No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsGuanacaste's Booming Property Market Threatens Displacement of Locals

Guanacaste’s Booming Property Market Threatens Displacement of Locals

Guanacaste is one of Costa Rica’s most popular destinations and one of the most sought-after places for Real Estate developments. It attracts millions of tourists each year, many of whom choose to move permanently later. However, it’s not paradise for everyone, especially locals who, for many years now, struggle to live in the place they have always called home.

Guanacaste coastal property prices increased by 400% between 2020 and 2023, as shown by the Observatory of Tourism, Migrations, and Sustainable Development of the Chorotega Region of the National University (OBTUR-UNA).

From 2017 to 2019, a surge in real estate construction has been evident, which, despite a slowdown in 2020, rebounded by almost double in two years.

“The commercial sector in Guanacaste went from building 131,000 m2 in 2019 to 209,000 in 2022, which represents a less dramatic but very significant growth. These two sectors were considered because they are the most related to tourism and second residences, mainly in coastal areas, where the highest records were given,” said Esteban Barboza Núñez, coordinator of the observatory.

Santa Cruz, Nicoya, Liberia, and Carrillo have the largest number of housing and commercial construction projects. Meanwhile, Nosara registered 131,000 m2, Tamarindo 128,000 m2, Sardinal 117,000 m2, Cabo Velas with 98,000 m2, Samara a total of 28,000 m2, and Nacascolo 24,000 m2, plus the central district of Liberia with 83,000 m2.

For perspective, only San José recorded a greater amount of construction in housing and commercial projects than Guanacaste did. Barboza pointed out that, according to last year’s data, of all the square meters processed to build real estate developments in the country, 25% will be concentrated in Guanacaste.

The real problem that this phenomenon brings real estate inflation, which affects thousands of people, especially locals. For instance, if a property was worth $100,000 four years ago, today it costs around $400,000 or $500,000. In terms of rentals, a 15 m2 to 20 m2 apartment in Nosara can cost $700 or $800, while the rent for a social housing unit in the same locality costs $1,500.

According to Barboza, this represents a serious issue since luxury real estate developments tend to displace people who cannot opt for or afford this type of housing. This triggers a process of dispossession, and those who lived in those communities are forced to look for new places to settle.

Trending Now

Costa Rica’s Poás Volcano Park Reopening to Tourists With Safety Measures

The Poás Volcano National Park will reopen its doors to tourism starting July 30, after  scientific entities reported a decrease in volcanic activity. This was...

UN Denounces Guatemala Over ‘Inhuman’ Indigenous Evictions

The United Nations Special Rapporteur on the right to adequate housing, Balakrishnan Rajagopal, called on the Guatemalan government on Friday to halt the “inhuman”...

Nicaragua Places Bayardo Arce Under House Arrest Amid Power Struggle

The Nicaraguan government has placed historic Sandinista commander Bayardo Arce, economic adviser to President Daniel Ortega, under house arrest, according to exiled opposition members...

Venezuelan Migrants Describe Hellish Stay in El Salvador Jail

Mervin Yamarte left Venezuela with his younger brother, hoping for a better life. But after a perilous jungle march, US detention, and long months in...

Can Costa Rica’s Blue Zone Preserve Its Longevity Legacy?

The Nicoya Peninsula in Costa Rica is recognized worldwide as one of the five blue zones, where people live beyond the age of 90...

Costa Rica Seeks New Air Routes Amid Decline in European Tourism

Costa Rica is working to increase the number of international flights entering the country, as it faces a concerning drop in tourist arrivals.  The...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica