View of the National Park
Costa Rica has become a mecca for foreign investment and vacation rentals.
Costa Rica is fast becoming one of the most significant opportunities for investment outside of the US due to its stable government, its high-quality tourism, and continued flight routes.— Richard Bexon
SAN JOSE, SAN JOSE, COSTA RICA, June 26, 2024 /
EINPresswire.com/ -- 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.
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.
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.
In conclusion,
Investing in Costa Rica's vacation rental market and tourism industry are experiencing growth, positioning the country as a premier destination for tourists, expats, and investors. The significant increase in vacation rental listings and occupancy rates, and the rising number of international visitors, highlights the potential for continuing growth and investment opportunities in this market.
Source: Costa Rica Investments, ICT, and Others.
James Neale
Costa Rica Investments
+1 214-377-0447
info@investingcostarica.com
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