Is buying a property in Escazú a good investment?

Last updated on December 7, 2023

Yes, the analysis of San José's property market is included in our pack

If you've explored the beauty of Escazú in San José, you may have wondered whether investing in property in this upscale suburb could be a wise decision.

Is it a good idea though? How is the real estate market there? Are prices going up or going down? Do people make profits on their real estate investments? What about the rental demand?

We'll answer all these questions for you! When building and updating our property pack for Costa Rica, our team has been researching and surveying this area. Actually, lots of customers are interested in investing there. So, we thought it would be a good idea to add some information about it in our pack.

Why do property buyers like investing in Escazú?

Escazú, a district in the canton of San José, Costa Rica, stands out as a highly sought-after location for property buyers, offering a unique blend of attributes that set it apart from other real estate markets.

Its popularity began to surge in the early 2000s, driven by a combination of factors including its climate, lifestyle, and accessibility.

Nestled in the Central Valley, Escazú is known for its pleasant climate, which is milder compared to the coastal regions of Costa Rica. This temperate weather is a major draw for those seeking a comfortable living environment year-round.

Additionally, Escazú offers a blend of modern amenities and natural beauty. The area boasts high-end shopping centers, international restaurants, and luxury homes, which are juxtaposed with scenic views of mountains and lush greenery. This unique combination appeals to those who desire urban conveniences while being close to nature.

When comparing Escazú to other areas in San José, its upscale character and status as an expatriate hub make it stand out. It's more cosmopolitan and has a higher concentration of luxury properties and amenities than most other districts in the city.

This has made it particularly attractive to foreign investors and affluent locals. Escazú's reputation as a prestigious area has been reinforced by the presence of foreign embassies and international schools, adding to its global appeal.

The rise in popularity of Escazú is not a fleeting trend. Its sustained appeal is backed by ongoing development and investment in infrastructure and real estate. This continued growth suggests that the area will maintain its status as a prime location for property buyers.

However, it's important to note that this growth and development come with increased property values, making Escazú one of the more expensive areas in Costa Rica.

The demographic attracted to Escazú is diverse, including expatriates, retirees, and affluent professionals. These individuals are often drawn to the high quality of life, the sense of community, and the safety and security that Escazú offers. Its international schools and multilingual community also make it an attractive location for families.

Despite its many strengths, Escazú is not without its weaknesses. The cost of living is relatively high compared to other parts of San José, which can be a barrier for some potential buyers.

Additionally, as the area continues to develop, traffic congestion can be a challenge, particularly during peak hours.

Moreover, the rapid development has led to concerns about environmental impact and the loss of some of the area's natural charm.

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Why is Escazú a nice place to live?

Escazú is often regarded as a desirable place to live for several reasons, ranging from its lifestyle and culture to its amenities and accessibility.

The lifestyle in Escazú is a blend of modern conveniences and natural beauty. It's known for its upscale atmosphere, offering a comfortable and luxurious living experience. The area is dotted with fine dining restaurants, trendy cafes, and boutique shops, providing a cosmopolitan feel.

Despite this, Escazú maintains a sense of tranquility, thanks to its scenic views of mountains and green spaces.

The culture in Escazú is quite diverse, influenced heavily by the expatriate community that resides there. This diversity brings a unique blend of international and local customs, making it a culturally rich area.

The expat community is significant and well-integrated, contributing to the area's international schools and bilingual environment. This makes it an attractive spot for families from abroad looking for a seamless transition to life in Costa Rica.

Living in Escazú does come with a higher price tag compared to other parts of San José. The cost of living is elevated due to the upscale nature of the district, reflected in property prices, rental costs, and the general cost of amenities and services.

However, many find the quality of life here justifies the expense.

Safety is a key consideration for many, and Escazú is known to be one of the safer areas in the San José region. It has a lower crime rate compared to other parts of the city, which adds to its appeal for families and expatriates.

In terms of amenities, Escazú is well-equipped. It hosts several top-notch schools, such as the Blue Valley School and the Mount View School, appealing to families with children. Healthcare needs are well-served by facilities like the CIMA Hospital, which is known for its high-quality medical care.

For shopping and leisure, places like Multiplaza Escazú offer a wide range of retail and entertainment options.

The quality of infrastructure in Escazú is generally good, with well-maintained roads and reliable utilities. Internet connectivity is robust, meeting the needs of both residents and the business community. This infrastructure supports a comfortable and convenient lifestyle.

Accessibility is another strong point for Escazú. It's well-connected to other parts of San José, making commuting relatively straightforward. Its proximity to major transport hubs like Juan Santamaría International Airport, which is about a 20-minute drive away, adds to its convenience for international travelers.

Public transportation options in Escazú include buses and taxis, which are readily available. The bus service connects Escazú with downtown San José and other key areas, making it a viable option for those who prefer not to drive.

How much does it cost to buy real estate in Escazú?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Costa Rica.

Buying a property in Escazú comes with various options and price points, reflecting the diverse real estate market in this upscale Costa Rican district.

In Escazú, you'll find a range of residential properties including apartments, houses, and luxury villas. Apartments, particularly in gated communities, are popular for their security and amenities like pools and fitness centers.

Houses offer more space and privacy, often coming with gardens. Luxury villas, with their high-end features and expansive views, cater to the top end of the market.

High-demand properties in Escazú are typically those that blend luxury with convenience. Properties offering modern amenities, security, and panoramic views are particularly sought after. This demand is driven by both local affluent buyers and the international community, including expatriates and retirees.

The real estate market in Escazú consists of both new developments and resale properties. New developments are often focused on luxury apartments and gated communities, responding to the growing demand for modern, secure living spaces.

Resale properties, including older houses and villas, offer their own charm and are often located in established neighborhoods.

Regarding prices, Escazú is one of the more expensive areas in San José. The price per square meter varies widely based on the property type and location within Escazú.

For apartments, prices can range from $2,000 to $3,000 per square meter, while houses and villas may range from $2,500 to over $4,000 per square meter, depending on their size, location, and amenities.

Property values in Escazú have seen a steady increase over recent years. This trend is driven by the district's popularity, ongoing development, and its status as a desirable location. This upward trend is expected to continue, barring any major economic disruptions.

Looking at future developments, Escazú continues to attract new projects, including high-end residential complexes and mixed-use developments. These new projects, along with city planning changes aimed at improving infrastructure and amenities, are likely to further boost property values.

Specific developments, such as luxury condominium projects and upscale shopping centers, add to the appeal of the area.

Predictions for the real estate market in Escazú in the coming years remain optimistic. Factors like the district's continued development, its appeal to foreign buyers, and Costa Rica's stable economy suggest that property values will continue to rise.

Additionally, the ongoing investment in infrastructure and amenities, combined with the district's reputation for safety and quality of life, indicate a potential increase in property values.

Where is the best area to buy a property in Escazú?

Choosing the best area to buy a property in Escazú depends on various factors including atmosphere, property types, and budget.

Escazú, known for its upscale living and beautiful settings, offers diverse options catering to different preferences.

Different parts of Escazú have distinct characteristics.

For example, the area near San Rafael de Escazú is known for its more urban feel, with a mix of residential and commercial properties. This area is bustling, with easy access to shopping centers like Multiplaza, numerous restaurants, and other amenities.

Property types here range from apartments in high-rise buildings to smaller homes, appealing to those who enjoy a more vibrant lifestyle.

On the other hand, areas like San Antonio de Escazú offer a more tranquil, suburban atmosphere. This part of Escazú is known for its breathtaking mountain views and a more laid-back lifestyle.

Here, you'll find larger homes and villas, often with spacious gardens. These properties tend to be pricier due to their size and the serene environment they offer.

For those looking at up-and-coming areas within Escazú, neighborhoods like Bello Horizonte are gaining attention. This area is seeing new developments, including modern residential complexes, which are attracting both local and foreign buyers.

The appeal lies in the balance between a peaceful setting and proximity to central Escazú’s amenities.

When considering where to buy a property in Escazú, areas like San Rafael and San Antonio are often recommended. San Rafael for those who prioritize convenience and an urban feel, and San Antonio for buyers seeking tranquility and more spacious properties.

These areas have maintained their reputation for safety, quality of living, and have consistently shown good property value growth.

However, certain areas in Escazú might be less advisable for some buyers.

For instance, areas closer to the peripheries or those undergoing significant development might not offer the same level of amenities or might be in the midst of construction, which can be a downside for those seeking immediate peace and stability.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Costa Rica.

Area	Atmosphere	Property Types	Price Range	Notable Features
San Rafael de Escazú	Urban, bustling	Apartments, smaller homes	Moderate to high	Near amenities like shopping centers, restaurants
San Antonio de Escazú	Tranquil, suburban	Larger homes, villas	High	Mountain views, spacious gardens
Bello Horizonte	Emerging, balanced	Modern residential complexes	Moderate to high	New developments, proximity to central Escazú

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Is there a strong rental demand in Escazú?

Escazú, a district is experiencing a strong rental demand, driven by its reputation as an upscale, cosmopolitan area.

This demand is shaped by a mix of both short-term and long-term rentals, each appealing to different demographic profiles.

Short-term rentals in Escazú are popular among tourists and business travelers who are attracted to the area's amenities and convenience. These renters often look for furnished apartments or homes, preferably in areas close to shopping centers, restaurants, and entertainment options.

Properties in neighborhoods like San Rafael de Escazú, known for their urban vibe and proximity to amenities, are particularly appealing for short-term stays.

On the other hand, long-term rentals are in demand primarily among expatriates, diplomats, and business professionals who are in Costa Rica for extended periods.

These tenants typically seek properties that offer a blend of comfort, security, and accessibility to international schools and healthcare facilities.

Areas like San Antonio de Escazú, with its more residential and tranquil environment, are often sought after for long-term rentals.

The profiles of potential tenants in Escazú are diverse, but they commonly include affluent professionals, expatriates, and retirees, many of whom prioritize safety, modern amenities, and a high quality of life.

Properties that cater to these needs, such as those in gated communities or those offering features like swimming pools, gyms, and high-speed internet, tend to reduce vacancy rates.

Regarding returns on investment, rental properties in Escazú can offer attractive yields. For well-located and well-appointed properties, landlords can expect a return on investment in the range of 4% to 8% annually, depending on the property type and location. This return is influenced by the property’s appeal to the rental market, its condition, and the amenities it offers.

Properties experiencing increasing demand and potentially higher yields are those that align with the preferences of the target rental market.

Modern apartments in areas like San Rafael, offering proximity to urban amenities, are popular among short-term renters.

Meanwhile, spacious houses or villas in areas like San Antonio, with features catering to families and long-term residents, are in higher demand for long-term rentals.

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Is it easy to buy a property as foreigner in Escazú?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Costa Rica.

Buying property in Escazú, San José, as a foreigner is relatively straightforward, with Costa Rica being known for its friendly stance towards foreign investment in real estate.

However, there are certain aspects and nuances that foreign buyers should be aware of to ensure a smooth purchasing process.

Firstly, in terms of regulations and restrictions, foreign buyers enjoy the same rights as locals when it comes to property ownership in Costa Rica.

There are no specific restrictions for foreign buyers in Escazú or elsewhere in the country. This openness makes it an attractive destination for international real estate investors.

The purchasing process in Escazú typically involves finding a property, making an offer, conducting due diligence, and then proceeding to closing. Due diligence is a crucial step, where the buyer should verify the property's legal status, ensure there are no liens or encumbrances, and confirm zoning regulations and property boundaries.

A primary risk associated with property investment in Escazú, as in any real estate market, is the potential fluctuation in property values.

Additionally, foreign buyers may face challenges due to language barriers, unfamiliarity with local laws and regulations, and different business practices. It's also important to be aware of the ecological regulations in Costa Rica, which are strict compared to other countries. These can affect property development and use, especially in areas close to protected natural spaces.

Common pitfalls for foreign buyers often include neglecting thorough due diligence, underestimating the importance of understanding local zoning and environmental laws, and sometimes falling prey to misleading or inaccurate property listings.

Unique to Costa Rica is the concept of “Zona Maritimo-Terrestre” (Maritime Zone), which applies to properties close to the coastline. While this is less of a concern in Escazú, it's a good example of unique local real estate considerations in the country.

Working with a local real estate agent or lawyer is highly advisable. They can provide invaluable assistance in navigating the local market, understanding legal requirements, and ensuring all documentation is correctly handled.

Their expertise can be particularly crucial in avoiding common mistakes and ensuring that the investment aligns with the buyer's expectations and legal requirements.

Common exit strategies for property investors in Escazú include resale and renting out the property. The rental market in Escazú can be lucrative, especially given the area's popularity among expatriates and professionals.

For resale, maintaining the property's condition and staying informed about market trends is crucial to maximize potential returns.