As Costa Rica's relocation market experiences a surge, Q3 statistics reveal a productive vacation rental market, significant increases in MLS real estate listings in expat communities and more tourists than ever.
Costa Rica is fast becoming a first-rate destination for individuals and families seeking to relocate, driven by favorable residency options for any demographic, a developing real estate market and a climbing vacation rental sector. End-of-quarter statistics for Q3 2024 underscore the growth, with vacation rental daily rates seeing a steady year on year rise, occupancy rates also increasing, reflecting strong demand from tourists and a growing market that isn’t growing at the same rate as tourist arrivals.
Occupancy Rates Reflect Strong Tourist Demand
According to the latest data, Costa Rica's vacation rental market has seen a year-over-year increase in rental prices, with average daily rates up by 3.2% across the country. These popular tourist towns, in terms of the number of vacation rentals, have seen surprising ADR growth this year; Tamarindo up by 18.6% (Guanacaste), Jaco and Herradura (Puntarenas) have not seen any change in ADRs over the last 12 months, with also no notable change (+0.7%) in Occupancy in the area either. Manuel Antonio is up by 19.3% (Puntarenas), and the Cahuita area in Limoń is up 3.5% in the last 12 months, more inline with the current trend in Costa Rica.
Occupancy rates climbed to a high of 60.6% in February this year for short term rentals, before dropping to their low of 39.3% this August, traditionally a low month for tourism and business in Costa Rica. Despite this, occupancy in vacation rentals is 1.6% higher from the same period in the previous year, reflecting Costa Rica’s growing appeal as a vacation and relocation destination. Simultaneously, the number of listings across the 10 most popular realty companies has increased by 19.43% since the beginning of Q2 2024, Indicating increased real estate activity and rising interest in permanent and vacation home investments.
Favorable Conditions Continue to Attract Expats
Costa Rica’s attractiveness for relocation is supported by its affordable and highly-ranked healthcare system—ranked 30th globally and first in North and South America, surpassing both the USA and Canada, as noted by International Insurance. In addition, it stands as the second safest country in North and South America, based on data from the World Population Review. Furthermore, Costa Rica is recognized as the 12th happiest country in the world and the happiest in the Americas, based on the World Happiness Index, making it a top choice for professionals and families seeking a higher quality of life.
Increasing Tourist Arrivals Fuel Real Estate and Vacation Rental Demand
A consequence of these statistics, Costa Rica has become ever more popular for tourists and expats. Arrivals via plane, an indicator of tourism health in Costa Rica, have increased by 12.58% since last year. This increase in tourism and expats, demand for vacation rentals and real estate listings in Costa Rica continues to grow.
Recent trends show that Costa Rica’s real estate market is well-positioned for further growth in the coming quarters, with vacation rental investments presenting opportunities for both local and foreign investors. Costa Rica’s increased visibility on international relocation and real estate markets makes it a top contender for those considering relocating.
Sources:
Airdna
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