The Costa Rica real estate market is best understood not as one market but as a series of separate sub-markets.  Real estate is a local endeavor so it makes sense to get geographically granular when considering where to invest in Costa Rica.

Six 'purchasing destinations’ stand out.  These are the areas that attract the most investment interest, and in turn have the largest number of real estate developments to service that market: 

1. Jaco – Famous for its surf breaks by day and its clubs and bars at night, Jaco has been attracting tourists to its crescent shaped bay for years.  As you drive the road parallel to the beach, you’ll notice real estate development after real estate development jostling for position along the beachfront.  Some investors are put off by the noise while others see its popularity as crucial to holding up real estate values and brings with it the promise of rental income.
2. Tamarindo – As one of the most well known property destinations in Costa Rica, Tamarindo is home to a large number of real estate developments (12% of the total in our survey).  The town is well positioned for the residential tourism market offering a wide array of accommodations, restaurants, shopping, orange sunsets and a lively nightlife.  Popular surf breaks, turtle beaches and golfing facilities are close at hand.  
3. Flamingo - Flamingo is an affluent vacation area in the booming Guanacaste region of Costa Rica.  The real estate dollars have followed in the footsteps of the holiday makers bringing with them a rush of high end resorts, master-planned communities and championship golf courses. 
4. Hermosa, Coco and Papagayo - Also in Guanacaste, the areas around Playa Hermosa, Playas del Coco and the Papagayo Peninsula have seen luxury launch follow luxury launch helped along by the proximity to the international airport at Liberia.  2009 saw a marked slowdown in activity and some high profile project suspensions.   But the inherent beauty of the area, developing infrastructure and strategic location should keep tourists and investors coming back as the worst effects of the downturn wear off.
5. Southern Pacific - With all the attention being focused on Guanacaste, it can be easy to overlook the new developments and infrastructure improvements quietly being rolled out on Costa Rica’s southern coast.   Real estate promoters are touting this area from Quepos to the border with Panama to the south as an ‘early-in’ opportunity.  They could be right.  Investors who act quickly can lock in lower real estate prices than elsewhere on the Pacific.  
6. Central Valley – Taking in the highlands. rainforests and small towns around the capital San Jose, the Central Valley has a very different vibe to the coastal regions.  Developers in the area have been successful in attracting a new breed of ‘lifestyle’ investor looking for a taste of cosmopolitan living, recreational amenities and cooler temperatures.

If we had to add a seventh hotspot area it would be the Caribbean coast, particularly around the port town of Limon.  Although at an earlier stage of development, we’ve received reports of a growing number of hospitality companies and development groups showing interest in the area.  One to watch.