Should You Buy Pre-Construction in Costa Rica? Pros and Cons Explained

The Rise of Pre-Construction Projects in Costa Rica

Across Costa Rica’s booming coastal regions - from Guanacaste’s Playas del Coco and Tamarindo to the Central Pacific’s Jaco and Herradura - cranes and renderings have become a familiar sight. Pre-construction, or off-plan real estate, has evolved from a niche opportunity into one of the country’s most dynamic investment segments.

As foreign demand grows, developers are racing to meet expectations with modern condos, branded residences, and turnkey villas that promise a blend of comfort, sustainability, and rental potential. Yet, as enticing as “buying early” may sound, the pre-construction market carries both powerful advantages and real risks.

Why Buyers Are Turning to Pre-Construction

Pre-construction purchasing - committing to a property before it’s built - offers a unique chance to lock in value early. In Costa Rica’s competitive market, this can mean significant savings and flexibility.

Many developers launch projects in phases, often with early-bird pricing that increases as construction progresses. For investors, this approach allows them to secure units at a discount, sometimes gaining 10 to 20 percent in appreciation by delivery.

Beyond price, pre-construction also means choice: buyers can select their preferred unit, customize finishes, and sometimes influence layouts. Developers are also incorporating green technologies, smart home systems, and resort-style amenities that appeal to both full-time residents and vacation renters.

The Advantages of Buying Pre-Construction

• Lower Entry Price: Buying during the early phase often provides the lowest possible price point before appreciation takes hold.

• Payment Flexibility: Most developers structure payments across the construction timeline - such as 10% at reservation, 20–30% during progress, and the balance at completion - making it easier to manage cash flow.

• Modern Design and Efficiency: New projects typically follow higher design standards, with efficient layouts, sustainable materials, and better energy performance.

• High ROI Potential: If purchased wisely, a pre-construction property in a strong location can deliver double-digit appreciation by the time construction is complete.

  
  

In growing regions like Guanacaste, where infrastructure and international access continue to improve, these early-stage investments can yield particularly strong returns.

The Risks: What Every Buyer Should Know

Of course, no investment is without risk - and pre-construction carries its own set of challenges.

• Delivery Delays: Weather, permitting, or financing issues can push back delivery timelines by months - or even years.

• Developer Reliability: Not all developers are equal. Buyers must research track records, review completed projects, and ensure all legal filings are in order.

• Escrow and Payment Risk: Deposits should always be held by a licensed escrow company, not the developer directly. This provides protection if construction stalls or legal disputes arise.

• Resale Liquidity: Pre-construction properties can’t be resold easily before delivery, limiting flexibility for buyers who may need to exit early.

  
  

Attorney Carolina Jiménez of San José notes, “Foreign buyers must ensure their contracts clearly outline delivery dates, refund conditions, and legal recourse. Transparency is key - verbal promises are not enforceable in Costa Rican law.”

How to Evaluate a Pre-Construction Project

1. Research the Developer:Ask for details on past projects, financing sources, and reputation in the local market. Visit a completed development if possible.

2. Review the Legal Structure:Confirm that building permits, environmental approvals, and water rights are fully authorized. This can be verified through the National Registry (Registro Nacional) and local municipality records.

3. Understand the Contract:Contracts should specify delivery timelines, material standards, and refund or compensation clauses. A bilingual attorney should always review these documents before signing.

4. Inspect Progress Regularly:For foreign buyers who aren’t based in Costa Rica, consider hiring a local project manager or attorney to monitor progress and provide updates.

5. Consider Exit Scenarios:If your goal is resale or rental income, evaluate projected demand and comparable completed properties in the same area.

   
   

Ideal Locations for Pre-Construction Investment

Certain parts of Costa Rica are particularly well-suited for pre-construction buyers in 2025:

• Playas del Coco & Playa Hermosa (Guanacaste): Expanding rapidly due to proximity to Liberia Airport and strong rental demand.

• Tamarindo & Playa Grande: Established tourism hubs with robust appreciation and infrastructure.

• Santa Teresa & Nosara: High-end boutique developments with international appeal and limited inventory.

• Central Valley (Escazú, Santa Ana): Urban projects offering convenience and modern design, appealing to professionals and expatriates.

  
  

These areas offer a balance of stability, access, and long-term growth potential.

Financing and Payment Structures

While most pre-construction transactions in Costa Rica are cash-based, developers often offer in-house payment plans. Some also partner with local or international lenders.

Typical structures include:

• 10% deposit at reservation

• 20–30% in progress payments

• Final 60–70% upon delivery or title transfer

  
  

This staged system allows buyers to leverage time as a form of financing while minimizing exposure before completion.

The Verdict: Is Pre-Construction Worth It?

Buying pre-construction in Costa Rica can be an excellent opportunity - but only for those who do their homework. For disciplined investors willing to navigate due diligence, the rewards include appreciation, flexibility, and access to modern inventory that’s increasingly scarce in built-out markets.

However, for buyers seeking immediate occupancy, guaranteed rental income, or short-term liquidity, the risk-reward equation may not align. Pre-construction is a long-game strategy - and like Costa Rica itself, it rewards patience, planning, and vision.

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sabina@palmrealestatecr.com| WhatsApp Me +506 8713 8080 | Based in Guanacaste, CR