Nearshore Americas

Property Prices Go Wild in a Once-Quiet Corner of Costa Rica

Guanacaste, a formerly quiet province located in the west coast of Costa Rica, has found itself under the spotlight thanks to a wild jump in its property prices.

Real estate prices in Guanacaste saw an increase of 400% between 2020 and 2023, according to he National Univeristy’s Observatory for Tourism, Migration and Sustainable Development.

The increase was attributed to a sudden rush of remote workers longing for a tropical setting and a change in lifestyle.

Prior to the COVID-19 pandemic, Guanacaste was a sparsely populated region. However, as the pandemic unfolded in mid-2020, a wave of people began migrating to the province’s stunning coastline, seeking a safe haven and a change of pace.

This influx of new residents, coupled with a temporary slowdown in construction activity due to the pandemic, created a surge in demand for existing properties.

With limited supply, property owners capitalized on the opportunity, leading to a significant rise in prices. The market was able to stabilize somewhat in 2022 thanks to a strong rebound in construction activity.

Foreign tourists have been identified as the primary drivers of this trend. In their search for a slice of paradise, many were drawn to Guanacaste’s idyllic beaches and chose to invest in second homes.

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Santa Cruz, Nicoya, Liberia and Carrillo have seen particularly robust housing activity. Guanacaste now ranks second only to Costa Rica’s capital city (San Jose) in terms of total property registrations nationwide. As of July 2023, Guanacaste boasted a remarkable 25% of all buildings under construction in Costa Rica.

The trend extends beyond property sales. Rental prices have also been steadily climbing in recent months. Currently, a two-bedroom house in Guanacaste can command a monthly rent between US$700 and US$800.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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