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Property prices in San José are expected to continue rising in 2026, driven by sustained population growth, strong international demand, and favorable mortgage conditions. San José's residential market has demonstrated consistent growth over the past five years, with apartments showing particularly strong performance with over 12% year-to-date growth in 2025.
The combination of Costa Rica's stable economy, attractive rental yields averaging 7.5-8.5%, and increasing foreign direct investment creates a positive outlook for property values through 2026. Current market fundamentals including low mortgage rates around 3.75%, steady population growth of 1.3-1.5% annually, and rising international buyer activity all point toward continued price appreciation in San José's residential sector.
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.
San José property prices are likely to increase in 2026 based on current market trends, with apartments showing stronger growth potential than houses.
Strong rental yields, low mortgage rates, and increasing international investment create favorable conditions for continued price appreciation in Costa Rica's capital.
| Market Factor | Current Status (2025) | 2026 Outlook |
|---|---|---|
| Average Apartment Price/sqm | $1,724 - $2,343 | Continued growth expected |
| Average House Price/sqm | $1,110 - $1,180 | Moderate price increases |
| Rental Yields | 7.5% - 8.5% | Stable to slightly declining |
| Mortgage Interest Rates | 3.75% | 3.0% - 3.75% (stable/declining) |
| Population Growth Rate | 1.36% - 1.42% | 1.3% - 1.5% annually |
| International Investment | Rising trend ($156M in 2022) | Continued strong inflows |
| Housing Affordability | 30-40% of household income | Potential affordability pressure |
What's the current average price per square meter for residential properties in San José right now?
As of September 2025, residential property prices in San José vary significantly by property type and location within the metropolitan area.
Apartments in San José currently average between $1,724 and $2,343 per square meter, with luxury new developments in prime areas reaching up to $2,897 per square meter. Popular districts like Rohrmoser command around $2,371 per square meter for condominiums.
Houses show more affordable pricing, typically ranging from $1,110 to $1,180 per square meter for standard residential homes. This price difference reflects the higher land costs and construction expenses associated with apartment and condominium developments in central urban areas.
These prices position San José as moderately priced compared to other Central American capitals, though costs have risen substantially due to increased international demand and improved infrastructure development throughout the metropolitan area.
How much have property prices in San José increased each year over the past five years?
San José's residential property market has experienced variable but generally positive growth over the past five years, with notable acceleration in recent periods.
The annual price increases show: 2020 saw a 2.84% increase, followed by 2.36% in 2021, then a minimal 0.72% increase in 2022. The market gained momentum with 8.92% growth in 2023 and 6.65% in 2024. Most significantly, 2025 has shown exceptional performance with approximately 12.08% year-to-date growth for apartments and 3.9% for houses.
This growth pattern reflects Costa Rica's economic recovery post-pandemic, increased foreign investment, and growing recognition of San José as an attractive destination for both investors and international residents seeking Latin American property exposure.
The recent acceleration in apartment prices particularly indicates strong demand in the urban rental and ownership markets, driven by both local buyers upgrading their living situations and international buyers seeking investment opportunities.
What's the expected annual population growth rate in San José through 2026?
San José's population is projected to continue growing at a steady rate through 2026, maintaining the momentum that supports residential demand.
Current estimates show annual population growth between 1.36% and 1.42% for 2024-2025, with projections indicating this will continue at similar rates of 1.3% to 1.5% annually through 2026.
This consistent population growth creates ongoing demand for housing, particularly in the apartment and condominium sectors where young professionals and growing families typically seek accommodation. The growth rate is sustainable and supports steady real estate appreciation without creating speculative bubbles.
Population increases stem from both natural growth and internal migration from rural areas to the capital region, as San José continues to offer the best employment opportunities and infrastructure in Costa Rica.
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How many new housing units are projected to be built in San José by 2026?
While specific unit counts for new construction in San José by 2026 are not available in current market data, several important trends indicate substantial development activity ahead.
The most significant development trend is that eco-friendly and sustainable new homes are projected to represent 50% of all new construction by 2026. This shift toward sustainable building practices reflects both government incentives and buyer preferences for environmentally conscious developments.
Project volume and city development goals suggest continued growth in apartment and condominium construction, particularly in areas with good transportation links and urban amenities. The focus appears to be on medium to high-density developments rather than single-family homes.
New construction activity is concentrated in areas where infrastructure improvements support higher-density living, with developers responding to demand from both local buyers seeking modern amenities and international buyers attracted to turnkey properties.
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What's the current rental yield percentage for apartments and houses in central San José?
San José offers some of the most attractive rental yields in Central America, making it particularly appealing for investment-focused property buyers.
Apartments in central San José currently generate rental yields between 7.5% and 8.35%, while houses typically achieve around 8.6%. The citywide gross rental yield average ranges from 7.5% to 8.5%, representing some of the highest returns in the region.
These strong yields reflect the healthy balance between property purchase prices and rental income potential, supported by steady demand from both local renters and the growing expat community choosing San José for extended stays or permanent relocation.
Central San José benefits from proximity to employment centers, universities, and cultural amenities, maintaining consistent rental demand that supports these yield levels. Properties in well-maintained buildings with modern amenities tend to achieve the higher end of the yield range.
How do current mortgage interest rates in Costa Rica compare with those expected for 2026?
Costa Rica's mortgage market currently offers favorable conditions that are expected to remain stable or improve slightly through 2026.
Current average mortgage interest rates stand at approximately 3.75%, having stabilized after post-pandemic volatility. Rates for 2026 are expected to remain in the range of 3.0% to 3.75%, with the possibility of moderate further declines.
This favorable interest rate environment supports continued property market growth by making financing more accessible for both local and international buyers. Lower borrowing costs increase purchasing power and make investment properties more financially attractive.
The stability in rates reflects Costa Rica's overall economic management and the central bank's commitment to maintaining conditions that support sustainable economic growth, including in the real estate sector.
Mortgage availability for international buyers varies by lender and typically requires larger down payments, but the favorable rate environment benefits all qualified borrowers in the Costa Rican property market.
What percentage of household income does the average family in San José spend on housing today?
Housing costs represent a significant portion of household budgets in San José, reflecting both the desirability of the area and the pressure from rising property values.
The average household in San José currently spends between 30% and 40% of their income on housing costs. For expatriate families, monthly housing expenses typically range from $800 to $1,200 for a two-bedroom home, representing 30% to 40% of their monthly disposable income.
This housing cost burden is approaching the upper limits of what financial advisors consider sustainable, suggesting potential affordability challenges as property prices continue to rise. The percentage varies considerably based on neighborhood choice and property type.
Local families often stretch their budgets to secure housing in desirable areas with good schools and safety, while international residents may have more flexibility in their housing choices and budgets.
How many international buyers purchased properties in San José in the past two years, and is that number rising?
International buyer activity in San José has shown substantial growth, representing a key driver of the current property market strength.
Transaction values demonstrate the trend clearly: international buyers generated $156 million in property transactions in 2022, up significantly from $104 million in 2021. This represents a 50% increase in just one year, indicating accelerating international interest.
The trend toward increased international investment continues to grow, with buyers attracted to Costa Rica's political stability, residency incentive programs, and tax advantages for foreign property owners. Prime urban and coastal properties particularly attract international attention.
International buyers include both investment-focused purchasers seeking rental income and lifestyle buyers planning part-time or full-time residence in Costa Rica. This diversified international demand provides stability to the San José property market.
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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 the current average monthly rent for a two-bedroom apartment in central San José?
Rental prices for two-bedroom apartments in central San José reflect the area's appeal to both local residents and international tenants.
The median monthly rent for a two-bedroom apartment in central San José is currently $1,600. Premium districts like Escazú command higher rents at approximately $1,725 per month, while popular expat and urban districts typically range from $1,400 to $1,600 monthly.
These rental rates support the strong yields available to property investors and reflect the sustained demand for quality housing in San José's core areas. Factors influencing rent levels include building amenities, security features, proximity to business districts, and transportation access.
The rental market benefits from consistent demand from young professionals, expatriate workers, and international students, creating a stable income base for property investors in the central San José apartment market.
How many properties are currently listed for sale compared to five years ago?
The property inventory situation in San José has evolved significantly over the past five years, reflecting market maturation and development activity.
Current inventory levels appear stable or rising, with notably more condominiums available compared to five years ago. This increase links directly to new construction activity and demand stabilization as the market has grown more sophisticated.
Five years ago, the market featured lower inventory levels as San José was beginning its growth surge and supply hadn't yet caught up to increasing demand. Supply options and choices for buyers have improved notably since then, providing better selection across price ranges.
The improved inventory situation benefits buyers by offering more choice and negotiating power, while still maintaining enough demand pressure to support continued price appreciation. This balance suggests a healthy, developing market rather than an overheated speculative environment.
What's the unemployment rate in San José today, and what's the forecast for 2026?
Employment conditions in San José directly impact the residential property market by affecting local buying power and rental demand.
The current unemployment rate in San José stands at 7.5% as of the first and second quarters of 2025. Economic forecasts suggest this rate will remain stable or rise slightly through 2026, trending in the range of 7.6% to 8.0%.
While these unemployment levels are moderate, they indicate a labor market that continues to face challenges but remains stable enough to support ongoing residential demand. Employment in service sectors, technology, and tourism provides the foundation for local property market participation.
The employment situation supports continued residential demand from local buyers while not creating significant pressure for rapid economic expansion that might destabilize property values through speculative activity.
How much foreign direct investment is projected to come into Costa Rica's real estate sector by 2026?
Foreign direct investment in Costa Rica's real estate sector represents a major growth driver that supports continued market expansion through 2026.
While exact 2026 FDI figures for real estate are not available, substantial inflows are expected based on government residency incentives and tax breaks for foreign buyers. Policy frameworks and growing international interest point to strong continued inflows through construction and development sectors.
FDI activity spans both direct property purchases by international buyers and development capital from foreign companies building new residential and commercial projects. This investment fuels both construction activity and price growth throughout the San José metropolitan area.
Government policies specifically designed to attract foreign real estate investment, combined with Costa Rica's reputation for political and economic stability, create favorable conditions for sustained international capital flows into the property sector through 2026.
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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.
Based on current market fundamentals, property prices in San José are likely to continue rising through 2026, driven by sustained population growth, strong international demand, and favorable financing conditions.
Investors should consider the strong rental yields of 7.5-8.5% and stable mortgage rates around 3.75% as positive factors, while monitoring affordability pressures that may eventually moderate price growth rates.
Sources
- Housing Market Costa Rica - The LatinVestor
- Costa Rica Square Meter Prices - Global Property Guide
- Costa Rica Real Estate Market Prices 2025 - Costa Rica Law
- Costa Rica Property Prices 2025 - OSA Property Management
- Costa Rica Real Estate Market Trends - The LatinVestor
- Costa Rica Home Price Trends - Global Property Guide
- San José Population Review - World Population Review
- San José Population Data - MacroTrends
- San José Price Forecasts - The LatinVestor
- Costa Rica Rental Yields - Global Property Guide