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 remains one of the most attractive countries in Latin America for foreign property buyers in 2026, thanks to its stable democracy, equal ownership rights for foreigners, and a real estate market that offers both lifestyle appeal and solid investment returns.
Whether you're looking for beachfront vacation rentals in Guanacaste, long-term rental apartments in the Greater San Jose metro area, or emerging opportunities in the Southern Zone, this guide breaks down exactly where the best opportunities are right now, backed by actual data and official sources.
We constantly update this blog post with the latest market data and neighborhood insights to keep you informed.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Costa Rica.
What's the Current Real Estate Market Situation by Area in Costa Rica?
Which areas in Costa Rica have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas for residential property in Costa Rica are Playa Flamingo in Guanacaste (around ₡2,370,000 per square meter for apartments), Tamarindo in the Santa Cruz canton (approximately ₡2,180,000 per square meter), and Escazu in the San Jose province (roughly ₡1,160,000 per square meter for apartments).
In these premium Costa Rica real estate markets, typical prices range from ₡1,750,000 to ₡2,400,000 per square meter (approximately $3,500 to $4,700 USD per square meter at early 2026 exchange rates), with beachfront properties in Guanacaste commanding the highest premiums.
What makes each of these Costa Rica neighborhoods command such high prices comes down to very specific factors:
- Playa Flamingo: Limited beachfront inventory and luxury resort infrastructure attract high-net-worth buyers seeking exclusivity.
- Tamarindo: Strong year-round tourist demand, proximity to Liberia International Airport, and established short-term rental market.
- Escazu (San Rafael district): International schools, embassies, corporate headquarters, and the strongest expat community concentration in the Central Valley.
Which areas in Costa Rica have the most affordable property prices in 2026?
As of early 2026, the most affordable areas for residential property in Costa Rica include San Jose city proper (around ₡580,000 per square meter for houses), Puerto Viejo de Talamanca on the Caribbean coast (approximately ₡820,000 per square meter), Cartago Province (roughly ₡570,000 per square meter), and inland areas like San Ramon in Alajuela.
In these more budget-friendly Costa Rica property markets, typical prices range from ₡500,000 to ₡850,000 per square meter (approximately $1,000 to $1,700 USD per square meter), making them accessible entry points for foreign buyers with more modest budgets.
However, buying in these lower-priced areas of Costa Rica comes with trade-offs: San Jose city proper has higher crime rates in certain districts and limited appeal for vacation rentals; Puerto Viejo offers beautiful beaches but has weaker infrastructure and higher humidity; Cartago and San Ramon provide good value but have thin foreign-buyer liquidity, meaning resale to international buyers can take significantly longer.
You can also read our latest analysis regarding housing prices in Costa Rica.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Costa Rica. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Areas in Costa Rica Offer the Best Rental Yields?
Which neighborhoods in Costa Rica have the highest gross rental yields in 2026?
As of early 2026, the Costa Rica neighborhoods with the highest gross rental yields are Heredia (approximately 8.4%), San Jose city (around 8.3%), Tamarindo for well-managed short-term rentals (7% to 12% depending on property type), and Santa Ana in the Pozos/Lindora corridor (6% to 8%).
Across Costa Rica as a whole, typical gross rental yields for investment properties range from 5% to 8%, with the national average sitting around 7.8% according to recent market data, which is notably higher than many developed markets.
Each of these high-yield Costa Rica neighborhoods delivers strong returns for different reasons:
- Heredia: Strong local tenant demand from corporate employees and university students keeps vacancy low and rents stable.
- San Jose (Rohrmoser/La Sabana districts): Business traveler demand and professional tenant pool support consistent long-term occupancy.
- Tamarindo: High average daily rates of $355+ and 49% occupancy create strong short-term rental revenue when managed professionally.
- Santa Ana (Pozos/Lindora): Corporate relocations and expat families drive premium rents in gated communities with modern amenities.
Finally, please note that we cover the rental yields in Costa Rica here.
Make a profitable investment in Costa Rica
Better information leads to better decisions. Save time and money. Download our guide.
Which Areas in Costa Rica Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Costa Rica perform best on Airbnb in 2026?
As of early 2026, the top-performing Airbnb neighborhoods in Costa Rica are Tamarindo (49% occupancy, $355 average daily rate), Playa Langosta adjacent to Tamarindo (premium rates for beachfront properties), Jaco/Herradura in Puntarenas (40% occupancy, $318 average daily rate), and Nosara (commanding 20% to 40% higher rates than Tamarindo for luxury wellness-focused properties).
In these best-performing Costa Rica short-term rental markets, top properties generate monthly revenues ranging from ₡5,000,000 to ₡18,000,000 (approximately $10,000 to $35,000 USD), with peak season months like January and February seeing the highest returns.
What drives Airbnb success in each of these Costa Rica vacation rental hotspots is quite different:
- Tamarindo: Direct flights to Liberia Airport (30 minutes away), established surf culture, and walkable restaurant/nightlife scene.
- Playa Langosta: Quieter beach atmosphere appeals to families willing to pay premium rates for privacy near Tamarindo amenities.
- Jaco/Herradura: Only 90 minutes from San Jose via Highway 27, strong weekend demand from capital residents and Los Suenos resort traffic.
- Nosara: Wellness tourism and yoga retreats attract high-spending guests seeking exclusive, eco-conscious accommodations.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Costa Rica.
Which tourist areas in Costa Rica are becoming oversaturated with short-term rentals?
The Costa Rica tourist areas showing signs of short-term rental oversaturation in early 2026 are central Jaco (over 4,000 active listings), Tamarindo proper (approximately 3,400 listings with 10% year-over-year growth), and parts of Nosara where inventory grew nearly 20% while occupancy dropped 8%.
In these oversaturated Costa Rica vacation rental markets, listing density has reached concerning levels: Jaco alone has over 2,300 competing Airbnb and Vrbo properties within a small beach town, while Tamarindo's listing count has grown faster than tourist arrivals can absorb.
The clearest indicator that these Costa Rica markets have reached oversaturation is the combination of rising inventory alongside falling occupancy rates and downward pressure on average daily rates, meaning generic properties without standout features are struggling to maintain bookings, especially during the September-October low season when occupancy can drop below 25%.
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.
Which Areas in Costa Rica Are Best for Long-Term Rentals?
Which neighborhoods in Costa Rica have the strongest demand for long-term tenants?
The Costa Rica neighborhoods with the strongest long-term tenant demand in early 2026 are Rohrmoser/Nunciatura in the Pavas district of San Jose, La Sabana/Mata Redonda, Escazu (San Rafael and San Antonio districts), and Santa Ana (Pozos and Lindora areas).
In these high-demand Costa Rica rental neighborhoods, typical vacancy periods range from just 2 to 4 weeks for well-priced properties, with professionally managed apartments often securing tenants before current leases even expire.
The tenant profiles driving demand differ by neighborhood:
- Rohrmoser/Nunciatura: Young professionals and embassy staff seeking walkable access to La Sabana park and business districts.
- La Sabana: Corporate relocations and couples who prioritize urban amenities and restaurant scene proximity.
- Escazu (San Rafael): Expat families with children enrolled in nearby international schools like Country Day School.
- Santa Ana (Lindora): Corporate executives and families preferring gated community security with modern infrastructure.
What makes these Costa Rica neighborhoods especially attractive to long-term tenants is the combination of reliable utilities, walkable or well-connected transit options, proximity to quality healthcare at CIMA Hospital, and established security infrastructure including gated communities and active neighborhood associations.
Finally, please note that we provide a very granular rental analysis in our property pack about Costa Rica.
What are the average long-term monthly rents by neighborhood in Costa Rica in 2026?
As of early 2026, average long-term monthly rents in Costa Rica's main neighborhoods range from approximately ₡425,000 ($850 USD) for entry-level one-bedroom apartments in affordable areas to over ₡2,000,000 ($4,000 USD) for premium three-bedroom homes in Escazu or Santa Ana.
In the most affordable Costa Rica rental neighborhoods like parts of San Pedro, Curridabat, or Heredia, entry-level apartments typically rent for ₡400,000 to ₡550,000 per month ($800 to $1,100 USD) for a basic one or two-bedroom unit.
In mid-range Costa Rica neighborhoods like Rohrmoser, La Sabana, or Curridabat's Granadilla district, two-bedroom apartments typically rent for ₡625,000 to ₡950,000 per month ($1,250 to $1,900 USD), offering a good balance of quality and value.
In the premium Costa Rica neighborhoods of Escazu (San Rafael), Santa Ana (Lindora), or Rohrmoser's best buildings, high-end two and three-bedroom apartments and houses rent for ₡1,100,000 to ₡2,000,000+ per month ($2,200 to $4,000+ USD), with luxury family homes sometimes exceeding ₡2,500,000 ($5,000 USD).
You may want to check our latest analysis about the rents in Costa Rica here.
Get fresh and reliable information about the market in Costa Rica
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which Are the Up-and-Coming Areas to Invest in Costa Rica?
Which neighborhoods in Costa Rica are gentrifying and attracting new investors in 2026?
As of early 2026, the Costa Rica neighborhoods experiencing the most active gentrification and investor interest are Barrio Escalante in the Carmen district of San Jose, Uvita and Ojochal in the Southern Zone, San Pedro/Dent near the University of Costa Rica, and Sardinal in the Carrillo canton of Guanacaste.
These gentrifying Costa Rica neighborhoods have seen annual price appreciation ranging from 5% to 12% over recent years, with the Southern Zone (Uvita/Ojochal area) leading at approximately 8% to 10% annual growth, driven by infrastructure improvements and eco-tourism development.
Which areas in Costa Rica have major infrastructure projects planned that will boost prices?
The Costa Rica areas with major infrastructure projects expected to boost property prices include the Ruta 27 corridor between San Jose and Caldera (Central Pacific), areas near Juan Santamaria Airport (SJO) expansion zones in Alajuela, the Southern Zone benefiting from Route 34 improvements, and Orotina/Atenas in Alajuela province.
Specific infrastructure projects driving these Costa Rica real estate opportunities include the Ruta 27 expansion project managed by the Consejo Nacional de Concesiones, the Juan Santamaria Airport capacity expansion under the 2023-2042 master plan, and new road connections improving access to Uvita and the Osa Peninsula.
Historically, properties near completed infrastructure projects in Costa Rica have appreciated by 10% to 20% in the first year after inauguration, with properties in zones like Alajuela and San Ramon seeing value increases of 10% to 20% following major road construction completion.
You'll find our latest property market analysis about Costa Rica here.
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.
Which Areas in Costa Rica Should I Avoid as a Property Investor?
Which neighborhoods in Costa Rica with lots of problems I should avoid and why?
The Costa Rica neighborhoods that property investors should generally avoid include La Carpio and Leon XIII in San Jose, El Infiernillo sector in Alajuela, Limon City (particularly La Cieneguita), Los Guido in Desamparados, and the El Carmen neighborhood in Cartago.
Each of these problematic Costa Rica areas has specific issues that make them unsuitable for investment:
- La Carpio (San Jose): High crime rates, informal settlements, inconsistent utilities, and virtually no resale market for foreign buyers.
- El Infiernillo (Alajuela): Gang activity and drug-related crime make insurance difficult and tenant quality unreliable.
- Limon City: Highest unemployment and organized crime rates in Costa Rica due to drug trafficking through the Caribbean port.
- Los Guido (Desamparados): Poverty-related crime, poor infrastructure, and no expat support community.
- Central Jaco party zones: While profitable for some, high tenant turnover, noise complaints, and property wear require experienced management.
For any of these Costa Rica neighborhoods to become viable investment options, significant improvements would be needed in police presence and community policing, infrastructure upgrades including street lighting and road quality, and sustained economic development creating legitimate employment alternatives.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Costa Rica.
Which areas in Costa Rica have stagnant or declining property prices as of 2026?
As of early 2026, the Costa Rica areas experiencing stagnant or declining property prices include certain oversupplied luxury segments in Guanacaste (particularly properties above $1 million), some central Jaco condo developments, and remote inland areas with thin buyer liquidity like parts of Limon Province outside tourist zones.
These stagnant Costa Rica markets have seen price declines or flat growth ranging from 3% to 31% over the past 18 months, with Guanacaste luxury properties facing the steepest corrections after post-pandemic speculation drove prices to unsustainable levels.
The underlying causes of price stagnation differ by area:
- Guanacaste luxury segment: Oversupply of high-end inventory combined with post-2022 correction as speculative buyers exit.
- Central Jaco condos: Too many similar units competing for the same vacation rental guests, pushing occupancy and rates down.
- Remote Limon areas: Lack of infrastructure investment, limited tourism appeal, and thin foreign-buyer demand create liquidity challenges.
- Older coastal condos: Deferred maintenance and outdated amenities make them uncompetitive against newer developments.
Buying real estate in Costa Rica can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Which Areas in Costa Rica Have the Best Long-Term Appreciation Potential?
Which areas in Costa Rica have historically appreciated the most recently?
The Costa Rica areas that have historically appreciated the most over the past five to ten years are the Southern Zone (Uvita/Ojochal), prime Guanacaste beach towns (Tamarindo, Nosara, Playa Flamingo), west Greater San Jose suburbs (Escazu, Santa Ana), and Santa Teresa on the Nicoya Peninsula.
The approximate appreciation these top-performing Costa Rica markets have achieved varies by location:
- Southern Zone (Uvita/Ojochal): Up to 42% year-over-year growth in 2024-2025, with 37% sales volume increase in Uvita alone.
- Tamarindo/Nosara: Steady 6% to 10% annual appreciation driven by tourism and limited beachfront supply.
- Escazu/Santa Ana: Consistent 4% to 8% annual growth supported by corporate demand and expat concentration.
- Santa Teresa: Strong appreciation with average sales reaching $897,000 in 2025, up significantly from prior years.
The main driver of above-average appreciation in these Costa Rica areas has been the combination of limited supply (especially for beachfront and titled property), sustained international demand from North American and European buyers, and infrastructure improvements that reduced travel times and increased accessibility.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Costa Rica.
Which neighborhoods in Costa Rica are expected to see price growth in coming years?
The Costa Rica neighborhoods expected to see the strongest price growth in coming years are Uvita and Ojochal in the Southern Zone, Atenas and Grecia in Alajuela Province, the Central Pacific corridor from Orotina to Jaco, and emerging Caribbean coast areas around Puerto Viejo.
Projected annual price growth for these high-potential Costa Rica neighborhoods varies by location:
- Southern Zone (Uvita/Ojochal): 8% to 12% annual growth expected as infrastructure continues improving access.
- Atenas/Grecia: 5% to 8% growth driven by lifestyle migration and SJO airport proximity for expats.
- Central Pacific (Orotina corridor): 6% to 10% appreciation potential as Ruta 27 expansion reduces commute times.
- Caribbean Coast: 3% to 8% growth expected as eco-conscious buyers seek lower entry points.
The single most important catalyst expected to drive future price growth in these Costa Rica neighborhoods is infrastructure development, particularly the completion of highway projects that will reduce travel times from San Jose and major airports, combined with sustained demand from remote workers and retirees seeking lifestyle properties with reliable internet connectivity.
We made this infographic to show you how property prices in Costa Rica compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What Do Locals and Expats Really Think About Different Areas in Costa Rica?
Which areas in Costa Rica do local residents consider the most desirable to live?
The Costa Rica areas that local residents consider the most desirable to live are Escazu (particularly San Rafael and San Antonio districts), Santa Ana (Pozos and Lindora), La Sabana/Mata Redonda in San Jose, Heredia city center, and Curridabat (Granadilla district).
What makes each of these Costa Rica neighborhoods attractive to locals is quite specific:
- Escazu (San Rafael): Prestigious address, international schools, upscale shopping at Multiplaza, and mountain views.
- Santa Ana (Lindora): Modern gated communities, family-friendly parks, and proximity to corporate offices in Forum business park.
- La Sabana: Urban walkability, Sabana Metropolitan Park access, and vibrant restaurant scene.
- Heredia: University town atmosphere, cooler climate, and strong community ties at lower prices than Escazu.
The demographic that typically lives in these locally-preferred Costa Rica areas includes upper-middle-class Costa Rican families, professionals working in multinational companies, and established business owners who value safety, good schools, and reliable infrastructure.
Interestingly, local Costa Rican preferences often align with what foreign investors target in the Greater San Jose metro area, though locals tend to be less interested in coastal vacation areas that foreigners prioritize for short-term rental income.
Which neighborhoods in Costa Rica have the best reputation among expat communities?
The Costa Rica neighborhoods with the best reputation among expat communities are Escazu (San Rafael and Jaboncillos areas), Santa Ana (Lindora and Pozos), Tamarindo and Playa Langosta in Guanacaste, Nosara, and Atenas in Alajuela Province.
What makes expats prefer these Costa Rica neighborhoods over others comes down to practical factors:
- Escazu: English-speaking services, international grocery stores (AutoMercado, PriceSmart), and established expat social networks.
- Santa Ana: Modern housing stock, excellent internet connectivity, and proximity to CIMA Hospital for healthcare needs.
- Tamarindo: Beach lifestyle with developed amenities, active English-speaking community, and strong rental income potential.
- Nosara: Wellness-focused community, yoga and surf culture, and exclusivity that attracts health-conscious retirees.
- Atenas: Lower cost of living, famously pleasant climate, and established North American retiree community.
The expat profiles most commonly found in these Costa Rica neighborhoods include North American retirees (especially in Atenas and Nosara), digital nomads and remote workers (concentrated in Tamarindo and Santa Teresa), corporate transferees with families (Escazu and Santa Ana), and lifestyle entrepreneurs running tourism businesses (Guanacaste coast).
Which areas in Costa Rica do locals say are overhyped by foreign buyers?
The Costa Rica areas that locals commonly say are overhyped by foreign buyers are ultra-premium Playa Flamingo (particularly trophy properties above $2 million), central Jaco's "easy Airbnb" condo market, and some luxury developments in Papagayo Peninsula.
The main reasons locals believe these Costa Rica areas are overvalued:
- Playa Flamingo luxury tier: Prices reflect international resort aspirations rather than local utility or sustainable rental yields.
- Central Jaco condos: Oversupply means actual returns often disappoint the projections sellers advertise to foreigners.
- Papagayo luxury developments: Extreme prices for amenities locals don't value, with thin resale markets when owners want to exit.
What foreign buyers typically see in these Costa Rica areas that locals do not value as highly includes oceanfront proximity (locals often prefer cooler mountain climates), resort-style amenities (locals prioritize practical features over pools and gyms), and the "tropical paradise" marketing narrative that resonates more with North Americans than with Costa Ricans accustomed to beach access throughout the country.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Costa Rica.
Which areas in Costa Rica are considered boring or undesirable by residents?
The Costa Rica areas that residents commonly consider boring or undesirable include purely residential commuter suburbs without commercial centers, remote inland canton centers with limited services, and some industrial zones around the Central Valley periphery.
What makes residents find these Costa Rica areas boring or undesirable:
- Inland canton centers (various): Limited nightlife, few restaurant options, and social isolation for those without established local networks.
- Industrial periphery zones: Heavy truck traffic, noise pollution, and lack of green spaces or recreational amenities.
- Remote agricultural areas: Poor internet connectivity, limited healthcare access, and hours from major airports.
However, for investors, "boring" is not always bad. Stable, quiet residential areas often mean reliable long-term tenants, lower turnover, and fewer management headaches than exciting tourist hotspots. The key is distinguishing "boring but safe" from "undesirable due to crime or infrastructure problems," which requires checking OIJ crime data for the specific district.
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.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Costa Rica, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Banco Central de Costa Rica (BCCR) | Official source for Costa Rica's reference exchange rates used across the financial system. | We used it to convert all local currency prices to USD for consistent comparisons. We applied early 2026 exchange rates (around 501 colones per dollar) throughout our analysis. |
| Properstar | Transparent listings-derived price index covering multiple Costa Rica localities and property types. | We used it to build our price-per-square-meter maps across coastal and urban areas. We referenced their locality medians for Tamarindo, Flamingo, Escazu, Santa Ana, and other key markets. |
| AirDNA | Leading short-term rental analytics platform with consistent methodology across global markets. | We used it to quantify Airbnb performance metrics including occupancy rates, average daily rates, and revenue. We compared these figures against purchase prices to estimate gross yields. |
| Global Property Guide | Independent research organization tracking rental yields and property markets across 80+ countries. | We used their Q2 2025 rental yield calculations showing 7.84% national average. We referenced their regional yield breakdowns for Heredia, San Jose, and Escazu. |
| OIJ Crime Statistics Portal | Official judicial agency publishing queryable crime data by location and time period. | We used it to identify higher-risk areas where property investment requires extra caution. We cross-referenced specific districts to separate perception from actual crime patterns. |
| Instituto Costarricense de Turismo (ICT) | Official tourism board publishing arrival statistics and tourism trends used by government and industry. | We used it to ground our vacation rental demand analysis in actual visitor numbers. We identified which regions have structurally strong tourism demand rather than temporary hype. |
| INEC Census Data | Costa Rica's official statistics institute providing baseline data on households and demographics. | We used it to understand where long-term rental demand concentrates based on jobs and population growth. We treated census data as the foundational layer under faster-moving market data. |
| Consejo Nacional de Concesiones (CNC) | Official government authority managing major infrastructure concessions including key highway projects. | We used it to identify which infrastructure projects are actually in the government pipeline versus speculative. We focused on Ruta 27 expansion as a concrete driver of property values. |
| AERIS/SJO Airport | Airport operator publishing concrete progress updates on Juan Santamaria expansion projects. | We used it to support the airport-driven demand story for Alajuela and west San Jose submarkets. We confirmed that expansion works are active rather than theoretical planning documents. |
| Coldwell Banker Costa Rica | Major real estate brokerage with extensive transaction data across Costa Rica regions. | We used their market reports to validate price trends and regional performance. We cross-referenced their 2024-2025 appreciation estimates against listings-based indices. |
Get the full checklist for your due diligence in Costa Rica
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.