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Considering buying real estate in Tamarindo? You're not alone!
Many people are drawn to Tamarindo's beach vibe and fantasize about owning a beachfront villa or a modern condo there.
Is it financially viable, though? Are property prices increasing in Tamarindo? What is the current trend? Should I buy property in the town center or near the beach? Are there any hidden fees? Where are the best rental yields?
In this article, everything is sorted out for you.
At TheLatinvestor, we've really dug into this market. Actually, we've organized all our findings in a pack. Get it now.
In this article, get ready to receive valuable insights from us.
How's the property market in Tamarindo?
Are property prices booming or faltering? Instead of relying on opinions, we turn to hard data and stats for clarity
Types of properties
In Tamarindo, you can find various types of properties for sale.
These include beachfront condos with stunning ocean views, cozy residential homes nestled in peaceful neighborhoods, spacious villas with private pools and lush gardens, commercial spaces ideal for businesses, and vacant land ready for development.
Whether you're looking for a vacation retreat, a permanent residence, an investment opportunity, or a place to start your own venture, Tamarindo offers a diverse range of property options to suit your preferences and goals.
Buy or rent?
(In case you want it for yourself, not for rental purposes)
Whether you've already made Tamarindo your home or are contemplating it for the future, you might be thinking about the pros and cons of buying versus renting in this Costa Rican paradise.
Usually, buying is better than renting in Tamarindo due to its consistently increasing property values and its desirable location.
But, if you prioritize flexibility, renting is the way to go.
Property prices in Tamarindo
On average, according to the updated data from Central Bank of Costa Rica, buying a property in Tamarindo would cost you around $4,000 per square meter.
Naturally, property prices are quite spread out. The value of a square meter for a beachfront property in Tamarindo might differ from an apartment in Playas del Coco. You'll get a more detailed in our pack for buying property in Tamarindo and in Costa Rica.
To give you a sense of scale, it means that, instead of purchasing a flat in Manhattan, you can become the owner of 3 properties in Tamarindo.
However, housing prices in Tamarindo are slightly higher (8%) than in Guanacaste (Costa Rica).
The most expensive places in Tamarindo are probably the beachfront properties, while the least expensive are likely to be located further away from the beach.
First and foremost, we have to acknowledge that Costa Rica remains, today, a very stable country. The last Fragile State Index that has been reported for this place is 41.
Remember this important aspect when thinking about whether it's a good idea to buy a property in Tamarindo.
Besides that, if we look at the IMF's GDP forecasts, Costa Rica's economy is expected to soar by 14.1% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.
If you want to invest in real estate in Tamarindo it's a good thing because when the economy grows, people tend to become wealthier, which usually results in higher housing prices.
Also, in Costa Rica, the average GDP per capita has changed by 7.2% over the last 5 years. It's a solid number.
This trend can lead to a rise of property prices in Tamarindo over the course of 2024 and also later on.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Costa Rica right now.
Buying property in Tamarindo
Buying real estate in Tamarindo can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Tamarindo and in Costa Rica.
Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.
Now, we're providing you with a simplified version.
This is the step-by-step process to purchase a property in Tamarindo:
- Research Tamarindo's real estate laws and regulations.
- Obtain a Costa Rican identification number (DIMEX) and open a local bank account.
- Engage a Tamarindo-based real estate agent with expertise in the local market.
- View properties that meet your criteria, considering proximity to the beach, amenities, and local services.
- Perform due diligence, including checking property title at the Public Registry and reviewing zoning regulations.
- Draft a Purchase-Sale Agreement (PSA) with the help of a lawyer, outlining terms, conditions, and contingencies.
- Pay a deposit (typically 10%) to secure the property and sign the PSA.
- Request a property survey and ensure the cadastral plan matches the actual boundaries.
- Apply for a residency permit if you plan to live in Costa Rica full-time.
- Obtain a "Firmas Digitales" (digital signature) from the Costa Rican Central Bank for signing official documents.
- Finalize mortgage arrangements, if necessary, and coordinate with the bank for funds transfer.
- Attend the closing ceremony with all parties, sign the final transfer deed, and receive the property's possession.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Costa Rica.
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Where to find a property
Explore these websites to find properties in Tamarindo.
- Costa Rica si - Offers outstanding properties for sale in Costa Rica, including homes, condos, lots, and commercial properties.
- Zucaes Real Estate - Specializes in finding properties in Costa Rica, providing a comprehensive selection of homes, rentals, and condos in various areas of San Jose.
- Costa Rica 1 Realty - A real estate agency in San José that offers property sales and rentals, providing comprehensive assistance and a wide range of options in the western area of the city.
- Real Estate Costa Rica MLS - Offers a diverse range of residential and commercial real estate listings, including homes, condos, land, and luxury properties.
- RE/MAX - A reputable real estate agency specializing in properties in the Playa Jaco and Central Pacific Costa Rica area.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Costa Rica.
Which properties for which budget?
As mentioned before, the average price per sqm in Tamarindo is $4,000. A one-bedroom property with an area of 60 square meters would cost approximately $240,000, and a two-bedroom property with an area of 85 square meters would be approximately $340,000.
Obviously, property prices will change based on both the property itself and its location.
Investing in real estate in Tamarindo's prime locations often comes with a heftier cost. A house in Playa Langosta might come to around $760,000, whereas a property in Hacienda Pinilla could be priced at $430,000.
Some locations are not as expensive. You may find a house in Villareal for $310,000, or a house in Santa Rosa priced only at $250,000.
We give a more detailed pricing list in our full pack for buying property in Costa Rica.
Here are the main pitfalls when buying property in Tamarindo, Costa Rica:
- Foreign ownership restrictions: Costa Rica imposes limitations on non-residents owning land near coastlines, affecting property rights for foreigners.
- Environmental regulations: Strict conservation laws may limit construction possibilities or lead to costly modifications.
- Property squatters: Land invasion by squatters can complicate ownership and cause legal battles.
- Complex land boundaries: Ambiguous property boundaries may result in boundary disputes with neighbors.
- Beachfront concessions: Some beachfront properties have government concessions, subject to renewal or termination.
- Unregistered land titles: Informal land sales might lack official registration, posing risks of double ownership claims.
- Infrastructure gaps: Inadequate public infrastructure, like water and electricity, may hinder property development.
- Capital gains taxes: Taxation laws for property sales may differ for residents and non-residents, affecting overall profits.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Costa Rica Property Pack
Living in Tamarindo
Tamarindo is a vibrant beach town with plenty of activities and amenities, making it an ideal destination for those looking to purchase property.
Cost of living
The cost of living in Tamarindo is generally higher than most other parts of Costa Rica. However, it is still relatively affordable compared to many other tourist destinations.
Here are some examples to better understand the cost of living in Tamarindo, Costa Rica:
- "Pipa fría" (cold coconut water) from a local vendor: $1-$2.
- Rent for a beachfront condo in Langosta: $1,500-$2,500/month.
- Dinner for two at "Nogui's" beachfront restaurant: $40-$60.
- Local craft beer "Volcano IPA" at a pub: $4-$6.
- Neighborhood "Playa Langosta" property purchase price per square meter: $2,500-$4,000.
- Acai bowl with tropical fruits at "The Shack": $8-$12.
- Monthly yoga classes at "Tamarindo Yoga": $40-$60.
- Beachside massage from a local spa: $50-$80.
Since we want to make things easy to understand, we've created a summary table that tells about the different areas in Tamarindo. For yields, prices and rents, check our property pack.
Tamarindo Beach is a popular tourist destination with beautiful sandy shores and excellent surf breaks, making it an attractive location for vacation rentals.
Tourist hotspot, high demand for vacation rentals, great surfing opportunities.
Can get crowded during peak seasons, high competition among property investors.
Langosta Beach offers a more tranquil and upscale environment compared to Tamarindo Beach, attracting high-end vacationers and long-term renters.
Exclusive atmosphere, luxury property opportunities, less crowded.
Higher property prices, limited availability of large-scale development.
Avellanas is a hidden gem with a relaxed vibe and stunning natural scenery, making it ideal for eco-friendly and sustainable property investments.
Opportunity for eco-tourism, lower property costs, pristine environment.
Limited infrastructure, lower demand compared to more established areas.
Playa Grande is a protected nesting site for leatherback turtles, offering a unique selling point for eco-conscious investors looking to promote conservation.
Eco-tourism potential, turtle nesting attracts tourists, growing popularity.
Strict development regulations, limited commercial activities.
Playa Negra boasts dark volcanic sands and is a popular spot for surfing enthusiasts, making it appealing for those seeking adventure tourism properties.
Surfing destination, off-the-beaten-path charm, growing interest from travelers.
Limited accessibility, fewer amenities compared to more developed areas.
Hacienda Pinilla is a gated community with luxury resorts, golf courses, and pristine beaches, attracting upscale investors looking for high-end developments.
Exclusive community, golf courses, resort-style amenities.
Restricted development guidelines, higher property costs.
Junquillal is a serene coastal town with a focus on sustainability, offering a tranquil environment for eco-conscious property investors.
Eco-friendly opportunities, nature-oriented, peaceful atmosphere.
Limited commercial activities, lesser known to tourists.
Life in Tamarindo
Tamarindo is a popular tourist destination in Costa Rica and has a vibrant economy based on tourism, hospitality, and real estate. It also has a growing technology and commercial sector that is attracting foreign investment.
What expats usually like the most in Tamarindo is the laid-back atmosphere and the abundance of activities including surfing, fishing, and horseback riding.
Access to healthcare in Tamarindo is generally good, with several clinics and hospitals available to meet medical needs.
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Renting out in Tamarindo
If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.
Buyers in Tamarindo typically do not rent out their properties (at least not to long-term tenants) because they intend to use them as vacation homes or personal residences rather than investment properties.
If you decide to rent out long-term, you might want to target people who are looking for an active and diverse lifestyle in a tropical paradise. Tamarindo is a popular destination for surfers, retirees, and families looking for a laid-back, beach escape.
Here is a little summary table we've made for you.
|Property type and area
|Profiles of potential tenants
|What they are looking for
|Expected monthly rent in $
Condo in Tamarindo Beach
Beach lovers and surfers
Beachfront or close proximity to the beach
$1200 - $2500
Villa in Langosta
Families and expats
Luxury amenities and quieter atmosphere
$1800 - $3500
Apartment in Playa Grande
Nature enthusiasts and surfers
Surf-friendly area and natural surroundings
$1000 - $2000
Beach House in Avellanas
Beachgoers and tranquility seekers
Secluded beach access and relaxation
$1500 - $3000
Studio in Tamarindo Center
Singles and young professionals
Convenience of town center and amenities
$800 - $1300
House in Hacienda Pinilla
Golfers and luxury travelers
Golf course access and upscale living
$2500 - $4000
Apartment in Playa Negra
Surfers and eco-conscious individuals
Close to surf breaks and eco-friendly environment
$1000 - $1800
Now, you will probably ask us about the yields. Unlike other places, giving you an average rental yield for Tamarindo is though. The region is quite varied. For example, rental yields in Tamarindo are quite different from those in small and less touristy spots.
Finally, know that, in Tamarindo, the taxes stand around 15% of the total rental income.
You could also decide to rent short-term to tourists, expats, and other travelers looking to explore the beaches and attractions of Tamarindo. Additionally, you could rent to business professionals traveling to the area for conventions and conferences.
If you decide to go with that option, look for properties in the central part of Tamarindo, near the beach and the downtown area. Also consider properties in the residential neighborhoods near the beach, such as Langosta, Villareal, and Matapalo.
Currently, there are approximately 2,040 active Airbnb listings in Tamarindo, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $58.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Tamarindo can make around $800 per month. Also, the average occupancy rate is estimated at 62%.
Is it worth buying real estate in Tamarindo then?
Absolutely, buying property in Tamarindo, Costa Rica, can be a fantastic move for certain people and situations. If you're looking for a long-term investment or a dream vacation home in a stunning beach town, Tamarindo has the potential to deliver excellent returns.
The region's stable economy and a promising GDP growth rate suggest that property values are likely to continue rising. Moreover, if you're interested in generating rental income, the thriving tourism industry in Tamarindo offers a prime opportunity. Whether you plan to rent to vacationers or long-term tenants, the demand is there, and with the right property and strategy, you can benefit financially while enjoying the laid-back lifestyle.
However, buying property in Tamarindo isn't for everyone. If you're seeking quick, short-term profits, this might not be the right market for you. Real estate investments generally require time to appreciate significantly. Furthermore, navigating the local real estate laws, regulations, and potential risks in a foreign country like Costa Rica can be challenging. If you're not willing to invest the effort or hire experts to guide you, it's a risky proposition.
Additionally, the high initial costs, including property prices and associated expenses, might not align with your budget. So, while Tamarindo holds great potential, it's crucial to weigh your goals, resources, and risk tolerance carefully before diving into this vibrant real estate market.
In summary, buying a property in Tamarindo can be a worthwhile endeavor for those seeking a long-term investment, vacation home, rental income, or property appreciation. However, it may not be suitable for short-term investors, those lacking local knowledge, or individuals who cannot manage the associated risks and initial costs.
It's essential to assess your goals, resources, and risk tolerance carefully before making a decision. Additionally, thorough research and consultation with local experts can help you make an informed choice about buying property in Tamarindo.
Make sure you understand the real estate market in Tamarindo
Don't rush into buying the wrong property in Costa Rica. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
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