Buying property in Costa Rica: is it worth it now?

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

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Costa Rica. If you'd like to learn more about us, you can check our presentation page.

What types of condos are available in Costa Rica right now?

Costa Rica's condo market offers five main categories to match different lifestyles and investment goals.

Beachfront condos dominate the Pacific coast in areas like Tamarindo, Jacó, Flamingo, and Nosara. These properties typically feature ocean views, direct beach access, and resort-style amenities including pools, gyms, and concierge services. Prices range from $200,000 for smaller units to over $800,000 for luxury oceanfront penthouses.

Golf course and resort condos are attached to premium developments such as Los Sueños, Reserva Conchal, and Peninsula Papagayo. These units come with golf privileges, spa access, and resort management services, making them popular for both personal use and rental investment. Urban condos in San José, Escazú, Santa Ana, and Heredia cater to professionals and expats seeking city conveniences. These modern high-rises and gated communities offer security, parking, and proximity to international schools, hospitals, and business districts.

Mountain view and eco-friendly condos target nature enthusiasts and sustainability-focused buyers. Located in the Central Valley or emerging eco-developments, these properties often feature green building certifications and nature preserve access. Retirement condos specifically designed for older expats include wellness amenities, social programs, and age-friendly layouts with single-level living and accessible bathrooms.

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

Is it smarter to buy a condo or rent one in Costa Rica at the moment?

Buying a condo in Costa Rica makes more financial sense in 2025 for long-term residents and investors.

The current market strongly favors buyers after condo prices corrected 35-40% from their 2022-2023 peaks. This correction has created a buyer's market, especially for luxury units above $400,000. Foreign buyers can fully own titled condo properties without restrictions, and current rental yields of 5-9% in prime areas provide solid income potential.

However, buying requires significant upfront capital with 25-50% down payments and mortgage rates between 7.5-10% for foreign buyers. Ongoing costs include HOA fees ($150-500/month), property taxes (0.25% annually), insurance ($400-1,000/year), and maintenance expenses. The buying process also involves legal fees of 1-1.25% plus transfer taxes of 1.5%.

Renting offers flexibility and lower initial investment, making it ideal for newcomers learning about neighborhoods and Costa Rican lifestyle. Monthly rental costs for condos range from $800-2,500 depending on location and amenities. Renting allows you to "try before you buy" and adjust to local bureaucracy without major financial commitment.

The smart strategy is to rent first if you're new to Costa Rica, then buy once you've identified your preferred area and confirmed long-term plans. Buying becomes especially attractive if you plan to generate rental income or want long-term appreciation potential.

How have condo prices changed over the past few years, and what's the current average price by size and location?

Costa Rican condo prices experienced dramatic growth from 2020-2022, followed by a significant correction that has stabilized in 2025.

The pandemic drove massive price increases as remote workers and retirees flooded the market, pushing values up 40-60% in popular expat areas. Speculative investment and limited inventory created bidding wars, particularly for beachfront properties. Prices peaked in mid-2022 when luxury Guanacaste condos reached $4,000+ per square meter.

The correction began in late 2022 as interest rates rose and speculative demand cooled. By 2025, prices have stabilized at levels that provide better value while remaining above pre-pandemic baselines. The Caribbean coast offers the most affordable beachfront options, while Central Valley urban condos provide the best value for practical living.

What are experts forecasting for condo prices in Costa Rica in the next few years?

Real estate experts predict steady growth for Costa Rican condo prices through 2027, with significant variation by location and property type.

Short-term forecasts for 2025-2026 show annual price appreciation of 5-12% in prime coastal and expat areas. The Central Pacific region around Jacó and Manuel Antonio is expected to lead growth due to improved infrastructure and steady tourism demand. Guanacaste luxury markets that experienced the steepest corrections are now stabilizing, with premium beachfront condos likely to appreciate 6-8% annually.

Urban markets in San José, Escazú, and Santa Ana should see more modest 4-7% annual growth, driven by steady expat demand and proximity to international amenities. The Caribbean coast presents the highest growth potential with predicted 8-15% annual appreciation as infrastructure improvements make the region more accessible.

Long-term projections through 2027 and beyond remain optimistic due to several structural factors. Costa Rica's political stability, growing digital nomad population, and ongoing infrastructure investments support continued demand. The government's focus on sustainable development and eco-tourism creates lasting appeal for environmentally conscious buyers.

However, experts warn that luxury segments above $600,000 may see slower appreciation as the market remains sensitive to global economic conditions and US interest rates.

What are the main trends in the Costa Rican condo market right now?

Five major trends are reshaping Costa Rica's condo market as of September 2025.

Sustainability and eco-friendly design have become primary selling points, with buyers increasingly demanding green building certifications, solar panels, and water conservation systems. New developments in areas like Uvita and Nosara emphasize environmental integration, featuring native landscaping and minimal ecological impact.

Digital nomad-friendly amenities are now standard in new urban and beachfront developments. High-speed fiber internet, dedicated workspace areas, and flexible lease terms cater to remote workers who represent a growing segment of the buyer pool. Co-working spaces within condo complexes have become common selling features.

Short-term rental optimization drives design choices, with developers creating turnkey properties specifically for Airbnb and VRBO markets. These condos feature vacation rental licensing, professional management services, and furniture packages designed for tourist appeal. The 13% VAT on short-term rentals implemented in 2024 has pushed some investors toward longer-term rental strategies.

Luxury amenity inflation means even mid-range developments now include resort-style features like infinity pools, fitness centers, and concierge services that were previously exclusive to high-end properties. This trend increases both purchase prices and HOA fees but enhances rental income potential.

Foreign buyer dominance continues, with international purchasers representing 60-70% of condo sales in prime tourist areas, creating pricing pressure that some locals find prohibitive.

How exactly does the condo buying process work in Costa Rica, step by step?

The Costa Rican condo buying process requires careful attention to legal requirements and typically takes 30-60 days to complete.

1. Choose a licensed real estate agent: Work with agents from established firms like Coldwell Banker Costa Rica, RE/MAX Costa Rica, or local specialists. Verify their credentials through the Costa Rican Chamber of Real Estate Professionals.
2. Property search and selection: Visit properties in person and spend time in your target neighborhood. Consider renting in the area first to understand local dynamics, traffic patterns, and community atmosphere.
3. Make a written offer: Submit offers below asking price, especially in the current buyer's market. Include contingencies for financing, inspection, and legal review.
4. Hire a Costa Rican attorney: This step is mandatory for foreign buyers. Your lawyer will conduct due diligence, verify property title, check for liens, and ensure HOA compliance.
5. Deposit and escrow: Place a good faith deposit (typically 5-10% of purchase price) in an escrow account while legal checks proceed.
6. Due diligence period: Your attorney verifies clean title at the National Registry, confirms property surveys, checks tax payments, and reviews HOA financial statements and bylaws.
7. Sign the purchase contract (escritura): Both parties and lawyers sign the public deed. If you cannot attend, arrange power of attorney for your lawyer to sign on your behalf.
8. Title registration: Complete the transfer at the National Registry (Registro Nacional), which makes the sale official and transfers legal ownership.
9. Pay closing costs: Transfer taxes (1.5%), legal fees (1-1.25%), notary fees, and registry costs are typically the buyer's responsibility.
10. Take possession: Receive keys and register with the HOA to begin receiving maintenance services and community access.

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Which real estate agencies or platforms are the best places to find condos for sale in Costa Rica?

Several established agencies and platforms dominate Costa Rica's condo market, each offering different strengths for foreign buyers.

International franchise agencies provide the most comprehensive services for foreign buyers. Coldwell Banker Costa Rica and RE/MAX Costa Rica offer English-speaking agents, established legal networks, and offices in major expat areas. These agencies typically handle higher-end properties and provide full-service support through the buying process.

Specialized regional agencies excel in specific markets. Flamingo Beach Realty dominates the Guanacaste Pacific coast with deep local knowledge and established seller relationships. Dominical Realty specializes in the South Pacific region, while agencies in Escazú and Santa Ana focus on urban properties for expat professionals.

Online platforms aggregate listings from multiple sources. 2CostaRicaRealEstate.com offers advanced search filters and detailed property information, while Brevitas provides comprehensive market data and neighborhood analysis. TheLatinInvestor specializes in investment-focused properties with rental yield calculations and market analysis.

Local boutique agencies often have exclusive listings and insider market knowledge. Many operate in specific towns like Tamarindo, Nosara, or Uvita, offering personalized service and deep community connections that can access off-market properties before they're publicly listed.

For the best results, work with 2-3 agencies simultaneously to access the widest selection of properties and compare market insights from different perspectives.

What kind of condo can you get for different budget ranges?

Costa Rica's condo market offers options across all budget levels, with significant variation in location, amenities, and investment potential.

In the $100,000-$180,000 range, expect basic 1-2 bedroom condos in emerging areas or older buildings. These properties work well for budget-conscious retirees or first-time investors, though amenities may be limited and rental yields modest. The Caribbean coast offers the best beachfront value in this range.

The $200,000-$350,000 bracket provides solid 2-3 bedroom condos with modern amenities like pools, security, and parking. These properties in established expat areas offer good rental potential and reasonable appreciation prospects.

Luxury markets above $400,000 include beachfront locations, golf course access, and resort-style amenities. These properties generate the highest rental income but require larger down payments and higher carrying costs.

What are the most common mistakes buyers make when purchasing a condo in Costa Rica, and how can you avoid them?

Seven critical mistakes can cost foreign buyers thousands of dollars and create ongoing legal problems in Costa Rica's condo market.

• Skipping professional legal representation: Many buyers try to save money on attorney fees, only to discover title problems, liens, or HOA issues after closing. Always hire a bilingual Costa Rican attorney who specializes in real estate transactions.
• Rushing the purchase decision: Buyers often fall in love with a property during vacation and make hasty decisions without understanding the local market. Spend extended time in your target area and consider renting first to understand neighborhood dynamics.
• Inadequate due diligence: Failing to verify clean title, outstanding debts, construction permits, and HOA financial health creates serious risks. Your attorney should check the National Registry, review HOA meeting minutes, and verify all legal compliance.
• Underestimating carrying costs: Many buyers focus only on purchase price and ignore ongoing expenses. Budget for HOA fees ($150-500/month), property taxes, insurance, maintenance, and management costs if renting the property.
• Ignoring HOA rules and restrictions: Condo associations often restrict rental periods, renovation scope, and pet ownership. Review CC&Rs carefully before purchasing, especially if you plan short-term rentals or significant modifications.
• Assuming all properties have clear title: Beachfront concession land and some rural properties may have complex ownership structures that limit financing and resale options. Verify titled property status before making offers.
• Overlooking rental market realities: Buyers often overestimate rental income potential without researching actual occupancy rates, seasonal variations, and local competition. Analyze comparable properties and speak with existing rental owners.

What is the cost of living in Costa Rica if you own a condo there?

Owning a condo in Costa Rica involves predictable monthly expenses that vary significantly by location and lifestyle choices.

Housing-related costs form the largest expense category. HOA fees range from $150-500 monthly depending on amenities and location, with luxury beachfront complexes charging the highest rates. Property taxes are relatively low at 0.25% annually of assessed value, though luxury properties over $228,600 face additional luxury taxes. Property insurance costs $400-1,000 annually based on coverage and property value.

Utility expenses depend heavily on air conditioning usage. Basic utilities including electricity, water, and internet range from $50-200 monthly, with A/C pushing costs toward the higher end during hot months. High-speed internet suitable for remote work costs $30-80 monthly and is widely available in expat areas.

Daily living expenses vary by shopping habits and location. Local groceries and services cost significantly less than US/European equivalents, but imported brands and luxury items carry premium pricing. Restaurant meals range from $3-8 for local food to $15-30 for international cuisine in expat areas.

Transportation costs remain low with excellent public bus systems and affordable domestic flights. Many condo owners find a car unnecessary in walkable beach towns or urban areas with good public transport.

Overall monthly living costs for condo owners typically range from $1,200-2,500 depending on lifestyle choices, with frugal retirees managing on the lower end and luxury-focused expats reaching the higher range.

Which areas offer the best value for condos — affordable spots, up-and-coming neighborhoods, and upscale areas — and what are the pros and cons of each?

Costa Rica's condo markets divide into three distinct value categories, each offering different investment profiles and lifestyle benefits.

Affordable/Emerging Areas: The Caribbean coast (Limón, Puerto Viejo), Ojochal, San Ramón, and Grecia offer the lowest entry prices with 1-2 bedroom condos available from $100,000-180,000. These areas provide authentic Costa Rican culture, lower living costs, and significant appreciation potential as infrastructure develops. However, they offer fewer expat services, limited English-speaking professionals, and slower short-term appreciation. Rental income potential is modest but growing as these areas gain recognition.

Up-and-Coming Areas: Uvita, Dominical, Playa Hermosa, and inland Central Valley towns represent the middle ground with condos priced $150,000-350,000. These markets benefit from ongoing infrastructure improvements, growing eco-tourism, and increasing expat interest. Investment potential is strong as these areas transition from emerging to established markets. Challenges include evolving transport access and limited luxury amenities, though this is rapidly improving.

Upscale/Established Areas: Tamarindo, Nosara, Peninsula Papagayo, Escazú, and Santa Ana command premium prices from $300,000-900,000+ but offer proven appreciation, high rental demand, and luxury amenities. These markets provide excellent liquidity, professional property management options, and established expat communities. The downside includes premium pricing, intense competition from other investors, and potential market saturation in some segments.

The best value strategy often involves buying in up-and-coming areas before they transition to established status, capturing appreciation during the development phase while maintaining reasonable entry costs.

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 is it like living as an expat in Costa Rica if you own a condo?

Owning a condo as an expat in Costa Rica provides stability, community integration, and financial benefits that rental cannot match.

Property ownership creates a sense of belonging and permanence that enhances the expat experience. Condo ownership allows complete customization of living space, from décor choices to renovation projects that reflect personal taste. Many expat condo owners report stronger community connections through HOA participation and building relationships with neighbors, both foreign and local.

Established expat areas like Escazú, Tamarindo, and Manuel Antonio offer the easiest transition with English-speaking services, international healthcare, and familiar amenities. Condo complexes often become social hubs where expats share recommendations, organize activities, and provide mutual support for navigating Costa Rican bureaucracy.

Financial advantages include building equity rather than paying rent, potential appreciation, and rental income opportunities when traveling. Many expat condo owners offset living costs by renting their units during peak tourism seasons or when visiting their home countries.

However, ownership also brings responsibilities including HOA participation, maintenance coordination, and property tax obligations. Language barriers can complicate HOA meetings and vendor relationships, though this improves over time. The "pura vida" lifestyle that attracts many expats sometimes conflicts with urgent property issues that require immediate attention.

Overall, expat condo owners report higher satisfaction and stronger Costa Rican connections compared to long-term renters, with the investment providing both lifestyle and financial benefits.

If you rent out a condo long term, which areas should you target, what type of tenants will you attract, what do they typically want, how much could you earn, and what rental yield could you expect?

Long-term condo rentals in Costa Rica target specific markets with distinct tenant profiles and yield expectations that vary significantly by location.

Target areas for long-term rentals include the Central Valley (San José, Escazú, Santa Ana, Heredia) and established Pacific coast expat communities (Tamarindo, Jacó, Manuel Antonio). Urban properties attract professional expats, embassy staff, and international business professionals seeking 1-2 year leases. Beach areas draw long-term expat residents, retirees, and digital nomads preferring 6-12 month terms.

Typical tenants include expat families with children attending international schools, remote workers seeking lifestyle changes, retirees on fixed budgets, and professionals on extended work assignments. These tenants prioritize security, reliable high-speed internet, furnished units, proximity to amenities, and parking availability.

Rental income varies substantially by location and property quality. Central Valley urban condos generate $800-2,000 monthly rent, while beachfront properties command $1,200-3,500 monthly. Two-bedroom condos in prime expat areas typically rent for $1,500-2,500 monthly, with luxury properties reaching $3,000+.

Expected rental yields range from 6-8% annually in urban markets and 6-7% in tourist/expat beach areas. Properties under $300,000 often achieve higher yields than luxury units due to stronger demand in the mid-market segment. Successful long-term rentals require property management, regular maintenance, and understanding of tenant law which favors renters' rights.

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

If you rent out a condo short term, which areas work best, what kind of guests do you get, how much could you earn, what yield is possible, and what regulations apply?

Short-term condo rentals in Costa Rica offer higher yields but require active management and compliance with evolving regulations as of September 2025.

Prime areas for short-term rentals include Guanacaste province (Tamarindo, Flamingo, Nosara, Papagayo), Central Pacific (Jacó, Manuel Antonio), and select Central Valley locations near airports or attractions. Beach destinations perform best during dry season (December-April) while urban properties maintain steadier year-round occupancy.

Guest profiles include international tourists seeking vacation rentals, digital nomads staying 1-4 weeks, remote worker families on extended trips, and business travelers needing temporary housing. High-end properties attract luxury travelers and wellness tourists, while budget units serve backpackers and budget-conscious families.

Nightly rates range from $80-150 for modest properties to $300-600 for luxury beachfront units. Peak season (December-March) commands premium rates, while shoulder seasons require competitive pricing. Occupancy rates vary from 40-70% annually depending on location, property quality, and management effectiveness.

Achievable yields range from 7-12% annually for well-managed properties in prime locations. However, this requires professional management, marketing expertise, and significant time investment. Operating costs include 13% VAT (implemented 2024), platform commissions (3-5%), cleaning fees, maintenance, and management costs (15-25% of revenue).

Regulatory compliance includes business license registration, VAT collection and remittance, tourism tax collection, and compliance with local zoning laws. Many HOAs restrict or prohibit short-term rentals, making property selection crucial. Fire safety certificates and tourism ministry registration may be required in certain jurisdictions.

Given all these factors, is it worth buying a condo in Costa Rica right now — whether for living in it, renting it out, or buying to resell later at a higher price?

Buying a condo in Costa Rica in 2025 makes strong financial and lifestyle sense for most foreign buyers, particularly those with long-term investment horizons.

For personal residence, the current market offers excellent value after the 35-40% price correction from peak levels. Foreign buyers can purchase titled condos without restrictions, and the political stability, healthcare system, and expat infrastructure support comfortable long-term living. The "pura vida" lifestyle, tropical climate, and proximity to the US make Costa Rica attractive for retirees and remote workers.

Investment prospects are particularly compelling given current market conditions. Rental yields of 6-9% provide solid income while appreciation potential of 5-12% annually in prime areas offers capital growth. The post-correction pricing creates opportunities to acquire quality properties at reasonable valuations, especially in the $200,000-500,000 range that attracts the broadest buyer pool.

Resale potential remains strong due to consistent foreign demand, though luxury markets above $600,000 may experience slower appreciation. The growing digital nomad population, ongoing infrastructure improvements, and sustainable development focus support long-term demand fundamentals.

However, avoid buying if you're uncertain about location preferences, have short-term investment horizons under 3-5 years, or cannot handle the complexity of foreign property ownership. Market timing for quick profits remains risky, and transaction costs make short-term speculation unattractive.

The optimal strategy involves buying for personal use with rental income potential, holding for medium-term appreciation, and focusing on established expat areas with proven demand patterns. Current market conditions favor buyers who can act decisively with proper legal guidance and realistic expectations.

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. Flamingo Beach Realty - Condos Costa Rica
2. The LatinInvestor - Costa Rica Buy Property
3. Expat Properties CR - Renting vs Buying
4. Drink Tea Travel - Buying Property in Costa Rica
5. Vacations Costa Rica - Renting vs Buying
6. The LatinInvestor - Average Home Price Costa Rica
7. Playa Lagarto Real Estate - Market 2025-2028
8. Senderos CR - Cost of Living
9. 2 Costa Rica Real Estate - Market 2025 Trends
10. Coldwell Banker Samara - Retiring in Costa Rica 2025