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The Guanacaste residential property market shows signs of stabilization after experiencing a dramatic 400% price surge followed by a 31% correction. Property prices in the Guanacaste market are likely to increase modestly in 2026, driven by continued foreign buyer demand and steady population growth.
Current market conditions favor buyers, with increased inventory and shorter average days on market compared to previous years. The region's rental yields remain strong at 7-10%, making it attractive for both investment and relocation purposes.
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Guanacaste property prices stabilized in 2025 after the 2024 correction and are positioned for modest growth in 2026. The market offers strong rental yields of 7-10% with foreign buyers representing 40% of transactions.
Current conditions favor buyers with increased inventory and reduced days on market, while new construction and population growth support long-term demand.
| Metric | Current Status (2025) | 2026 Outlook |
|---|---|---|
| Average Price per m² (Houses) | $1,530/m² | 3-5% increase expected |
| Median Home Price | $967,506 | Modest appreciation likely |
| Days on Market | 232 days | Stable to slightly decreasing |
| Rental Yields | 7-10% | Maintaining strong performance |
| Foreign Buyer Share | 40% | Sustained demand expected |
| Sales Volume | Up 28% vs 2023 | Continued growth anticipated |
| Inventory Levels | 15-23% above 2023 | Gradual normalization |
What has been the average price per square meter for residential properties in Guanacaste over the past five years?
The Guanacaste residential market experienced unprecedented price volatility over the past five years.
Starting from approximately $382 per square meter in 2020, property prices surged dramatically during the pandemic. The most significant increase occurred between 2021 and 2023, when prices rose nearly 400%, pushing the average price per square meter for houses to $2,221 by 2023.
The market reached its peak in 2023, with apartments averaging $2,896 per square meter. However, 2024 brought a substantial correction, with house prices dropping 31% to $1,530 per square meter. As of September 2025, prices have stabilized at this corrected level, though they remain 300-400% above pre-pandemic levels.
Beach areas like Tamarindo and Flamingo now range from $966 to $6,302 per square meter, while inland options offer more affordable pricing between $558 and $2,409 per square meter.
What are the current average listing prices for different property types in Guanacaste?
Current listing prices in the Guanacaste market vary significantly based on location and proximity to the coast.
| Property Type | Inland Price Range | Coastal Price Range |
|---|---|---|
| 2-bedroom house | $180,000 - $350,000 | $350,000 - $750,000 |
| 3-bedroom house | $225,000 - $495,000 | $495,000 - $2,000,000+ |
| Beachfront condo | N/A | $500,000 - $1,500,000+ |
| Luxury beachfront homes | N/A | $966,000 - $6,300,000+ |
| Building lots | $100,000+ | $200,000 - $1,000,000+ |
How many residential properties were sold in Guanacaste in 2024 and 2025?
The Guanacaste residential market showed strong sales activity despite the price correction.
In 2024, the median sold price for single-family homes was $568,303, representing a 31% decrease year-over-year from the 2023 peak. However, sales volume in the region increased by 28% compared to 2023, as buyers took advantage of more attractive pricing.
As of September 2025, the median home price has risen to $967,506, while luxury homes average $1,737,732. This uptick suggests the market has found its footing after the 2024 correction.
The increased sales volume demonstrates that buyer interest remains strong, particularly among foreign investors who continue to see value in the Guanacaste market despite the price volatility.
What is the current inventory situation in Guanacaste's property market?
The Guanacaste property market currently offers buyers significantly more choice than in previous years.
Inventory levels have increased by 15-23% compared to 2023, providing buyers with better selection across all property types. Current listings include new 2-bedroom homes starting from $225,000, luxury 3-bedroom properties with pools ranging from $400,000 to over $1 million, condos from $200,000, and building lots starting at $100,000.
Beachfront properties command premium prices, with homes ranging from $966,000 to over $6.3 million depending on location and exclusivity. The increased inventory represents a shift from the seller's market conditions of 2022-2023 to more balanced market conditions.
This inventory expansion gives buyers more negotiating power and time to make decisions, contrasting sharply with the rapid sales environment of the peak years.
How long do properties stay on the market in Guanacaste now?
Properties in the Guanacaste market are selling faster than in other Costa Rican regions.
As of 2025, properties in the Guanacaste/Nicoya region stay on the market for an average of 232 days, which is the shortest timeframe across all Costa Rican regions. This represents a significant improvement from the previous year's regional average of approximately 376 days.
Compared to other areas like the South/Central Pacific region, where properties averaged 365 days on market in 2024, Guanacaste demonstrates stronger buyer demand and market liquidity.
The reduced days on market indicate that despite increased inventory, well-priced properties continue to attract buyers relatively quickly, suggesting healthy market dynamics.
How have property taxes and maintenance costs changed in Guanacaste?
Property ownership costs in Guanacaste have remained relatively stable over the past three years.
The property tax rate continues at 0.25% of the property value per year, with no significant increases reported. Annual maintenance costs typically range from $500 to $2,000 for houses and condos, with minimal increases beyond normal inflation adjustments.
HOA fees and utilities for condominiums range from $125 to $700 per month, scaling with property value and amenities. These costs have experienced only modest inflation-driven adjustments rather than dramatic increases.
It's something we develop in our Guanacaste property pack.
Looking toward 2026, no major tax policy changes are anticipated that would significantly impact property ownership costs.
What are the rental yields for properties in Guanacaste?
The Guanacaste rental market offers attractive returns for property investors.
Both short-term and long-term rental yields average 7-10% in prime coastal zones like Tamarindo, with these returns remaining stable over the past three years. Properties in less desirable areas typically generate yields of 5-6%.
Short-term vacation rentals benefit from Guanacaste's strong tourism sector, while long-term rentals serve the growing expat community and local workforce. The consistency of these yields despite market volatility demonstrates the underlying strength of rental demand.
Well-located properties continue to command premium rents, supporting investor confidence in the market's long-term prospects.
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What are the population growth projections for Guanacaste through 2026?
Population growth in Guanacaste is expected to outpace national averages through 2026.
Costa Rica's national population growth rate is 0.48% as of 2024, while urban areas grow at 1.13%. Guanacaste is projected to experience growth of 1.2-1.5% annually, driven by in-migration from other Costa Rican provinces and continued expat relocation.
The province benefits from tourism-related job creation and infrastructure development, attracting both domestic workers and international residents. This population growth directly supports housing demand across all segments of the market.
The sustained population increase, combined with Guanacaste's appeal to foreign buyers, creates a solid foundation for continued real estate demand and supports property value stability.
How much new construction is planned for completion by 2026?
Guanacaste is experiencing significant construction activity as part of Costa Rica's nationwide building boom.
Nationwide, Costa Rica saw 44,265 new construction projects in 2022, representing a 9% year-over-year increase, with tourist provinces like Guanacaste receiving substantial investment. While exact unit figures for Guanacaste aren't disclosed, hundreds to thousands of new residential units are likely to be completed by 2026.
New construction ranges from affordable housing developments to luxury resort communities, catering to both local and international buyers. Pre-construction opportunities continue to attract investors seeking to capitalize on the market recovery.
This construction activity indicates developer confidence in the market's long-term prospects and helps address the inventory shortages experienced during the peak years.
What are current mortgage interest rates for property buyers in Costa Rica?
Mortgage financing conditions have improved from recent peaks but remain elevated compared to historical lows.
As of March 2025, the average mortgage interest rate in Costa Rica is 7.61%, down from highs of 9-10% in 2023 but still above the lows of approximately 6.1% seen in 2022.
The rate trend reflects broader economic conditions and central bank policy adjustments. For foreign buyers, financing options may be more limited, with many opting for cash purchases or alternative financing arrangements.
The current rate environment, while not at historic lows, provides reasonable financing costs for qualified borrowers and supports market accessibility for buyers who require financing.
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 percentage of property sales in Guanacaste involve foreign buyers?
Foreign buyers continue to represent a substantial portion of the Guanacaste real estate market.
As of 2025, foreign buyers account for approximately 40% of total market activity in Guanacaste, with primary origins including the United States, Canada, and Europe. This percentage remained relatively stable in 2024 despite the market correction.
The sustained foreign buyer interest demonstrates Guanacaste's continued appeal as an international investment destination and retirement location. These buyers often have different motivations than local purchasers, including lifestyle factors and currency diversification strategies.
The high percentage of foreign participation provides market stability and helps maintain property values, as international buyers often have less sensitivity to local economic fluctuations.
How does Guanacaste's price growth compare to other Costa Rican coastal regions?
Guanacaste has experienced the most dramatic price volatility among Costa Rican coastal regions.
| Region | Price Growth Pattern | Current Market Status |
|---|---|---|
| Guanacaste | 400% surge (2020-2023), -31% correction (2024) | Stabilizing, most volatile |
| Central Pacific (Jacó area) | ~7.5% annual growth | More stable appreciation |
| Limón Province | 5-19% year-over-year | Moderate appreciation |
| Alajuela | 5-19% year-over-year | Steady growth |
| Other coastal areas | Moderate appreciation | Less dramatic swings |
Guanacaste remains the most premium and volatile market due to intense international demand and limited coastal supply. While other regions have experienced steady, moderate growth, Guanacaste's extreme price movements reflect its status as the primary destination for foreign investment in Costa Rican real estate.
It's something we develop in our Guanacaste 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.
Property prices in Guanacaste are positioned for modest growth in 2026 following the market stabilization of 2025.
The combination of strong rental yields, sustained foreign buyer demand, continued population growth, and improved market conditions creates a favorable environment for both investment and residential purchases.
It's something we develop in our Guanacaste property pack.
Sources
- The LatinVestor - Guanacaste Price Forecasts
- Global Property Guide - Costa Rica Price History
- The LatinVestor - Housing Market Costa Rica
- Casa de Manana - Guanacaste Listings
- Realtor.com - Guanacaste Properties
- NAN Properties - Guanacaste Real Estate
- CRIE - Average Home Prices Costa Rica
- Dominical Realty - Market Update 2025
- OSA Tropical Properties - Market Report 2025
- Dominical Realty - April 2025 Report
-Complete Guide to Buying Property in Guanacaste, Costa Rica
-Average Rental Yields in Guanacaste: What Investors Need to Know
-Understanding Property Taxes in Guanacaste: A Complete Guide
-Will Property Prices Go Down in Guanacaste? Market Analysis
-House Price Predictions for Guanacaste: 2025-2026 Outlook
-Guanacaste Real Estate Market Outlook: Investment Opportunities