Real Estate Market in Costa Rica: Trends and Prospects

Real Estate Market in Costa Rica: Trends and Prospects

From the tropical beaches on the coast to the rugged volcanoes inland, Costa Rica is sought after by many. Whether it's the 5.2 million locals or the 1.7 million tourists here, the land has a way of pulling the strings of your heart.

As the pandemic ended, it's no surprise that many people wish to invest in the real estate market once more. With a robust and exciting future, it's no wonder this Central American nation is at the top of people's lists.

If you want to dive deeper into its complex waters, read our insider's guide until the end!

1. Eco-Friendly Developments

Costa Rica is world-renowned for sustainability. It's so impressive that 98% of its energy is renewable.

These trends have transferred themselves into the real estate market. Energy efficiency measures and practices are a focus when building and buying a home.

Some of the most influential factors in pushing this movement and getting a property rent-ready are:

  • Strong environmental policies
  • Green Building Certifications
  • Sustainable architecture and design
  • Solar panels
  • Rainwater harvesting

2. International Demand

Tourism isn't the only thing that's been growing in Costa Rica. Real estate investing has also been on the rise for decades. As we approach 2024, international demand is becoming one of the top trends in the housing market.

Residents from Europe and North America own countless vacation rentals here. Around 420,000 foreign nationals live in Costa Rica, and 29% of this figure comes from the United States. The expat community encourages more English speakers to make this space their home.

3. Luxury Housing

Costa Rica offers luxury properties, from beachfront villas to mountain estates. The natural beauty, stable political climate, and attractive lifestyle options attract high-net-worth individuals. These people are constantly looking for a second home or retirement spot.

In the capital city, the average home price is only USD 180,000. Along its postcard Pacific coast, it's slightly higher at USD 230,000. Therefore, many Europeans and North Americans turn here for great value-for-money homes.

4. Commercial Real Estate

Costa Rica recorded a respectable 7.6 percent GDP growth last year. Commercial real estate is the most significant key to success.

Upgrades to the nation include road infrastructure, transport links, and improved broadband. In return, these developments opened up new real estate investment opportunities.

Costa Rica also offers various commercial real estate properties. Some include offices, retail spaces, warehouses, and hospitality properties.

5. Younger Families

Low cost of living, affordable healthcare, and quality of life are why Costa Rica is popular with families. Demographics are slowly changing, and the average age here is only 33 years.

The global pandemic is a vital reason why the age is decreasing. From 2020 to 2022, people were forced to work from home. Today, most people still work remotely or plan to in the upcoming years.

Now, people can utilize this opportunity of not having to learn a new language for a job abroad. This is a secret ingredient to make renters happy.

Consider Investing in the Costa Rican Real Estate Market

Thousands of people hope to break into the real estate market annually. However, it can be a risky business if you don't understand the upcoming movements.

Now you know what to expect. But once the word gets out about this real estate hotspot, properties will skyrocket in price. So invest in real estate with PMI Costa Rica today for bargains while they're still here!