As of May 2025, the real estate market in Guanacaste, Costa Rica, has experienced “price corrections” influenced by various factors such as higher inventory, slower sales, and a dip in tourism.
All of this is trending in the favor of Buyers.
Typically, Guanacaste is known for a strong demand among buyers – especially in popular areas like Playas del Coco, Playa Hermosa, Playa Panamá, and Playa Ocotal – driven by its beautiful beaches, natural attractions, proximity to an international airport and other amenities, and its international appeal.
It can be difficult for foreign Buyers to gauge an emerging real estate trend unless they have boots on the ground here. There is no “real” MLS in Costa Rica, no “cheat sheet”.
And that’s where I come in!
I like to keep it simple, and the tools I use as my barometer for what’s trending in the area are my exclusive listings, fellow Tres Amigos agents, and another 150 agents in the area who belong to a couple of WhatsApp groups where we share our listings, open houses, and general chit chat.
The emerging key phrases that are trending toward a Buyer’s market in our WhatsApp groups since February of this year are “price reduction”, “price correction”, “new price”, “price update”, “price adjustment”, “priced to sell”, "just reduced", "price drop", “another reduction”, and “cash bonus”, among others.
The picture could not be more clear. Prices are dropping. Clearly this is not great news for Sellers. But it’s really good news if you’re in the market to buy here!
In the Playas del Coco area of Guanacaste, the real estate trends still reflect a balanced market but with some noteworthy indicators.
Noteworthy Indicators of a Buyer’s Market:
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Inventory Growth:
There has been a marked increase in available properties, including condos, ocean view homes, lots (with the exception of ocean view lots), and land parcels, giving buyers more options than in 2024. Due to increased inventory, Buyers often have room to negotiate, especially on properties that have been on the market for several months. -
Pricing Corrections:
Property prices have remained relatively stable but have experienced declines or “stabilization” in some niches, indicating a gearing toward a buyer-friendly environment for many properties. And there are more “fire sales” than in 2024. -
Sales Activity:
Sales activity has slowed noticeably compared to the rapid activity seen during the post-Covid years of 2022-2024, with some properties taking longer to sell, indicating a softening or leveling off in the market. Some of this occurs traditionally during the low travel season. But the trend began in the first quarter of 2025 during the high travel season, which is unusual. -
Investment and Development:
New development projects continue, but developers are adjusting prices and incentives, aiming to attract buyers amid cautious market sentiment. Except for the projects aimed at the super-rich. -
Demand Dynamics:
International buyers, especially from North America and Europe, continue to show interest here in Guanacaste, though their purchasing power is slightly tempered by global economic considerations and currency exchange rates – especially for Canadians and their $CAN. -
Tourism and Rental Market:
The rental market remains strong! Even though tourism has dipped, the tourism demand in our area still supports rental investments, which is attractive for buyers interested in income-generating properties.
So, if you’re a Buyer looking for a lifestyle change or an investment opportunity here in the Papagayo area, Carpe diem (“Seize the day”)! Take advantage of the Buyer’s market dip. Folks who bought 5 years ago are pinching themselves because of the reality of what their profit margins are today – even in a Buyer’s market. And those who have been renting their properties to generate vacation rental income continue to bank it.
Here's a brief breakdown of what you can expect when you look at my listings at dreamcostaricarealty.com.
Current Property Types & Price Ranges in Playas del Coco Area:
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Entry-Level Condos:
Starting around $80,000 to $200,000+ for smaller studio and 1-bedroom units, or older properties with basic amenities.
Sidebar: This includes “Share Properties”. Share properties are different than condominiums. Technically and legally, they are “Apartment Developments” – not condominiums. You hold no title. You buy a single share in a corporation that owns the entire property and get the right of use of the apartment and any shared amenities. Though they are sold as “condos”, they really are not. And the capital investment you make does not count outright toward your Residencia Inversionista.
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Mid-Range Condos:
Typically $200,000 to $350,000+ for 2-3 bedroom units with newer finishes, better views, or access to shared amenities like pools, gyms, and gardens. -
Luxury and Ocean-View Condos:
Prices range from $300,000 to $650,000+ for 2-3 bedroom units, especially those with nice ocean views, high-end fixtures and finishes, or private terraces or roof decks. Properties closer to the beach or in gated communities with amenities like pools, security, and fitness centers usually command premium prices. -
Ocean View Homes:
Prices generally start around $800,000 and can go over $4 million+ for luxury homes in gated communities. -
Land Parcels:
Land suitable for building can be found from $50,000 for smaller lots to over $500,000+ for larger or premium ocean view properties.
Other Variables that Affect Property Values:
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Older vs. New Construction:
Newly built homes and condos are typically more expensive, but existing properties may offer negotiating room. -
Off-the-Beaten-Path:
As a general rule, the farther you are away from the beach, the less expensive the property. Many new Buyers are cherry-picking properties in Comunidad, Guardia, Santa Rita, Sardinal, La Libertad, and other nearby areas that are still only 15-20 minutes from the beach, and 10-20 minutes from amenities like Walmart and PriceSmart – and, of course, an international airport!
So, what do I recommend for my Buyers?
Work with Me:
Working with an experienced, knowledgeable, and trusted local agent can help you access the latest listings, understand Buyer’s market nuances, and negotiate better deals. I also work with every agent in the area – it’s a small place – and can weed through all of the fake, duplicate, or expired listings you’ll see on the internet that pop up in a Google search. There’s a lot of trash out there. I can save you time and frustration and make your buying experience a very positive one. Skeptical? Check out my Testimonials!
Visit in Person:
Let me email or WhatsApp you some real estate options based on your asset allocation range and schedule showings of properties you’re interested in in advance so that when you get here, we can see them firsthand.
Sidebar: That stated, if you’re hot to trot, I’m happy to do WhatsApp virtual tours for you. I’ve had many Buyers pull the trigger sight unseen and lock up a property with a Contract to Buy & Sell Real Estate before they even land! Many had never even visited Costa Rica!
Everything you’ve read above is empirical data that I, with boots on the ground, have learned first-hand and provide to all of my clients – Buyers and Sellers alike. Buyers are happy. Sellers, not so much right now. But in spite of the emerging Buyer’s market trend, Sellers who bought only a few years ago still aren’t taking in on the chin. It’s just that their profit margins aren’t as large. Real estate in Costa Rica doesn’t crash. At a minimum, it holds its value over time. And it will always appreciate when you take advantage of the dips like the one we’re currently experiencing.
Ready to get into the Costa Rica real estate game at the right time? Call, WhatsApp, or email me and let’s get the conversation started! ¡Pura vida!