growth despite the general market correction?
Several regions in Costa Rica continue to demonstrate strong price growth, defying the broader market correction trend.
The Southern Zone leads all regions with remarkable 42% price growth over the past 12 months. Areas like Dominical, Uvita, and Ojochal benefit from new infrastructure development, improved accessibility, and a booming eco-tourism sector that drives both rental and investment demand.
San José's apartment market shows consistent strength with 12% year-over-year growth, driven by urban demand from both local professionals and expatriates seeking city convenience and amenities.
The Caribbean Coast has posted moderate but steady gains of 3-5%, benefiting from new eco-tourism investments and offering affordable entry points for buyers. Jaco on the Central Pacific coast has rebounded with 3-9% growth due to steady rental demand and condominium popularity.
Certain segments of the Central Valley, particularly in upscale areas like EscazĂș and Santa Ana, show moderate appreciation ranging from 3-9% depending on the specific location and property type.
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What's driving these current price changes in Costa Rica's real estate market?
Multiple interconnected factors are driving the current price dynamics in Costa Rica's real estate market, with the post-pandemic correction being the primary catalyst.
The most significant driver is the correction of overheated prices from the 2022-2023 boom period. Foreign capital influx and remote work trends had artificially inflated property values, and the market is now adjusting to more sustainable levels.
Rising inventory levels have shifted the market in favor of buyers, especially for properties above $1 million. More listings are available as sellers who benefited from the boom period now exit the market, creating increased supply.
Exchange rate fluctuations and changing foreign demand patterns significantly impact pricing. U.S. and European buyers have pulled back post-recovery, and currency appreciation has altered the value equation for international purchasers.
Infrastructure development provides positive momentum for specific regions. New roads, marinas, and development projects boost formerly remote areas, particularly in the Southern Zone and areas near San José. Tourism recovery in some beach regions supports property values, while areas lacking new attractions remain under pressure.
Will these price trends continue in the short term?
Short-term projections for Costa Rica's real estate market indicate continued stabilization with selective growth in specific regions over the next 6-12 months.
Growth regions are expected to see annual appreciation of 5-12%, particularly in areas benefiting from infrastructure development and consistent demand. The Central Valley and Southern Zone appear positioned for sustained growth momentum.
Guanacaste's luxury market is likely approaching its bottom, with most analysts expecting stabilization rather than continued dramatic declines. The correction phase appears to be nearing completion in this previously overheated segment.
Market fundamentals suggest the dramatic volatility of 2024 is transitioning to more predictable, moderate growth patterns. Improved market transparency and a broader base of buyers reduce the likelihood of future speculative bubbles.
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What's the medium-term outlook for Costa Rica's real estate market?
The medium-term outlook for Costa Rica's real estate market appears positive, with sustainable growth expected across most segments over the next 2-3 years.
Central Valley properties and infrastructure-adjacent land are positioned for 8-10% annual appreciation driven by sustained foreign and expatriate demand. These areas benefit from accessibility, established amenities, and ongoing development projects.
Rural and eco-friendly projects should see outsized gains as sustainability trends and remote work capabilities continue attracting international buyers seeking lifestyle changes. The focus on environmental consciousness aligns with Costa Rica's green reputation.
Urban markets, particularly San José, are expected to maintain steady demand from both local professionals and international residents, supporting consistent price appreciation in the apartment and condominium segments.
Tourism-dependent coastal areas will likely see gradual recovery, though at more sustainable pace than the speculative boom of 2022-2023. Properties with genuine rental income potential should outperform purely speculative investments.
What do long-term projections show for Costa Rica property values?
Long-term projections for Costa Rica's property market remain fundamentally strong, supported by demographic trends, political stability, and sustained international interest.
Population growth, consistent foreign interest, and ongoing infrastructure investments provide solid foundational support for property values over the next 5-10 years. These factors create underlying demand that supports sustainable price appreciation.
Political stability and established legal frameworks for foreign property ownership continue to attract international buyers, providing a steady base of demand that insulates the market from purely domestic economic fluctuations.
However, the likelihood of future speculative bubbles similar to 2021-2023 has diminished due to increased market transparency, broader buyer awareness, and more diverse buyer demographics that reduce concentration risk.
Climate change considerations may increasingly favor Costa Rica as a stable destination for both permanent relocation and investment, potentially supporting long-term demand growth beyond current projections.
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.
How are sales volumes and time-on-market changing compared to before?
Sales volumes in Costa Rica's real estate market are recovering in 2025 after experiencing significant declines throughout 2024, with the most notable recovery occurring in affordable and correctly priced market segments.
The recovery is particularly strong for entry-level properties and expatriate-focused housing, where realistic pricing has attracted renewed buyer interest. Properties priced below inflated 2022-2023 levels are moving more quickly than those still reflecting peak valuations.
Time on market varies dramatically by region and price segment. Luxury properties and oversupplied zones experience extended marketing periods, while appropriately priced properties in growth areas like the Uvita region show quick sales, with 37% of recent transactions completing rapidly.
Properties in emerging tourist corridors and areas near new infrastructure development demonstrate significantly shorter time-on-market compared to properties in saturated luxury markets, reflecting buyer preference for value and growth potential over prestige alone.
Are seasonal factors influencing current property prices in Costa Rica?
Traditional seasonal patterns in Costa Rica's real estate market have been disrupted by COVID-19 and remote work trends, creating more consistent year-round demand rather than the historical holiday-driven cycles.
The classic high and low season variations have largely disappeared, with demand remaining steady throughout the year as remote work capabilities allow buyers to visit and purchase properties regardless of traditional vacation timing.
Current market fluctuations are more closely tied to economic sentiment and broader market conditions rather than seasonal tourism patterns. Buyers are making decisions based on market positioning and value rather than seasonal convenience.
Some cyclical retreat from the double-digit year-over-year appreciation of 2020-2022 has stabilized into more sustainable 5-12% growth patterns, representing a healthier long-term trajectory for the market.
What's the best strategy for buyers in Costa Rica's current market?
Buyers in Costa Rica's current real estate market have significant leverage due to higher inventory levels and motivated sellers, particularly in luxury property segments and recent resale markets.
The best value opportunities exist in markets just entering their recovery phase: Central Valley condominiums, emerging tourist corridors, properties near new infrastructure development, and eco-friendly rural locations with strong local demand fundamentals.
Thorough due diligence is essential in the current environment. Buyers should confirm comparable sales data, work exclusively with established realtors, and maintain readiness to negotiate. Avoiding overpayment based on outdated market hype from the 2022-2023 boom is crucial.
Financing strategies should focus on locking in fixed-rate deals as mortgage options expand. However, buyers should expect tighter controls on high loan-to-value ratios until market risk dissipates further.
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 real estate market is transitioning from correction to selective recovery, offering opportunities for informed buyers while requiring careful analysis of regional variations.
The combination of infrastructure development, political stability, and sustainable demand fundamentals positions the market for moderate, healthy growth moving forward.
Sources
- Costa Rica Real Estate Market Video Analysis
- Costa Rica Real Estate Market Trends
- Costa Rica Real Estate Market Update January 2025
- Costa Rica Real Estate Forecast
- Costa Rica Buy Property Guide
- Costa Rica Real Estate Market Analysis
- Coldwell Banker Costa Rica Market Trends 2025
- Jaco Market Insights
- Costa Rica Real Estate Market Outlook 2025
- Why 2025 Could Be Smart Year to Buy in Costa Rica