Costa Rica has long been a favorite destination for tourists, and in recent years, the country’s economy, especially in real estate, has been thriving. With over 1.7 million tourists arriving by air in the first half of 2024—an impressive 13.5% increase compared to the same period in 2023—tourism continues to drive significant economic activity. The country set a new tourism record in 2023, attracting more than 2.4 million travelers, bolstered by Costa Rica’s recognition as the “world’s most welcoming country” in Condé Nast Traveller’s 2024 Readers’ Choice Awards. This surge in visitors, along with Costa Rica’s 2019 ranking as the world’s happiest country by the Happy Planet Index, has cemented its reputation as a desirable place to live and invest.
Lower Living Costs and Digital Nomad Law Fuel Growth
Costa Rica offers a lower cost of living than the United States—52% lower, to be precise. This affordability extends to real estate, where both property prices and maintenance costs are considerably less than in many other countries, making it an attractive option for foreign investors and expatriates. Furthermore, Costa Rica’s Digital Nomad Law, introduced in March 2021, has been a game-changer. The law provides an easy path for remote workers to live and work in the country, with the added benefit of high-speed fiber optic internet available throughout much of the nation.
The combination of these factors makes Costa Rica particularly appealing for those looking for an affordable yet high-quality lifestyle, and the country’s real estate market is responding to this demand. Foreign nationals can buy property with just a tourist visa, and many set up private businesses or corporations to protect their investments. This ease of doing business, coupled with a robust legal framework, has made Costa Rica one of the most attractive markets for foreign real estate investment in Latin America.
Residential Real Estate Market Growth
Residential real estate in Costa Rica is on the rise, with the market projected to reach a value of US$276.3 billion by 2024. Analysts predict a compound annual growth rate (CAGR) of 3.88% from 2024 to 2029, pushing the market’s value to US$334.2 billion by the end of the decade. While prices are generally trending upwards, the rate of increase varies across regions. Provinces such as Puntarenas, Alajuela, and Guanacaste have seen the largest growth in housing stock in recent years, driven by an influx of both tourists and expats seeking permanent residence.
This growth in real estate is mirrored by broader economic recovery. After a sharp contraction during the COVID-19 pandemic, Costa Rica’s economy has rebounded strongly. According to IMF projections, Costa Rica’s GDP grew by 5.1% in 2023, and it is expected to grow another 4.0% in 2024. Strong performance in private consumption and investment, coupled with the global trend of “near-shoring”—especially in sectors like healthcare and services—positions Costa Rica for continued economic success.
Economic Outlook and Stability
Costa Rica’s economic outlook remains positive, with an expected GDP growth of 15.9% over the next five years. The country’s inflation has also stabilized significantly, dropping from 7.9% at the end of 2022 to -1.8% by the end of 2023. The exchange rate has also steadied after a dramatic decline in the value of the U.S. dollar against the Costa Rican colon in 2022, further enhancing investor confidence.
And so, Costa Rica’s real estate market is thriving due to a combination of economic stability, growing tourism, and the influx of digital nomads. The ease of property ownership, coupled with the country’s lower cost of living and vibrant economy, makes it an increasingly attractive destination for both foreign investors and those seeking a new place to call home.
