Source: Costa Rica Investments, ICT, and Others.
Overview—As vacation rental markets and tourism around the globe continue to thrive and reach all-time highs, Costa Rica has become a top destination for tourists, expats, and investors. The year 2024 promises exciting opportunities and growth, driven by the tourism numbers continuing to increase year-on-year and reaching new all-time highs in Q1 this year. Costa Rica Investments reveals the latest insights and trends for vacation rentals and tourism in Costa Rica in 2024.
1. Vacation Rentals In Costa Rica—Costa Rica's vacation rental market has grown every year since 2018. In May, there were 34,360 AIRBnBs across the country, an increase of 6,660 (+24.02%) from May 2023 and 21,795 (173.45%) from May 2018.
The Average Daily Rate (ADR) of a vacation rental in Costa Rica is currently $238.65, with an expected Occupancy of 38.90%. As it is low season currently, these figures are lower than usual. The highest ADR over the last 12 months was $289.67 (Dec 2023), and the highest Occupancy was 60.60% (Feb 2024).
2. Top Vacation Rental Locations – Costa Rica has multiple diverse regions, unique experiences, and investment potential. The most sought-after locations for vacation rentals in 2024 divided into categories include:
Tamarindo: Tamarindo is ranked in the Top 5 for the number of listings (1,778), the highest ADRs ($418), and the highest occupancy rate (55.30%). In Tamarindo, an investor can fill out their vacation rental year-round and charge a higher daily rate than in the rest of the country.
Manuel Antonio: Manuel Antonio is a vacation rental hotspot. It has the highest Occupancy (56.30%) among locations with over 150 vacation rental listings. It also has the 8th largest vacation rental market and the most visited national park in the country, with over 1 million visitors a year.
Nosara: Nosara is a vacation rental hotspot. A vacation rental can charge an average of $460 a night and expect an occupancy of 56.30% year-round. It is also the 10th largest vacation rental market, with 787 listings as of this May.
La Fortuna: La Fortuna is a popular vacation rental location with an average occupancy of 51.70%. The inventory only increased by 78 new AIRBnBs in the last year, suggesting substantial opportunity because of lower growth but strong demand. La Fortuna has a much lower ADR ($124) than the average of the other top 15 locations in Costa Rica ($280), suggesting a need for higher-end vacation rentals.
Jaco: Jaco is the largest vacation rental market in Costa Rica, with 2,376 listings as of this May. Jaco has a lower occupancy rate than 13 of the country's 15 largest vacation markets. This ADR in Jaco seems high, but it is propped up by the Los Sueños, Herradura condominium and housing resort, which has multiple of the country's top vacation rentals.
To find out more about these specific locations, visit our locations page!
3. Tourism Arrival Data—Tourism in Costa Rica continues to grow and is now reaching all-time highs, with the latest data showing a significant increase in visitor numbers. In the first four months of 2024, Costa Rica welcomed 1,209,835 million tourists, an 11.93% increase compared to the same period in 2023 (1,080,906). Most tourists come from the USA, Canada, and France.
Costa Rica's two national airports, Juan Santamaria San José and Daniel Oduber Quirós Liberia, brought 1,105,572 tourists this year. San José had 709,542 arrivals, and Liberia had 396,030 arrivals. This represents a 64.18% to 35.82% split. This is notable because, in 2018, the split was 72.69% to 27.31%, showing the increasing demand in Guanacaste.
4. Some of the best performing Vacation Rentals over the last 12 months – Costa Rica Investments has identified some of the top vacation rentals currently leading the market in popularity and returns. This data only includes properties that have been listed on a vacation rental website for more than 270 days in the last year:
Puesta del Sol 5 Bedrooms, Panoramic Ocean Views, Private pool, Sunset Views: This Airbnb is located in the Los Sueños resort in Herradura, Puntarenas (the bay next to Jaco). It has five bedrooms, five bathrooms, a swimming pool, and all the other necessities expected of an Airbnb. It is listed for 305 days of the year, charges an ADR of $2,316, and achieves an occupancy of 61.50%. If this were listed as a full-time rental, the revenue would be roughly $520,000, assuming they could accomplish the same ADR and Occupancy for 365 days.
Harmon Estate 6 Bedrooms, Private Pool, Jacuzzi, Swim-up bar: This AIRBnB is located in the Los Sueños resort in Herradura, Puntarenas; it has six bedrooms, 7.5 bathrooms, a swimming pool and hot tub and all other necessities expected in an AIRBnB. It is listed for 280 days of the year, charges an ADR of $2,448, and achieves an occupancy of 51.40%. If this were listed as a full-time rental, the revenue would be roughly $460,000, assuming they could accomplish the same ADR and Occupancy for 365 days.
Beachfront Palace Costa Rica, close to Tamarindo: This vacation rental is located in Playa Blanca Guanacaste, just above Junquillal and about 30 minutes from Tamarindo. It has five bedrooms, five bathrooms, a swimming pool, and all the other necessities expected of an Airbnb. It is listed for 313 days of the year, charges an ADR of $1,571, and achieves an occupancy of 75.60%. If this were listed as a full-time rental, the revenue would be roughly $435,000, assuming they could accomplish the same ADR and Occupancy for 365 days.
Casa Oasis 5 Bedrooms, Private Pool Jacuzzi, Ping pong and Foosball: This Airbnb is in the Los Sueños resort in Herradura, Puntarenas. It has five bedrooms, 5.5 bathrooms, a swimming pool + jacuzzi, and all other necessities expected of an Airbnb, along with more 'bar game' type activities such as ping pong. It is listed for 326 days of the year, charges an ADR of $1,876, and achieves an occupancy of 57.70%. If this were listed as a full-time rental, the revenue would be roughly $400,000, assuming they could accomplish the same ADR and Occupancy for 365 days.
Casa Patron 6 Bedroom, pool table & private pool with BBQ: This Airbnb is located in the Los Sueños resort in Herradura, Puntarenas. It has six bedrooms, six bathrooms, a swimming pool and hot tub, and all other necessities expected in an Airbnb. It is listed for 356 days of the year, charges an ADR of $1,762, and achieves an occupancy of 59.80%. If this were listed as a full-time rental, the revenue would be roughly $385,000, assuming they could accomplish the same ADR and Occupancy for 365 days.
If you're interested in buying an income-producing property investment in Costa Rica, learn more here!
5. What Should You Expect To Pay for a 3-Bedroom Property – The cost of vacation rentals varies by location, with three-bedroom properties being a popular vacation rental option. This is what one should expect to pay for a three-bedroom home in the top 5 places in May 2024: *These are rounded averages of all listings in Jaco taken from Point2Homes.
Tamarindo: $960,000. This number is rather high, but that is to no one's surprise. Tamarindo is an expensive market for a good reason: lots of tourists. There are also a few luxury condominiums, such as the Senderos community, which drag the prices up.
Manuel Antonio: $915,000. This is higher than expected as Manuel Antonio is a smaller town. Still, many of the one-off luxury villas scattered throughout the city and the Hotel Condos of Los Altos have dragged this number up.
Nosara: $1,275,250. Nosara was expected to be one of the places with the highest costs. It is the third most expensive location to rent a vacation rental, which suggests more luxurious housing.
La Fortuna: $450,850. La Fortuna is a less developed area of luxury real estate in Costa Rica, with only a few homes surpassing the $1 million mark. These multi-million homes have much more land than the other locations.
Jaco: $460,000. Jaco was also expected to be lower than the other locations. With lots of tall towers and a much larger area than the rest of these locations, Jaco expands up and backwards. Jaco is the largest Airbnb market in Costa Rica and continues to grow. With much more inventory than the other locations, the lower price is not a surprise.
To learn more about what these investments may cost you, visit our curated investments page to see our opinions on some current listings on the market.
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