Costa Rica, a country long celebrated for its pristine natural beauty, political stability, and unwavering commitment to environmental conservation, is solidifying its position as a major player on the global real estate stage. The announcement of two monumental new developments by renowned luxury brands, Hyatt Hotels & Resorts and Starwood Hotels & Resorts Worldwide, serves as a powerful testament to the country’s growing appeal as a destination for high-end tourism and, crucially, for overseas real estate investment. These projects are not just about building hotels; they are about creating integrated communities that will drive demand, shape local markets, and provide exceptional opportunities for foreign buyers seeking to invest in a stable and growing market.
The Arrival of Luxury Giants: A Catalyst for Growth
The recent announcements from Hyatt and Starwood signal a new era for Costa Rica’s luxury real estate market. The planned Hyatt Regency Azulera Resort & Spa in the northwestern province of Guanacaste is an ambitious project. Spanning 225 hectares, it is a master-planned community that will include a 214-room hotel, a separate 100-suite hotel, a significant number of residential homes (over 1,000), and a signature 18-hole golf course designed by the legendary Greg Norman. The sheer scale of this development, with a first-phase investment exceeding £60 million, highlights a long-term commitment to the region.
Simultaneously, Starwood is developing the St. Regis Resort on the central Pacific coast. This ultra-luxury project will feature a 133-room hotel, a world-class spa, and a substantial residential component, including 49 apartments and 50 individual villas. The St. Regis brand is synonymous with opulence and bespoke service, and its entry into the market signals a new level of sophistication for Costa Rica’s hospitality and residential offerings.
These developments are more than just isolated projects. They are branded residences, a segment of the market that is gaining significant traction globally. Buyers of these properties are not just purchasing a home; they are investing in a lifestyle that comes with world-class amenities, professional property management, and the promise of a resilient resale value. For overseas buyers, this provides a critical layer of security and convenience. They are buying into a system of governance, maintenance, and hospitality-grade experiences that is managed by globally recognized brands, making them highly sought-after assets.
The impact of these projects extends far beyond their immediate footprint. The infusion of capital, the creation of jobs, and the subsequent improvement of local infrastructure will have a positive ripple effect on the surrounding communities and the broader real estate market. As newly re-elected president and Nobel Laureate Oscar Arias noted, these developments are a source of both happiness and concern. While they signify immense economic opportunity, they also underscore the urgent need for the government to invest in infrastructure and environmental protection to ensure that growth is sustainable and benefits the country as a whole. This focus on sustainability and integration, as expressed by developer Ronald Zürcher, is a key selling point for a new generation of eco-conscious investors.
Overseas Buyers and the Costa Rican Market: A Shifting Landscape
The Costa Rican real estate market is in a fascinating state of transition, presenting a compelling array of opportunities and challenges for overseas buyers in 2025. The market has seen a recent correction, particularly in the luxury segment, following a period of rapid appreciation. However, this is seen not as a downturn but as a recalibration, creating a more balanced market and providing smarter entry points for investors.
Recent market data indicates a shift towards a buyer’s market, with increased inventory and longer selling timelines in some areas. This gives foreign buyers more negotiating power and a wider selection of properties to choose from. While median home prices in some regions have softened, the market for well-priced, turnkey properties, especially those with ocean views, remains strong. This is a clear indicator that the new generation of buyers, which includes younger families and remote workers in addition to retirees, is prioritizing utility, quality, and a ready-to-enjoy lifestyle.
One of the most significant trends for foreign investors is the continued strength of the residential land market. Despite fewer transactions, land prices continue to climb, signaling strong investor interest in development and land acquisition. This is particularly relevant for those with a long-term investment horizon who are interested in building a custom home or developing a multi-unit property. However, it’s crucial to exercise due diligence, as the value of raw land is tied directly to the clarity of its entitlements, including water verification and access.
For foreign investors, Costa Rica’s legal framework is highly favorable. The country’s constitution guarantees property rights for all owners, and non-residents have the same ownership rights as citizens for titled land. This provides a level of security and peace of mind that is not always available in other Central American countries. However, it is essential to work with a reputable local real estate attorney to navigate the nuances of the legal process and ensure that the property has a clean title and is free of any encumbrances. Many foreign buyers choose to hold their property through a Costa Rican corporation for liability protection and simplified estate planning.
The Central and South Pacific: Established Markets with Growing Potential
The central and southern Pacific coast, where the new St. Regis resort is being developed, is a region with a mature tourism infrastructure and a strong track record of real estate appreciation. Areas like Manuel Antonio, Dominical, and Uvita have long been favored by expats and investors due to their stunning natural beauty, consistent rental demand, and reliable year-round tourism.
The market in this region is characterized by a high demand for turnkey ocean-view villas and properties that seamlessly blend jungle and ocean living. These properties, particularly those in well-managed communities, offer strong rental yields and the potential for long-term capital appreciation. The ongoing infrastructure improvements in the region, including better roads and transportation networks, are making previously remote areas more accessible and are expected to continue driving up property values.
However, the region also presents unique challenges. The focus on sustainability and environmental compliance means that new developments are subject to strict regulations. While this may add to the cost of a project, it also protects the natural environment, which is the very essence of Costa Rica’s appeal. For investors, this means that properties that embrace sustainable design, use eco-friendly materials, and incorporate features like solar panels and rainwater collection systems are likely to command a premium and outperform the general market.
Guanacaste: A Luxury and Lifestyle Hotspot
The northwestern province of Guanacaste, the location of the new Hyatt development, has established itself as Costa Rica’s premier destination for luxury real estate and tourism. The region is known for its stunning white-sand beaches, dry tropical climate, and a highly developed infrastructure that includes the Daniel Oduber Quirós International Airport (LIR), which provides direct flights from North America and Europe.
Guanacaste’s real estate market is diverse, ranging from luxury homes and villas in exclusive gated communities to more affordable condos and residential lots. The market has seen some recent price corrections in the luxury segment, making it a strategic moment for buyers to enter. Branded residences, such as those at the Andaz Peninsula Papagayo Resort and the soon-to-be-built Hyatt and St. Regis developments, are particularly resilient and hold their value well due to the high level of service and amenities they offer.
The demographic of foreign buyers in Guanacaste is also evolving. While it has long been a haven for retirees, the area is now attracting a younger demographic of families and remote workers who are drawn to its high quality of life, international schools, and robust community. This shift is creating demand for larger, family-oriented properties and driving growth in areas that offer a blend of lifestyle and investment potential.
For investors, the key to success in Guanacaste is to focus on disciplined, utility-driven acquisitions. The most successful investments are those that are ready to enjoy and are professionally managed for rental income. While raw land can offer significant upside, the execution capacity of the developer and the clarity of the entitlements are paramount.
In conclusion, Costa Rica’s real estate market is at a pivotal moment, with new luxury developments serving as powerful anchors for growth and investment. The market offers a wide range of opportunities for overseas buyers, from purchasing a turnkey luxury villa to investing in residential land for long-term appreciation. By understanding the key market trends, embracing the country’s commitment to sustainability, and working with trusted local professionals, foreign investors can successfully navigate this dynamic landscape and secure a piece of paradise in one of the most stable and beautiful countries in the world.
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