Real Estate in Tamarindo Market Update
Here are current facts & figures you’ll want to know if you’re considering investing in Tamarindo:
MetricWhat It Is / TrendWhy It Matters
After a steep surge from 2020-2023 (some estimates up to ~400% rise in many segments), many property types have dropped 30-36% year-over-year in 2024-2025. TheLatinvestor+2TheLatinvestor+2 Creates opportunity: more reasonable entry prices; less speculative excess.
Stabilization & Modest Growth Forecast
Prices are expected to grow ~3-7% over the next year (2025-2026) in desirable segments. Luxury sections may be slower. TheLatinvestor+3TheLatinvestor+3TheLatinvestor+3 Suggests that the worst of the downturn is over, and appreciation is slowly returning.
Foreign Buyer Demand
Foreigners still represent a large share of transactions (60-70% in many reports) in Tamarindo, especially in the beachfront & luxury segments. TheLatinvestor+2TheLatinvestor+2 Demand from international buyers is a strong source of capital & tends to support value for high-end/prime property.
Tourism Recovery
Guanacaste (the province that includes Tamarindo) saw ~1.90 million visitors arriving via its international airport in 2024, a ~16% increase over previous years. TAM Travel Also, tourism in Tamarindo is nearly back to (or recovering toward) pre-pandemic levels.
TheLatinvestor+1 Strong correlation: more tourists = more demand for rentals, more interest in purchase. Helps both income streams (short term rentals) and capital appreciation.
Inventory & Supply
Inventory has tightened in many high-demand neighborhoods — fewer quality listings, especially beachfront and ocean-view homes. TheLatinvestor+2TheLatinvestor+2 Also, luxury inventory oversupply in some sectors has slowed growth there.
TheLatinvestor+1 Tight supply in desirable areas supports price stability; oversupply in luxury can cause discounting and slower recoveries there.
Rental Income Potential
Short-term vacation rentals continue to perform reasonably well in Tamarindo, especially during peak season. Some reports suggest yields in the vacation rental market in the region (Guanacaste / Tamarindo) can reach 6-10%+ in favorable cases.
laurenmantey.com+1 For investors relying on rental income, this income stream makes a property more viable (helps cash flow, lowers payback periods).
What Makes Tamarindo Attractive
From the data and recent trends, here are strong reasons Tamarindo remains a compelling real estate investment:
Location & Desirability
Beautiful beaches, surf, natural parks, flora/fauna, sunsets, good amenities. Tamarindo is well known internationally, which helps maintain demand.
Dual Upside: Rental Income + Capital Appreciation
Especially in tourist seasons, a well-located property (near beach, good views, gated, well-maintained) can generate solid vacation rental income. Over time, appreciation in value can accumulate (once the market stabilizes).
Post-Boom Correction = Entry Window
Because luxury and beachfront properties cooled off and had price drops, there may be opportunities to acquire at prices below the unsustainable peak. If you pick well, you may get upside as the market recovers.
Strong Foreign Interest & Stable Political / Legal Environment
Costa Rica’s reputation for stability, attractiveness to foreigners, and legal property rights make it less risky than many emerging markets.
Tourism Rebound & Infrastructure
As tourism returns, infrastructure (airports, roads, services) tends to improve, raising the attractiveness of properties. Demand from remote workers / digital nomads is also increasing—these folks often choose places like Tamarindo.
Risks & Things to Consider
Of course, no investment is without risk. Here are the main downsides / caution points:
Luxury Oversupply
Some luxury developments overshot what the local or foreign market could absorb. These may still lag in selling or require discounts. If your investment is very high-end, you may have to wait longer for appreciation or for rental returns.
Volatility & Sensitivity
Beachfront / ocean-view properties are more volatile—they fluctuate more in downturns, are more subject to economic shocks (tourism drop, currency fluctuations), global travel reductions, etc.
Currency & Financing Risk
Buyers coming with foreign currency or needing financing can face higher costs; mortgages in Costa Rica tend to have higher rates, and financing may be harder. Also, exchange rate risk if you’re earning in USD but paying in Costa Rican colón, or vice versa.
Carrying Costs
Maintenance, HOA / community fees (if in gated subdivisions), property taxes, insurance, etc. Can eat into rental income, especially off-season. Ensure you model these.
Market Corrections Take Time
Even though we saw price drops in 2024-2025, recovery is gradual. If you plan to sell soon, you may not see big capital gains immediately; the best gains may come with 3-5 year+ horizons.
What’s the Outlook (2025-2026) & Where the Best Opportunities Are
Based on current forecasts & recent data, here’s what experts expect, and where to focus:
Properties in mid-range segments ($250,000-$500,000) are predicted to perform better (faster stabilization, more consistent demand) than ultra luxury homes (> US$1M) in this period. TheLatinvestor+2TheLatinvestor+2 Beachfront condos and ocean-view lots in prime locations may be slower to recover in price, but once tourism continues to increase, they often lead in appreciation.
TheLatinvestor+1 Inland and semi-inland properties (that still have good road access, amenities, views, etc.) are showing more stable value and less downside in corrections. They may offer better value for risk.
Eco-friendly, sustainable developments / gated communities with good amenities, good infrastructure, reliable services, good access to internet / utilities are likely to outperform less well-built properties.
Conclusion: So, Is Tamarindo Real Estate a Good Investment?
Yes — with the right strategy. Here’s the summary:
If you select properties wisely (not overpay, focus on good location, manage costs), Tamarindo offers solid medium-term returns via both rental income and capital appreciation.
The recent price correction has opened an entry window that didn’t exist a couple of years ago. That lowers downside risk relative to the peaks of 2022-2023.
Risks remain (luxury oversupply, volatility, financing costs), so you’ll do better if your horizon is more than 2-3 years, if you understand local market conditions, and if you budget properly for carrying costs.
