Often, when people ask me about real estate investment opportunities in Guanacaste, they’re really asking about up-and-coming destinations, new communities where they can get in on the ground floor, fire sales, or even pocket listings that only a few people know about. But today, I want to talk about a different angle on investment opportunities: real estate development.
In Costa Rica and especially our province of Guanacaste (roughly, the north-Pacific), real estate development is an incredible investment opportunity, especially for those who are willing to understand the landscape and take strategic risks. There’s a lot of potential here, but it’s also important to understand that real estate development isn’t one-size-fits-all – and there’s a lot of variation within the umbrella term “development.”
There are several different types of projects, from beginner-level real estate investment opportunities in Guanacaste to more advanced, complex property developments. Depending on your experience and goals, you can choose the right type of development to get involved in. Each type offers different challenges and rewards, but Costa Rica’s real estate market really does make room for it all.
So, if you’re strategic and build the right team (more on that, below), the potential here is huge. It’s about knowing what type of development aligns with your experience, resources, and long-term goals. And with that proviso, let’s jump in:
Essential: Funding Your Project
The absolute most important element to any development project is capital: You need it. And if you don’t have it, the most direct route to funding is to get investors on board, which of course will require a development plan, legal structure, and a lot more.
If investors aren’t an option, you can also seek bank financing but even then, you’ll still have to put down a large chunk of capital. Also, be aware that while Costa Rica’s real estate financing options have expanded for residential buyers, it’s still difficult for non-residents to get a local development loan.
Being completely transparent, and considering the complexity of a Costa Rican development project, I really can’t in good conscience suggest this type of real estate investment opportunities in Guanacaste for a non-resident without financing or investors.
Land Development in Costa Rica
When I think about development and investment opportunities in Guanacaste, the first – and by this, I mean the simplest and lowest-risk – type is land development, which is the most straightforward and a good entry point for a beginner.
With land development, you’re essentially buying land, subdividing it, and selling the individual lots. It’s less hands-on than building, but it still requires knowledge of local regulations, access to water, and utilities, and a solid understanding of what buyers are looking for. Land developments can be quite lucrative if done in a desirable area because land is always in demand here.
When I began developing Mango Walk, which sold out in just five months, it was already an established horizontal condominium and the lots had been subdivided. It was a great opportunity because much of the heavy lifting was already done for us: we didn’t have to legally form the actual condominium (which takes about two years, on average) and the 21 lots were already segregated and permitted. With that done, Mango Walk was really about creating an affordable, appealing, amenity-rich project: We paved the roads, put in sidewalks, built a perimeter fence and a separate entry gate, and developed a clubhouse pool and playground.
We worked hard to prioritize an affordable price point, even with all our improvements, and that was key in being able to sell out the project in five months: It appealed to the masses and over half of the buyers were Costa Rican.
Home Development in Costa Rica
Housing development is the next level up in development investment opportunities in Guanacaste. In this type of project, you’re not just selling land; you’re buying land and building a home on it.
A “spec home” is short for “speculative home,” which is a move-in ready house built by a developer with the market, rather than a specific buyer in mind. Spec homes are designed to meet market demand, both in terms of general specifications and design trends – think hot amenities (saltwater infinity pools, outdoor kitchens, and gated community access) and desirable upgrades (high ceilings, Venetian plaster walls, and quartz countertops). In other words, spec homes are tailor-made and built to sell quickly and for a profit.
This can be a great opportunity for an investor who wants to get their feet wet with construction but doesn’t want to dive into a larger-scale project just yet. The key here is to partner with a good builder and understand the market demands – whether that’s single-family homes, vacation properties, or long-term residences. Costa Rica’s draw as a tourist destination, combined with a local and expat community that’s always growing, makes housing development a smart move if you find the right location.
I’ve developed and sold 15 homes, including two spec homes. For all of them, the team and I have worked to merge market expectations and design trends with Costa Rica’s unique environmental requirements (ex. building for beach weather) and efficiency (ex. steel frame construction) – always while prioritizing saleable price points in desirable locations. We’ve learned many lessons over the years and have celebrated many achievements.
Condominium Development in Costa Rica
This is where we are firmly entrenched in advanced real estate investment opportunities in Guanacaste and that said, condominium development is where things start to get really interesting.
In fact, this is what I’m currently working on with Punta Playa Heights, my 22-unit project under development. This is a much bigger endeavor with a lot more moving parts.
By the time you’re ready for condominium development, you need to have assembled a solid, highly trustworthy, expert team, including an attorney, project manager, architect, and builder, as well as a thorough understanding of the local bylaws and regulations. (Note that when I say local, these can change by municipality, so we’re talking hyper-local to your super-specific area.)
If you do it right, though, the payoff can be huge. It’s all about finding the right piece of land and making sure you’re able to build what you envision.
I’m so excited about my latest development project, Punta Playa Heights, which is currently underway overlooking Bahía de los Piratas, or Pirates’ Bay—this incredible, almost deserted stretch of beach with legends of pirates, cinnamon-colored sand, and calm, sheltered waters. It’s the kind of place where you can go snorkeling right off the rocky outcrops or just enjoy the serenity of having the beach almost entirely to yourself.
This development has already been a labor of love, but I’m loving watching to see it come to life. It’s a 22-unit condominium project nestled into 25 acres of tropical forest with some of the most incredible ocean views you’ll find in the area. What makes Punta Playa Heights special is that it’s more than just a place to live – it’s a lifestyle community.
We’re building a sanctuary of affordable luxury here, where residents can enjoy the best of both worlds: a peaceful, off-the-beaten-path vibe, while still having the security of a gated setting. It really fills a market niche, for people who want convenience and privacy, luxury and affordability, space and community. What we’re creating here is really the epitome of coastal living.
We’ve designed this place to be a retreat, with every detail aimed at connecting residents to the natural beauty around them, while still enjoying those little luxuries that make life comfortable. For example, there’s a resort-style infinity pool and a BBQ area by the pool, perfect for entertaining or just relaxing with a glass of wine at sunset.
We’re planning to complete the twin buildings by 2025, and they’ll have everything you’d expect in a high-end development: elevators, underground parking, storage, solar panels, backup power for common areas, and a registered well for a dedicated water supply. It’s all about creating a community that’s as sustainable as it is beautiful.
I’m really proud of this project – it’s going to be something truly special, offering residents a coastal lifestyle that’s all about discovery, relaxation, and connecting with nature.
Commercial Development in Costa Rica
If you’re drawn to greater rewards (and the associated greater hurdles, if not risks), then you may be interested in commercial development as one of your preferred development investment opportunities in Guanacaste.
Commercial development is a whole other level, and I’d recommend it only for the more experienced developers or investors who want to take on bigger projects like hotels, shopping centers, or mixed-use buildings. With commercial projects, the stakes are higher, but so are the potential returns. You’re not just catering to individual buyers but creating something that will attract tourists, residents, and even local businesses.
If you’ve been around here for a while, you’ve likely heard me mention my Playa Flamingo commercial development: Plaza Mar Azul – still under development (we’re just weeks away from completion, though!) but also entirely rented, well in advance of construction completion.
It’s no surprise: As I’ve already mentioned, if you choose well and fill a market niche, the profits will fall into place. (It’s all the permitting, construction hiccups, delays, and other details that’ll get you!) And, as Plaza Mar Azul is located in the highly sought-after Playa Flamingo area, home to the new $50M Marina Flamingo, as well as a tight-knit international community, several gated communities, and upscale real estate that dots the hills, the demand was there; all I had to do was leverage my expertise (and incredible team) to make it happen.
This project is particularly close to my heart because Plaza Mar Azul will soon be home to BWP Group headquarters and our new Playa Flamingo office. I can’t wait to share photos from our Grand Opening, coming soon!
Download Profit In Paradise: The Investor’s Guide To Costa Rica
If you’re seriously interested in Costa Rican property investment or development, or simply seek to future-proof your build (and ensure a great resale price, when you’re ready), then you’re also looking to maximize your profit through smart building decisions.
That means you’re just the type of person for whom I wrote Profit in Paradise: The Investor’s Guide to Costa Rica, my newest free eBook. This info-packed guide covers all the basics and beyond – from investment incentives and market indicators to the various types of investment, including property investment, businesses, and development opportunities.
Bottom line: There’s no one way to do Costa Rican investment – but there are wrong ways! So, whether you plan to retire here, manage a vacation rental property, invest in development, or dedicate your hard-earned cash to anything in between, your purchase is more than just a lifelong dream to fulfill: It’s a strategic investment decision. This eBook will help you make it wisely.
Considering Investing in a Development Project in Costa Rica?
Whether you’re a first-time buyer or a seasoned investor, I’m here to help you navigate Costa Rica’s dynamic real estate market. Get in touch today to explore available properties and discover how you can maximize your ROI in paradise.
Hi, I’m Becky Clower, and the answers to your questions are what I do: I’m a real estate broker, agent, and owner of Blue Water Properties, as well as a real estate investor and developer. I’m also your expert and ally in this red-hot market.
I have the credentials – the HGTV appearances, the personal experience, the business prowess – to put me on the map, but what really sets me and my company apart is my expertise: I don’t learn from others; I learn for myself. I’ve built over a dozen homes, including two spec homes, and after selling out my highly successful Mango Walk project in just five months, I began developing two more projects: a 16-unit condominium development and a 12-unit commercial project in highly competitive Playa Flamingo.
Bottom line: I offer real, honest advice and expertise. So, if you’re looking for a broker, an agent, an investor, a developer, or simply a trusted advisor to stand by your side as you navigate your Costa Rican journey, however it manifests, then please get in touch. Let’s get started!
