We tend to write our market reports for investors, but recently we received a lot of inquiries from families and couples wanting to buy a vacation home and that are wondering how is our real estate market at the moment with the world turbulences. Guanacaste is popular as always and there are reasons why people chose to move or invest here. Here's a resume of our current market.
Why Guanacaste Is So Popular
Guanacaste is Costa Rica’s most popular beach region for international visitors. It has:
- Beautiful beaches
- Dry, sunny weather most of the year
- Easy access through Liberia International Airport, with many direct flights from the U.S. and Canada
Because so many people visit — and keep coming back — many end up buying second homes here
What’s Happening With Home Prices
Home prices went way up between 2020 and 2023, especially near the beach. Since then:
- Prices have come down from their peak
- There are more homes for sale, so buyers have more choices
- Sellers are more open to negotiation than they were a few years ago
What this means for you: It’s a much calmer market now. You don’t need to rush or overpay like before.
Popular Areas for Vacation Homes
Most buyers focus on:
- Tamarindo – lively beach town, restaurants, surfing, amenities
- Flamingo / Potrero – marina, upscale but relaxed
- Nosara – yoga, nature, wellness lifestyle
- Papagayo Peninsula – luxury resorts and gated communities
Each area has a different vibe, but all are popular with foreigners and renters.
Can You Rent It When You’re Not Using It?
Yes, and many owners do.
- Vacation rentals do very well during high season
- Many homes are rented part-time to help cover costs (50-55% occupancy in average)
- Beach locations and well-managed homes perform best
That said, rental income is not guaranteed. 2025 was slower than normal in rentals, and it is too early to say what will be 2026. Fact: you’ll do better if:
- The home is close to the beach (within 500-600m)
- It’s furnished nicely and you have professional pictures taken
- You have good local property management that will add the property on different medias and will respond fast
Think of rental income as helpful bonus money, not your main reason to buy.
Things to Be Aware Of
Before buying, it’s important to know:
- Not every property rents equally well.
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Maintenance, HOA fees, and management costs add up.
The market is healthier now, but prices probably won’t skyrocket quickly.
A good local agent and lawyer are essential. We have an MLS at Remax with all properties for sale within our area of coverage, ask us for options.
What Buyers Should Expect
- Guanacaste remains one of the best places in Costa Rica to own a vacation home
- Prices are more reasonable than during the recent boom
- This is a good time for long-term enjoyment, not quick flipping
- Best suited for buyers who plan to keep the home 5+ years
Guanacaste is still a very solid choice, and the current market gives buyers more control and more room for negotiation than in recent years. How will be the next few months? We don't know but we do not expect big changes on the market in a near future. We also have BTC purchase options now, bank financing for foreigners and private lenders that are offering 20-25 years mortgages. Contact us for more information.
Isabelle Emond, Owner/Broker