How's the housing marketing in Costa Rica now? (June 2025)

Last updated on June 12, 2025

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's residential property market has entered a buyer-friendly phase in mid-2025, with increased inventory and stabilized prices creating opportunities for both investors and lifestyle buyers.

The market has shifted from the pandemic-era surge to a more balanced environment, though prime coastal locations still see strong demand.

If you want to go deeper, you can check our pack of documents related to the real estate market in Costa Rica, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Costa Rica's housing market in June 2025 presents a buyer's market with national average prices at $1,021/m², mixed regional trends ranging from -31% in Guanacaste to +12% in San José apartments, and inventory levels up 15-24% from 2024.

The market offers strong rental yields of 7-10% in beach towns and 8.25% in San José, with foreign buyers comprising 40% of transactions and economic growth of 3.5% supporting steady appreciation.

Key Metric	Status (June 2025)
Market Type	Buyer's Market (balanced in prime areas)
National Average Price	$1,021/m² ($95/sq ft)
Price Trend (YoY)	Mixed: -31% Guanacaste, +12% San José apartments
Inventory Level	Up 15-24% from 2024
Days on Market	290-354 days (down 40% from 2024)
Best Rental Yields	8.25% (San José), 7-10% (beach towns)
Foreign Buyer Activity	40% of all transactions
GDP Growth Forecast	3.5% (2025), supporting steady appreciation

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Costa Rica, Mexico, Colombia, etc.).

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.

How this content was created 🔎📝

At TheLatInvestor, we explore the Costa Rican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like San José, Tamarindo, and Manuel Antonio. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the Current Average Home Price in Costa Rica by Region and Property Type?

As of June 2025, property prices vary significantly across Costa Rica's diverse regions, with the national average sitting at $1,021 per square meter.

San José's urban areas show apartment prices ranging from $1,724 to $2,343 per square meter, while the Central Valley averages $1,180 for houses and $2,025 for condos. Guanacaste, despite recent corrections, maintains premium pricing at $2,221 per square meter for houses and $2,896 for condos, with beachfront properties commanding $2,725 to $3,298 per square meter.

The Caribbean coast offers more affordable options at $971 per square meter for houses and $1,133 for condos, while the Central Pacific region falls in the middle range at $1,500-$2,000 for houses. Typical beachfront condos range from $150,000 to $400,000, single-family houses from $200,000 to over $1 million, and luxury villas can exceed $2 million in prime locations.

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

Region	Houses (per m²)	Condos/Apartments (per m²)	Beachfront Properties
San José (City)	$1,110-$1,180	$1,724-$2,343	N/A
Central Valley	$1,180	$2,025	N/A
Guanacaste	$2,221	$2,896	$2,725-$3,298/m²
Central Pacific	$1,500-$2,000	$1,800-$2,500	$2,500-$3,500/m²
South Pacific	$893,841 (avg home)	Data limited	$2,000-$3,000/m²
Caribbean (Limón)	$971	$1,133	$1,500-$2,500/m²

How Has the Housing Market Performed Over the Past Year?

The Costa Rica housing market in 2025 shows a clear correction from the pandemic boom years, with Guanacaste prices dropping 36% in 2024 after a 400% surge from 2020-2023.

The median sold price for single-family homes now sits at $568,303, representing a 30.79% decline from February 2024. Despite these price corrections, the market demonstrates underlying health with sales volume increasing 43.48% year-over-year and properties selling 40% faster than in 2024, indicating that buyers are responding positively to current price levels.

The Central Valley markets have shown more resilience with moderate 4-7% annual appreciation, contrasting with the volatility seen in coastal markets. This stabilization suggests the market is finding equilibrium after the speculative surge, creating opportunities for buyers who missed the initial boom.

Urban apartments in San José have bucked the correction trend, showing 12% annual price growth as demand shifts toward more affordable, practical housing options.

Which Regions Show the Strongest Demand vs. Slower Activity?

Guanacaste and the Nicoya Peninsula lead demand with areas like Tamarindo, Nosara, Playa Flamingo, and Playas del Coco attracting luxury buyers and rental investors.

These regions benefit from strong tourism infrastructure, international accessibility, and established expat communities. The Central Pacific region, including Jaco, Herradura, and Manuel Antonio, maintains consistent growth in the condo and vacation home segments, appealing to both tourists and long-term residents due to proximity to San José and excellent infrastructure.

The Central Valley, particularly San José, Escazú, and Santa Ana, shows stable demand from professionals and families seeking urban amenities, quality healthcare, and international schools. Urban apartments in these areas are experiencing 12% annual price growth, outperforming other property types.

Meanwhile, the Caribbean Coast around Limón offers more affordable options with 3-5% annual growth, attracting growing eco-tourism interest. Rural inland areas show slower appreciation but are increasingly popular among lifestyle migrants seeking sustainable living options at lower price points.

What Are the Average Rental Yields Across Popular Areas?

Costa Rica offers some of Latin America's most attractive rental yields, with San José leading at 8.25-8.6% gross yields for urban properties.

Beach destinations provide strong returns with Tamarindo offering 7-10% yields (up to 12-17% for premium beachfront), while typical 2-bedroom units rent for $2,000-$4,000 monthly. Nosara focuses on the eco-luxury segment with 7-9% yields and monthly rents of $2,500-$5,000, while Jaco and Manuel Antonio deliver 6-9% yields with $1,500-$3,500 monthly rents.

Location	Gross Rental Yield	Typical Monthly Rent (2BR)	Market Characteristics
San José	8.25-8.6%	$1,200-$1,400	Highest yields, strong local demand
Tamarindo	7-10% (up to 12-17% premium)	$2,000-$4,000	High tourist occupancy
Nosara	7-9%	$2,500-$5,000	Eco/luxury focus
Jaco	6-8%	$1,500-$2,500	Strong vacation rental market
Manuel Antonio	7-9%	$2,000-$3,500	Year-round tourism

Net yields typically run 1.5-2% lower than gross yields after accounting for property management, maintenance, and taxes. The vacation rental market has grown 24% by 2024, with properties in prime beach locations achieving impressive 70-85% occupancy rates throughout the year.

What Are the Mid and Long-Term Price Forecasts?

Short-term forecasts for 2025-2026 predict 6-8% price appreciation in sought-after coastal areas as the market stabilizes after recent corrections.

The Central Valley is expected to maintain steady 4-5% annual growth, supported by consistent local demand and economic fundamentals. Emerging markets in the Southern Zone, including Uvita and Ojochal, show potential for 8-10% appreciation as infrastructure improvements and tourism development accelerate.

Long-term outlook remains positive with sustained economic growth of 3.2% GDP annually supporting property values across all segments. Key growth drivers include increasing expat and retiree populations, digital nomad visa programs attracting remote workers, and Costa Rica's political stability with favorable foreign ownership laws.

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

Land scarcity in prime coastal areas ensures continued appreciation potential, while growing eco-tourism and sustainable development focus creates new investment opportunities in previously overlooked regions.

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How Are Different Property Types Trending?

Urban condos are experiencing rising demand, particularly in San José with 12% price growth, offering strong rental yields for investors.

Beach condos are stabilizing after significant corrections, maintaining very high demand levels and remaining optimal for vacation rental investments. Single-family homes show stable to moderate growth patterns, appealing primarily to families and retirees seeking permanent residences.

Beachfront properties, while experiencing price corrections from pandemic peaks, continue commanding premium prices with strong long-term appreciation potential. Rural and eco-homes are attracting increasing interest from lifestyle buyers seeking affordable entry points into sustainable living.

Luxury villas have seen the most significant corrections, down 28% from peak prices, creating opportunities for high-end buyers to enter the market at more reasonable valuations.

What's the Total Budget Including All Costs?

When budgeting for a Costa Rica property purchase, buyers should plan for transaction costs totaling 3-5% above the purchase price.

Transfer tax amounts to 1.5% of the sale price, while legal and closing fees typically range from 1-2%. Due diligence and property inspections add $500-$2,000 to upfront costs. Annual ownership expenses include property tax at 0.25% of assessed value, with luxury tax of 0.25-0.55% applied to properties valued over $281,555.

Cost Category	Amount/Percentage	Notes
Transfer Tax	1.5% of sale price	Government fee
Legal/Closing Fees	1-2% of sale price	Attorney and notary costs
Due Diligence	$500-$2,000	Inspections and surveys
Property Tax	0.25% annually	Based on assessed value
Luxury Tax	0.25-0.55% annually	Properties over $281,555
Insurance	$500-$1,000/year	Property coverage
HOA Fees	$500-$2,000/year	Varies by development
Property Management	$125-$150/month	If renting out

Renovation costs vary significantly by location and quality, ranging from $80-$200 per square foot for basic updates to $220-$350 per square foot for luxury construction in areas like Nosara.

Which Areas Are Best for Living, Renting Out, or Resale?

For full-time living, the Central Valley regions of San José, Escazú, Atenas, and Heredia offer the best combination of urban amenities, healthcare access, international schools, and stable climate.

These areas provide essential infrastructure for comfortable daily life while maintaining reasonable property prices compared to beach destinations. Rental income seekers should focus on tourist hotspots like Tamarindo, Nosara, Jaco, Manuel Antonio, and Playa Flamingo, where high tourist demand drives 7-10%+ rental yields.

Future resale potential is strongest in Guanacaste beach communities and emerging Southern Zone markets like Uvita and Ojochal, where infrastructure improvements and growing tourism promise appreciation. The Central Pacific region offers a balance between lifestyle amenities and investment potential, making it suitable for buyers seeking both personal enjoyment and financial returns.

Each area serves different objectives: Central Valley for stability and convenience, beach towns for income generation, and emerging markets for capital appreciation.

Is It Currently a Buyer's or Seller's Market?

2025 is definitively a buyer's market in Costa Rica, characterized by increased inventory levels up 15-24% from 2024 and significant price corrections.

Prices have dropped as much as 31% in some areas from their pandemic peaks, creating substantial opportunities for buyers who missed the initial surge. Properties are selling 40% faster than in 2024, indicating that well-priced listings attract quick buyer action despite the overall market correction.

Buyers enjoy enhanced negotiation power in most market segments, though prime beachfront properties and desirable urban locations can still see competitive bidding. The combination of corrected prices, increased inventory, and motivated sellers creates an optimal environment for buyers to find value.

However, the market requires careful selection and due diligence, as not all properties or locations offer equal opportunity.

infographics rental yields citiesCosta Rica

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 Risks Should Buyers Be Aware Of?

Legal and title risks represent the primary concern for Costa Rica property buyers, particularly regarding Maritime Zone restrictions where beachfront properties often involve concessions rather than full ownership.

Title disputes and incomplete surveys can complicate transactions, making thorough due diligence with qualified attorneys essential. The country's slow judicial system and manual registration processes create bureaucratic challenges, with potential delays in property registration and language barriers in legal documentation.

Environmental and zoning regulations pose additional risks, especially in protected areas where strict compliance is mandatory. Non-compliance can result in significant fines or even demolition orders. Water rights and access issues frequently arise in rural areas, requiring careful investigation before purchase.

Market transparency remains limited without a unified MLS system, making accurate price comparisons difficult. Currency fluctuation risk affects foreign buyers, while infrastructure limitations in some areas include unreliable utilities, road access complications, and inconsistent internet connectivity.

How Do Foreign Buyers Typically Position Themselves?

Foreign buyers represent nearly 40% of all Costa Rica real estate transactions, with no ownership restrictions except for maritime zone concessions.

US citizens comprise 45% of foreign buyers, followed by Canadians at 25%, Europeans at 20%, and other nationalities at 10%. These buyers typically target beachfront condos and villas in the $200,000-$800,000 range for rental income and lifestyle purposes, while urban apartments between $150,000-$400,000 attract those seeking stable rentals and convenience.

Eco and rural properties in the $100,000-$300,000 range appeal to lifestyle-focused buyers interested in sustainability, while luxury estates exceeding $500,000 cater to those seeking premium locations and privacy. Most foreign buyers concentrate in established expat areas with reliable infrastructure and professional property management services.

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

Popular foreign buyer destinations include Tamarindo, Nosara, Manuel Antonio, and the Central Valley, where English-speaking services and expat communities facilitate easier integration.

What's the Smartest Buying Strategy for 2025?

Lifestyle buyers should focus on Central Valley locations like Escazú and Atenas or established beach towns with strong infrastructure and expat communities.

Budget 20% above purchase price for total costs including transaction fees, initial repairs, and furnishing. Consider long-term residence visa requirements if planning extended stays, and prioritize properties near quality healthcare facilities and essential services.

Income investors should target vacation rental hotspots offering 7-10%+ yields, particularly in Tamarindo, Nosara, Jaco, and Manuel Antonio. Choose turnkey condos with established property management to minimize operational complexity. Analyze seasonal occupancy rates and tourist arrival trends to project realistic income.

Appreciation seekers should explore emerging markets like Uvita, Ojochal, and Puerto Viejo where infrastructure improvements are planned. Invest in eco-friendly or smart home properties that appeal to evolving buyer preferences. Plan to hold properties for minimum 3-5 years to realize appreciation potential.

Universal success factors include using reputable attorneys for due diligence, obtaining property surveys and title insurance, factoring all ongoing costs beyond purchase price, learning basic Spanish or working with bilingual professionals, and visiting properties during both dry and rainy seasons before making decisions.

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 in 2025 offers compelling opportunities for buyers who understand the nuances of this corrected market environment.

Success requires careful market selection, thorough due diligence, and realistic expectations about both opportunities and challenges in this diverse and dynamic market.