Tourism and Real Estate in Costa Rica

Published on April 24, 2026 and written by Cyril Jarnias

Costa Rica, globally recognized for its breathtaking landscapes and exceptional biodiversity, has become a top destination for many tourists, consequently driving significant expansion in its real estate market. The steady influx of visitors and the search for a tropical haven have led not only to increased demand for second homes but also to major economic and social repercussions for local communities. This growing interest raises questions about how the tourism boom influences the evolution of real estate prices, housing availability, and even social dynamics in this Central American country.

The Rise of Tourist Areas in Costa Rica

The rise of tourist areas in Costa Rica can be explained by a combination of several major factors:

• Exceptional Natural Environment: Costa Rica is known for its national parks, beaches, volcanoes, and tropical forests that are home to more than 5% of the world’s biodiversity.
• Remarkable Biodiversity: This biological richness attracts ecotourism enthusiasts and travelers seeking authentic nature experiences.
• Sustainable Development Initiatives: The country has made sustainable tourism a central focus, with policies aimed at preserving the environment while promoting local economic development. The regular organization of international events on sustainable tourism illustrates this commitment.
• Active Government Support: Costa Rican authorities have implemented incentive strategies (tax benefits, investments in tourist infrastructure, international promotion) to stimulate the arrival of foreign visitors.

These elements have enabled continuous growth in the number of international tourists for two decades (excluding the COVID period), positioning Costa Rica as a regional model in ecotourism.

Table – Recent Growth in the Tourism Sector

Year	Tourist Spending (USD)	Annual Change (%)
2017	3.76 billion	-0.48
2018	4.07 billion	+8.38
2019	4.28 billion	+5.13
2020*	1.48 billion	-65.46

*The sharp drop observed in 2020 is linked to the pandemic; a sustained recovery has been underway since then.

The regions that have experienced the fastest tourist development are mainly:

• The coastal province of Guanacaste (North Pacific beaches)
• The central region around Arenal/La Fortuna (volcano and forests)
• Manuel Antonio/Puntarenas

These areas now concentrate a large portion of recent tourist infrastructure: high-end international hotels and certified sustainable ecolodges; beachfront residential complexes; new airports or extensions of existing terminals; modernized roads connecting major natural attractions.

List – Infrastructure Developed to Support the Tourist Influx

• Construction or renovation of roads to major natural sites
• Increase in hotel offerings catering to all market segments
• Creation of cultural or ecological centers highlighting local identity
• Development of regional airports facilitating direct access to popular destinations

Consequences on the Real Estate Market

The rise of international tourism exerts strong pressure on the local real estate market:

• Marked price increases in certain sought-after coastal and ecological areas
• Strong demand for second homes purchased by foreigners or expatriates
• Accelerated establishment of boutique hotels and residential resorts aimed at foreign investors

Table – Real Estate Impact in Key Regions

Region	Average Real Estate Price Increase (%)	Dominant Property Type
Guanacaste	+12%/year over the last five years	Villas & resorts
Puntarenas	+10%/year	Second homes
Central Valley/Arenal	+8%/year	Ecolodges

Socio-Economic Analysis:

List – Challenges Associated with the Tourism Boom

• Increased risk of displacement or marginalization of local residents due to rising land/housing costs

Some villages see their identity altered under the effect of this real estate pressure

• Growing pressure on local resources: limited drinking water during seasonal peaks; complex waste management in some rural municipalities

Local plans must be strengthened to ensure that growth remains compatible with environmental preservation

The major challenge therefore remains achieving a balance between international economic attractiveness and maintaining the local social fabric, along with effective preservation of natural heritage.

Rising Prices: A Side Effect of Tourism

The increase in tourist numbers in Costa Rica has profoundly transformed the real estate market, particularly in sought-after beach areas such as Tamarindo and Jacó. The heightened demand for tourist accommodations and foreign investments has resulted in a notable price increase, affecting both residential and commercial real estate.

Recent Evolution of Real Estate Prices:

Year	Average House Price (USD/m²)	Average Apartment Price (USD/m²)	Estimated Annual Change
Mid-2025	1,929	2,298	+8 to 10% (tourist areas)
Jan. 2024	—	—	—

In high-demand regions like Tamarindo or Jacó, pressure from international purchases for tourist rentals has driven up prices per square meter by 8 to 10% over one year. Beachfront properties saw an additional jump, with demand increase estimated at +15% in 2024, notably fueled by investors seeking high rental yields.

Additional data:

• Observed gross rental yields between 5.3% and up to 17% depending on location.
• The luxury market remains dynamic with high-end villas and golf complexes in demand.
• Despite a temporary national correction (-41% on the national median price in early 2025), these declines are less pronounced or absent in highly touristy coastal areas where land pressure persists.

Consequences for the Local Population:

• Residents face a drastic reduction in access to affordable housing; many are forced to leave their original neighborhoods due to soaring rents.
• Local young professionals now struggle to become homeowners near the coast or even in some central neighborhoods close to beaches.
• Urban infrastructure is under pressure: seasonal traffic congestion, stress on water/electricity networks, and partial saturation of essential public services.

Summary list of impacts:

• Rapid increase in housing costs
• Forced displacement inland for many residents
• Growing social tensions around local “exodus”

Foreign investments play a driving role in this real estate inflation: massive acquisition by non-residents who convert houses/apartments into short-term rentals (Airbnb & co.), further reducing the available stock for Costa Rican families while artificially boosting land value.

Government Measures & Local Responses:

Several initiatives are emerging to regulate this dynamic:

• Progressive regulation on short-term tourist rentals in some municipalities (specific requirements to obtain a license).
• Pilot projects aimed at reserving a portion of new housing stock for permanent residents via quotas or targeted subsidies.
• Planned improvement/extension of urban infrastructure to absorb seasonal population peaks without lasting harm to historical residents.

Despite these nascent efforts, there are few truly binding national policies that can quickly reverse this inflationary trend; most measures remain local or experimental.

Persistent increase, heightened social pressures, and regulatory challenges thus outline the current landscape of the Costa Rican real estate market under international tourism influence.

Rental Investment: A Growing Opportunity

The tourism boom in Costa Rica has profoundly stimulated rental investment, making the country a prime destination for real estate investors, particularly in coastal areas and major tourist cities.

Main Drivers of Increased Rental Investments:

• The steady growth of tourism, driven by Costa Rica’s ecological reputation and political stability, attracts more and more foreign investors seeking seasonal rentals or second homes.
• In 2024, foreign investment in Costa Rican real estate jumped by over 18%, with even stronger expansion prospects for 2025.
• Expatriates, retirees, and remote workers contribute to the rising demand, especially for beachfront properties and environmentally friendly housing.

Most Attractive Regions for Rental Investment:

Region / City	Major Assets	Sought-After Property Types
Guanacaste (Tamarindo, Nosara, Playas del Coco)	Renowned beaches, constant tourist flow, surf and wellness vibe	Villas, condos, ecovillas
Puntarenas (Jacó, Santa Teresa)	Proximity to San José, nightlife, surf, digital nomads	Apartments, vacation homes
Limón (Puerto Viejo)	Wild nature, Caribbean ambiance, eco-responsible tourism	Lodges, eco-projects
Central Valley (San José, Escazú)	Urban centers, expatriates, access to services	Apartments, penthouses

Impact on Prices and Property Availability:

• Real estate prices saw an average increase of 10 to 15% in the most sought-after coastal areas between 2023 and 2025.
• Increased demand reduces the supply of available properties for rent, especially during the high tourist season, favoring high profitability for investors.
• Construction projects for eco-friendly housing (ecovillas) are multiplying to meet the dual requirement of sustainability and profitability.

Recent Data on Supply and Demand:

• Properties intended for rental (villas, condos, eco-lodges) represent a growing share of the market, with supply increasing by over 12% in 2024, but demand still outstripping it in key tourist areas.
• Occupancy rates for seasonal rentals frequently exceed 80% in coastal regions during the dry season.
• Average purchase prices for a beachfront condo reach 3000-4000 USD/m² in the most sought-after locations.

Examples of Successful Real Estate Projects:

• Nosara Eco-Residences: development of eco-responsible villas with an annual occupancy rate exceeding 85%.
• Las Catalinas in Guanacaste: planned beach village combining high-end accommodations and green spaces, highly sought after by North American investors.
• Santa Teresa Green Condos: apartment project combining modern design and ecological certifications, over 90% sold during pre-sales.

Return on Investment Opportunities and Government Incentives:

• Gross rental yields in tourist areas can reach 8 to 12% per year, depending on location and property standard.
• The Costa Rican government encourages foreign investment through tax incentives for ecological projects and simplified acquisition procedures for non-residents.
• Green certification programs and tax reductions exist for sustainable constructions, enhancing the attractiveness of eco-responsible investment.

Rental investment in Costa Rica thus establishes itself as a growing opportunity, driven by tourism dynamism, international demand, and a regulatory framework favorable to both profitability and sustainability.