What’s Going On with Costa Rica’s Real Estate Market in 2025?

 Blog By Sian Deda

For years, Costa Rica has been one of the top destinations for real estate investment, especially among Americans and Europeans looking for quality of life, nature, and stability. But in 2025, the landscape is shifting. Has the market slowed down? Is now a good time to buy? And how does the weaker U.S. dollar affect everything?

Here’s a clear, data-based look at what’s really happening in Costa Rica’s real estate market this year.

Prices Are Dropping. But the Market’s Not Dead.

Between January and February 2025, the average price of single-family homes in Costa Rica dropped between 30% and 41% compared to early 2024. Guanacaste, known for its luxury and beach markets, saw a 34% drop in traditional homes and a 31% decline in luxury properties. In the Central Valley, prices are down about 13%.

Still, despite lower prices, sales have actually increased. Homes are selling faster, and inventory is up, which means more options for buyers and a more competitive environment. The market isn’t dead, it’s correcting.

Key Factors Influencing the Market

1. The U.S. Dollar Is Weaker
Many international buyers, especially from the U.S. depend on the strength of the dollar to invest. A weaker dollar means less purchasing power, which has slowed foreign demand in some areas.

2. Increased Inventory
There are more properties available than before, giving buyers more leverage. Sellers are lowering prices to stay competitive.

3. Tourism Is Growing
Costa Rica welcomed 2.66 million tourists in 2024, up 7.7% from the previous year. This continues in 2025, boosting demand for vacation rentals and investment properties in tourist hotspots.

4. Tighter Credit and Higher Interest Rates
Local buyers are facing stricter loan conditions and higher interest rates, which slows demand in the residential sector.

5. Industrial Growth & Green Development
Inland areas like Grecia, Alajuela, and Cartago are seeing growth in industrial parks and foreign investment, attracting developers. Plus, over 50% of new projects are now certified as sustainable (LEED or EDGE), offering tax incentives and strong long-term value.

What Areas Are Moving?

Guanacaste remains a key market, despite the correction. Experts expect 3% to 7% appreciation in 2025, thanks to strong tourism and infrastructure growth.

Southern Pacific areas like Osa, Uvita, and Pavones have actually increased in value, in some places by 8% to 42%, driven by eco-conscious investors.

The Central Valley (San José, Heredia, etc.) is stable and attractive for long-term living, with lower price points and strong rental demand.

Is Now a Good Time to Buy?

If you’re looking for a mid- or long-term investment, the answer is yes, especially if you’re buying in colones or already living in Costa Rica. Lower prices, more options, and a strong rental market make this an excellent time to act strategically.

If you’re a foreign buyer, the weak dollar may seem like a disadvantage, but it also means sellers are more open to negotiation.

Final Thoughts

2025 isn’t a boom year, but it’s far from a crisis. It’s a reset year, full of silent opportunities for those who know where to look. With the right timing and location, buyers can find exceptional deals, especially in emerging areas and sustainable developments

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