MARKET REPORT ~ NOVEMBER 2024
As we move through the final quarter of 2024, the real estate market in Guanacaste continues to evolve, shaped by both global trends and local dynamics. Despite the challenges posed by rising mortgage rates and increasing construction costs, the market remains resilient, supported by a strong influx of international buyers and the ongoing boom in tourism.
Since the beginning of 2024, the property market in Guanacaste has experienced continued price increases, particularly in coastal areas. Between 2020 and 2023, the region saw property values skyrocket by as much as 400%, driven by limited supply and strong demand. This surge in prices has been primarily fueled by the influx of foreign investors, who continue to seek high-end beachfront properties and homes that offer a desirable lifestyle. The popularity of Guanacaste as a tourism hub also contributes to the demand for vacation rentals and second homes, further boosting the local property market.
The recent U.S. elections are expected to have a ripple effect on Costa Rica's real estate sector, particularly in Guanacaste. Many foreign buyers, primarily from the U.S. and Canada, are actively seeking investment opportunities in Costa Rica as a stable and attractive alternative to uncertain conditions back home. While it is still early to gauge the full impact of the elections, market analysts anticipate heightened interest from U.S. and Canadian buyers seeking opportunities in areas like Tamarindo, Langosta, Flamingo, Potrero, Avellanas, and neighboring communities.
While international buyers remain the dominant force in the market, there is a noticeable shift toward those seeking not only investment properties but also a change in lifestyle. Guanacaste’s unique combination of natural beauty, and modern amenities, continues to attract people looking to relocate or retire in a more relaxed environment.
Market Segmentation:
- Luxury Homes & Beachfront Properties: The luxury segment remains the strongest performer in Guanacaste, with demand for beachfront villas and upscale homes showing no signs of slowing down. Buyers, particularly from abroad, continue to seek properties in these high-demand areas, attracted by the region’s lifestyle offerings and strong investment potential.
- Mid-Range Properties: While the mid-range segment faces ongoing challenges from rising prices, new developments are gradually entering the market to meet this demand. Buyers in this category are often looking for permanent residences or vacation properties that strike a balance between affordability and convenience.
In conclusion, the Guanacaste real estate market continues to offer great opportunities for both buyers and sellers. While the recent U.S. elections have drawn attention to Costa Rica as an investment option, it’s still too early to say how they will impact the market. Buyers with the financial means or a clear purpose for their investment—whether for a second home, rental income, or lifestyle upgrade—are in the best position to act now.
For sellers, the market conditions are highly favorable. Properties in well-established developments, especially those purchased directly from developers, are seeing significant returns.
We encourage sellers to list now, as there are motivated buyers actively searching for properties. For buyers, the current market offers a strong opportunity to secure high-value investments in a region where demand continues to grow.