Costa Rica Commercial Real Estate Investment Opportunities

Published on October 30, 2025 and written by Cyril Jarnias

Costa Rica: A Promising Market for Commercial Real Estate

Costa Rica, known for its exceptional biodiversity and political stability, proves to be a fertile market for commercial real estate investments. Attracting international investors seeking attractive returns, this Central American country combines a favorable tax environment with a rapidly expanding tourism sector.

This dynamism thus offers numerous opportunities in the following key sectors:

• Office Space
• Retail
• Hospitality

As infrastructure projects multiply and the local economy continues to grow, Costa Rica is establishing itself as a preferred destination for those looking to diversify their portfolios.

The Strengths of Commercial Real Estate in Costa Rica

The commercial real estate sector in Costa Rica attracts numerous investors thanks to a combination of favorable economic, political, and structural factors.

Key Attractiveness Factors:

• Favorable Economic Context
  Costa Rica exhibits stable growth and an open economy, supported by a skilled workforce and expanding sectors like technology, shared services, and tourism.
• Political Stability
  The country is recognized for its stable democracy and the absence of a military, making it one of the safest business environments in Latin America.
• Tax Incentives for Foreign Investors
  Real estate capital gains are not taxed for up to three sales per year, and administrative procedures for foreigners are straightforward. Acquisition fees are limited, and the overall tax burden remains attractive.
• Tourism Boom
  Costa Rica welcomes millions of visitors annually, boosting demand for commercial spaces such as restaurants, hotels, shopping centers, and retail stores.
• Diversity of Available Commercial Properties

• Modern Shopping Malls
• Office Spaces (including coworking and offices for tech companies)
• Food & Beverage Outlets (cafes, bars, restaurants)
• Hotels and Tourist Accommodations
• Industrial Spaces and Logistics Warehouses

• Geographic Accessibility and Role as a Regional Hub
  Its central position in the Americas allows for easy connections to North America, South America, and Europe. The country has several international airports and modern ports, enhancing its logistical appeal.
• Developing Infrastructure
  Costa Rica is investing in improving its roads, telecommunications (fiber optics, 5G), and energy facilities, facilitating business and corporate establishment.

Summary Table of Advantages

Strength	Description
Political Stability	Stable democracy, high security
Favorable Taxation	Untaxed capital gains, reduced fees, simplified procedures
Tourism Growth	Increased demand for retail, hotels, food & beverage
Diversity of Commercial Assets	Shopping malls, offices, food & beverage, hotels, warehouses
Regional Accessibility	Logistical hub between North America, South America, and Europe
Growing Infrastructure	Roads, ports, airports, modern telecommunications
Skilled Workforce	Competitive costs, high education level

Recent Commercial Real Estate Market Trends:

• Growing demand for flexible spaces (coworking, modular offices).
• Development of establishments focused on experiential tourism (boutique hotels, concept restaurants).
• Expansion of shopping centers in tourist and upscale residential areas.
• Increased interest in hotel investments, particularly in Guanacaste and the Central Pacific.
• Rise of eco-friendly real estate projects, reflecting the country’s commitment to environmental sustainability.

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Commercial real estate in Costa Rica thus offers a secure, profitable, and diversified environment, supported by an exceptionally stable macroeconomic and political context, tax benefits, and a promising tourism dynamic.

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Exploring Available Types of Commercial Properties

Types of Commercial Properties in Costa Rica

Property Type	Typical Location	Main Characteristics	Benefits for Investors	Concrete Examples
Office Spaces	San José, Escazú, Heredia	Modern buildings, easy access, 24/7 security, parking, proximity to transport and services.	Constant demand in the capital and economic hubs; stable rents.	Office buildings at Avenida Escazú or Sabana.
Shopping Centers	Dense urban areas (San José), tourist zones (Jacó)	Modular spaces for retail or food & beverage; high foot traffic.	Diversified rental income; appreciation through footfall.	Multiplaza Escazú (upscale), Jacó Walk (tourist-oriented).
Industrial Properties	Alajuela, Cartago, outskirts of San José	Buildings adapted for production/logistics; large areas; access to main roads.	Proximity to airports/ports; tax incentives in free zones.	Industrial Parks near Alajuela or Cartago.
Warehouses	Near major roadways and ports (Caldera/Limón)	High ceilings; access for heavy trucks; enhanced security.	Strong logistics demand from e-commerce/import-export; stable yield.	Logistics warehouses at Coyol Free Zone (Alajuela).

Specific Characteristics by Type

• Office Spaces
  • Primarily located in urban centers.
  • Often equipped with modern technological infrastructure.
  • Attractive for multinational companies and start-ups.
• Shopping Centers
  • Strategic location near affluent residential neighborhoods or tourist areas.
  • Ability to host a variety of brands: retail, food court.
• Industrial Properties
  • Close to logistics infrastructure: Juan Santamaría Airport or seaports.
  • Adaptability to the needs of the manufacturing or agri-food sector.
• Warehouses
  • Direct access to highways and national/international logistics hubs.

Recent Market Trends

• Significant increase in warehouse demand due to e-commerce development.
• Ongoing development of mixed-use spaces combining retail/offices/residential in Greater San José.
• Sustained growth around industrial free zones benefiting from attractive tax advantages.

Legal Aspects to Consider

Recommended Legal Structure:

• Investors typically choose a Sociedad Anónima (SA) – the local equivalent of a corporation – which protects personal assets from business creditors.

Specific Rules:

• Transfer/sale must comply with Article 79 of Law No. 7527 on Urban and Suburban Leases (Ley del Arrendamiento Urbano y Suburbano): formal obligations upon change of ownership and automatic transfer of lease rights/liabilities if premises are rented.

Particular Aspects During Acquisition:

1. Strict cadastral verification to avoid any land disputes common in Central America.
2. Notarial obligation for any significant commercial real estate transaction;
3. Mandatory notification to the current tenant after sale if the property is occupied by a commercial third party;
4. Recommended use of a local specialized attorney to navigate specific local regulations based on geographic area/type of activity;

Taxation Applicable to Commercial Real Estate Investments

Main Points:

• Annual property tax (~0.25% of fiscal value).
• VAT on rental/commercial income imposed since July 2019;
• Possibility of tax reduction through investment in industrial free zones/agro-industrial parks;

In summary, Costa Rica offers a wide variety of opportunities in commercial real estate thanks to its regional economic dynamism and policies favorable to foreign investors through adapted structures (SA/SRL) as well as its sector-specific tax incentives—particularly attractive around major industrial/logistics hubs like Coyol Free Zone or Caldera Port.

Assessing Profitability and Potential Risks

Essential Financial Indicators to Assess Profitability

• Cash Flow: Measures the net cash flow generated by the property’s operation, after deducting all expenses (management, maintenance, taxes). Positive cash flow is essential to ensure the project’s financial viability.
• Return on Investment (ROI): Expresses the overall return on investment as an annual percentage. In Costa Rica, it generally ranges between 7% and 11% gross/year in residential and can reach up to 17% in hospitality depending on location.
• Capitalization Rate (“Cap Rate”): Allows for evaluating the rental performance of a property relative to its value. It is calculated as follows:
  ( text{Capitalization Rate} = frac{text{Net Operating Income}}{text{Property Value}} )
  A high rate indicates better relative profitability.

Indicator	Definition	Observed Values in Costa Rica
Cash Flow	Net available flow after expenses	Variable depending on management and location
ROI	Gross annual return	7–11% residential / up to 17% hospitality
Capitalization Rate	Net income / total property value	Variable depending on zone and type

Local Market Dynamics and Growing Demand

• Sharp price increases in coastal tourist areas such as Nosara ($3,298/m²), Tamarindo ($2,725/m²), or Playas del Coco ($2,113/m²).
• Particularly strong demand around major tourist hubs (Guanacaste), stimulated by international growth, remote work, and an attractive natural setting.
• In provinces like San José, Alajuela, or Guanacaste, rapid growth in residential/commercial developments is observed.

Comparative Table of Average Prices per Square Meter in USD

Region	Average Price (USD/m²)	Recent Trend
Nosara	3,298	Strong Increase
Tamarindo	2,725	Marked Increase
Playas del Coco	2,113	Increase
National Average	1,021	Continuous Increase

Economic Opportunities Influencing Long-Term Profitability

• Projected annual growth around +2.35%, with a market estimated at over $251 billion in 2024.
• Increased attractiveness due to tourism dynamism (second homes/upscale villas) and the rise of international remote work.
• Favorable tax environment for foreign investors; simplified administrative procedures.

Potential Risks Associated with Commercial Real Estate Investment

List of Main Risks:

• Political Stability: Costa Rica traditionally benefits from greater stability than other regional countries but remains exposed to political changes that could affect taxation or conditions for foreign investors.
• Economic Fluctuations: Possible fluctuations due to dependence on international tourism; potential slowdown during global crises or pandemics affecting this key sector.
• Local Regulations: Need for regulatory monitoring regarding laws on foreign ownership or any developments concerning environmental permits/protected areas.
• Natural Disasters: High seismic/volcanic vulnerability; variable hurricane exposure depending on regions—potential insurance impacts/unexpected costs.

Sector Outlook & Expert Advice to Mitigate These Risks

Expected Developments

The upward trend is expected to continue in attractive areas driven by resilient tourism. The growing interest in remote work could sustainably support certain local markets while some inland regions might see their progress slow due to insufficient infrastructure or facing climatic hazards.

Professional Advice

• Diversify investments across several types/properties to smooth out rental risk
• Always prioritize a detailed “zone/type” analysis before acquisition; opt primarily for sectors near major tourist corridors
• Systematically surround yourself with qualified local experts (specialized agencies/professional managers)
• Obtain appropriate insurance against natural risks
• Stay informed about any local legislative/tax developments

Important: To maximize your profitability while limiting your risks in Costa Rica, always favor a prudent approach based on diversification, thorough local analysis, and certified professional support.

Deciphering Real Estate Market Trends

Costa Rica’s economic growth supports a positive dynamic in the commercial real estate market, with a projected market value of $74.9 billion US in 2025. This growth is fueled by political stability, the tourism boom, infrastructure improvements, and increased attractiveness for foreign investors, particularly in the hotel, eco-lodge, and development land sectors.

Impact of Economic Growth

• The Costa Rican economy remains robust, facilitating access to financing and encouraging the creation of new commercial real estate projects.
• The tourism sector, a key economic driver, attracts investments in hospitality, food & beverage, and shopping centers.
• Stability policies and tax incentives foster confidence among international investors.

Most Promising Geographic Sectors

• Pacific Coast (Guanacaste, Nicoya, Tamarindo): sustained increase in demand for hotels, resorts, and luxury properties.
• Central Region (San José and expanding suburbs): strong demand for offices, commercial spaces, and mixed-use developments.
• Caribbean: improved accessibility, rapid growth, opportunities for pioneering investments.
• Osa Peninsula, Marina Flamingo: development of eco-lodges and hotel projects targeting nature tourism.

Region	Attractive Property Types	2025 Dynamic
Guanacaste/Pacific	Hotels, resorts, retail	+8% price/year, strong demand
San José & suburbs	Offices, coworking, retail	Urban expansion
Caribbean	Hospitality, residential	Rapid growth
Osa Peninsula	Eco-lodges, green tourism	Strong appreciation

Influence of Recent Government Policies

• Promotion of sustainability: incentives for green building, energy efficiency requirements.
• Simplification of procedures for foreign investors, particularly for the purchase of land and commercial assets.
• Public investments in infrastructure (roads, airports), improving connectivity of previously isolated areas.

Evolution of Rental and Sale Rates

• Rising Prices: in 2025, prices of commercial and residential properties in tourist areas can increase by up to 8% per year.
• Rental Rates: progression in areas with high tourist or urban traffic, stability in rural or less developed regions.
• Increased demand for flexible spaces (coworking), mixed-use developments, and sustainable buildings.

Interest from Foreign Investors

• Strong presence of North American and European investors, attracted by stability, favorable taxation, and growth in the tourism sector.
• Trend towards acquisition of small hotel structures, eco-lodges, and land for new real estate projects.
• Investors favor assets with high appreciation potential and strategic locations (seaside, proximity to major infrastructure).

Comparison with Previous Years and Emerging Trends

• Acceleration of price growth and transaction volumes since 2021, driven by the return of international tourism post-pandemic.
• Rise of eco-friendly projects and self-sufficient communities.
• Evolution of preferences towards mixed-use spaces (residential + commercial), adapted to new lifestyles and work modes (remote work, coworking).
• Strengthened political stability, contrasting with some Latin American neighbors.

Forecasts for the Coming Years

• Maintenance of annual price growth between 5 and 8% in the most dynamic areas.
• Continued expansion of infrastructure, opening new regional markets.
• Sustained demand for “green” assets and responsible investments.

Key Takeaway:
Costa Rica’s commercial real estate market shows remarkable vitality in 2025, driven by economic growth, tourism enthusiasm, and favorable public policies. Coastal areas, urban regions, and eco-friendly projects concentrate the best opportunities for investors, with solid growth prospects for the coming years.