After a period of intense growth, Costa Rica’s real estate market is entering a more balanced and attractive phase—particularly for serious buyers looking for long-term value. Price corrections in key regions have created more accessible entry points without erasing the potential for healthy appreciation.
Key Market Shifts
- Guanacaste: Average home prices are down 36% to $967,506; luxury homes have dropped 31%, now averaging $1.7 million.
- Central Valley: More stable, with single-family homes averaging $476,075, down 13%.
- Southern Zone: Still growing steadily—average home prices have increased 42% to $893,841, with demand strongest in Uvita, which accounts for 37% of recent regional sales.
What This Means for Buyers
- Realistic Valuations: A more grounded market after years of sharp increases (up to 400% in some areas).
- Strong Appreciation Potential: Still projected at 5–12% annually in sought-after regions.
- Quick Sales for Well-Priced Homes: Especially in coastal and lifestyle-driven destinations.
Low Transaction & Holding Costs
- Closing Costs: Typically 3–4% of the purchase price.
- Transfer Tax: 1.5%
- Legal Fees: 1–2%
- Registration/Notary Fees: 0.8–1%
- Appraisals: $500–$1,000
- Loan Origination (if applicable): 1.5–2.5%
- Annual Property Tax: Just 0.25% of the registered value.
- Capital Gains Tax: 15%, with exemptions for primary residences held over 3 years.
With prices stabilizing, today’s market offers buyers who have felt priced out in recent years a second chance. It is a rare opportunity grounded in value, supported by demand, and only made more attractive by it’s long-term affordability.
“Costa Rica offers value, growth, and lifestyle—without the price tag of major global markets.”
